Plans are on to launch the Robinhood wallets by early 2022 with new features. Users can send, receive and trade crypto with the wallets after the test run.
Robinhood Markets Inc. (HOOD.O) will begin testing cryptocurrency wallets soon. Robinhood plans to introduce the wallets by early 2022.
Users can buy, sell and hold certain digital currencies like Bitcoin, Ethereum, and Dogecoin. After the test run, the wallets will be available on the app, with no Robinhood fee.
Test Run on Robinhood Wallets to Start Soon
The test runs on cryptocurrency wallets on the Robinhood platform will start soon. There was no mention of a launch date. Testing will begin with the ‘alpha group” next month, says Robinhood Chief Operating Officer Christine Brown. Alpha users will test the new features and give feedback. Once the positive feedback is confirmed, it will come into live usage, says the COO.
Robinhood CEO Vlad Tenev says that the crypto wallet launch is the top priority for Robinhood developers.
Pandemic Brings New Retail Users to Robinhood
The pandemic brought new investors into the crypto market. Investments in blockchain transactions are increasing, with young investors purchasing non-fungible tokens in the cryptocurrency exchange. Investors can store their crypto assets in digital wallets for safety purposes. The Robinhood crypto has many customers showing interest in the new wallet, which will allow them to buy and sell crypto. New users show interest in non-fungible tokens on the Ethereum network, which will soon be possible on the Robinhood wallets.
There are more than 31 million users actively involved in crypto trading and cryptocurrency mining. They make use of the Robinhood app daily or at least once a week, says CEO Tenev. Robinhood app has more than 60% of such users. Most crypto users trade in Dogecoin, the meme cryptocurrency.
The Robinhood app allows free trading, and investors can trade cryptocurrency, stocks, options, and ETFs without paying a fee or commission. Robinhood crypto comes under the Securities and Exchange Commission (SEC).
Security Features on Robinhood Wallets
Robinhood wallets will provide security features to users to keep their crypto currencies safe from theft and hacks. Multi-factor authentication and identity verification are some distinct features of the new wallets. Verification will be through phone and email checks for additional security. As charges are 0% commission fee, investors will prefer them, say authorities. Users can also send a selfie or a picture for ID verification. With double verification, the wallets will be safe from hacks and cybercrime.
Once customers sign up, they will gain immediate access to the wallets. Many on the waitlist want access to the wallets by the end of this year. The wallets will initially be available only to store them.
However, users cannot use the crypto in Robinhood wallets to buy stocks. They have to sell the crypto to a fiat currency and use the money to buy stocks.
“Once you buy cryptocurrency on your Robinhood wallet, the control over the crypto stored in the wallet will go to Robinhood. We hold them internally and make sure that the coins stay protected. We have a mix of custody solutions to keep them secure”, says COO Brown.
There are stories of people losing their crypto as they forgot their passwords. Robinhood is taking precautionary measures to prevent such situations. The company will also take responsibility for the wallet keys. Control over the wallet will be by both Robinhood and the users. They do not have to manage it themselves, says Brown.
With a cryptocurrency wallet, you can withdraw the crypto assets you own from the exchange and store them in wallets. The best crypto wallets for beginners are Exodus and Mycelium, as they provide cold storage and cloud storage. Users can operate Ledger Nano X with their mobile app or desktop. For security purposes, Trezor is the best as it has good security features with a hardware wallet.
Some of the best cryptocurrencies to invest in 2021 are Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Uniswap (UNI), and Dogecoin (DOGE). Binance Coin (BNB) and Polkadot (DOT). Bitboy Crypto provides daily content for users on the latest crypto news and project reviews.
Robinhood crypto allows users to trade cryptocurrency commission-free. While other exchanges charge almost 4%, charges at Robinhood crypto are 0%. You don’t have to purchase or sell full crypto as you can buy in part or fractions too. Some of the cryptos available on Robinhood crypto are Bitcoin, Dogecoin, Ethereum Classic, Ethereum Cash, Bitcoin SV, Bitcoin Cash, and Litecoin. There are plans to support more coins, says COO Brown.
However, there are no details about the new currencies. There is a huge collection of coins in the crypto world. “We put the coins through a review process before it gets into our platform for access to users”, says Brown.
Cybersecurity risks, volatile market price swings, and market manipulations are some risks of the crypto market. There are no regulatory bodies to govern the crypto exchanges. Crypto investors do not get customer protection, unlike investors on the equity market or foreign exchange market.