01-03-2022, 01:23 AM
Robinhood launching cryptocurrency wallets: why you should avoid at all costs.
<!-- SC_OFF --><div class="md"><p>As many of you know, Robinhood is launching <a href="https://news.bitcoin.com/trading-platform-robinhood-launch-cryptocurrency-wallets/">cryptocurrency wallets</a> soon.</p> <p>You also may be familiar with the fact that on January 28, 2021, Robinhood infamously <a href="https://www.cnet.com/personal-finance/investing/robinhood-backlash-what-you-should-know-about-the-gamestop-stock-controversy/">restricted the trading of various stocks</a>, making positions close-only. </p> <p>Lastly, anyone who has used the platform for trading cryptocurrency is likely familiar with the "scheduled maintenance" that conveniently obstructs you from making trades at times when the market is making a significant movement. </p> <p>Still, I know that many people are too complacent for their own good; they will be fully aware of Robinhood's corruption, but they will use the platform anyways for the commission-free trading. This brings us to our next point...</p> <h1>Are there actually no fees on Robinhood trades?</h1> <p>Short answer: no.</p> <p>When you buy cryptocurrency, Robinhood makes money on the artificially wide bid-ask spread. What this means for you is that Robinhood will try to make you pay more when you buy crypto, and try to offer you less when you go to sell your crypto.</p> <p>Just for demonstrative purposes: lets say you are trying to buy 1 BTC. Robinhood might tell you that the price is $50,000. Then, they will pair you up with someone who is selling 1 BTC for $49,990, and pocket the $10 difference. </p> <p>Still confused? This analogy may help:</p> <blockquote> <p>Intentionally quoting a trader a higher price so you can make money on a greater bid-ask spread is akin to shopping mall outlets raising their prices before running a steep “discount” to lure customers. </p> </blockquote> <p><a href="https://coincentral.com/zero-fee-crypto-trading/">[source]</a></p> <p>So please, even if you aren't concerned about Robinhood's trading restrictions and shady management, you should be aware of the way that they profit off of your cryptocurrency trades. <strong>They still charge you a fee, it is just hidden. Since you know that fees are inevitable, you should choose a more reputable and reliable cryptocurrency broker to do business with.</strong></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/jeff406"> /u/jeff406 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rugdyg/robinhood_launching_cryptocurrency_wallets_why/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rugdyg/robinhood_launching_cryptocurrency_wallets_why/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>As many of you know, Robinhood is launching <a href="https://news.bitcoin.com/trading-platform-robinhood-launch-cryptocurrency-wallets/">cryptocurrency wallets</a> soon.</p> <p>You also may be familiar with the fact that on January 28, 2021, Robinhood infamously <a href="https://www.cnet.com/personal-finance/investing/robinhood-backlash-what-you-should-know-about-the-gamestop-stock-controversy/">restricted the trading of various stocks</a>, making positions close-only. </p> <p>Lastly, anyone who has used the platform for trading cryptocurrency is likely familiar with the "scheduled maintenance" that conveniently obstructs you from making trades at times when the market is making a significant movement. </p> <p>Still, I know that many people are too complacent for their own good; they will be fully aware of Robinhood's corruption, but they will use the platform anyways for the commission-free trading. This brings us to our next point...</p> <h1>Are there actually no fees on Robinhood trades?</h1> <p>Short answer: no.</p> <p>When you buy cryptocurrency, Robinhood makes money on the artificially wide bid-ask spread. What this means for you is that Robinhood will try to make you pay more when you buy crypto, and try to offer you less when you go to sell your crypto.</p> <p>Just for demonstrative purposes: lets say you are trying to buy 1 BTC. Robinhood might tell you that the price is $50,000. Then, they will pair you up with someone who is selling 1 BTC for $49,990, and pocket the $10 difference. </p> <p>Still confused? This analogy may help:</p> <blockquote> <p>Intentionally quoting a trader a higher price so you can make money on a greater bid-ask spread is akin to shopping mall outlets raising their prices before running a steep “discount” to lure customers. </p> </blockquote> <p><a href="https://coincentral.com/zero-fee-crypto-trading/">[source]</a></p> <p>So please, even if you aren't concerned about Robinhood's trading restrictions and shady management, you should be aware of the way that they profit off of your cryptocurrency trades. <strong>They still charge you a fee, it is just hidden. Since you know that fees are inevitable, you should choose a more reputable and reliable cryptocurrency broker to do business with.</strong></p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/jeff406"> /u/jeff406 </a> <br/> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rugdyg/robinhood_launching_cryptocurrency_wallets_why/">[link]</a></span> <span><a href="https://www.reddit.com/r/CryptoCurrency/comments/rugdyg/robinhood_launching_cryptocurrency_wallets_why/">[comments]</a></span>Kind Regards R