Robinhood Brokerage is adding cryptocurrency to their service offering.
The company is known for its zero transaction stock trading platform and is now expanding into cryptocurrency. The offering will be for a limited number of states who will be able to trade cryptocurrencies with no fees.
For now, traders on the platform will be able to add monitoring for sixteen cryptocurrencies that include Bitcoin, Ethereum, Bitcoin Cash, Litecoin, XRP, Ethereum Classic, Zcash, Monero, Dash, Stellar, Qtum, Bitcoin Gold, OmiseGo, NEO, Lisk, and Dogecoin. For those cryptos, a listing on Robinhood will introduce them to millions of investors.
The app is popular with millennials and boasts 3 million users with an average of 26. Trading opens up in five states in February with more to come as soon as the platform achieves state regulatory approval. Trading will start with BTC and ETH and expand from there.
Robinhood Introduces Crypto Trading to Its Massive Userbase
The announcement from Robinhood is more good news for cryptocurrency. They have millions of people already trading stocks and options on their platform who will now learn about the value of investing in cryptocurrency. With millions of traders on the platform, it will push volume higher. At first, ETH and BTC will the prime recipients of the increased volume. However, as times goes on it could cause a sharp rise in trading volume for the other coins they are bringing online.
This is one more sign that crypto trading is ready for primetime and regulations in the U.S will not prevent the rise.
The lack of fees will attract many new traders, especially large volume market makers. It also seems likely that other brokerages will follow suit and attempt to mimic Robinhood as times go on, especially if they are very successful with their plan. Cryptocurrency trading and investing is still in its infancy and moves like this are what will propel adoption to the mainstream.