Stock Trading App Robinhood Launches Zero-Fee Cryptocurrency Trading In 5 U.S. States

  • Popularstock trading app Robinhood launched bitcoin and ethereum trading, without any fees.
  • The company also announced a social media-like platform dubbed Robinhood Feed.
  • This puts Robinhood in direct competition with industry giant Coinbase and Square's Cash app.

Popular mobile stock trading app Robinhood has formally launched its new Robinhood Crypto service, that now allows customers in five U.S. states to buy bitcoin and ethereum without paying any fees.

According to an announcement, residents of California, New Hampshire, Massachusetts, Missouri and Montana can now trade the top two cryptocurrencies using the app. Those who aren’t yet able to trade will be able to track those and 14 other cryptocurrencies, including Ripple, Litecoin, Bitcoin Cash, Ethereum Classic, Monero, NEO, and Dogecoin.

Robinhood’s has promoted the service with zero fee trading and is targeting millennials with their ‘Don’t Sleep’ advertisement. Robinhood announced its plans  and hopes to bring cryptocurrencies to a whole new audience. Robinhood’s users are investors who trade traditional products such as exchange-traded funds (ETFs) and stocks.

Merely four days after announcing Robinhood Crypto, the platform saw over 1 million people register to use it. This helped Robinhood reach 4 million users, up from the 3 million it had in November. Its users have already transacted over $100 billion, and saved $1 billion in commission fees.

By offering zero commission trading, the app makes stocks, ETFs, and now cryptocurrencies more accessible. The announcement reads:

“Over the past few weeks, we’ve been overwhelmed by the enthusiasm towards Robinhood Crypto and are excited to contribute to the cryptocurrency community in a meaningful way. (…) With the release of Robinhood Crypto, we’re continuing our mission of making the financial system work for everyone, not just the wealthy.”

Robinhood Crypto

Along with Robinhood Crypto, the company also announced the launch of a new social media-like platform dubbed Robinhood Feed. This new platform allows investors to discuss different cryptocurrencies, cryptocurrency-related news, and what’s going on in the markets in real-time. Robinhood Feed, according to the company’s announcement, is only available to a limited number of users for now.

The move makes Robinhood one of the major financial apps allowing users to easily buy and sell cryptocurrencies, as it is now competing with industry giant Coinbase, which reached over $1 billion in revenue last year, and with Square’s Cash app, which also recently launched commission-free bitcoin trading to US customers.

Bitcoin Dives Below $8K, but We Are ‘A Long Long Way From Miner Capitulation’

Siamak Masnavi

According to data from CryptoCompare, on Thursday (November 21), between 08:30 UTC and 08:40 UTC, the price of Bitcoin (BTC) fell below $8,000 for the first time since October 25:

BTC-USD One Month Chart on 21 Nov 2019.png

The Bitcoin price kept falling, and by 10:11 UTC, it had reached $7,916, meaning that (at the time of writing) Bitcoin is down 2.11% in the past 24-hour period:

BTC-USD - 24 HOUR CC CHART - 21 NOV 2019.png

That was the bad news.

The good news is that prominent macro economist and crypto analyst/trader Alex Krüger believes that, despite what you may have heard, "the market is a long long way from miner capitulation."

In a post on Twitter around 16:51 UTC yesterday (November 20), Krüger explained that although miner capitulation could happen "eventually" we are nowhere near that point since the Bitcoin hash rate has only dropped 4% recently:

Yesterday, John Pfeffer, Founder of Pfeffer Capital, Travis Kling, Founder and CIO of Ikigai Asset Management, and Charles McGarraugh, Head of Markets for Blockchain discussed the outlook for Bitcoin with Bloomberg's Alastair Marsh at The Future of Digital Assets briefing in London.

Marsh started the discussion by asking the panel if they agreed with the idea that in the current macroeconomic environment the narrative of Bitcoin as a macro hedge is especially strong. 

McGarraugh stated:

"Yeah, I totally buy into that idea.I think that it's a great idea... Bitcoin is awesome because your property rights are an operational fact of possessing the private key rather than the jurisdictional artifact of recourse to a legal system that may or may not re-trade you at some future date."

Update at 11:36 UTC on November 21:

Around 11:21 UTC, Alex Krüger took to Twitter again, this time to explain under what scenario he could envision miner capitulation in the medium term:

 

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