Robinhood Brings Commission-Free Crypto Trading to Michigan

Siamak Masnavi
  • Robinhood's crypto trading service, "Robinhood Crypto", available via a mobile app, can now be used by customers in Michigan. 
  • This means that Robinhood Crypto is now available to residents of the following U.S. States: California, Colorado, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Mexico, Wisconsin, Florida.
  • Using Robinhood Crypto, it is possible to buy/sell/hold BTC and ETH, and get real-time market data for BCH, BTG, DASH, DOGE, ETC, LSK, LTC, XMR, NEO, OMG, QTUM, XRP, XLM, and ZEC.
  • Robin's mobile trading app also lets you invest commission-free in (U.S.) stocks, options, and ETFs. 

The FinTech startup Robinhood's very popular "Robinhood Crypto" service, which allows customers to do commission-free trading of Bitcoin (BTC) and Ethereum (ETH) via a simple and elegant mobile app, has now expanded to Michigan.

This service, which was launched on 22 February 2018, initially was only available to customers in the U.S. states of California, Massachusetts, Missouri, Montana, and New Hampshire, with the promise that it would come to more states as the company managed to obtain regulatory approval. Since then, six more states have been added: Colorado (on April 20th), Mississippi (April 26th), Wisconsin (May 3rd), New Mexico (May 3rd), Florida (May 8th), and finally, the most recent addition, Michigan (May 9th).

Robinhood's mobile app is available for both Android and iPhone. It allows commission-free trading of U.S. stocks, options, ETFs, as well as cryptocurrencies, all in one app. Currently, it is possible to only buy, hold, or sell Bitcoin (BTC) and Ethereum (ETH), but the plan is to support trading of other popular cryptocurrencies later. In addition to real-time market data for Bitcoin (BTC) and Ethereum (ETH), you can get market data for fourteen other cryptocurrencies: Bitcoin Cash (BCH), Bitcoin Gold (BTG), Dash (DASH), Dogecoin (DOGE), Ethereum Classic (ETC), Lisk (LSK), Litecoin (LTC), Monero (XMR), NEO (NEO), OmiseGO (OMG), Qtum (QTUM), Ripple (XRP), Stellar (XLM), Zcash (ZEC)." As for historical price data, the app allows the user to see how prices have fluctuated over the past 24 hours, one week, one month, one year, and five years.

Although Robinhood's large user base, commission-free crypto trading, and beautifully-designed mobile app help it to be a very strong competitor to Coinbase in the United States, especially amongst millennials, Robinhood is not a direct competitor since it has two serious limitations.

First, it does not allow you to withdraw the coins they are holding for you, i.e. you can only sell them for fiat. However, Robinhood plans to support this feature "in the near future."

Second, you cannot deposit into your Robinhood crypto wallet existing coins that you may have on other wallets. This is what the FAQ section of the Robinhood Help Center has to say on this matter:

We currently don’t allow transfers of your existing cryptocurrency assets into your Robinhood Crypto account. Our primary concern is to prevent money from illegal activity being used for transactions on Robinhood Crypto. We’ll be sure to update you if and when this type of transfer becomes available.

Robinhood Help Center

In United States, amongst the few companies that offer commission-free crypto trading, Robinhood's closest and strongest competitor is the Goldman-backed startup Circle Internet Financial with its "Circle Invest" app, which got launched on 13 March 2018, is available in 46 states instead of 11, and which offers trading in five additional cryptocurrencies: Bitcoin Cash (BCH), Litecoin (LTC), Ethereum Classic (ETC), Zcash (ZEC), and the most recently added, Monero (XMR).

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Mysterious Whale Buys 20,000 Ether on Crypto Exchange Binance

Francisco Memoria

A mysterious whale has recently bought around 20,000 ether tokens, worth $4.3 million, on leading cryptocurrency exchange Binance. Estimates suggest the whale has accumulated 300,000 ETH over the last few weeks.

According to Su Zhu, the CEO of Three Arrows Capital, the Ethereum whale has been accumulating the cryptocurrency during its recent dip below the $200 mark, and has been helping it remain above it.

Some users speculated the whale was just adding a so-called “prop bid,” a move that attempts to manipulate the market by temporarily boosting a cryptocurrency’s price. It would involve the whale adding the order to attract attention and get other buyers entering the market, to then cancel its own order.

Evidence seems to suggest otherwise, however, as the whale’s order was filled and helped the price of ether rise. The order came, according to Finance Magnates, days after a crypto YouTuber claimed a sell order of 15,000 ETH on crypto exchange Bitstamp saw the cryptocurrency’s price drop.

Thanks to the whale’s orders, Ethereum’s ether is currently trading at $217, after rising about 0.6% in the last 24-hour period. Earlier today the cryptocurrency’s price jumped from about $205 to $225 in about an hour.

Whales have, as CryptoGlobe has been covering, been seemingly accumulating cryptocurrency over the past few months. Earlier this month a 15% drop in bitcoin’s price saw whales accumulate more BTC, as data from Coinbase showed its users with the largest balances (the top 10%) were mostly buying the cryptocurrency.

Curiously, a research report from May of this year published by crypto surveillance firm Chainalysis revealed only 376 whales held about one third of all ETH in circulation. These whales were shown to not move their ether very often, as they’re holding their crypto and not actively trading it.