The Robinhood app has finally opened trading for Bitcoin (BTC) and Ethereum (ETH) on its platform for Texas users. A tweet in this regard was posted on the official Twitter account of Robinhood yesterday.
First, it rolled out the crypto trading option in Virginia, followed by Indiana, Utah, Arizona, and Pennsylvania last month. It first made the option available for users in California and then later on in Colorado in April. According to reports, Robinhood intends to expand this service to its European Union investors in the future.
San Francisco-Based Finance App Empower Announces Cryptocurrency Exchange Integration
Robinhood App Allowing Trading For Very Small Amounts
There is tough competition among cryptocurrency exchanges and the competitive landscape is heating up especially in the United States. This new expansion by the zero-commission startup exchange is an indication that the Robinhood app wants to gear up for the competition. Regular users of the app may not feel comfortable at the start with the new applications and volatility of the cryptocurrency as they are more used to traditional financial instruments.
The platform is carrying out crypto coin trading through a separate entity that follows different rules. On this, Robinhood says, “Cryptocurrency trading is done through an account with Robinhood Crypto, LLC. Robinhood Crypto is not a broker dealer and is not a member of the Financial Industry Regulatory Authority (FINRA).”
However, the app is providing support to its users by making crypto available even for very small amounts including any fractional amount above 0,001 ETH and 0.00001 BTC. At present, the app is not allowing any margin trading since the coins will not serve as collateral. Only the users with some amount in their portfolio will be able to generate trades.
Robinhood To Allow Limited Range Orders
As of now, Robinhood is allowing only limited range orders to avoid directly being a part of the volatility of the crypto market. One of the reasons for this decision is to ensure that trading of both the cryptocurrencies BTC as well as ETH resembles the ethos of traditional assets. This will help soften sudden deep losses or outlandish gains.