Estimated reading time: 3 minutes, 3 seconds
Robinhood is a Palo Alto based start up with a simple goal: give the average person the ability to invest without the help of an outside broker. Previously you had to go to brokers, which charged a fortune. Then you had e-trading platforms that would charge per trade in order to cover overhead.
Robinhood disrupted this industry by running a more cost efficient model to get users involved in investing. Instead of focusing on brokers and physical retail space, they created an application that would streamline the investing process. This increased accessibility creates a new opportunity for those who previously didn’t have experience or access to traditional stock platforms.
Onboarding users & gaining adoption
Onboarding is really the key to mainstream crytpocurrency adoption. If people aren’t offered an easy option to buy and sell cryptocurrency, then adoption by the average person is not going to happen. There are several apps, websites, or services that are focusing on making the onboarding process more accessible for the average person.
Previously onboarding process usually depended on Coinbase. For many it was the only known option to buy cryptocurrency. Robinhood is coming along to shake up the pecking order. And they are doing this by offering NO commission cryptocurrency trading.
Robinhood is vastly undercutting Coinbase’s fees which can reach 4%. They are essentially not looking to make a profit on their crypto trading platform. Instead, they figure by giving away this service for free they can direct people to their traditional stock services, which, of course, they do charge for.
Features of Robinhood
Robinhood’s feature-rich application already has news and tracking for 16 coins: Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin, Ethereum Classic, Zcash, Monero, Dash, Stellar, Qtum, Bitcoin Gold, OmiseGo, NEO, Lisk and Dogecoin. All available to track in one convenient application.
Contributing to the legitimacy of cryptocurrency, the app has gained approval for use in 5 states: California, Massachusetts, Missouri, Montana and New Hampshire. So if you’re in one of these states, cryptocurrency trading via Robinhood is live now. You can get your feeless cryptocurrency. Otherwise it looks like you’re going to have to settle for the waitlist until your state figures out what the hell they are doing about crypto. You can still download the application and use it for news and tracking right now.
Getting people involved
After it was announced that Robinhood would be supporting cryptocurrency trading, one million new users signed up in four days, increasing their total user base from three million to four million. These new users have attracted some attention, as well as some fresh capital. A Russian firm by the name of DST Global is looking to invest $350 million dollars, giving the company a valuation of over five billion USD.
Robinhood is looking to streamline the onboarding process for those who want to get into cryptocurrency, and their no fee model is priming them to be a leader in business on the blockchain.
You can check out Robinhood’s platform and website here!
Business on the Blockchain is a new series aimed at keeping you up to date on all of the big business moves towards blockchain technology. More and more businesses are exploring cryptocurrencies and blockchain, and we’re here to help you understand how some of these businesses are making this transition. It’s an exciting time for blockchain adoption, check out which businesses are jumping onto the wave!
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