The Robinhood exchange announced that their app will now support trading for Bitcoin and Ethereum for the users of the US state of Texas.
“Texas, we’re not messing with you. You can now trade Bitcoin and Ethereum commission-free, on Robinhood Crypto,” read a tweet made by the company yesterday.
Meanwhile, the Abra app opted to use the tactic of synthetic crypto coins and makes available more than 20 digital assets.
Robinhood is expanding its trading operations state-by-state, its services being available in Virginia, Indiana, Utah, Arizona, and Pennsylvania starting from May. The crypto trading option was first rolled out in California. Robinhood has mentioned that it plans on offering its services to European Union investors in the future.
The users of Robinhood App can purchase crypto even for very small amounts, any amount above 0.00001 BTC and 0.001 ETH.
There is no margin trading option available for the time being, and coins themselves cannot be used as collateral, therefore users must have a portfolio containing funds in order to execute a trade.
Robinhood permits orders only in a limited choice, to reduce the volatility from directly joining in the crypto market. This would make trades with both BTC and ETH to appear similar to traditional assets and may avert quick outlandish gains, or major losses.
Cryptocurrency trading is done via a different entity and under different procedures. “…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). Robinhood Crypto is also not a member of the Securities Investor Protection Corporation (SIPC), which means your cryptocurrency investments are not protected by SIPC.” Stated Robinhood.
Bitcoin and Ethereum are the two most used trading products when traders do not completely own the assets. The Robinhood App enables traders to passively monitor another 14 crypto assets.