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I Wish You Had More Crypto And Coins In General
I would like to invest in some other securities that robinhood doesnt have. I feel you guys are losing clients to this matter. Also, there are some stocks you guys dont allow on the site but are on others. Finally, I wish you guys would make trading extended from 4am-8pm. Again some other brokerages allow that. I feel that these 3 main reasons are holding you guys back alittle when you could have 100 million users instead of where we stand today. Im with you 100%. Two wks ago I was alittle weary and Alot of fellow traders im friends with all started discussing leaving robinhood for other brokerages like webull and ameritrade etc etc again some prob left your brokerage over the squeeze ordeal. I had an issue with it also. I know you guys float money but this should have been thought of before you became a bank pretty much per say. We lost thousands and tens of thousands of dollars off of the retrained that were put on us. Even with crypto. That was alittle outside of character. I understand why but it screwed us when if we were on or with another brokerage per say that wouldnt have happened and Id have another 7-12k or more in my acct. right now. Just giving you the word on the street lol anyway you guys have made your site very easy to use and its all at your fingertips all in all. Thanks and hope this helps. Mike
The Ascent’s Best Cryptocurrency Apps
There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. And to find the one that’s right for you, you’ll need to decide the features that matter most to you.
To help you get started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2021. Check out the list and get started on your crypto journey, today.
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Download The App And Create A Robinhood Account
The first thing you will want to do is create a Robinhood account. If you use our exclusive link below you will get a free stock worth up to $200.
Robinhood offers a user-friendly mobile app and the desktop application isnt too bad either. What we like about Robinhood is that they dont charge any hidden fees deposits and withdrawals are free.
Go through the signup steps to finalize your account. Youll be asked for identifying information such as your full name, address, social security number, and email.
Set Up Recurring Investments
A best practice for successful investors is to consistently invest in the market. This allows you to do whats called dollar-cost-averaging. This allows you to not have to time the market, but instead, invest a set amount of money each week or day. A study showed that over the past 5 years, buying Bitcoin every week performed much better than trying to time the market 82% of the time thats huge!
To set up a recurring investment, simply click on Buy on your desired crypto and click on the top right corner where it says USD. This will take you to a page where you can set up a Recurring Investment. Youll be asked to choose how often youd like to invest . Click on Continue and choose your payment method to get set up.
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Crypto Winter Has Had A Chilling Effect On Coinbase And Robinhood
The prices of bitcoin and other top cryptocurrencies have been more than cut in half this year. Now the great crypto crash of 2022 is crushing leading digital asset brokerage firms Coinbase and Robinhood too.
Nance attributed the downgrade to âthe continued downdraft in crypto prices and the resulting fall in industry activity levels.â He added that recent layoffs at the company may not mark the end of pink slips either.
âWe believe further cuts are needed, as the announced cost reduction effort merely brings headcount back to end-1Q22 levels,â Nance wrote, adding that Coinbase âwill need to make substantial reductions in its cost base in order to stem the resulting cash burn as retail trading activity dries up.â
Nance estimates that Coinbaseâs revenues will plunge more than 60% this year compared to 2021.
How To Buy Crypto On Robinhood
Buying crypto on Robinhood is not that difficult. In fact, the process is pretty simple as long as you have a computer or a device to download the app. Here is what you will have to do:
The first thing you should do is download the Robinhood app on your mobile phone because this is the simplest method. But you could also create an account if you use your computer. The app is available for both Android and iOS.
Whats great about Robinhood is that its goal is to give customers the best experience by making the investment process easy and accessible. The interface is very nice and intuitive, and its ideal for beginners. A lot of times, Robinhood is recommended for exactly this reason. It makes life easier for beginner investors and it also makes it possible for anyone to track their portfolio. The app allows you to do so even when youre far away from home.
On top of that, Robinhood doesnt come with hidden fees. Deposits and withdrawals are free of fees as well. Optionally, you can also try the premium service offered by Robinhood, which brings some financial derivatives to the table.
Once you access the Robinhood page or you download the app on your smartphone, you should create an account. The entire process is pretty smooth, so you wont encounter any issues. Some information about yourself should be provided in order to make it possible to sign up and use Robinhood.
Buy the Cryptocurrency
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Coinbase Vs Robinhood: Ease Of Use
Although Coinbase and Robinhood differ in many ways, both are incredibly user-friendly and built for first-time investors. Its slightly quicker to sign-up and trade on Coinbase because it accepts debit or credit card payments, whereas Robinhood only allows ACH transactions. Both applications provide mobile apps for Android and iOS devices, with the Coinbase app receiving higher ratings.
Youll find a knowledge base and articles about trading on both sites. Still, Coinbase goes a step further by offering videos and opportunities to earn small amounts of crypto for watching short video snippets.
Both companies offer customer service via email, and responses arent always timely, so regardless of which platform you use, you may not get an immediate reply to your question.
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Buying Bitcoin On Robinhood
Robinhood is a commission-free stock and crypto trading mobile app that is hugely popular among millennials and Gen Zers. Known for its sleek user interface and completely free trading, Robinhood has amassed over 13 million users who are passionate about investing.
Though popular among many for its free stock trades, Robinhood also allows its members to transact in cryptocurrencies. There are currently 7 tradeable cryptocurrencies on the app and an additional 10 that are available for tracking.
This wide range of availability is great for investors who want access to the most popular coins but leaves something to be desired for those who want the less well-known options.
How To Day Trade On Robinhood
Now that you know it is possible, The question to answer is how can you day trade crypto on Robinhood. You can use the Robinhood website or smartphone app to do your trading. In either case, you need to create a trading account with Robinhood and fund it with U.S. dollars. To open a new Robinhood account, you will need to provide proof of your identity.
AML and KYC regulations require financial institutions to record the identity of all their customers. This information allows government officials to trace the identity of account holders if a crime is committed. AML and KYC regulations are intended to help prevent and investigate major financial crimes.
Financial institutions based in the United States and many other countries require you to provide some form of official identification before you are allowed to use the platform.
Another factor to consider about how you can day trade crypto on Robinhood is your trading strategy. Merely buying and selling based on gut feelings or what other people are doing is a recipe for guaranteed losses.
Before day trading any asset, you should research which proven day trading strategies, such as scalping or range trading, are appropriate for it. Once you have developed a strategy you can safely consider day trading.
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Coinbase Vs Robinhood: Security
Both platforms are secure places to buy, sell, and store cryptocurrency.
We’ll start with Coinbase, which holds over $100 billion in users’ cryptocurrency and has never been the victim of any major theft. More than 98% of customer funds are in cold storage, which means they aren’t stored in internet-connected wallets and are therefore not vulnerable to hacking. Assets stored online are insured against hacking incidents, and any cash balance stored in Coinbase accounts is FDIC insured up to $250,000 per customer.
However, it’s worth noting that Coinbase’s insurance protects against breaches that are Coinbase’s fault, not yours. In other words, if someone gets into your account by stealing your password, your cryptocurrency can be lost forever, so it’s important to safeguard your account information.
Security is one area where Robinhood’s platform holds a key advantage over Coinbase. Specifically, because cryptocurrency cannot be transferred out of Robinhood accounts, there’s no way users’ digital assets can be stolen. Like Coinbase, Robinhood keeps most cryptocurrency in cold storage and carries crime insurance to protect assets stored online.
Robinhood Has Struggled Lately
When Robinhood became a publicly traded company listing on the NASDAQ stock exchange last July, it soon soared to an all-time high of $70.94 on Aug. 4, 2021. At press time, it’s down 87% at $8.96 per share from its August top. Investment firm Goldman Sachs recently downgraded Robinhood from Neutral to Sell.
“Fading retail engagement, particularly among Robinhood’s lower end consumer customer base, could represent further headwinds . While the company has negotiated much better economics on crypto trading, we see the decline in broader industry crypto volumes largely offsetting this tailwind ,” according to the analyst note from Goldman.
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Despite the macroeconomic issues, lower user demand, and general market malaise, the FTX investment and possible acquisition could be just the financial fix Robinhood needs.
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Robinhood Features And Services
Lets look into some of the key features and services Robinhood offers:
Robinhood supports stocks trading on Nasdaq and New York Stock Exchange and doesnt support trading OTC stocks . It doesnt support retirement funds, mutual funds, and trading in bonds. It supports investing in Initial Public Offers , Options and Margin Trade, etc. Robinhood charges no commission for trading stocks or Options.
Similar to stocks, Robinhood supports ETFs trading on Nasdaq and New York Stock Exchange. Stocks and ETFs were the first services offered by Robinhood. Robinhood charges no commission for trading ETFs.
While most crypto users prefer to trade on crypto exchanges, the number of Robinhood users has grown vastly over the past couple of years. This is thanks largely to commission-free trading, in contrast to major cryptocurrency exchanges that charge a fee for buying crypto.
The number of cryptocurrency tokens available on Robinhood is small, but it has been announced by its CEO Vladamir Tenev that more coins will be listed in the future. Currently, Robinhood only supports Bitcoin , Bitcoin Cash , Bitcoin SV , Dogecoin , Ethereum , Ethereum Classic , and Litecoin .
In addition to the services mentioned above, Robinhood is also in the works to add other services to its basket in the coming years.
Irs Coming For Your Crypto Specific Crypto Question Added To 2019 Tax Forms
The IRS wants to know whether you traded cryptocurrency in 2019, a question it had never overtly asked taxpayers in the past.
In a new report on Monday covering fiscal 2019, the agency listed cryptocurrency and the gig economy as two key emerging compliance areas that require attention by the IRS. For crypto, that attention is taking the form of a new question on the 2019 Form 1040 .
The question is at the very top of the form, and reads: At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?
watch out crypto tax evaders the IRS is coming for you with a mean new checkbox
The IRS already had official guidance on cryptocurrency, first posted back in 2014: the agency classifies cryptocurrency as property, rather than as currency, and thus taxpayers would treat crypto selling as capital gains and disclose it on Form 8949if you choose.
In the past, the common attitude in crypto land toward disclosing crypto gains on your taxes was that there was little to gain from doing soyoud risk an audit if you did, and would likely fly under the radar if you didnt.
Now the IRS is getting more serious.
This article originally featured in Yahoo Finance.
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Robinhood App Security Measures
Firstly, Robinhood platform implements Two-Factor Authentication , which provides you with an extra level of security. It requires two sources of verification: something you know and something you have . Its much harder for attackers and malware to gain access to both simultaneously.
Secondly, Transport Layer Security protocol with up-to-date configurations allows mobile and web applications to connect to servers securely. Sensitive data, like social security numbers or bank credentials, is encrypted before storing.
And finally, the login process and password are covered by several security measures. TouchID, FaceID, and custom PIN code allow you to log in to the application and BCrypt additionally encrypts your account password. BCrypt is a standard hashing algorithm. Despite the best kind of repute that can be achieved for a cryptographic algorithm, it is not optimally secure. Go on reading to learn more about additional security for your sensitive data.
Select A Storage Method
Cryptocurrency exchanges are not backed by protections like the Federal Deposit Insurance Corp. , and theyre at risk of theft or hacking. You could even lose your investment if you forget or lose the codes to access your account, as millions of dollars of Bitcoin already has been. Thats why its so important to have a secure storage place for your cryptocurrencies.
As noted above, if youre buying cryptocurrency via a broker, you may have little to no choice in how your cryptocurrency is stored. If you purchase cryptocurrency through an exchange, you have more options:
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Buying Crypto Isnt Cryptic Using The Robinhood App
With Robinhood, you can invest in any cryptocurrency at any time. The apps simple user interface makes the process painless. You can set up your purchase as a market order to buy crypto at its current price, or a limit order to decide the price the crypto should reach before purchasing. Both methods offer a chance for the best returns.
What cryptocurrencies are you interested in? Which ones do you think make a good investment?
Let us know in the comments section below.