RIP, COINBASE: You Can Now Buy And Trade Cryptocurrency On Robinhood With NO FEE
Coinbase is easily the most popular way of buying and trading four of the most popular forms of cryptocurrency. The app and wallet synchs with your credit card or bank account, making it easy for everyday joes to buy Bitcoin, Bitcoin Cash, Ethereum, or Litecoin and save it in a Coinbase wallet.
The down side? Nightmarish fees. Depending on the transaction, Coinbase will gobble up to 4% for a transaction fee. They could get away with fees that rival Big Banks because they were the only player in the game that made it easy to convert $USD to crypto for so long. And they made over a $1 billion from those fees last year alone.
Fortunately, there’s a new player in town. Robinhood, the popular no-commission stock trading app popular with younger traders, just announced a platform to buy and sell crypto without transaction fees. The service — complete with a sleek, neon ’80s interface — will roll out in February and includes 14 other major crypto coins, including:
CNBC reports that the trading will only be allowed in five states in February, with more to come down the line. Those states are California, Massachusetts, Missouri, Montana and New Hampshire. Also, it’s worth noting that you can’t transfer coins in to Robinhood. You have to convert real $USD to crypto.
This is a huge boom for Robinhood, which already boasts over three million users for it’s stock-trading app. Unlike Coinbase, Robinhood also promises instant access to funds.
Meanwhile, on Twitter, many are writing this as a major thorn in Coinbase’s side. Coinbase just got dunked on…