Finally Robinhood Crypto Wallets Are Here!
About seven months ago Robinhood announced their intentions to integrate real crypto wallets to their trading platform. At first their updates indicated how serious they are to make this a reality and demonstrated how fast they were moving in achieving this goal. However after a couple of months their progress seemed to slow down, and I even thought it could fail for some unexpected challenges. They did reassure their users in the beginning of the year that they were still on track with integrating the crypto wallets.
Today I received a message stating that I was off the wallets waitlist and was invited to join the wallets beta. Finally! After navigating through their activation guide I was able to activate the Robinhood crypto wallets in few minutes. It took me another minute to figure out where the send and receive buttons were. They weren't visible right away. By default, the visible buttons are buy and sell. I had to scroll down to the details of the coins to reveal the send and receive buttons.
When activating the crypto wallets they ask for a photo of an official document to verify the identity. The documents can be a passport, driver's license or other US government issued ID. Since they already have most of the information for tax purposes anyway, I thought this was done not only for KYC reasons but also to prevent malicious activities like unauthorized access to someone's funds. They also require setting up two-factor authentication before activating the wallets. This wasn't difficult either, since I already use 2FA. And the last step was to activate the wallets feature. That's it. I have not tried sending or receiving yet.
Even though Robinhood has been testing and gave access to wallets to small set of users during alpha stage, it is still too early to say how well the wallets will work. Considering the resources and brain power they have I would assume things will work just fine.
It does look like there is a daily limit how much one person can send. Users can send up to $5,000 dollars worth of crypto assets within 24 hours. Number of daily transfers is also limited, to 10 transfers within 24 hours. Many other exchanges have similar limits as well. I don't think this is a bad thing. This might even be a good security feature, so that nobody loses everything they have if unwanted events like hacks happens.
There is one confusing part about crypto transfers. They say crypto assets bought on Robinhood using instant cannot be withdrawn until transactions settle. It will take about 5 days until these assets become available for transfers. What I don't understand is what settlement time are they talking about? I thought crypto buys and sells on Robinhood were instant and didn't have any settlement period like two days or so with stocks. Even with 5 days wait time, I think it is still not bad. This may even get better in the future.
What is really big news for Robinhood itself and crypto enthusiasts is that they still want to maintain commission free business model and will not charge any extra fees to send or receive crypto. Understandably, they make it clear that crypto transfers may incur network fees and senders would be responsible for those fees. They do promise to let the users know what the fees will be before the transfer is initiated.
So, this is really good news. Coinbase and others may have to reconsider their business model now. Because when someone sells their crypto assets to cash out on exchanges like Coinbase, exchanges charge a significant amount. These fees aren't fixed either, and charged certain percentage of the total amount sold. With Robinhood providing a free option, users on exchanges like Coinbase could send their coins to Robinhood and avoid paying fees to these exchanges. Let the competition begin.
However, Robinhood is still new to crypto wallets and how they work. They only have few coins that are supported to be received, and this limitation is mainly based on what is traded on Robinhood Crypto. These coins are Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic, and Litecoin. Not many coins, but still not bad. Just having Bitcoin, Litecoin, and Ethereum is good enough.
Now that they have shown they can set such ambitious goals and actually deliver in a short time, I would assume they are taking their crypto business super seriously and have long term goals to participate in crypto market. That's why I think we will see more coins to be added to their platform in the future. Great to see awesome news like this and all the interesting announcements and information coming out of Bitcoin Convention 2022 in Miami. Things are happening. Have you activated your wallet yet?
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It is a great news that there is no extra fee in our transaction on Robinhood wallet.
It another great news that transfer from other exchange to Robinhood wallet is also free.
@geekgirl thanks for sharing these excited news with community.
I have not signed up for Robinhood yet. It is good to see such new crypto trading platform. It might increase the competiton among the companies, both for better usage and lower transaction fees.
Buying crypto on Robinhood is free, we will not pay difference about ask and bid value unlike Coinbase
That is great. You can buy crypto on Robinhood commission free. It's reasonable that network fees will charge. They are a stock company first. Definitely a move in the right direction I think !
sending up to 5000 dollar on beta period is good start, this is just security system, they will add more great options, having Bitcoin for trading is great thing for me
Can you check Lightning support?
Try to send a few dollars worth of Hive or HBD to Robinhood direct from lnd.v4v.app I'd love to see how you get on.
You can also try to withdraw direct to Hive too.
Asking because I saw this: https://finance.yahoo.com/news/robinhood-bitcoin-lightning-network-192503112.html
They haven't integrated Lightning yet. That seems to be their next goal, to integrate lightning network.
I think the settlement time is due to the current fiat system. I think Robinhood might be buying crypto off of another exchange and they need to wait for the cash to settle on the other exchange. Of course, that is just my speculation.
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I doubt it. It would be too risky to do something like that. Especially because how volatile prices can get.
This is great news,this will make more people have interest in crypto but what is the thier coins and can its be transfer and traded another exchange as well
They don't have a coin. They are an online brokerage for stocks, options, and crypto trading. They are a publicly traded company and have stocks though, $HOOD.
B20. SS100. Yes, 5 days of waiting is something that can scare anyone away. I don’t really like to transfer my personal data to little-studied and cloudy projects like fog). Thank you.
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I wouldn't go anywhere near robinhood after their past criminal activity. It's a shame the mulitdistrict lawsuit got dismissed.
I do not like what they did either. However, I think they deserve a second chance. They might just be able to redeem themselves.
Congratulations to them this is wonderful news..Sad i smell centralized, with governments uncertain regulations my worry is the move may coast you
The are indeed a company, which does make the centralized.
I would handle Robinhood with great care, or more like a plutonium core... Well, honestly, I would just stay far away given their beyond shady history, and exploitative behaviour such as front-running their users being built into the system (reason for the "zero fee"). That being said, I have no idea about how their crypto solution is working, but I assume they're up to no good.
I have heard about them making money by selling the order flows. However, when the prices were compared to other platforms where stocks and cryptos are bought, Robinhood did have a competitive edge and did offer better prices.
Something like 75% of Robinhoods revenue comes from selling your order data to wall street insiders (market makers) before they place the order. In effect this means that you're the product, not the customer, just as you are for FB (or Meta, I guess) – but here you also trust them with your financial assets. I would not expect them to ever have my best interests in mind (a fun fact is that this PFOF model was pioneered by Bernard Madoff). Well, as a European I don't really have access to them anyways, as their practices are considered illegal here.
The duplicitous messaging just raises even more red flags for me – framing themselves as the "good guys", while having a history of being anything but transparent about their practices, seems borderline fraudulent.
When it comes to what prices you actually get for market orders compared to other platforms, after your orders have been routed, seems extremely hard to compare – as Robinhood outright refuses to disclose its trading statistics using the same metrics as the rest of the industry. Probably most of your money never goes to an exchange at all, but just float around in dark pools. Likely your money never end up on an exchange at all, but is shuffled around in dark markets and secondary sale.
In general I would expect to lose out big on price improvement, compared to platforms that aren't dependent on selling the order flow, and limit order data and leveraged positions are potentially even more easily exploited by the market makers.
Congratulations,it a working progress.
Although Robinhood has allowed customers to buy cryptocurrency on its platform, you couldn’t easily spend the cryptocurrency — it just sits in your account as a speculative asset until you decide to sell it. In contrast, Robinhood says its wallet gives customers “full access to their crypto” and the ability to “participate in the crypto ecosystem — by tipping on social media, paying for NFTs and more” with no withdrawal fees.
Wow, that's some great news. Robinhood would have to do very good for quite some time before I would trust them, though. I do hope this encourages all the brokers to follow suit.
Most did follow Robinhood with eliminating fees for trading stocks and options. It will be very interesting to see what the crypto exchanges will do. I don't know any other exchange that offers zero fees.
I haven't got the Robinhood wallet yet still studying the trend but it definitely looks good appreciated your time greatly for the piece of information.
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