28 Jun 2018 Vanya Nikolova
Robinhood On the Way to Challenge Coinbase
Coinbase GDAX is currently the number one trading broker and exchange platform in the crypto world. On the other side, Robinhood Markets Inc. increases its popularity among the crypto community, being a stock trading app that challenges brokers in attracting millions of millennial investors with the promise of no commission fees.
Robinhood’s was launched in January 2018, when the cryptocurrency market was hitting all-time highs with a collective estimate at over $800 billion. The cryptocurrency community took advantage of the opportunity for commission-free trades with digital assets, setting the expectations for the service very high.
The platform managed to attract over one million new users. Yet, Robinhood was challenged by users on its limited service offering. Currently, it allows crypto trading only, which some believe to be a price speculation factor.
Robinhood now attracts the attention of the crypto world with the recent announcement that is looking for developers who will focus on the development of a Robinhood wallet.
Aiming to make financial industry investments available to as many people as possible, the fee-less strategy and the release of a wallet could be a big game-changer for the crypto exchange and trading niche, despite its limited service offering. Users would be able to transfer their cryptocurrency holding from their personal wallets or other brokerages into Robinhood’s wallet.
The plans to release a wallet come in response to users' requests for more user-friendly operations. At the moment, the transfer of users' cryptocurrencies on the platform is a three-step process. As such, it is making investors think twice before making any moves.
Crypto analysts suggest that Coinbase’s market dominance is very likely to be challenged by the FinTech startup. This is expected as the GDAX exchange charges 2% transaction Coinbase fees for buying and selling cryptocurrencies. Robinhood is not charging customers for Ethereum and Bitcoin trades.
Coinbase allows traders to accept payments in cryptocurrencies, directly crediting the user’s wallet. Although Cionbase successfully established its global leadership position, there are numerous videos and guides on ways to avoid the GDAX exchange commissions.
Crypto experts and community members state that Coinbase should have its eyes open and prepare a strategy to maintain its position once Robinhood brings the wallet to the table.Cryptocurrency exchange Coinbase Exchanges News crypto trading cryptocurrency news crypto news Exchanges Robinhood