[2018-01-22] Robinhood’s Zero-Fee Bitcoin, ETH Trading Is Live In Five US States

[cybersofts]

Robinhood’s Zero-Fee Bitcoin, Ethereum Trading Is Live In Five US States



The Robinhood mobile trading app launched zero-fee Bitcoin (BTC) and Ethereum (ETH) trading for the first batch of the users of its Robinhood Crypto platform on Thursday, Feb. 22, as announced on the company’s blog.

The first users to get access to the commission-free platform are customers residing in the US states California, Massachusetts, Missouri, Montana, and New Hampshire. Robinhood noted that the application will be rolled out gradually with support for “many more states” coming “later.”

At the moment, all users of Robinhood are able to monitor the market for the prices of 16 different cryptocurrencies, regardless of whether or not they have access to the actual trading feature.

As Robinhood stated on Jan. 25, the main goal behind launching its zero-fee cryptocurrency trading platform was to bring as many new customers as possible. Robinhood claimed that the company is planning “to operate this business on break-even basics.”

According to the latest blog post, the current number of Robinhood Crypto users has reached four million with over $100 bln in transaction volume on its brokerage platform and over $1 bln in saved commissions in equity trades.

Apart from the launch of cryptocurrency trading, Robinhood has also released its Robinhood Feed which allows cryptocurrency investors to discuss cryptocurrency markets, trends and news online.


Source: https://cointelegraph.com/news/robinhoods-zero-fee-bitcoin-ethereum-trading-is-live-in-five-us-states

[1715249339]

1715249339

[richardsNY]

Why are people even happy about this? It's being advertised as the Coinbase killer, but in reality it's not even able to tickle Coinbase. Like seriously, it's getting hyped up like it's something groundbreaking, while in reality you're not buying and selling crypto at all. The only thing Robinhood allows you to do, is buy and sell server tokens that are tied to Bitcoin's and Ethereum's price. In other words, you can't deposit crypto because you don't need it, and can't withdraw anything because you don't own any crypto. Robinhood however states that it may allow actual trading at some point, but that's something that will take them a very long time to get working.... Good luck buying and selling nonsense people!

[1Referee]

The only thing Robinhood allows you to do, is buy and sell server tokens that are tied to Bitcoin's and Ethereum's price. In other words, you can't deposit crypto because you don't need it, and can't withdraw anything because you don't own any crypto.

I just had a look at their FAQ page, and it seems that you are right. This basically means that you pay full price for Ether and Bitcoin, while it's nothing more than hot air, lol. On the other hand, most of the average people having found their way to crypto recently, just want to trade crypto, and don't necessarily want the hassle of sending funds back and forth between exchange and wallet. In that regard, it's quite a smart move from Robinhood, which reflects the insane number of registrants their gained due to crypto.

From Robinhood site;

Digital currency held as a capital asset will be taxed as property, and subject to capital gains and losses. Please consult your tax advisor for more information on filing taxes.

Robinhood Crypto will initially be available to customers in California, Massachusetts, Missouri, Montana, and New Hampshire.

Property tax rates;

California; 0.8%
Massachusetts; 1.57%
Missouri; 1.41%
Montana; 0.72%
New Hampshire; 2.21%

I wish every government charged only these level of tax rates. Even if it was 5%, people would declare their holdings and profits out of free will.

[lotto-fan]

The only thing Robinhood allows you to do, is buy and sell server tokens that are tied to Bitcoin's and Ethereum's price. In other words, you can't deposit crypto because you don't need it, and can't withdraw anything because you don't own any crypto.

I just had a look at their FAQ page, and it seems that you are right. This basically means that you pay full price for Ether and Bitcoin, while it's nothing more than hot air, lol. On the other hand, most of the average people having found their way to crypto recently, just want to trade crypto, and don't necessarily want the hassle of sending funds back and forth between exchange and wallet. In that regard, it's quite a smart move from Robinhood, which reflects the insane number of registrants their gained due to crypto.

From Robinhood site;

Digital currency held as a capital asset will be taxed as property, and subject to capital gains and losses. Please consult your tax advisor for more information on filing taxes.

Robinhood Crypto will initially be available to customers in California, Massachusetts, Missouri, Montana, and New Hampshire.

Property tax rates;

California; 0.8%
Massachusetts; 1.57%
Missouri; 1.41%
Montana; 0.72%
New Hampshire; 2.21%

I wish every government charged only these level of tax rates. Even if it was 5%, people would declare their holdings and profits out of free will.

property tax does not mean much, the sales tax, state tax, property price etc are much more important than the superficial property tax.

[1Referee]

property tax does not mean much, the sales tax, state tax, property price etc are much more important than the superficial property tax.

Interesting, so what will the actual rate (combining all tax levels) be in the following scenario's?

Scenario 1. As resident in California you buy $100,000 worth of crypto and hold it for 5 years.

Scenario 2. As resident in California you buy $100,000 worth of crypto and sell it with a 50% profit after 6 months.

Scenario 3. As resident in California you buy $100,000 worth of crypto and sell it with a 50% profit after 18 months months.

[Kprawn]

What are we always saying? "If you do not have FULL control over the Private key, You own NO bitcoins." In this case, not

even they have control over "Private keys" ... because it is simply a token? There are NO actual "Bitcoin" or "Ethereum". 

I do not even store my coins on exchanges, because I do not trust them, so why would I want to trust a centralized service

to "manage" a virtual token on my behalf? This is CRAZY. 

[wonderful8]

Nice that in california there's another choice, I'll try to use the Robinhood trading.