Robinhood Crypto Cryptocurrency Exchange Review

Democratizing Investment

Like many online brokerages, Robinhood democratizes investing by removing some of the financial barriers that stand between customers and the benefits of trading stocks, ETFs, options, and cryptocurrency. The company makes investing less expensive through its no-commission price structure on purchases and trading. In addition, it effectively eliminates the need for customers to have a personal relationship with a stock broker—something that is traditionally a difficult task for small investors. 

While Bitcoin is probably the best known cryptocurrency, Robinhood Crypto gives investors access to several others, including Ethereum and Dogecoin, and can help investors diversify their crypto portfolios. In addition, Robinhood Crypto allows users to purchase cryptocurrency in very small amounts. Small investors and those who are new to cryptocurrency trading and just want to get their feet wet in the market will find Robinhood Crypto an option well-suited to their needs.

Ease of Use

You can access your Robinhood Crypto Account through your computer or the company's mobile qpp. The app allows you to view all of your investments in one place and make trades in real time. The app offers two-factor authentication as an added measure of security. Consumers give it very high ratings on both GooglePlay and the Apple App Store. Robinhood's app resembles the company's computer interface so investors who are experienced in using one will find the other easy to navigate.

When you make a deposit in your Robinson Crypto account or sell some of your cryptocurrency, your funds are immediately available for use. Speed of funds avialability is one way Robinhood Crypto stands out among its competitors.

Educational Resources

The information that Robinhood Crypto offers on its cryptocurrency exchange product is pretty slim. Many competitors do a  better job of educating potential customers about their products and about cryptocurrency investing generally. This surprised us because the rest of Robinhood Market's website is a great "Investing 101" resource.

The Risks of Cryptocurrency

All investments come with risk. While some are protected to a degree—for example, when a financial institution is a member of the Financial Industry Regulatory Authority (FINRA) or Securities Investor Protection Corporation (SIPC), cryptocurrency investments are not proteced by SIPC and Robinhood Crypto (as a subsidiary of Robinhood Markets) is not a member of FINRA individually. Robinhood Crypto makes this clear through its disclosure statement on its website. The company also details the inherest risks of cryptocurrency exchanges in a separate disclosure. We appreciate this level of transparency, but also enocurage anyone of thinking of purchasing cryptocurrency to carefully research both the rewards and the potential pitfalls of crypto investing. 

Reputation

Robinhood Crypto is not rated by the Better Business Bureau. Robinhood Markets, the company that owns Robinhood Crytpo, earns an F rating from the BBB and has had more than 800 consumer complaints filed with that organization. The company is not rated by Trustpilot. There are a handful of complaints registered with the Consumer Financial Protection Bureau against Robinhood Markets. While no complaint is insignificant, Robinhood Market has a tiny number when compared with other financial service companies and most complaints have to do with problems using the Robinhood app and don't specifically relate to Robinhood Crypto.

The Bottom Line

While Robinhood Crypto offers several advantages, particulary for new and small investors, the company could certainly improve the way it presents and educates investors on its cryptocurrency product.