Robinhood App Launches Bitcoin, Ethereum Trading For Texas

The long-awaited app started with its first pairs of assets for no-fees trading.

Those on the long waiting list of the Robinhood app see their waiting get results - trading is open now for Bitcoin and Ethereum. In a tweet, the app team stated it is unrolling trading for Texas:

In the meantime, the Abra app chose the approach of synthetic crypto coins and offers more than 20 digital assets.

Robinhood is unrolling its trading on a state-by-state basis, expanding to Virginia, Indiana, Utah, Arizona and Pennsylvania in May. The crypto trading option was first available in California. In the future, Robinhood plans to unroll its services to European Union investors.

The users of Robinhood App may be used to more traditional financial instruments, and the volatility of crypto coins may be unusual for them. Buying crypto is available even for very small amounts - any fractional amount above 0.00001 BTC and 0.001 ETH.

There is no margin trading for now, and coins themselves are not considered a collateral, hence users must have funds in their portfolio to generate a trade. Also, Robinhood also allows orders only in a limited range, to cut the volatility from directly participating in the crypto market. This would turn both BTC and ETH trades to resemble traditional assets more, and may prevent sudden outlandish gains, or deep losses.

Crypto coin trading is done through a separate entity, and under different rules. According to Robinhood, “...cryptocurrency trading is done through an account with Robinhood Crypto, LLC. Robinhood Crypto is not a broker dealer and is not a member of the Financial Industry Regulatory Authority (FINRA). Robinhood Crypto is also not a member of the Securities Investor Protection Corporation (SIPC), which means your cryptocurrency investments are not protected by SIPC.”

Bitcoin and Ethereum are the basis of many trading products where traders do not own the assets outright. Because of the high liquidity of their markets, the leading assets have been used to generate Exchange Traded Notes on NASDAQ Nordic. Robinhood App allows users to track passively another 14 crypto assets.