Robinhood is an American financial services company that offers stocks, crypto, and other financial commodities. Read this blog to find out whether Robinhood is the right platform for all types of crypto investors and what are some of the better alternatives to his platform.
What is Robinhood?
Robinhood is a free stock, crypto, and gold trading app that allows users to trade commission-free. The app was launched back in 2014, and its main goal was to make financial markets (stock and crypto) more accessible to mainstream retail investors.
Robinhood is also considered one of the most affordable crypto exchanges out there as it does not charge you any commissions on your trades.
Commission fees can impact your profits greatly, and Robinhood does not drain your funds by charging you extra on every trade you make on the exchange.
Unlike other crypto exchanges out there, Robinhood does not offer you an advanced trading platform. It has a simple and aesthetically pleasing user interface that is designed specifically for new investors.
While it is a positive thing for traders who are just starting out in the crypto space, it is not ideal for experienced traders who prefer complex and detailed interfaces with advanced tools.
What Makes Robinhood Special?
There are certain features that make Robinhood stand out in front of its competitors. This includes:
One of the best things about Robinhood is its trading interface. The platform is simple and easy to use, and even if you are new to crypto trading, you are unlikely to face any roadblocks on Robinhood.
Unlike other cryptocurrency platforms out there, Robinhood does not offer you the default spot-trading interface where you have to deal with ten different sections squeezed in one window.
Robinhood’s trading interface is straightforward, and you can buy and sell cryptocurrencies with one click.
Apart from that, the design of the app is also attractive and aesthetically pleasing. Overall the interface it offers is much better than some of the most well-known exchanges out there.
One Shop for Stock and Crypto
Another good thing about Robinhood is that it allows you to trade both stocks and crypto. Stocks and cryptocurrencies are two completely different asset classes, and there are not many exchanges out there that let you trade both at the same place.
Robinhood is an ideal app for those traders who want to diversify their investment portfolios. They can buy stocks, crypto, and even gold through the Robinhood app and can manage all of them from one dashboard.
Robinhood offers you commission-free trading, which is rare to find these days. That means you would not be losing a good chunk of your profits every time you make a new trade.
Why Robinhood Might Not Be for You?
Robinhood is a decent app for crypto trading, but it is not the best one out there. The app offers some great features that attract a certain type of investors, but it is not an ideal platform for everyone.
No Wallet or Crypto Withdrawals
When you compare Robinhood with other cryptocurrency exchanges, it lacks behind in many things. For starters, the exchange does not have its own crypto wallet where you can store the assets you buy freely.
In fact, if you want to withdraw those assets, you will have to convert them to FIAT first. This is a huge drawback for traders who want to own assets long-term and store them in a secure place.
Lack of Altcoins
The altcoin roster offered by Robinhood is underwhelming and only contains the dinosaur cryptocurrencies that have been around for quite some time now. If you are an investor who is planning to invest in new innovative crypto projects, then Robinhood is not the ideal platform for you.
Some of the main crypto available on Robinhood includes:
Top Robinhood Alternatives
Swissborg as Robinhood Alternative
Swissborg is another cryptocurrency trading app that can be labeled the perfect alternative for Robinhood. The app was launched in December 2017 and is considered one of the best crypto trading apps to date.
Swissborg was created with the aim of simplifying the process of cryptocurrency investments, and it has managed to do it quite successfully. Swissborg is an advanced cryptocurrency exchange that functions a bit differently from other top exchanges. Its smart engine gives it an edge over its competitors as it allows customers to buy crypto with the lowest fee.
When it comes to payment methods, Swissborg supports both bank transfers and direct cryptocurrency deposits and withdrawals. It also has a transparent fee structure, and no hidden charges are ever pushed.
What is Swissborg Smart Engine?
The smart engine allows Swissborg customers to connect with a pool that has high liquidity and the lowest trading fees. It is connected with some of the biggest cryptocurrency exchanges (including Binance, HitBTC, Kraken, and LMAX) and allows you to access the market at different rates.
The smart engine ensures that you never have to worry about high trading fees or low liquidity while trading any crypto asset on Swissborg.
What Makes Swissborg Special?
Swissborg is an advanced crypto trading app, and the features that make it special include:
- Smart Engine
- Low Trading fee
- Supports Wire transfers
- High Liquidity
- Easy-to-use interface
- Analytical Tools and Advisors
- Advanced Security
- Smart Yield (Earn interest)
- Swissborg Community (Makes the platform decentralized)
SwissBorg allows you to trade Bitcoin and altcoins with low trading fees. Sign up today by clicking on this link to get a bonus of up to €100 on your first deposit.
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Binance as Robinhood Alternative
Binance is the largest cryptocurrency exchange in the world in terms of trading volume and is an ideal platform for all kinds of crypto traders. The platform was established in 2017 and has grown rapidly in popularity since its inception.
Binance has an easy-to-use interface that does not lack any features. It offers everything from staking to margin trading and has a huge roster of over 200 different cryptocurrencies. The exchange has over 400 different trading pairs and supports FIAT currency as well.
Another amazing thing about Binance is that despite being one of the biggest and most reliable cryptocurrency exchanges out there, it still charges a low trading fee of 0.0% to 0.1%.
The exchange also supports multiple payment methods, and you can purchase or sell crypto on Binance with:
- Credit/debit cards
- Bank transfers
- Peer-to-peer exchange
What Makes Binance Special?
Binance is the top cryptocurrency exchange out there for a reason. The features that make it special include:
- Supports Multiple FIAT currencies
- Supports Multiple Payment methods
- Offers both Basic and Advance trading interfaces
- Futures Trading
- Binance Staking
- Stock Tokens
- Secure wallets
- Crypto Loans
- Low-trading Fee
Note: Binance global is not accessible in the U.S, but U.S citizens can trade on its partnered platform known as Binance US. However, some of these features offered at Binance global might not be available on Binance US.
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Kraken as Robinhood Alternative
Kraken was founded in 2011 in California and is one of the oldest cryptocurrency exchanges out there. It ranks in the top cryptocurrency exchanges in terms of trading volume and is an ideal exchange for all kinds of crypto investors and traders.
Kraken is also one of the few cryptocurrency exchanges that offer their service in the U.S and is regulated by financial departments. Currently, the exchange is overseen by FinCEN (Financial Crimes Enforcement Network) and is only restricted in New York and Washington state.
The exchange offers a wide range of altcoins and has over 55 different cryptocurrencies listed on their trading platform. It also offers portfolio monitoring and advanced trading options, which makes it an excellent platform for experienced traders as well.
The payment methods supported by Kraken include:
- Wire transfers
- Bank transfers
- Credit/Debit cards
What Makes Kraken Special?
The features that make Kraken special include:
- Portfolio monitoring
- Advanced security
- Advanced trading tools
- Accessible in most U.S states
- Comparatively low-trading fee than other U.S. cryptocurrency exchanges
- Multiple payment methods.
- Offers Staking
If you are new to crypto trading in the USA, you can sign-up to Kraken and claim up to a 50% discount on your trading fees by clicking this link.
Up to 50% discount on fees
Robinhood Alternatives Conclusion
Robinhood is a good cryptocurrency exchange if you are looking to trade crypto on and off and do not want to dive too deep into the markets. However, if you want to access more features and want full control over your crypto assets, signing up on these alternatives is a better option.
Unlike Robinhood, these alternatives are designed specifically for crypto trading, and you are less likely to run into any troubles in the future.