Can you buy Bitcoin on Robinhood? What about Ethereum, Litecoin, Bitcoin Cash, and other cryptocurrencies? Here’s what you need to know.
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Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Bitcoin can also be held as an investment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
In 2014, Vitalik Buterin, a programmer from Toronto, Canada, proposed the development of Ethereum to a small group of early bitcoin enthusiasts. Buterin was interested in building a platform that would be more than just a digital currency; he wanted to create a “world computer” that would allow anyone to build decentralized applications.
Ethereum raised $18 million in a crowdsale in 2014 and launched on July 30, 2015. The Ethereum blockchain is similar to the Bitcoin blockchain in that it is a shared public ledger of all transactions. However, the main difference between Bitcoin and Ethereum is that while Bitcoin is designed to be a digital currency, Ethereum is designed to be a decentralized platform for running smart contracts.
The native currency of the Ethereum blockchain is called ether (ETH). Ether can be used to pay for gas fees when running smart contracts on the Ethereum blockchain.Gas is essentially a measure of the amount of work required to execute a given transaction or contract; the higher the gas price, the more work needs to be done and vice versa.
While ether can be used to pay for gas fees, it can also be traded on exchanges like any other cryptocurrency. At the time of writing (January 2018), ether is the second largest cryptocurrency after Bitcoin with a market capitalization of over $80 billion.
Litecoin is a cryptocurrency that was created in 2011 as an alternative to Bitcoin. Litecoin is similar to Bitcoin in many ways, but it has a faster block time and a different hashing algorithm.
You can buy Litecoin on Robinhood Crypto with USD.
Bitcoin Cash (BCH) is a cryptocurrency that was created as a fork of Bitcoin in 2017. The main difference between the two is that Bitcoin Cash has a much larger block size limit, meaning it can process more transactions per second. BCH is therefore often referred to as “Bitcoin on steroids.”
You can buy Bitcoin Cash on Robinhood Crypto with a connected bank account, debit card, or wire transfer.
Robinhood added Ethereum Classic to its list of supported cryptocurrencies in August 2018. Like Ethereum, ETC is a blockchain-based platform that enables the development of decentralized applications (dApps). However, ETC differs from Ethereum in that it runs on a different blockchain that doesn’t support smart contracts. This makes ETC better suited for certain use cases, such as payments and settlements, where speed and low transaction fees are more important than functionality.
Robinhood, the no-fee stock trading app, has been a game-changer for the retail investing world. Launched in 2013, the company has revolutionized the industry by making it easy and affordable for everyday people to trade stocks. In 2018, Robinhood extended its mission of financial democratization to cryptocurrencies.
On Robinhood Crypto, you can buy and sell Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Dogecoin (DOGE) with Robinhood Crypto. You can also track price changes and set up price alerts for these cryptocurrencies.
Bitcoin SV (BSV) is a cryptocurrency that was created as a fork of the Bitcoin Cash network in 2018. The currency was developed by Craig Wright, who claimed to be Satoshi Nakamoto – the creator of Bitcoin. The BSV fork was created in an attempt to bring back the original Bitcoin protocol as envisioned by Satoshi.
BSV is available to trade on Robinhood Crypto.
EOS is a decentralized smart contract platform that enables the development of scalable dApps. EOS aims to provide a complete operating system for decentralized applications by providing services like user authentication, cloud storage, and server hosting. The EOS token is the native currency of the platform and is used to power all transactions on the network.
Stellar is a decentralized protocol that enables you to send, receive, and trade digital assets—fiat currencies, cryptocurrencies, commodities, and more. All Stellar transactions are processed and recorded on a public ledger—called the Stellar ledger—maintained by a network of distributed servers.
###What is a decentralized protocol?
A decentralized protocol is a computer network protocol that does not require the use of a central server. Decentralized protocols are often implemented as peer-to-peer networks.
###What is a public ledger?
A public ledger is a shared database that records all transactions made on the network. The Stellar ledger is maintained by a network of distributed servers (called validators). Anyone can view the contents of the Stellar ledger, but only authorized users can make changes to it.
###What are digital assets?
Digital assets are any items that can be stored and transferred electronically. This includes fiat currencies, cryptocurrencies, commodities, and more.
Monero is a cryptocurrency that focuses on privacy and anonymity. Transactions on the Monero blockchain cannot be traced, making it a popular choice for those looking to keep their financial activity private. Robinhood supports trading for Monero (XMR), meaning you can buy and sell XMR on the Robinhood platform.
Robinhood is a commission-free brokerage that allows you to buy and sell cryptocurrencies. The platform only supports four coins: Bitcoin, Ethereum, Litecoin, and Dogecoin. You can’t deposit or withdraw cryptocurrencies from Robinhood; instead, you can only buy and hold them on the platform.
If you want to buy dash on Robinhood, you’ll first need to set up an account. Then, you can add funds to your account via bank transfer or by linking a debit card. Once your account is funded, you can search for “dash” in the app and start buying and selling immediately. There are no fees for buying, selling, or holding dash on Robinhood.
Zcash is a digital currency with strong privacy features. Transactions are recorded on a public blockchain, but the sender, recipient, and amount of a transaction remain private. Robinhood started offering cryptocurrencies in February 2018 and currently offers seven coins: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ethereum Classic, Dogecoin, and Lisk. You can buy any or all of these coins on Robinhood with no commissions.
Tezos (XTZ) is a decentralized blockchain that governs itself by establishing a true digital commonwealth. It facilitates formal verification, a technique which mathematically proves the correctness of the code governing transactions and boosts the security of the most sensitive or financially weighed smart contracts. The Tezos protocol offers a formal way to correct errors in its network, eliminating the need for contentious hard forks. Instead, its baking system validates transactions and rewards bakers (similar to miners in other blockchains) with newly created Tezos tokens. XTZ holders can delegate their tokens to bakers and earn rewards while remaining invested in the long-term success of Tezos.
As of October 2020, Robinhood Crypto supports buying and selling the following cryptocurrencies:
Bitcoin Cash (BCH)
Ethereum Classic (ETC)
Bitcoin SV (BSV)
You can also track 14 other cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Monero, Dash, Stellar, Lisk, Zcash, Qtum and Ripple.
Robinhood offers its customers the ability to purchase a handful of different cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ethereum Classic. However, one of the more unique offerings on Robinhood is the ability to purchase Augur.
Augur is a decentralized oracle and prediction market platform built on the Ethereum blockchain. It allows users to create markets for anything that can be Ether is used to incentivize users to report honest data to the network. REP tokens are non-transferrable and can only be used on the Augur platform.