Crypto trading has evolved from being simple and affordable to becoming complex and expensive, as digital assets gain mainstream attention. This article explores the increasing costs and hidden fees in the crypto industry, which are causing frustration among traders. According to a Statista survey, high trading fees rank as the second-largest concern for crypto traders, after security issues. Trading fees can significantly impact the amount of crypto acquired for a given amount of money, making lower fees a competitive advantage for crypto exchanges.
One platform that aims to address this issue is Robinhood Crypto, a popular trading platform based in the United States. Known for its commission-free stock trading, Robinhood has extended this approach to the crypto market. Its recently launched cost dashboard compares the fees of top U.S. crypto trading platforms, claiming that users can receive up to 3.5% more crypto on average with Robinhood Crypto due to its commission-free trading.
The absence of commissions in a typically commission-based business may seem counterintuitive, but Robinhood Crypto generates revenue through volume rebates from trading venues. For every $100 of notional value for executed crypto orders, Robinhood receives $0.45 in rebates. The platform emphasizes that commission-free trading is not a temporary promotion but a core part of its mission.
Robinhood Crypto has experienced significant growth in crypto trading volume, with a 75% monthly increase between October and December 2023. The platform has also recently expanded its crypto trading services to Europe. In addition to offering low-cost trading, Robinhood Crypto prioritizes the security of its users. It takes a conservative approach to its listings to protect against less-trustworthy digital assets. Customer funds are held separately from business funds, and the platform’s infrastructure undergoes regular security reviews and testing. Funds are also insured against potential losses caused by theft or cybersecurity breaches.
Robinhood’s commission-free trading model aims to make crypto trading more accessible and affordable for the general public, challenging traditional fee-based models. By combining low costs with a secure trading environment, Robinhood Crypto addresses the concerns of cost and security that are critical to crypto traders.
Note: Cointelegraph does not endorse any content or product discussed in this article, and readers should conduct their own research before making any investment decisions.