The early days of cryptocurrency trading were simple and affordable, but as digital assets gain mainstream attention, it has become more complicated and expensive. This goes against the ethos of blockchain, as the crypto industry has introduced hidden costs through layered fee structures.
Trading fees have become a major problem for crypto traders, ranking second only to security concerns. According to a Statista survey, over one-third of crypto traders are unhappy with the fees they pay, and another study shows that the fee amount is a crucial factor when choosing a trading platform.
Higher fees mean less crypto for the same amount of money, so lower trading fees give crypto exchanges a competitive edge. Robinhood Crypto, a popular US-based trading platform, aims to become the go-to place for traders by offering commission-free trading. Its recently launched cost dashboard compares the costs of top US crypto trading platforms, claiming that users can get up to 3.5% more crypto on average with Robinhood Crypto.
Offering commission-free trading in a typically commission-based business may seem counterintuitive, but Robinhood Crypto generates revenue through volume rebates from trading venues. For every $100 of executed crypto orders, Robinhood receives $0.45 in rebates.
Robinhood saw a 75% increase in crypto trading volume between October and December 2023, highlighting the popularity of its commission-free model. The platform also recently expanded its crypto trading services to Europe.
In addition to low-cost trading, Robinhood Crypto prioritizes building a secure and trusted trading environment. It takes a conservative approach to its listings to protect users from less-trustworthy digital assets. Customer funds are kept separate from business funds, and the platform’s infrastructure undergoes regular surveillance and testing for vulnerabilities. Customers’ 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. Its focus on security addresses the concerns of cost and safety among crypto traders.
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