Robinhood Zero-Fee Trading App Announces Litecoin (LTC) Support
Popular investing application Robinhood adds LTC and BCH zero-fee trading.
Robinhood, an American fintech start-up that added crypto trading in February 2018, has announced the addition of Litecoin (LTC) and Bitcoin cash (BCH) support with zero-fee trading.
— Charlie Lee [LTC⚡] (@SatoshiLite) July 12, 2018
Robinhood LLC is a financial services company founded in 2014 to provide users with a platform to quickly and securely trade traditional stocks and ETFs. The fintech startup gained popularity through its zero-fee trading.
Robinhood only added the crypto support this year and offered the investor access to the top two cryptocurrencies only – Bitcoin (BTC) and Ether (ETH).
At the same time, the trading app disclosed that it had registered five million users. According to the start-up, the objective is to expand their services to include many more coins.
Adding Litecoin is just one of the steps the company is taking to grow its user base. With its popularity around the world and high liquidity, Litecoin was no surprise pick.
US States supported by Robinhood
The Robinhood app is only available to users in the United States. At the present moment, the app is only available to residents in 17 U.S. states with more to come ‘soon’ according to the company’s website.
The seventeen states represent a rapid growth for the fintech startup, which initially offered its services in five states.
As it stands, users can undertake crypto trading in the U.S states of Arizona, California, Colorado, Florida, Indiana, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Jersey, New Mexico, Pennsylvania, Texas, Utah, Virginia, and Wisconsin.
What does Litecoin support mean?
Prior to the announcement, Robinhood only offered BTC and ETH trading with the ability to view/track LTC and other digital assets.
Users in qualifying US states can now buy, sell LTC (with zero-fees) but according to a tweet from Litecoin founder Charlie Lee, it appears withdrawal (and likely deposits) of LTC is not yet available:
The Robinhood interface is really slick. This is a great easy way to get exposure to LTC price movements. Though you can’t withdraw your LTC yet, I believe they are working on this feature.
— Charlie Lee [LTC⚡] (@SatoshiLite) July 13, 2018
By adding two more digital assets, it means that the platform now offers Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH).
It’s a big achievement for the app as well as good news for the Litecoin Foundation and the LTC community.
Robinhood exposure can increase LTC HODLers
The addition of Litecoin on the trading platform is likely to lead to more exposure for the sixth largest crypto by market capitalization. But more interestingly, we think it can lead to a bigger base of HODLers.
The reasoning behind this is quite simple yet intuitive.
Robinhood is an investment app by design. Users (investors) can learn how to invest, buy investments at no fees, discover new investment products and more.
That being said, the app is not Binance and will likely bring in investment capital (not trading/temporary capital).
The virtual currency is already available on all the popular exchanges around the globe with several fiat and crypto trading pairs.
Litecoin will now be available to all of Robinhood’s 5 million for trading with wallet capabilities coming soon. This is a big step in Litecoin Foundation’s mission to ensure wide acceptability and use of LTC.
It’s likely to bolster the coin’s adoption as more people can easily buy the cryptocurrency and as American investors look to diversify into the sector.
Robinhood is great for new crypto investors
The ease of use that the app provides makes it an excellent platform for first-time investors, much like what Coinbase is at the moment. However, Robinhood allows you to hold traditional investments as well as digital assets.
Getting started is easy, thanks to a super user-friendly interface:
- All a user needs to do is to download the app;
- Complete the registration process;
- Fund your account (bank transfer only); and
- Navigate the dashboard and buy/sell digital or tradition assets
Price alerts and coin/token tracking
Although the platform currently provides support for only four coins, users will find it very useful due to the access to price alerts targeting 12 other currencies.
These assets you can track but not buy on Robinhood include:
- Ripple (XRP), Dash (DASH), Ethereum Classic (ETC), Qtum (QTUM), Zcash (ZEC), Monero (XMR), Stellar Lumens (XLM), Bitcoin Gold (BTG), NEO (NEO), Lisk (LSK), OmiseGo (OMG), and Dogecoin (DOGE).
Is Robinhood crypto secure?
Security is one of the top concerns for any trading platform, and Robinhood promises that it will store user assets safely.
In the spirit of decentralization, it is important to note that by using Robinhood, you are not in controls of your private keys. As mentioned, wallet features are not yet available so you cannot withdraw Litecoin (LTC) to an address you control after buying.
Licensed and regulated platform
The US SEC and FinCEN both regulate the company, making it fully licensed and trusted. The platform complies with the Bank Secrecy Act requirements as stated within the 17 U.S states it operates in. However, the company explains that:
“cryptocurrencies in your Robinhood Crypto account are not protected by the Securities Investor Protection Corporation.“
The platform is said to store all cryptocurrency holdings “in a mix of hot (online) and cold (offline) storage.” Robinhood states that the platform employes bank/institutional-grade security to protect user information and funds.
Litecoin (LTC) market reaction and price
The Litecoin community and investors initially reacted positively to the news about Robinhood, and only a market-wide bearish outlook has prevented its price from posting greater gains.
Although the markets seem to have erased most of the gains from the announcement, there appears to be a slight uptrend forming.
LTC/USD is currently trending in the red on the hourly charts and has decreased by about 2 percent over the last 24 hours with trading volumes of roughly $225 million. It’s now trading at $76.61 as it looks to breakout.
Litecoin (LTC) remains 6th regarding market cap, valued at USD $4.4 billion.
LTC Foundation and WEG Bank
The addition of the coin to Robinhood comes hot on the heels of recent great news involving the Litecoin Foundation, TokenPay, and the Germany-based WEG Bank.
Charlie Lee recently engineered a partnership with TokenPay that has seen it acquire a 9.9% stake in German-based WEG Bank.
In an interview published today, Lee said:
“the LTC Foundation was having trouble getting a bank account, so they decided to buy a stake in a German bank and are working to make the banking industry more crypto in a friendly way from the inside.”
Acquiring a stake in the bank allows Litecoin to have access to a banking partner which could be very vital in the long run. It could play a significant role in enabling the Singapore-based Litecoin Foundation to transform the WEG bank into an “on-ramp for consumers.”
It would give global users instant access to fiat for cryptocurrency transfers. Others will find it easier to accept payment for goods and services in LTC, helping the #PayWithLitecoin campaign.
All the recent developments are pointing to a very positive picture of the LTC Foundation. It’s one of the development teams that have always achieved set goals and milestones. These include being the first to implement Segwit and Lightning Network, where payment channels and “submarine swaps” make LTC better.
To learn more about Litecoin, visit our Complete Guide to Litecoin (LTC)