Robinhood will test a crypto wallet for users
Robinhood's move into crypto wallets solidifies it as a big player in the crypto game.
What's the key learning?
- Robinhood users could already trade some crypto stocks, like Dogecoin and Bitcoin
- Now, Robinhood is trialling a crypto wallet, which will let users buy, sell, send and receive crypto tokens for external wallets
- Just like you have a wallet to hold your cards and cash, a crypto wallet lets you store your crypto tokens online
- Robinhood's move into crypto wallets will put it in direct competition with larger exchanges - like Coinbase.
Background: Robinhood is the US trading platform known for its mission to democratise investing for everyone. Users can trade stocks and ETFs on the site without paying commissions.
What happened: Robinhood users could also trade some crypto stocks, like Dogecoin and Bitcoin. But, they've never been able to send crypto to external wallets.
What else: Now, Robinhood is testing a crypto wallet - aka an app to let users buy, sell and trade crypto tokens.
So what's the key learning?
💡Just like you have a wallet to hold your cards and cash, a crypto wallet lets you store your crypto tokens online.
💡But unlike regular wallets, crypto wallets don't actually store your tokens. Nope, they live on the blockchain, and can only be accessed using your private key.
💡These private keys are the passwords that give you access to your cryptocurrencies. If you lose your private keys, you lose access to your money. And ya don't want that, Flux fam.