The competition bar is getting higher for these exchanges, crypto adoption is gradually becoming a norm, as these platforms are working hard to attract customers and users towards their end. The latest platform that came up with some juicy offer to attract more users is Robinhood.
Robinhood is a financial market platform that gives traders access to the financial market. You can buy stocks, ETF, bonds and cryptocurrencies on Robinhood. I have known Robinhood before they dived into the cryptocurrency market. The platform provides zero trading fees on crypto unlike other crypto trading platforms.
Robinhood will be relaeasing a non-custodial wallet where you can swap crypto tokens, save NFTs but most importantly, using Robinhood non-custodial wallet gives you access to zero network fees. You know how network fees can be so annoying especially when there is huge congestion, yeah, this is one advertising tactics that will make lots of crypto users flood in to the new Robinhood non-custodial wallet.
Non-custodial wallet is a decentralized wallet where you control your wallet with your keys, not under the custody of any platform. Your are responsible for your wallet, it can be hot or cold, meaning online or offline. Example of hot non-custodial wallets are trust wallet, Metamask, Kaikas & Phantom.
Most of us use non-custodial wallets to access defi, defi works better with non-custodial wallet because it’s a decentralized financial platform that requires decentralized wallets. This wallet is expected to allow users store their NFTs and also connect to NFT market places. While this offer sounds too good to be true, I can’t help but wonder how Robinhood will profit off this wallet if they are making network fees free meaning that they will pay for network fees from their pocket. If that’s the case, trust me, they will look for another means to make sure they balance that up, and this will come in different ways. The most used way for brokers to make profit off traders is through spread. Spread is the difference between the asking price and bid price, which can be seen as the brokers profit. This is where Robinhood is expected to make back their profit, you will pay back this way, but unfortunately most traders may not notice because zero network fees.
Lots of defi and NFT traders will be so glad to use Robinhood, because the amount of money being spent on network fees everyday, is a lot, especially on the Ethereum blockchain. I really don’t know how Robinhood will achieve that but I am here to see it, before the non-custodial wallet announcement the CEO of FTX Sam Bankman-Fried bought about 8% worth of Robinhood shares. This means that a crypto exchange, trading guru has a stake in Robinhood. This purchase was done a week ago. This has given more crypto users the confidence which made the stock price of Robinhood skyrocket.
Posted Using LeoFinance Beta
When, or if, I decide that I need a smartphone, I will return to your post and know how to proceed further in order to get rid of "utility" gas payments)
Posted Using LeoFinance Beta
Alright then, that’s great.
Posted Using LeoFinance Beta
That was my first thought too. I don't think I'll be testing it.
Posted Using LeoFinance Beta
Yeah, it’s suspicious especially thinking of their past history
Posted Using LeoFinance Beta
This is an amazing feature.. sadly Robinhood is something I've never thought of using before.
This just reminds me of a promo they'd do in stores. Lol. Delivery is free, but you're indirectly paying cos the price would be doubled in the most subtle way. Sometimes, it's not even subtle but who cares? Free delivery! Especially if you're staying thousand of miles away! Lol
Posted using LeoFinance Mobile
😂 psychology, playing with the mind
Posted Using LeoFinance Beta
Idk, ever since that stunt with the GameStop/AMC stock market manipulation a while back, I have a hard time trusting Robinhood...
Yeah, they know people don’t trust that’s the reason they are trying so hard to attract users
Posted Using LeoFinance Beta
I don't see how covering the same old ilk in new bells and whistles changes anything, though. Rotten to the core, I feel, there's very little - if anything at all - that could convince me to use their app again.
Wow a no network fee wallet? Its so going to have lots of users in it because almost everyone in the crypto space knows how high network fee can be.
I was also wondering how they would get their profit if it's this awesome but you've said it, they might use that method.
Anyways, it's a new platform with an awesome competitive idea... More updates to come
Posted using LeoFinance Mobile
Yeah, it’s something I am curious about, I have registered for the wallet though, I don’t mind using to see how it works
Posted Using LeoFinance Beta
It's all about exploring... You never know if you don't try so yeah, it's cool to check it out.
Posted using LeoFinance Mobile
Yeah, but I am not getting my hopes up
Posted Using LeoFinance Beta
Yeah, please do that
Posted using LeoFinance Mobile