Robinhood's New Crypto Feature Aims to Achieve Smoother Crypto Transaction

Errol Villorente, Tech Times 09 July 2022, 09:07 am

Robinhood, a popular retail trading platform in the U.S., has announced new features supporting cryptocurrency transactions.

Robinhood Announces Support on Sending and Receiving Cryptocurrencies

In a tweet by Robinhood, they announced that they are now opening new features that will enable users to send and receive cryptocurrency tokens as long as these are listed assets on the trading platform.

This is a much-awaited development on the platform, which has not provided full support on all cryptocurrency-related activities in the past except on trading these digital assets. Many are expecting that this move will encourage more people to engage in cryptocurrency transactions on the platform, given that many were concerned back then about the platform's restrictive nature in this particular market niche.

Cryptocurrency communities have long criticized Robinhood, claiming it does not give anyone full and legitimate control over the assets they buy on the platform. One reason is that people used to be unable to transfer their digital assets to their own crypto wallets before. Now, this can finally be addressed by Robinhood's new feature.

The plan to introduce the send and deposit feature for crypto has been years in the making. Robinhood first tested the Bitcoin ($BTC) withdrawal feature back in September 2021, when a total of more than 1.6 million users signed up for the waitlist. This level of demand for the option to control their cryptocurrencies was seen by many as one of the huge factors in Robinhood's newly-introduced feature.

What Could This Development Mean for the Whole Cryptocurrency Market?

It is difficult to surmise how it can impact the market, given that the majority of the cryptocurrency trades we see from the market do not originate in Robinhood. However, the platform's move to support cryptocurrency transactions by making purchasing and trading more accessible and reliable is progressed to cryptocurrency traders and HODLers alike.

Moreover, this move finally addresses the common criticism against Robinhood that they are not providing users with true access to the crypto they buy. This is also pointed to by many as one of the reasons why more experienced traders avoid Robinhood. The fact that Robinhood can simply stop trading activities and no one can move their digital assets to their wallet is a risk most traders are not willing to absorb for themselves.

While Bitcoin, and the whole crypto market, have shown surprisingly strong resilience amidst each halving cycle and the price fluctuations that come with it, Robinhood is only considered a small factor in how cryptocurrency prices will unfold in the days to come. Nevertheless, it's good that more and more retail traders can finally dabble in crypto through an easily understandable and user-friendly platform such as Robinhood.

But on a bigger picture, the whole cryptocurrency market has yet to recover from the battle it took in recent weeks fully. Perhaps the good news is that many whales continuously accumulate more BTC amidst the bloodbath. In a report by Santiment, one of the most prominent crypto analysis firms, BTC whales and sharks have continued to stack more satoshis during the dip. Santiment has already recorded an increase in the holdings of the largest wallet addresses by up to 4.29 million tokens already.