Why Robinhood will Crush Coinbase
The Millennial investing and trading app Robinhood, is getting into free Crypto trading starting with Bitcoin and Ethereum in 5 select U.S. states in February.
Zero-Fee Crypto Trading: The New Norm
With Robinhood adding zero-fee cryptocurrency trading and tracking, it lines up in direct competition with Coinbase, who charges fees for every trade.
Robinhood’s value proposition in terms of ideology and culture is much closer to the spirit of decentralization. Coinbase is just another greedy startup in San Francisco that while bringing cryptocurrency exchanges to the masses, hasn’t aligned well with the spirit of decentralization.
Robinhood took the #1 product of the day on Product Hunt for January 25th. Coinbase still dominates with 13 million versus Robinhood’s 3 million, but since Millennials want convenience and value ideological sync, Robinhood seems like a new appealing option.
With Crypto mania in full swing, this is the right time to do zero-free trading for Robinhood to grow their customer base.
Robinhood is a Coinbase Killer
While Coinbase app and wallet syncs with your credit card or bank account, making it easy for those into altcoins and crypto assets to purchase Bitcoin, Ethereum, Litecoin, Bitcoin Cash, etc… into their Coinbase wallet, the fees feel a lot like old school banking and trading. Because it’s really just like Silicon Valley to centralize something that’s supposed to be decentralized, for profit.
Robinhood’s 3 million users will grow exceptionally well in 2018 with the introduction of Crypto. Users are able to track the price of 16 altcoins starting this week. This isn’t just another way to trade Bitcoins, this could be the app that kills Coinbase.
Coinbase is greedy, there’s no other way to put it. Coinbase will gobble up to 4% for a transaction fee. For anyone seriously investing in crypto, that’s totally unacceptable! They made over 1 Billion dollars in fees last year alone. There’s so few players in the game; and the outages were frequent.
The idea of a no-commission stock trading app is that decentralization should kill Walstreet. That’s something young Millennials can relate to, so if you live in California, Massachusetts, Missouri, Montana or New Hampshire you will be able to track and trade the following altcoins:
It will begin however only with Bitcoin and Ethereum trading.
Decentralized Services Need to be Commision-Free
If you care about decentralization, it’s important to sign up with people who offer commission-free crypto trading as the new standard of the Crypto Singularity. Supporting anybody else means you are basically just playing into the continuation of how wealth inequality is scaling in the US and around the world.
Coinbase charging outrageously high fees because it can, is a money-grab. It’s not a sustainable model that aligns with decentralization. For blockchain innovation, the spirit of open innovation, crowdsourcing progress and being for the people is extremely important as a value of the culture.
The future of trading must be different and accessible. The rise in popularity of crypto and altcoins means cryptocurrency exchanges are exploding in popularity. Countries are regulating them and taxing them as recently announced in South Korea.
The average age of Robinhood’s users is 30; so this is a Millennial-centric app just like the Crypto Singularity is fueled by a generation that is at a significant financial and occupational disadvantage due to heft student loans, rising housing prices, deteriorating working conditions and occupational instability and marked uncertainty.
If you want to learn more about Robinhood’s journey you can listen to a podcast here. While Coinbase appears obsessed with profitability, Robinhood is focusing more on user growth and customer-centricity. For startups it’s important to think long-term, and Robinhood’s perfect record on Glassdoor is a good sign. The Crypto Singularity is all about leveraging trust. For Coinbase, you don’t earn trust by charging trading fees of 1–4%. That’s just not how you do business with crypto anarchists who are tired of wealth inequality and how banks scam their customers while pocketing tons of hidden fees.
“The value of Robinhood Crypto is in growing our customer base and better serving our existing customers.”
The Sherwood Forest of the Crypto Singularity needs allies and advocates who understand the ethos involved here; it’s not just about profits.
Millennials aren’t just investing in crypto assets to get trich, the values of the blockchain actually hold some weight too. If you are Coinbase, your entire ideology is messed up to appeal to your customer base.
Robinhood is a very early stage online brokerage startup. However its cautious roll-out of Crypto is evidence it will do things right. Robinhood’s customer base needed this, since for many of an entire generation, Crypto really is their first foray into financial services.
Correct me if I’m wrong?