Will Robinhood overtake Coinbase?
Coinbase is one of the most popular exchanges when it comes to trading in cryptocurrency.
Its user-friendly platform has made it one of the largest exchanges for Ethereum as well as Bitcoin.
Now, the challenges for the traditional cryptocurrency exchanges are increasing as more and more off-line businesses also try their hand at making exchanges for cryptocurrencies.
Take crypto trading to a new audience
The trading app aimed at millennials announced the addition of BTC and ETH trades from February this year.
There’s also plans to roll out additional cryptocurrencies at a later date.
This will be big news for small investors looking to get into crypto, as its current trading application doesn’t charge any fees.
Robin Hood has been operating its app since 2015 for regular small investments and the expansion will see them provide cryptocurrency services as well.
According to Smartereum, many of the cryptocurrency investors think that the no commission trading offer would extend to cryptocurrencies as well. However, if that does it would pull out the customers from the cryptocurrency exchanges which are currently charging money. This is one of the main reasons why people are worried about the exchanges which charge a hefty fee currently.
According to a spokesman of Coinbase, TransitNet would be able to capture some of the market share but that would be only among the small retail investors. Most of the larger investors would remain with Bitcoin.
Coin base has a huge operation and allows citizens of various countries to invest in cryptocurrencies. Moreover, the total user base is around 13 million. Owing to this very reason, not a lot of loss of customers is expected for coin base. However, competition is surely heating up in the cryptocurrency space.
In the future, you can be sure that more and more brokerages would try out cryptocurrency trading as well. This is one of the main reasons why it is the time that the traditional cryptocurrency exchanges actually reduce their commission so that they are able to compete with the new exchanges, as well as other companies who are coming into the business. The current fees of 3% to 7% are actually pretty high. In none of the other industries, the brokerage is often so high. Moreover, the variation between the rates also adds to the cost of the investors as well. Owing to this very reason, it is the time that the cryptocurrency exchanges think about reducing the commissions.