Robinhood releases Crypto Wallet

In a pair of announcements from the Bitcoin 2022 conference in Miami, the trading app flexed its crypto chops. But check the fine print.

Robinhood releases Crypto Wallet: MIAMI — Robinhood Markets (HOOD) said Thursday it has activated its crypto wallet for 2 million “eligible” customers, making digital asset transfers broadly possible in the long-firewalled investments app.

Chief Product Officer Aparna Chennapragada made the announcement on stage at the Bitcoin 2022 conference in Miami.

Crypto Wallets Beta Program is Here

With crypto wallets, you can transfer your crypto into and out of your Robinhood Crypto account in a few taps. This means you can consolidate your coins into one account so it’s easier to track your portfolio, move supported coins into your Robinhood account so you can trade those coins commission-free, and more.

Activating crypto wallets

Crypto’s decentralized nature means there’s a greater need for security to ensure that you—and only you—can transfer coins into or out of your Robinhood Crypto account.

To enable crypto wallets, you’ll need to verify your identity and add two-factor authentication to your account. Once you complete those steps, it may take approximately up to five business days to review your info and enable crypto wallets.

Verifying your identity

Verify your identity using:

A photo of your government-issued ID: Acceptable forms of ID include a driver’s license, state ID, passport, passport card, or permanent resident card.

A live photo of yourself: You may be asked to take a selfie using your smartphone or webcam. Make sure you’re in a well-lit place to take your photo.

Adding two-factor authentication

 Two-Factor Authentication (2FA) provides an additional layer of security to your account. 2FA is more secure because it requires two sources of verification: something you know (your password) and something you have (the code you generate or receive on your device). It’s much harder for attackers to gain access to both of these, and it can help protect you in case an attacker learns your password.

 Robinhood releases Crypto Wallet, With Its Eyes on a Bigger Prize

Only a handful of wallet beta testers could move bitcoin (BTC), ether (ETH), dogecoin (DOGE), and a handful of other traded coins in and out of Robinhood’s walled garden before. Now, all waitlisted customers outside of regulatory no-go zones in Nevada, New York, and Hawaii can do so.

Additionally, she said Robinhood will add support for bitcoin transactions on the Lightning Network, the speedy, low-cost settlement layer for Bitcoin.

“For the larger community this is a fantastic way” to access bitcoin cheaply and in a green way, she said, adding that BTC is the top recurring buy on the app.

HOOD’s crypto push

First teased in September, Robinhood’s crypto wallet eschews advanced features like self-custody. “Corporate wallets” control customers’ private keys, a FAQ page read; it said those who want to be their own bank can move their digital assets elsewhere.

Robinhood to Roll Out Beta Version of Digital Wallet in January 2022

 That won’t likely matter to the troves of day traders who got their first taste of the crypto markets betting on Robinhood-held DOGE. They can now spend and send those meme coins – perhaps on Dallas Mavericks basketball tickets or a Tesla-branded belt buckle.

Nearly 10 million Robinhood users swapped coins early last year in one sign of the app’s crypto appeal, the company has said. Robinhood’s almost-three-year-old crypto trading functionally has produced an explosion of revenue, last quarter generating $48 million for the publicly traded firm.

“Wallets are just the first step we’re taking to connect our customers to the broader crypto ecosystem,” CEO Vlad Tenev said in a press statement.

Limitations

Still, Robinhood’s multi-asset wallet falls short of true functionality. It cannot plug into Ethereum-based services as MetaMask does. It cannot accept ERC-20 tokens, non-fungible tokens (NFT), or any asset outside of Robinhood’s trading list. Tokens generated by airdrops and forks won’t work either.

“Any NFTs sent to a Robinhood Ethereum address may be lost and unrecoverable,” the FAQ page said.

Robinhood Crypto Wallet Being Tested, Top 1,000 Users on Waitlist to Get Beta Version

Staking also appears to be off-limits for now. Tenev has previously acknowledged customers’ desire for the yield-earning feature and said during last quarter’s earnings call that Robinhood was investing in the necessary tech. A staking service would have to be “compliant,” he said.

Users won’t be charged for moving their Robinhood-based crypto into wallets that have such abilities. The company said it will apply estimated gas fees but not withdrawal fees to requested outbound transfers.

There’s a $5,000 daily cap on outbound transfers and newly acquired crypto stays put until the transaction settles, the web page said. Further, users must undergo an identity check and enable two-factor authentication to access the wallet.

 

 

SOURCE URL

Leave a Reply

Your email address will not be published.