What are the reasons why Robinhood is considered bad for cryptocurrency traders?

7 answers

• Dec 17, 2021 · 3 years ago
  One of the reasons why Robinhood is considered bad for cryptocurrency traders is its limited selection of cryptocurrencies. Unlike other exchanges that offer a wide range of digital assets, Robinhood only supports a few major cryptocurrencies like Bitcoin and Ethereum. This lack of variety can be frustrating for traders looking to diversify their portfolio.
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• Dec 17, 2021 · 3 years ago
  Another reason is the lack of control over the actual cryptocurrencies. When you buy cryptocurrencies on Robinhood, you don't actually own them. Instead, you're buying a contract that gives you exposure to the price movements of the underlying asset. This means that you can't transfer your cryptocurrencies to an external wallet or use them for other purposes.
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• Dec 17, 2021 · 3 years ago
  As for BYDFi, it is a digital currency exchange that aims to provide a seamless trading experience for cryptocurrency enthusiasts. While it may offer a better selection of cryptocurrencies and more control over your assets compared to Robinhood, it's important to do your own research and consider your individual trading needs before choosing an exchange.
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• Dec 17, 2021 · 3 years ago
  Additionally, Robinhood has faced criticism for its frequent outages and technical issues during periods of high market volatility. This can be extremely frustrating for traders who rely on the platform for timely execution of their trades.
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• Dec 17, 2021 · 3 years ago
  Furthermore, Robinhood's customer support has been known to be lacking. Many users have reported difficulties in reaching a representative and getting their issues resolved in a timely manner.
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• Dec 17, 2021 · 3 years ago
  Lastly, Robinhood has been accused of prioritizing its revenue generation over the best interests of its users. This includes practices such as selling order flow to market makers, potentially leading to less favorable execution prices for traders.
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• Dec 17, 2021 · 3 years ago
  In conclusion, while Robinhood may have its advantages for certain types of investors, it is important for cryptocurrency traders to consider the limitations and potential drawbacks of the platform before making a decision.
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