Crypto day trading, though associated with many risks can be enjoyed on some platforms. Robinhood is one of the trading platforms that offer multiple features to users who engage in crypto day trading, to the end that they have great trading experience. Read to find out more!
Different trading methodologies have been incorporated into the trading space since crypto trading started. So many platforms now offer their users these options to the end that they enjoy a beautiful user experience and trade often.
Robinhood is one of the platforms that offer different crypto trading option among its numerous trading options. Below is a detailed explanation of all you need to know about day trading.
Brief History of Robinhood
Robinhood is a brokerage-trading platform that was launched in 2013 by Vlad Tenev and Baiju Bhatt who were both students of Stanford University at that time. The online trading app was designed to make trading easier for everyone. The platform started by offering stocks and ETF trading, but later incorporated the crypto trading option for every user.
Robinhood now has both web version and app version, making it easier for everyone to trade as often as they want. Robinhood only allows Bitcoin and Ethereum trading on its platforms. However, users of the platform can also get real-time market data about numerous other coins. Some of which include Bitcoin Cash, Litecoin, Monero, OmiseGo, Ethereum Classic, Dogecoin, Bitcoin Gold and several other options.
Different trading accounts are available for traders to make use of while trading on the platform. They include:
- Standard Account: This is the default account given to every user once they are registered on the platform. This account allows for instant deposit and withdrawal options. For other trading options, for instance, stock trading, you do not have to wait for your money to process before placing your trade. You can also make a deposit as low as $1,000 when trading on the platform.
- Gold Account: This is an upgraded account that gives more trading features than the standard trading account. The deposit is instant, but you must always hold a minimum fee of $2,000 in your account. There is also a flat rate payable monthly by users who make use of the margin trading option on the platform.
- Cash Account: Cash Account is a downgraded account that allows users to make commission-free trades without having to make deposits or settlements. However, not so many features are opened to customers that make use of this account option.
Day trading is a common term in the trading market that is not only exclusive to the cryptocurrency market. Stock and forex traders can also engage in day trading; however, what makes crypto different is that you can trade as just any time of the day because the market does not close down.
Day trading is using fundamental and technical analysis to place multiple positions daily in the crypto market. There are different trading strategies that traders make use of in the trading industry. Some of the popular ones include Breakout, scalping, momentum, swinging and reversal. All of these terminologies will be familiar to experienced traders who are looking to find their way around trading on Robinhood platform.
Robinhood Crypto Day Trading
Robinhood crypto day trading is quite similar to trading on other exchange and trading platform with only a few differences. The first is that unlike trading on the top exchange platform, you cannot do a crypto-to-crypto exchange on Robinhood. You can only make use of fiat to purchase the cryptocurrency you want to trade with, and once you make a profit, you withdraw your earnings back into your bank account in the form of fiat currency. If you are interested in navigating through different cryptocurrencies while trading, then, after you have withdrawn your earnings, you can purchase another cryptocurrency or visit other trading platforms to get that done.
Also, unlike most other online broker crypto trading platforms, Robinhood only allows a few crypto trading options on the platform. You can only trade with Bitcoin and Ethereum. This does not mean that you cannot study the market trends of the other cryptocurrencies, as this option is made available in the web version of Robinhood.
With these in mind, it is essential to mention the reason why doing day trading on the platform can be the best option for most traders, especially beginners, in the trading niche. Some of these include:
- EASY ACCESS: Robinhood was created to give everyone easy access to trading and to earn. Hence, making it easy to register on the platform. All you have to do is visit their website download the app on google play store for Android users and the Apple store for iPhone users. Once this is done, you can go ahead to provide the details needed during registration. These details include your full name, mobile number, email address and a secured password. Once this is completed and you have verified your account, you can then go ahead to make your first deposit, after you have connected your bank account to the platform. From this point, you can enjoy day trading for as long as you want.
- NICE USER INTERFACE: The interface and design of Robinhood is the reason most users prefer to make use of the platform. The app is designed to allow easy navigation for beginners. This means that you can move from a beginner to an expert trader, by simply following the steps on the platform. Day trading is better enjoyed on Robinhood when compared with the other trading platforms because of this option. The last thing most day traders want is complication while trading and Robinhood ensures to keep this off its platform, hence making trading easier for everyone.
- NO HIDDEN CHARGES: Robinhood is a broker-trading platform, and it is expected that they would be charging numerous fees on different transactions, but this is not the case. It is free to register on the platform and Robinhood charges no deposit and withdrawal fees. However, daily traders making use of the margin option will have to pay approximately 0.1% of their trades, whether they are entering short or long positions. This price is still within the limit when compared to the other trading platforms.
Day trading on Robinhood is quite better and easier when compared to the other trading and exchange platforms. Hence, beginners in the crypto trading industry can begin to consider registering with this platform to enjoy their trading experience.