Robinhood is a popular stock-buying app among the young investors of crypto currencies. The company behind app has announced on Thursday it is adding two new crypto currencies to attract investors – Bitcoin and Litecoin. These new additions are fourth and sixth most valuable digital currencies respectively. Robinhood has already introduced offerings for Bitcoin and Ethereum—the two biggest and best known currencies—in February.
Currently, Robinhood is offering crypto currency trading and its related activities in few number of states including California and Texas, while they have applied for license in the rest of the country. Robinhood decided to add these two currencies after SEC released its latest guideline which makes these digital currencies with less regulatory risk. As this isn’t the case with other centralized digital tokens, which the SEC has warned about and that must be registered. Robinhood seems ambitious about other digital currencies like XRP and Monero and looking forward to offer sale for these in future. Robinhood says “It provide service offers users the ability to track the price of other crypto currencies, including XRP and Monero”.
The price of Litecoin and Bitcoin Cash are well off their highs from last December when the overall market went into a frenzy. Robinhood is different from other digital currency leaders like Coinbase and Payment Service Square. It doesn’t charge direct commissions or trading fees from its customers.
As Fortune explained in June:
With a dearth of market makers in the nascent cryptocurrency industry, Square and other trading platforms like Robinhood typically buy their Bitcoins and crypto currencies straight from public crypto exchanges and then resell them to investors, hoping to profit on the spread, or difference, between the purchase and sale price. But that can be tricky, especially when crypto currency’s high volatility results in frequent price swings.
In an interview, Co-founder of Robinhood explained Fortune that the company is not looking to make profit from crypto currencies right now. Instead, the company sees it as a complement to its core stock brokerage service, which has already notched more accounts than conventional services like eTrade.