Robinhood, the popular mobile app, has just introduced Robinhood Crypto. The app is a stock trading app that allow users to buy and sell stock online without transaction fees. The company has now decided to allow users to also invest in Bitcoin and other cryptocurrencies, commission-free.

Interest is High

A day after announcing that the app would introduce free cryptocurrency trading, Robinhood added 530,000 new accounts. By simplifying the trading and tracking of digital currencies, the company hopes to draw even more users to its app, which currently has three million users, a majority of which are millennials.

According to cofounder, Vlad Tenev, “Cryptocurrencies have become the first foray into investing and financial services to a large number of people. We will connect to many exchanges, up to a dozen or more, over the next several months. We want to break even on this business, not to profit from it. We view this as an opportunity to expand our customer base and give our customers more access to functionality.”

How It Works

Robinhood Crypto will let you instantly transfer up to $1,000 from your bank account. Additional funds can be transferred but at a slower rate. When you place an order to buy or sell through the app, Robinhood provides you with an estimated price, connects you to a host of trading venues, and finds you the lowest price. Moreover, investors will be able to access their stocks, ETFs, options, and cryptocurrencies all in one place. This creates a new level of convenience.

Initially, the service will focus on Bitcoin and Ethereum, and trading will be limited to New Hampshire, Montana, California, Missouri, and Massachusetts. Although more will be added in waves.

Cofounder, Baiju Prafulkumar Bhatt, said, “We want to be there to help shape the way the industry goes with a better platform at a better price. Cryptocurrencies have the potential to change how money around the world works from the ground up. It is a shift from institutions back to the people and we want to be central in creating that change.”