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RE: Will Robinhood Save Us From Coinbase's Tyranny?

in #cryptocurrency6 years ago

Nice video (script in this case), and great post as usual. But I have MAJOR concerns over Robinhood coming into the crypto market.
Let me say that personally, my opinion is to avoid Robinhood at all costs.
What is my reasoning behind this? For the past 7 months or so, I have gotten into the world of day trading and swing trading. This comes into play because I have had to weigh the pros and cons of all the different brokers out there to see which ones tailor to my specific needs. There are those few though that make the 'no one in their right mind should use these brokers' list. Robinhood happens to be on that list for me.
When it comes to brokers I have adopted the philosophy of 'you pay for what you get'. This applies to Robinhood because while they advertise no commissions, you heavily pay for it on the other end. So if they don't have commisions, where then, are they getting their money? They obviously are getting it from somewhere because otherwise they wouldn't be around. The answer is you. The customer. They get it through poor executions and other factors you have mentioned so that 9/10 times you end up losing money which they pick up. These reasons are why Robinhood is on my avoid at all costs list.
Again, these are things you have mentioned. What concerns me the most though, is the gravity at which new traders and investors aren't going to take these red flags seriously enough. I personally don't want to see anyone lose money because it sucks. The feeling you get is dreadful but most of the time avoidable. Robinhood can now poise themselves as 'Hey look at us, we specialize in trading and now we're getting into crypto! Open an account today with no fees!' all the while getting more money through shady practices brought over from their trading expertise. This is a game and they want you to lose. Just remember that.
I would like to conclude by saying that these are all my own opinions based on my personal experiences and you should not use them as fact. I personally recommend coinbase still to anyone trying to wire in money for their first time trading BTC or any of the other coins and currencies. I have no experience with Gemini but have heard they have a good reputation as well. However since I have never used them I cannot recommend them. I also highly recommend using wallets (desktop or cold are my preferred) for long term storage to avoid hackers and the risk of losing your coins. What anything really boils down to is research. Do your homework so that you won't bleed like chum in a tank of sharks.

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Robinhood states on their site how they make money " Additionally, Robinhood earns revenue by collecting interest on the cash and securities in Robinhood accounts, much like a bank collects interest on cash deposits". I think the point is that we should be happy to see free exchanges emerging as it creates competition which is healthy.