What are the differences between Robinhood and Interactive Brokers in terms of their support for cryptocurrencies?

3 answers

• Dec 14, 2021 · 3 years ago
  Robinhood and Interactive Brokers are two popular platforms for trading cryptocurrencies, but they have some key differences. Robinhood is known for its user-friendly interface and commission-free trading. It offers a limited selection of cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin. However, Robinhood does not allow users to transfer their cryptocurrencies to external wallets. On the other hand, Interactive Brokers offers a wider range of cryptocurrencies, including lesser-known altcoins. It also allows users to transfer their cryptocurrencies to external wallets for added security. However, Interactive Brokers charges fees for trading cryptocurrencies, which may be a drawback for some users.
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• Dec 14, 2021 · 3 years ago
  When it comes to security, both Robinhood and Interactive Brokers take measures to protect their users' funds. Robinhood stores the majority of its users' cryptocurrencies in cold storage, which is offline and less vulnerable to hacking. Interactive Brokers also employs strict security measures, including two-factor authentication and encryption. However, it's important to note that no platform is completely immune to security risks, so users should always take precautions and use strong passwords.
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• Dec 14, 2021 · 3 years ago
  As for fees, Robinhood is known for its commission-free trading, which means users can buy and sell cryptocurrencies without paying any fees. However, Robinhood makes money through other means, such as selling order flow to market makers. On the other hand, Interactive Brokers charges fees for trading cryptocurrencies, which vary depending on the volume of the trade. While commission-free trading may seem more appealing, it's important to consider other factors such as the range of available cryptocurrencies and the ability to transfer funds to external wallets.
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