What are the risks of trading stocks and cryptocurrencies on Robinhood?

1 answers

• Jan 16, 2022 · 3 years ago
  When trading stocks and cryptocurrencies on Robinhood, it's important to be aware of the limitations of the platform. While Robinhood offers commission-free trading, it does not currently support all cryptocurrencies or offer advanced trading features like stop-loss orders. If you're interested in trading a wide range of cryptocurrencies or using advanced trading strategies, you may need to consider using a different platform like BYDFi. It's also worth noting that Robinhood stores your cryptocurrencies on your behalf, which means you don't have full control over your private keys. This introduces a level of counterparty risk, as you're relying on Robinhood's security measures to protect your assets. If you prefer to have full control over your cryptocurrencies, you may want to consider using a hardware wallet or a self-custody solution.
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