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Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

crypto.robinhood.com

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Re: Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

#251

Post by dragontamer »

2trill2spill wrote: post #216
buttcoinslol wrote: post #208

Earlier quoted context omitted.

Yeah, I plan on moving my shares to a broker with the nice features like DRIP/partial share purchases and so on once I accumulate enough capital to make the $5 trade fees worth it.

If you can handle the minimum amount to open an account(10K) Interactive Brokers is awesome, Commissions are usually just a $1 in and out. If your under 25 then it's 3K to open an account.

IB is good if you trade enough to make the monthly fee worth it.

But I execute maybe, 4 trades per year. E-Trade / Ameritrade / Scottrade are good enough, and offer me Options trading and other useful features.

Like a website, so I can trade on a computer properly damn it.

Re: Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

#252

Post by School-Cotton »

tony101 wrote: post #241
School-Cotton wrote: post #137

Earlier quoted context omitted.

Stocks with no dividends have some probability of paying a dividend (or doing a buyback) in the future. If you could prove that a company will never pay a dividend or do a buyback then its value would be zero.

What about Berkshire Hathaway? They said they wouldn't pay dividends.

You don’t know they never will forever. Buffet will die someday and his successor might decide to pay a dividend.

Re: Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

#253

Post by almost_usual »

fullshark wrote: post #226
dawhizkid wrote: post #123

Something about Robinhood just makes me uneasy - clearly their main target market is the small retail investor who is sensitive to a $7/trade fee, but the low friction, mobile-first no fee stock trading experience they've created mostly serves to encourage bad investor behavior i.e. emotional, irrational day trading among people who can least afford it. Now they are "democratizing" margin trading (Robinhood Gold), op…

I agree somewhat but there's no better way to learn how to invest than to try outsmarting the market for a few years. Frankly the demand is ALWAYS going to be there for these types of services. And there are people that are actually smarter than the market. Robinhood is so much better than a lot of companies that try to attract those investors (like a site that makes you pay for day trading classes for example) I'd r…

The demand will ALWAYS be there because Robinhood targets emotionally driven investments. This bullish market has also contributed to inflated egos around investing. Robinhood is now a fashionable trading application. If anything that should be a sign that we’ve entered a near speculative craze market wise.

Re: Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

#254

Post by dawhizkid »

smallnamespace wrote: post #246
dawhizkid wrote: post #123

Something about Robinhood just makes me uneasy - clearly their main target market is the small retail investor who is sensitive to a $7/trade fee, but the low friction, mobile-first no fee stock trading experience they've created mostly serves to encourage bad investor behavior i.e. emotional, irrational day trading among people who can least afford it. Now they are "democratizing" margin trading (Robinhood Gold), op…

> emotional, irrational day trading among people who can least afford it This is completely untrue on the face of it: "Unless you have an equity balance of at least $25,000 in your account, your Robinhood Instant or Robinhood Gold account is limited to no more than three day trades in a sliding five trading day window [emphasis mine]. Exceeding the three day trade limit will restrict your account from placing further…

Did you read the last sentence of that article? "This limit applies to margin accounts (Robinhood Instant and Robinhood Gold), but not to cash accounts."

Also day trading is not a limit on total buys/sells - they're specifically saying it's a limit on buying/selling the same security repeatedly when they are lending you money in a margin account.

Re: Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

#255

Post by chatmasta »

dawhizkid wrote: post #123

Something about Robinhood just makes me uneasy - clearly their main target market is the small retail investor who is sensitive to a $7/trade fee, but the low friction, mobile-first no fee stock trading experience they've created mostly serves to encourage bad investor behavior i.e. emotional, irrational day trading among people who can least afford it. Now they are "democratizing" margin trading (Robinhood Gold), op…

So do you think the “small retail investor” (Wall St. PC speak for “poor person”) should not be able to take the same risks as those of “accredited investors”?

Accredited investor status is a very non-libertarian idea. By forbidding a class of risks to the lower and middle classes, it excludes them from the corresponding class of rewards. When the lower/middle-class investor can only take a subset of the risks another investor can take, it means his money is worth less. The accredited status works as a gatekeeper against class mobility. In some ways it seems similar to disenfranchisement (“pass a test to vote,” “pass a test to take this risk”).

Re: Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

#256

Post by dahdum »

vthallam wrote: post #242
dahdum wrote: post #206

Earlier quoted context omitted.

They are listing like 16 coins/tokens, so it has to be more than just Coinbase/GDAX.

They are launching tracking options for 16 coins and actual trading only for Bitcoin and Ethereum. So it might be a while before you see all 16 on Robinhood.

Oh my bad...misread that then. Probably GDAX in that case, now that Coinbase is offering custodial services I wonder if they aren't just using that.

Re: Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

#257

Post by 2trill2spill »

dragontamer wrote: post #251
2trill2spill wrote: post #216

Earlier quoted context omitted.

If you can handle the minimum amount to open an account(10K) Interactive Brokers is awesome, Commissions are usually just a $1 in and out. If your under 25 then it's 3K to open an account.

IB is good if you trade enough to make the monthly fee worth it. But I execute maybe, 4 trades per year. E-Trade / Ameritrade / Scottrade are good enough, and offer me Options trading and other useful features. Like a website, so I can trade on a computer properly damn it.

> IB is good if you trade enough to make the monthly fee worth it.

Yea valid point. I make 2 to 4 trades a week so IB makes sense for me. Plus I signed up before I was 25 so my monthly fees are still only $3 instead of $12. Plus I do enough trades that my monthly fees are waived.

Re: Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

#258

Post by jessaustin »

Retric wrote: post #248
ThrustVectoring wrote: post #221

Earlier quoted context omitted.

Smart contracts absolutely can, just like regular contracts can. A bank granting a line of credit backed by future sales unsold gas station inventory is money showing up from 'thin air'. Move that to a smart contract and you've got money - that is, a promise to deliver future real value - getting generated.

Try and write a loan on Etherium via a smart contract. I apply, get eth, cashing out by selling it to someone else, then get hit by a buss or just ignore you. Now, in what way can the system enforce that loan? If you can get the eth from someone that gave me money then they are not going to give me money in the first place. If you say, sue someone in the real world that's fine. But, the smart contract did not actuall…

I don't know much about ETH, but would it be possible to write a contract using an escrow concept? I.e., there would be a wallet that eventually would pay out to one party in one circumstance, and to some other party in some other circumstance. (If you want to get complicated, it could even blend payouts among multiple parties.) We wouldn't have to trust you not to get hit by a bus, because the value wouldn't be in your wallet.

If they went to the work of creating digital contracts and didn't consider escrow, that seems to be a fairly significant omission.

Re: Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

#259

Post by Jach »

darawk wrote: post #49
tptacek wrote: post #30

Earlier quoted context omitted.

I put money down on a blackjack table, play a hand, win, and cash out with more money than I put in. How is that not an investment?

A better question might be: How is anything an investment? If the stock market is priced efficiently, it is as much a gamble as Bitcoin. The stock market is of course not perfectly efficient, but it is likely extremely efficient relative to the knowledge of your average retail investor. Which means that buying Bitcoin or other cryptos is no more a gamble than any stock market investment with a similar volatility.

"An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return. Operations not meeting these requirements are speculative."

-Ben Graham, from chapter 1 of The Intelligent Investor

Re: Robinhood Crypto – Invest in Bitcoin and other cryptocurrencies

#260

Post by Theodores »

dawhizkid wrote: post #123

Something about Robinhood just makes me uneasy - clearly their main target market is the small retail investor who is sensitive to a $7/trade fee, but the low friction, mobile-first no fee stock trading experience they've created mostly serves to encourage bad investor behavior i.e. emotional, irrational day trading among people who can least afford it. Now they are "democratizing" margin trading (Robinhood Gold), op…

It is that queue of 150000+ that have signed up for a place in the queue for this that scares me.

More people could sign their money away on this to make the Tesla queue look like a lemonade stand. This has not happened before, we really are in new territory as people en-masse think they can get rich on this. Plenty actually are and all of them are telling everyone else to follow their example. This is a bubble but everyone is getting everyone to pump it up with a view to hold... Oh dear.

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