Robinhood for better or for worse has significantly changed the financial landscape and paved the way for future phenomena like Wall Street Bets to do what they have over the last year or so. While they started out as a typical brokerage service albite without fees the last few years they have significantly changed.
I began using them for stock trades when I was new to investing in 2016 so when they announced in 2018 their first foray outside of this I was highly intrigued. Now the product they attempted to launch ultimately failed and a lesson was learned. You have to have a banking license or partners to offer bank-like services. They did learn though and about a year later rolled out their current product called Cash Management which allows your idle cash to gain interest.
This new product is replacing the Cash Management product and is called Cash Card. As time goes on the needs of customers change and that is something that Robinhood has caught onto. One of the largest if not the largest thing that this product is going to do is to separate your investing and spending accounts. No longer will they be all part of one account instead users will have two!
Not only that but this new program has several new features which often are not all found together like they are with Robinhood. Here are some of the big changes that are coming soon!
- Ability to round up purchases to the nearest dollar and invest the change in an asset of their choice (Acorns has a similar program however what you invest in is very very limited)
- Round-up Rewards where if you opt-in for the round-ups at the end of the week you will earn a bonus between 10-100% of your round-ups (this is capped at $10)
- Instant savings where they will receive savings for using their Cash Card at certain stores and some have already been announced like H&M, Chevron, and Chipotle with more to come.
- If you set up direct deposit you can apply to get paid up to two days early! This feature can further be used to split your paycheck to automatically invest in assets in your brokerage and/or crypto account.
Adding these features, especially since Robinhood does not charge fees, will be really helpful in accumulating either of the two major coins in Bitcoin and Ethereum. Overall they still only offer the original 7 that they have had listed for a while now. With the recent lawsuit against Coinbase patience is going to be key with exchanges like Robinhood. When the government finally issues regulation clarity I am sure they will be listing coins/tokens accordingly but until then it is hard to justify the risk.
The coins offered as well are for the most part pretty respected coins that have kept their value and have followed the markets. Just like Coinbase and DEX have a place Robinhood does as well and is solidifying theirs. Since they charge no fees and give all users the ability to set limit orders it really is a fantastic place to buy your BTC and ETH especially since you can move them off the platform now.
This is a huge step in Robinhood being a one-stop-shop for financial products and is challenging everyone from the established to those like Coinbase that specializes in not only their product offering but the cost of the transactions.
Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_
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