How Traders from all over the world are flocking to Robinhood to swap cryptocurrencies.

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Robinhood’s total transaction value is about $500,000.

 

Cryptocurrency was introduced to its platform almost three years ago by Robinhood, the financial services firm best known for providing commission-free stock and ETF trades, but it was not until this year that the service really began. This week, the company announced that, so far this year, it has welcomed more than six million new clients to Robinhood Crypto.

In contrast, the number of new crypto clients on Robinhood peaked at 401,000 last year in a single month, with a monthly average of about 200,000 users trading for the first time on the platform in 2020.

 

Robinhood touts itself as a forum for all investors, regardless of their financial condition. The average transaction size this year has been around $500, or slightly more than double what it was in 2020, no doubt due to increased interest in crypto and Reddit-influenced trading in stocks like GameStop, AMC, and BlackBerry.

Seven crypto-currencies, including Bitcoin, Bitcoin Cash, Bitcoin SV, Litecoin, Ethereum, Ethereum Classic and Dogecoin, are currently sponsored by Robinhood.

Bitcoin, by market value, the largest cryptocurrency, topped $58,000 earlier this week but has since fallen to around $46,750 as of writing. Firms such as Square and MicroStrategy continue to pump cash into the crypto, apparently undeterred by the volatility. Square said it purchased another 3,318 Bitcoins for $170 million in its most recent earnings report, while MicroStrategy acquired 19,452 Bitcoins for $1.026 billion in cash this week.

 

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