Robinhood to test crypto wallet feature in October
Robinhood decided to make its wallets custodial due to concerns about security versus user experience, which means that the company will be responsible for the keys to the wallets.
Thu, 23 Sep 2021, 08:22 am UTC
Robinhood has announced that it will be launching out its crypto wallet next month. The trading app will start testing the feature by October and is encouraging users to join a waitlist and be the first to test out the wallet.
In a blog post on Wednesday, Robinhood said that users can test out the new crypto wallet feature in October by joining a waitlist. The company wants early users to share their experience and feedback while using the new feature before rolling it out to the rest of the platform’s users.
The crypto wallet allows users to move their digital currencies in and out of the Robinhood app and send them to other wallet addresses. “This means you can consolidate your coins into one account so it’s easier to track your portfolio, move supported coins into your Robinhood account so you can trade those coins commission-free, and more,” the company said.
According to Robinhood’s crypto lead Christine Brown, the crypto wallet will initially only support coins included in its trading platform Robinhood Crypto such as Bitcoin (BTC), Ethereum (ETH), and Dogecoins. However, there are plans of expanding this support to include other cryptocurrencies in the future, according to the Verge.
The company said that the crypto wallet is easy to use while sporting enhanced security features for safe transactions. “At Robinhood, we’re designing wallets to be intuitive, with security features such as identity verification, multi-factor authentication, and email and phone verification to keep coins safe from hacks and other threats,” the company explained.
Brown said that Robinhood decided to make its wallets custodial due to concerns about security versus user experience. This means that the company will be responsible for the keys to the wallets.
“Robinhood manages your wallet for you, rather than giving you direct control over its keys,” the company said. This eliminates the possibility of users forgetting the keys and being unable to access their digital assets.
However, the wallet won’t allow users to buy stocks using cryptos such as Bitcoin directly as payment. However, they can sell their crypto for another fiat currency and use it to buy stocks.
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