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Are there any disadvantages to using robinhood for my ETH and bitcoin? I just treat them like index funds that are more volatile.
I understand the problems for using it with the stock market. But with a long term hold like BTC or ETH and they let me buy at all hours why not use it?
not your coins
>>24528442This would normally be an argument for exchanges, but the chance of being rugged by RH is nil, and even then, you'd be able to class action.The big one is not being able to participate in the ecosystem, and especially, staking. When staking on coinbase goes live, you'll see a brief dip as people mass sell their RH eth etf in favor of the real deal.
>>24528442>not your coins
>>24528761Makes sense. But as of now there are not crypto ETFs so am I not actually buying a fractional share of a bitcoin on robinhood? how do they do that?
>>24529066also my first dubs checked
>>24529066You are buying the spot price of a coin they are holding on their backend, RH then buys or sells the coin on exchange in aggregate. Gold and silver etf's work the same way, assuming they don't use futures.
>>24528761I think crypto is not insured there so if they get hacked you are fuckedi think other crypto exchanges are insured, so you can get some money back if they get hacked. trusting yourself by buying a ledger/trezor is still best.
>>24529358It is pretty clear in their fine print you never actually own the coin, thus I think you are probably more insulated from a hack than an actual exchange. If coinbase vault is insured (Lloyds of Londin), I'm sure RH is as well, they have the sec to answer to.
>>24529470>We also carry crime insurance that protects a portion of the assets held across our storage systems against losses from theft, including cybersecurity breaches. The policy is underwritten by certain underwriters at Lloyd’s, the world’s leading insurance marketplace, and placed by Lloyd’s registered broker, Aon.-From Robinood websiteIt looks kinda sketchy because they said a portion of assets are insured, not all the assets.
>>24529561Right, iirc Coinbase only keeps a portion of their liquidity "hot" at any given time, they rest is physically detached from the internet. This is why they restrict usage during runs/crashes, it takes them time to make funds available.The insurance contract covers they maximum amount they are feasibly able to lose in any one event. Not arguing here, just sharing what I remember when I looked into this last, quite a while ago.
>>24528442Not even coins lol. IOU’s. What could go wrong...
>implying robin hood or Paypal will let you cash out your 1000x gains without fussFuck off you retard.
>make 2mil from gains >attempt to cash out >PayPal: *freezes your account*>PayPal: uhhhh we’re gonna need some ID>provide id >PayPal: we don’t think you are who you say you are we are blocking this account forever and keep your money lol bye
>>24528329No real coins. During an extreme moon or run up, they might not give you the same selling price. This is a problem because you can't go to another exchange. It's bullshit, sell your coins on RH, then purchase them elsewhere. Even cuckbase would be better.
>>24528329if you aren't able to take possession, the only reason to hold crypto exposure would be in a tax advantaged account. if you have to think about this, you deserve to donate all your money to jews whenever they decide.
you literally can't withdraw. this isnt a meme "not your coins", you literally can't withdraw it from there. it is just an index of ETH and BTC, you don't actually buy them.
>>24529087Anon....you have to go back.
>>24530377>be poor my whole life.>have to wait a little bit longer to be richOh nooooooo~~~
>>24530632I got ya. Whats the best place to buy?