Cryptocurrency makes headline news almost everyday these days. From Elon Musk's cryptic and curious tweets about Dogecoin to the President of El Salvador, Nayib Bukele, making Bitcoin a legally accepted currency in the country, the daily news about crypto is as exciting as it is perplexing. All the news may have piqued your interest, but still, you might wonder if crypto is too complicated for the average person to invest in.
Cryptocurrency investors buy and trade coins on specialized on trading platforms. You can also invest in cryptocurrency on a select few stock trading platforms.
Robinhood is a popular app with 13 million users, according to 2020 data posted on Statisa. The app is available for iOS and Android users. You can also use Robinhood on your desktop or laptop computer. The app does not charge fees for trades, which is another reason it appeals to beginner investors. As of June 2021, Robinhood lists the following cryptocurrencies:
- Ethereum Classic
- Bitcoin Cash
- Bitcoin SV
As a novice cryptocurrency investor, be sure to research any currency in which you would like to invest carefully. Keep in mind that the appeal as well as the distaste for cryptocurrency is that it is very volatile. Prices rise and fall very fast. As a result, never invest more money than you can afford to lose in cryptocurrency.
If you are risk averse, meaning you don’t like risk, with a Robinhood account, you can invest a few dollars and watch cryptocurrency pricing action just for fun.
Note that Robinhood is simply a place to buy cryptocurrency as an investment. At this time, Robinhood does not offer wallets in which to store your cryptocurrency. If the price of your crypto holdings goes up and you want the profits, you have to sell for US dollars just like a stock.
Also relatively easy to use is Coinbase, a cryptocurrency exchange, with approximately 56 million users including hedge funds and other financial services companies, according to Backlinko.
To use Coinbase, open an account and follow the prompts. Before trading, it is recommended that you complete the various tutorials offered by Coinbase to make it easy for you to use the site. Unlike Robinhood, Coinbase charges fees for the various transactions the platform offers.
Coinbase has a wallet app. Similar to a physical wallet, you can use the app to store your cryptocurrency securely.
This stock brokerage has a dedicated cryptocurrency platform called TradeStation Crypto for trading currency such as Bitcoin, Litecoin and USDC. TradeStation Crypto offers 6% interest on some crypto current assets.
In addition to the company’s easy-to-use trading platform, the site also offers educational resources to help you learn about cryptocurrency and decide which assets to add to your portfolio. TradeStation Crypto also charges transaction fees for crypto trades.
Remember, always do your research before spending your money on cryptocurrency or any other asset.