RobinHood is being touted to be the next big cryptocurrency exchange. Some even say that it will be the next coinbase since it allows users to buy/sell cryptocurrencies using fiat money. However, RobinHood is not ‘exactly’ an exchange at all since they themselves mention that they are using existing exchanges to do the trades. In other words, rather than operating as full trading exchange like Bittrex, Binance and Poloniex, the RobinHood uses GDAX, Gemini and few others to fill the orders.
Also, there is massive confusion over the trade fees. They have made people to believe that there are no trade fees. The fine print is – “You’ll never get charged a commission or additional trading fee on top of the execution price.”
That being said, RobinHood will be very popular among the non-crypto users who use it for trading stocks and would not mind buying cryptocurrencies using fiat money. May be they just do not want to deal with wallets and complex exchanges.
So yes, it is disappointing to see that RobinHood is not an actual exchange. But atleast they will be making crypto more accessible to regular investors.
It is a new fiat gateway that will allow real USD to come in which will only increase the total marketcap of the cryptocurrency market.