Robinhood and cryptocoin question?

godawgst

After Reddit rebellion w/ Gamestop and AMC it has come out that w/ out the capital raise of 3B Robinhood was on it's way to donzo.

I know stocks are protected in that scenario, but what about people who have cryptocurrency with them? What would have happened with their positions?

I feel like the dumbest person in the world with crypto, and will be asking more about it later.

2 trillion says it's here to stay, but on every other metric this looks like the tulip/every other bubble that blows up.

BennyBeaver

Where is donzo?

godawgst

sorry trying to be funny. donzo meant insolvent, bankrupt, etc.

creepycoug

godawgst said:

After Reddit rebellion w/ Gamestop and AMC it has come out that w/ out the capital raise of 3B Robinhood was on it's way to donzo.

I know stocks are protected in that scenario, but what about people who have cryptocurrency with them? What would have happened with their positions?

I feel like the dumbest person in the world with crypto, and will be asking more about it later.

2 trillion says it's here to stay, but on every other metric this looks like the tulip/every other bubble that blows up.

All I know is that brokerage clients have a beneficial ownership interest in the assets in their accounts. Legally it is a contract between you and the brokerage firm. How that looks in banko I do not know.

Why would crypto be different than the stock or ETF positions? Showing my ignance here.

greenblood

I might be wrong, but I think the problem Robinhood had was with all of the margin bets on Gamestop and AMC. Robinhood doesn't let you trade crypto through margins, so I don't think that is actually a problem. The bigger issue is if their servers can handle the overload of purchases we are going to be seeing tomorrow. I guess 4/20 is a big event for this coin. People are wanting to load on it tomorrow. It could get a little crazy

I am not a financial smart by any stretch of the imagination, but I will be rather surprised if Dogecoin doesn't hit .50 tomorrow. Because I saying that, it's probably best to sell your position now, because I kind of the village idiot on these kinds of things. But I put some fuck it money in it to see what happens tomorrow.

PostGameOrangeSlices

I use robinhood for crypto and that's it

I made great money on GME but it couldve been more if robinhood wasnt Citadel's bitch.

greenblood

PostGameOrangeSlices said:

I use robinhood for crypto and that's it

I made great money on GME but it couldve been more if robinhood wasnt Citadel's bitch.

Robinhood is great for crypto day trading. Smaller selection, but it's free. It isn't hard at all to make 4-5% day if you're active. And it if you press your position, it's growing exponentially.

Sources

greenblood said:

PostGameOrangeSlices said:

I use robinhood for crypto and that's it

I made great money on GME but it couldve been more if robinhood wasnt Citadel's bitch.

Robinhood is great for crypto day trading. Smaller selection, but it's free. It isn't hard at all to make 4-5% day if you're active. And it if you press your position, it's growing exponentially.

I disagree to the extent that while there are no transaction fees, the fills are awful. The volatility of crypto still makes it workable, but I'd rather use a better broker.

BuffBuffPass

Using Robinhood for crypto is one of the dumbest things you could ever do. The whole point of crypto is that you have the ability to easily self-custody. Robinhood doesn't allow you to actually withdraw your crypto, which means they may not even have the crypto you think you just bought. At least on Coinbase and the others, you can buy it and leave it on there while you learn how to self custody.

EsophagealFeces

BuffBuffPass said:

Using Robinhood for crypto is one of the dumbest things you could ever do. The whole point of crypto is that you have the ability to easily self-custody. Robinhood doesn't allow you to actually withdraw your crypto, which means they may not even have the crypto you think you just bought. At least on Coinbase and the others, you can buy it and leave it on there while you learn how to self custody.

Good to know. I’m a noob to all this. Is cashapp the same way?

BuffBuffPass

EsophagealFeces said:

BuffBuffPass said:

Using Robinhood for crypto is one of the dumbest things you could ever do. The whole point of crypto is that you have the ability to easily self-custody. Robinhood doesn't allow you to actually withdraw your crypto, which means they may not even have the crypto you think you just bought. At least on Coinbase and the others, you can buy it and leave it on there while you learn how to self custody.

Good to know. I’m a noob to all this. Is cashapp the same way?

Nope. Jack Dorsey is a Bitcoiner (a true believer, not someone looking just to make a quick buck) and wouldn't do that.

greenblood

BuffBuffPass said:

Using Robinhood for crypto is one of the dumbest things you could ever do. The whole point of crypto is that you have the ability to easily self-custody. Robinhood doesn't allow you to actually withdraw your crypto, which means they may not even have the crypto you think you just bought. At least on Coinbase and the others, you can buy it and leave it on there while you learn how to self custody.

Who cares if your trades last for only a few hours?

ntxduck

BuffBuffPass said:

Using Robinhood for crypto is one of the dumbest things you could ever do. The whole point of crypto is that you have the ability to easily self-custody. Robinhood doesn't allow you to actually withdraw your crypto, which means they may not even have the crypto you think you just bought. At least on Coinbase and the others, you can buy it and leave it on there while you learn how to self custody.

RH is rolling out wallets within 6 months. I think it depends on your horizon, too. If you’re short term, rh is fine. Long term, you want it in an external wallet.

PurpleThrobber

Check out Exodus - upcoming IPO for wallets.

Most importantly - joobs are not to be fucked with.