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Robinhood reports addition of 6 million new crypto-traders

According to a blog post on February 26 titled “Crypto goes mainstream,” Robinhood unveiled that it had detected six million new consumers on Robinhood Crypto this year. The number of unique monthly consumers purchasing from its crypto platform in 2021. It is 15 times the average of 2020. Robinhood achieved this milestone after the no-fee app had stopped the crypto trading in the last few weeks, which did little to harm Robinhood’s popularity.

Moreover, users downloaded the app more than 3 million times last month, which was a record for any broker ever. However, the startup has not disclosed the total consumer count after it had reported 13 million users in May 2020. Robinhood Crypto provides trading on seven virtual coins. It involves Bitcoin, Bitcoin SV, Bitcoin Cash, Dogecoin, Ethereum, Ethereum Classic, and Litecoin.

Does Bitcoin rally support the growth of Robinhood?

The Silicon Valley startup, mainly employed by millennials to exchange stocks and cryptocurrency. It announced the crypto division averaged 200,000 new consumers in 2020 and rose to 401,000 in a single month. Maximum growth is due to Bitcoin’s rally as millennials have increasingly witnessed opportunity in the crypto market amongst increasing institutional interest. The substantial number for Robinhood is remarkable given that the broker bothered several of its users when it provisionally halted trading of so-called meme stock. 

Further, Robinhood’s trading app also crashed several times in 2021. However, the trading outages did not affect the retail traders from the commission-free broker. Earlier on January 27, Robinhood moved to restrict the wild trading activity by boosting margin necessities and limiting transactions to the position closing only. It also pulled the plug on retail investors trying to ‘immediately’ purchase cryptocurrencies on its no-fee app.

It imposed restrictions probably due to extreme purchase of Dogecoin, the crypto developed in 2013 inspired by the famous meme of the Shiba Inu dog. The joke-based coin has witnessed its market value soar by more than 800% overnight following talks on a Reddit group named SatoshiStreetBets. Moreover, Tesla’s founder Elon Musk was also a reason behind the sudden rise of Dogecoin.

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