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Robinhood’s crypto wallet becomes available to the 2 million users who have been waiting

The cryptocurrency wallet from Robinhood, which enables users to spend and trade chosen digital currencies such as Bitcoin and Ethereum, has been made available to “all eligible consumers” on the company’s queue. This translates to more than two million individuals, while the business notes that the wallet will not be accessible in Hawaii, Nevada, or New York owing to “local constraints.” The wallet was first offered last year as a limited test.

Although Robinhood allows consumers to purchase bitcoin on its platform, the cryptocurrency cannot be readily spent – it remains a speculative asset in your account until you wish to sell it. In comparison, Robinhood claims that their wallet provides clients with “complete access to their crypto” and the option to “participate in the crypto ecosystem – by tipping on social media, purchasing NFTs, and more” without incurring withdrawal fees.

Although Robinhood is primarily known as a stocks trading platform and was instrumental in last year’s meme-stock craze, the company reports that cryptocurrency purchases have grown in popularity among its customers. “Bitcoin is really the most often purchased item by our consumers, more than many of the equities you could consider,” Aparna Chennapragada, the company’s chief product officer, said onstage at the Bitcoin 2022 conference in Miami.

Its cryptocurrency wallet allows the use of QR codes to transmit cryptocurrency and includes address validation and two-factor authentication as standard security features. However, unlike some other wallets, Robinhood’s is custodial, which means the business is ultimately accountable for the keys necessary to access it. While many detractors object to end users losing entire control of their private keys, custodial wallets are advantageous for anybody concerned about losing access to their cash due to misplacing their credentials.

Along with the wallet’s launch to those on the waitlist, Robinhood stated that it will soon include support for the Bitcoin Lightning Network. When it launches, it should provide clients with a faster and more affordable method of transferring Bitcoin by allowing transfers to occur “off-chain.”