Robinhood Wallet is a crypto wallet offered by the Robinhood trading platform. It is currently in beta mode. But for those customers trying Robinhood Web3 Wallet, it’s a perfect way to trade and exchange cryptocurrency with no network fees.

Because the wallet is compatible with the Polygon (MATIC) network, customers can easily transfer their MATIC tokens to the Robinhood wallet.

Advantages of the Robinhood wallet

So let’s start with a little history. Robinhood made a name for itself with an easy-to-use stock trading platform. This ease of use translates to your crypto wallet.

There are several benefits of the Robinhood Wallet. For one, users are not charged transfer fees.

The company’s two-factor authentication process gives the wallet additional security. Customers can choose a face/touch ID or pin, as well as a secret passphrase or seed phrase, to help keep their crypto secure.

Disadvantages of the Robinhood wallet

Now to the cons. Robinhood’s wallet only supports 16 cryptocurrencies, which is an extremely small number of cryptocurrencies compared to many competitors. While this might be enough for beginners, advanced traders will likely want access to a much broader spectrum of cryptocurrencies.

Robinhood Wallet only supports one stablecoin: USD Coin (USDC). Users can fund their wallets with USDC, as a representative fiat token.

Some of the major cryptocurrencies supported by the wallet include:

• Bitcoin (BTC)
• Ethereum (ETH)
• Cardano (ADA)
• Solana (SUN)
• Dogecoin (DOGE)
• Avalanche (AVAX)
• Shiba Inu (SHIB)
• Polygon
• Litecoin (LTC)
• Uniswap (UNI)

While these crypto options may cover the basics, more advanced traders will probably want to look elsewhere.

Another downside: Unlike some wallets, like the Crypto.com DeFi Wallet, the Robinhood wallet does not offer staking. But that doesn’t mean current users can’t connect to decentralized applications (dApps) to earn returns on their crypto.

usability

In terms of usability, the Robinhood app wallet is integrated with decentralized exchanges or DEXs. These aggregators allow users to exchange tokens within the wallet.

According to Robinhood’s website: “You can exchange one type of crypto token for another on the Polygon network via the 0x API, a decentralized exchange (DEX) aggregator.”

Customer service

Robinhood offers 24/7 customer support via live chat, email support, and phone support.

There is also an article about the wallet in the support section of the Robinhood website. The article covers topics such as how to create a wallet, how to import an existing wallet, wallet recovery and protection, as well as backing up and funding your wallet.

Security

As far as online wallets go, Robinhood Wallet offers excellent security. All customers must use two-factor authentication, which includes a face/touch ID or personalized pin. The wallet also requires a seed phrase (or secret recovery phrase) for added security.

In general, you’ll want to keep in mind that online wallets are by nature less secure than their offline counterparts, as storing your crypto online makes you more vulnerable to hackers than any offline option.

That said, Robinhood uses a mix of hot and cold storage to secure its client funds, and the vast majority of client funds are held in cold storage.

Robinhood states: “We protect your cryptocurrency with industry-leading security, cold storage for most cryptocurrencies held at Robinhood Crypto, and (with) crime insurance.