By Evan Spicer
Director of Cryptocurrency Investigations
Cryptocurrency is synonymous with innovation. Not only are digital currencies themselves changing the way we use, save and trade money, but crypto services are also evolving quickly.
Robinhood is a commission-free trading platform that allows users to trade stocks, gold, options, and cryptocurrencies. The company is releasing a new gifting feature in time for the holidays on December 22, 2021, according to Coindesk.
This feature allows people to gift as little as $1 worth of cryptocurrency with no commission. The recipient has 14 days to accept the gift, and if it is not received, the money is returned to the sender. This could be a way to introduce friends and relatives to cryptocurrency, even though they may have been hesitant in the past.
Is it worth it to try out Robinhood’s crypto gifting feature, or is caution warranted? There is naturally a reason to exercise caution with cryptocurrency or any other financial instrument. People are concerned with losing money that is difficult to recover on the blockchain whereas others feel fears are overblown and such features are safe.
The answer lies somewhere in between. It is worthwhile to look at Robinhood, its license, reputation, and provisions in case something goes wrong. It is always possible that the gift could get hacked, as with other digital gift cards. If this happens, fund recovery assistance is the best way to track down the culprit and retrieve your funds.
MyChargeBack provides guidance to consumers who are trying to recover their funds from merchant disputes, crypto scams, or other types of fraud. Talk to MyChargeBack professionals and get started on fund recovery.
What Is Robinhood’s Crypto Gifting Feature?
Robinhood’s crypto gifting feature will be available from December 22 in most of the U.S., except for Nevada and Hawaii where Robinhood’s services are not usually offered. Users can send small or large amounts of cryptocurrencies to recipients without paying commission. They can send bitcoin, Ethereum or Dogecoin. The recipient must confirm the gift within 14 days or the money is returned.
“Crypto gifting is a great way for our customers to help remove the emotional and economic barrier of their friends and family taking their first step into crypto,” Robinhood Crypto Chief Operating Officer Christine Brown wrote in an email, according to Yahoo Finance, “It is also an easy and immediate gift for those that are already crypto fans.”
What is Robinhood?
Robinhood is a popular commission-free trading platform that lets users trade precious metals, options, stocks and cryptocurrency. It is available only to U.S.-based customers and has 10,000,000 users.
Robinhood has disrupted the trading services space the way Uber disrupted taxi companies. Brokerage accounts often require a minimum of $1,000. It is impossible to buy half a share with regular brokers, who often charge hefty commissions. Robinhood changed all of this with commission-free trading, low minimums and the choice of buying fractions of highly-valued stocks. Those who open accounts can even get free shares.
Robinhood has a reputation for safety because it is regulated by the Securities and Exchange Commission (SEC), just as a licensed brokerage would be. Customers are insured for up to $250,000 cash and $500,000 securities because this trading platform has a license from the Securities Investor Protection Corporation (SIPC).
Reviews from WallStreetSurvivor report that Robinhood has stellar and prompt customer service, all trades were executed efficiency and the request to withdraw funds was done immediately. This confirms that Robinhood acts like a legitimate, licensed broker should and seems to be a reliable and safe service.
Robinhood itself seems to be legit, but what about its new crypto gifting service? Is it a good idea or not?
Pros of Crypto Gifting
The following are some benefits of the new service:
- Convenient way to give money.
- Great gift idea for the person who “has everything.”
- Nice way to introduce someone to cryptocurrency.
- Robinhood is a regulated platform and insures the gift.
- No minimum amount to send.
- Can be returned in 14 days if the recipient doesn’t want it.
Cons of Crypto Gifting
- Why be a crypto gifting “guinea pig?”
- What if it is hacked?
- A recipient may be nervous about cryptocurrency
- Cryptocurrency is volatile
Like any other type of gift, there are pros and cons to gifting cryptocurrency through this new service. Like cash gift cards, crypto gifting is a convenient way of giving money to the person on your list you don’t know very well, prefers money to surprises or seems to have everything. If you have someone on your list who is curious about cryptocurrency but hasn’t yet taken the plunge, here is your chance to introduce them to it.
Robinhood is a safe and regulated service and customers are insured. There is no minimum, no commissions, and the gifts can be returned.
These pros answer the objection of what if the gift card gets hacked. Given that customers are insured, it is likely there will be a reimbursement if something happens with crypto gifting.
Many people don’t like feeling like a “guinea pig” and trying out a brand new service. Others may find it exciting. It depends on the personality of the recipient. If they are unhappy with cryptocurrency, they could simply not accept the present and you will get the money back.
One disadvantage is that cryptocurrency is so volatile that the digital currency you buy one day may collapse in value in a few days. This probably means that the recipient of crypto gifting should be someone who has expressed some interest in cryptocurrency and is aware of the fluctuations in value and risks.
How to Use Crypto Services Safely
Since Robinhood is a regulated and insured trading platform, it is much safer than the majority of crypto platforms on the market. Here are some tips to stay safe using crypto services:
- Check that they are regulated
- Look at reviews from reliable media sources
- Find out who is behind the company and check their credentials
- Read terms and conditions carefully
- Confirm that they use encryption and the highest standard of cybersecurity protection
Even with these precautions, mishaps can occur. If you have lost money to a crypto broker or platform, seek fund recovery assistance.
Consult with MyChargeBack experts and get started with your fund recovery claim. We have extensive working knowledge and relationship with regulators as well as the dynamics of crypto recovery and can improve our prospects of getting your money back.