How much MORE money would you have if you didn’t use RobinHood to buy crypto!?!?
-Stock apps are good for buying stocks. -Crypto apps are good for buying crypto. -Therefore, Robinhood (a stock app) is great for stocks but horrible for crypto. -Read on to learn why... <3
If you are still using Robinhood to buy crypto, you are losing a ton of money in opportunity costs.
Robinhood does not give you ANY interest on your crypto. None. Zero. Zilch. Your crypto just sits there in the app doing nothing and collecting dust.
If you used apps such as Voyager or Celsius, you could make 5.75%-7.25% apy interest on your Bitcoin and other cryptos.
Einstein is often credited with saying, “Compound interest is the eighth wonder of the world. He who understands it, earns it, he who doesn't pays it.”
This means that if you are not making interest on your crypto investments, you are missing out on the 8th wonder of the world! Even just 5.75% apy will make a HUGE difference on your Bitcoin. Check this out...
Part 1: A Tale of Two Investors
Let’s do some simple math. On November 4th, 2017, the price of Bitcoin was $7,400.
Steve bought 1 Bitcoin for $7,400 on Robinhood. His Bitcoin is now worth $61,000 (4 years later). That’s a 724% increase. Way to go Steve.
Bob bought 1 Bitcoin for $7,400 on Voyager. With 5.75% interest, after year 1, Bob now has 1.0575 BTC. This interest is compounded, so after 3 more years, Bob now has a total of 1.25 Bitcoin or $76,250 worth of Bitcoin!
By just using Voyager instead of Robinhood, Bob made $15,250 more than Steve. A 930% increase from his initial investment.
You are a legend, Bob! Your investment went up 206% more because you didn’t use Robinhood.
Bob is now happy. 😊 Steve is now sad. Poor steve. 😢
Part 2: (Robinhood vs. Voyager) /// A conversation between two best friends
Steve: “But there are no fees when you buy crypto with Robinhood.”
Bob: “You can buy crypto on Voyager without any fees. Plus, Voyager has way more coins you can buy than Robinhood.” (Note: There is currently a spread fee for both Robinhood and Voyager. It’s the price difference of the market value of a coin vs. the price you pay for the actual coin. This is normal for almost all apps.)
Steve: “But Robinhood is so easy to use.”
Bob: “Voyager is just as easy to use. Deposit money. Buy Crypto. And Make interest.”
Steve: “Okay, I’m in! How do I transfer my Bitcoin and Ethereum from Robinhood to Voyager?”
Bob: “Unfortunately, You can’t. Robinhood doesn’t even have that feature. That’s another reason why Robinhood is the worst. You will have to sell your crypto on Robinhood and rebuy it using an actual crypto app like Voyager or Celsius.”
Steve: “Robinhood is worse than an evil snail.”
As of the writing of this article, there is no reason anyone should ever use Robinhood to buy crypto. You should use apps like Voyager or Celsius, which are just as easy to use, but give you interest on your crypto (this is called a hot wallet).
Or you should use Stripe, a super simple app with even smaller spread fees, and move your crypto wherever you like, as cheaply as possible.
But for the love of all things, don’t use Robinhood anymore. There is no point to that. Cheers.
Here are the two apps I both use and recommend for earning interest:
#1 Choice // Voyager *Earn 9% APY on your USDC with Voyager *Voyager Promo Code: Download the app and buy $100 of BTC to get $25 free Bitcoin. *Use code 1AE3C8 or this link to claim your BTC: (https://voyager.onelink.me/WNly/referral?af_sub5=1AE3C8)
#2 Choice // Celsius *Automatically make 8.88% interest on your USDC. *Join Celsius Network using this referral code 1866831288 when signing up and earn $50 in BTC with your first transfer of $400 or more! https://celsiusnetwork.app.link/1866831288
*** Bonus App// Strike *This app has the smallest spread fees. (IMO) *It doesn't give you interest on your coins but you can send your crypto to apps that do with it. Join Strike and earn $5 when you sign up and verify your account using this referral code PU0IJM: (https://invite.strike.me/PU0IJM)
About the Author
Derek McCloud, M.Ed has a master’s degree in education which helps him simplify complex ideas like crypto and explain them in ways that the masses can understand. He is passionate about Bitcoin and crypto because it can provide financial freedom to those who invest wisely. He hopes that people who make massive amounts of money from crypto will help him have fresh water wells dug around the world for those in need by the year 2025. To learn more about crypto and joy, check out his youtube channel /Derek McCloud.
*Nothing in this document should be considered financial advice. Do your own research. Only invest what you can afford to lose.
*Using referral links in this blog will offer you incentives as it also helps this blog stay alive.