Robinhood Crypto Wallet Review

The beta test of the Robinhood Web3 app started in September 2022, following a surge in interest from thousands of clients who signed up on the waiting list within just a few months.

As of now, the app remains in beta and is still being fine-tuned, hence its availability is limited to users in select countries. But as this stage wraps up, about a million users eagerly awaiting the public release for Android are set to download the new Robinhood crypto wallet onto their smartphones.

The Robinhood Crypto Wallet is currently available on iOS. Source: robinhood.com

Key Aspects of the Robinhood Wallet

1. Robinhood is a self-custody wallet, meaning that users themselves are responsible for the safekeeping of their private keys. This method secures the wallet against ‘counterparty risks' but also places the onus of responsibility on the users themselves.
2. The wallet allows for the exchange of tokens on Ethereum and Polygon, with transactions through Polygon being commission-free. Plans to expand the range of supported networks are underway.
3. NFT support. The wallet enables users to store these non-fungible tokens.
4. Various identification options. Security in the mobile app can be ensured through a PIN or biometric scanning (face or fingerprint), and access recovery is facilitated via a seed phrase or a backup code.
5. Integration with CEXs and DEXs. Robinhood permits in-wallet token exchanges via their APIs.

Additional Features of the Robinhood Wallet

Beyond its primary functionalities, the Robinhood crypto wallet provides:

• Support for Ethereum network decentralized applications (DApps).
• Two-factor authentication (2FA) for enhanced security.
• Round-the-clock customer support accessible via email.

When compared to other non-custodial wallets such as MetaMask, Coinbase Wallet, and SafePal S1, the Robinhood crypto wallet is particularly noted for its ease of use. Beta testers have praised its intuitive interface, logical architecture, and accessibility for beginners.

A user-friendly interface of the Robinhood crypto wallet. Source: newsroom.aboutrobinhood

Despite its strengths, Robinhood Wallet has some notable limitations:

1. It currently supports only a limited selection of blockchains, including Ethereum, Bitcoin, Dogecoin, Polygon, Arbitrum, and Optimism. This limited range may not meet the needs of investors with a more diverse asset portfolio, potentially causing the developer to miss out on a substantial segment of the market.
2. Lack of integration with NFT marketplaces, limiting users to only storing NFTs in the wallet without the ability to connect to trading platforms.
3. No Android app is currently available.
4. High fees for transferring assets from a Robinhood platform account to the wallet.

Development of the Robinhood crypto wallet is ongoing, so these features may be included in future updates.

Is Robinhood a safe crypto wallet?

While the Robinhood Wallet is still in its testing phase, it's difficult to definitively assess its security. However, there are compelling reasons to believe that it will maintain high-security standards:

1. Robinhood Crypto is a registered broker-dealer and a member of FINRA, ensuring its products are under regulatory scrutiny.
2. The platform is registered with FinCEN, a U.S. government agency overseeing financial transactions, meaning all transfers are subject to government oversight.
3. Robinhood Wallet predominantly uses cold storage for storing cryptocurrencies, enhancing security.
4. As a non-custodial wallet, the new Robinhood crypto wallet does not store your private keys, giving users full control over their assets but also requiring them to take full responsibility for key security.
5. Robinhood Crypto extends insurance coverage to its wallet against hacking, theft, and other external cybersecurity threats.

How to access the Robinhood crypto wallet?

To begin using the Robinhood Wallet, the following steps should be taken:

1. Download the application from the App Store.
2. Select “Create a new wallet.”
3. Choose either “Use Face ID/Touch ID” or “Create your own PIN.”
4. Decide on creating a backup in iCloud, doing it manually, or skipping it to create a backup later.
5. Opt to enable notifications or do it later.
6. Click on “Let's go.”

Users can also import an existing wallet from a supported blockchain by using the secret recovery phrase of the wallet. This option can be found in the menu under “Import existing wallet,” followed by entering the phrase. The steps thereafter are similar to setting up a new Robinhood crypto wallet.

Robinhood platform users who connect their wallet by January 31, 2024, are eligible for a 1% bonus for transferring funds into storage. Additionally, all new users can receive a fractional share of any company worth between $5 and $200. 

Conclusion

If you're in the market for a straightforward and secure wallet for storing major cryptocurrencies, Robinhood Wallet might be an appropriate option. However, for those seeking more advanced features like support for a wide range of blockchains or integration with NFT marketplaces, exploring other digital wallet options would be advisable.