Polkadot is one of the most promising crypto projects at the moment. Since it is a new blockchain technology compared to bitcoins, lightcoins, etc., it is not available on various crypto-exchanges and platforms.
You cannot buy, sell or exchange Polkadot for Robinhood. Even if you could, you should not do it on the Robinhood platform. There are several reasons, here are some of them discussed below.
Robinhood has two subsidiaries:
Robinhood Finance LLC.
Robinhood Crypto LLC.
Robinhood Finance, LLC. is a member of SIPC and FINRA. All stock transactions (Tesla, Apple, Google, Walmart, etc.) are done through this company. All of your stock investments (up to $500,000) are FDIC or SIPC insured. Consequently, even if Robinhood Finance, LLC. goes bankrupt, your money is safe.
On the other hand, Robinhood Crypto, LLC. Is NOT a member of SIPC or FINRA, and your money is not FDIC or SIPC insured. Therefore, if Robinhood Crypto LLC gets seriously hacked, you will lose all your money. You have no protection.
Robinhood Crypto claims that you can buy and sell cryptocurrencies without commission. But if Robinhood Crypto doesn’t charge you a commission, how do they generate revenue? They are not a charity. If something is free, the product is you.
The Robinhood Crypto front manages your crypto transactions. They don’t give the best market price.
For example, you want to buy 1 bitcoin at Robinhood. If you place a $50,000 limit buy order, Robinhood will not give you the best market offer. Robinhood will charge you $50,000 for 1 bitcoin, but Robinhood actually bought bitcoin on the open market for $49,800 and sold it to you for $50,000.
In the case of a limit sell order, if you place an order to sell your 1 bitcoin for $50,000, Robinhood will not execute your order until the price exceeds a certain price, such as $50,200. Robinhood will then buy your 1 bitcoin for $50,000. Then they sell it on the market for $50,200.
This is why you will see that even if the price falls below the limit buy price or rises above the limit sell price, your order will not be executed. Robinhood waits to get ahead of your order to profit from your trades. However, Robinhood hides all of these facts from customers.
Robinhood also does not allow you to withdraw or transfer coins to another wallet or to your Robinhood wallet. They do not give you any access to your cryptocurrency. Thus, the only way to move your cryptocurrency to an external wallet is to sell your coin for U.S. dollars and cash it out. But if you do that, your cryptocurrency gains will be subject to capital gains tax from the IRS.
Cryptocurrencies are digital money. If you can’t use your cryptocurrency, what’s the point? It’s like having a bank account, but you can’t spend money from your account. On the contrary, you can buy, sell, and transfer your coins to other online cryptocurrency wallets with no problem.
Kraken is the best platform for buying and stealing Polkadot. With the exception of Kraken, no other company gives a high return (up to 14%) on your DOT coin.