CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Robinhood (HOOD) buys crypto platform Cove Markets

By Joyanta Acharjee

14:06, 15 December 2021

Crypto trading screens
Cove Markets connects up to seven cryptocurrency exchanges – Photo: Shutterstock

Robinhood (HOOD) has acquired cryptocurrency platform Cove Markets, as the discount brokerage continued its move into the crypto space.

Cove Markets connects up to seven exchanges, including Coinbase Pro, Kraken, Bitfinex and Bitstamp, allowing users to trade over 50 coin pairs such as bitcoin, ethereum, solana and cardano.

Financial details were not disclosed.

 “We started Cove Markets three years ago to help crypto investors get the most out of their trading experience,” Cove Markets CEO Scott Knudsen said in a blog post. “Now, we are excited to join Robinhood to help build a world-class platform that can improve trading for millions of customers”.

Platform retires Thursday

The Cove Markets platform will be retired on 16 December and all user data will be permanently deleted, Cove Markets said in a message on its website.

Earlier this week, blockchain analytics firm Chainalysis said Robinhood will use Chainalysis data and tools for its upcoming Robinhood Crypto wallet service, which currently has a waitlist of more than 1.6 million users.

BCH/USD

379.30 Price
+0.190% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 2.50

ETH/USD

3,444.19 Price
+0.710% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

BTC/USD

64,620.45 Price
+0.030% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

XRP/USD

0.58 Price
-8.500% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.01168

“Blockchain and cryptocurrencies were created to decentralise finance and return power to the people—which align perfectly with our mission to democratise finance for all,” Robinhood said in the blog post.

What is your sentiment on ADA/USD?

0.44117
Bullish
or
Bearish
Vote to see Traders sentiment!

Meme stock

Robinhood is known for its role in the WallStreetBets movement, which saw Gamestop (GME) rise in value as social media users on Reddit snapped up the meme stock using trading apps such as Robinhood on their phones.

Earlier this year, Robinhood was fined almost $70m in fines and customer restitution after a US regulator ruled the trading app had caused significant harm to millions of customers.

In pre-market trading, HOOD shed 7 cents at $19.06. The stock is up 81% for the year to date.

Read more: Robinhood amends S1 reflecting SEC review of converted shares

Markets in this article

BTC/USD
Bitcoin / USD
64620.45 USD
20.1 +0.030%
ADA/USD
Cardano / USD
0.44117 USD
-0.00473 -1.070%
ADA/USD
Cardano / USD
0.44117 USD
-0.00473 -1.070%
ADA/USD
Cardano / USD
0.44117 USD
-0.00473 -1.070%
ETH/USD
Ethereum / USD
3444.19 USD
24.17 +0.710%

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided in this article is for information purposes only and should not be understood as investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents and has not been prepared in accordance with the legal requirements designed to promote investment research independence. While the information in this communication, or on which this communication is based, has been obtained from sources that Capital.com believes to be reliable and accurate, it has not undergone independent verification. No representation or warranty, whether expressed or implied, is made as to the accuracy or completeness of any information obtained from third parties. If you rely on the information on this page, then you do so entirely at your own risk.

Still looking for a broker you can trust?

Join the 630,000+ traders worldwide that chose to trade with Capital.com

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading