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20

TIL: If you buy crypto using Robinhood, you don't really own it.

submitted by Nosferatjew to whatever 4.0 yearsMay 6, 2021 05:40:26 ago (+20/-0)     (files.catbox.moe)

https://files.catbox.moe/a6k29e.jpg

I've never used Robinhood, and I never will. First because of their role in the Gamestop/hedgefund debacle, but now also because of how they're handling their crypto trading users.

If you don't hold the keys, then you don't own the coins.


19 comments block

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[ - ] SilentByAssociation 6 points 4.0 yearsMay 6, 2021 06:13:58 ago (+6/-0)

Just like cloud services. Your stuff is on someone else's computer.

[ - ] account deleted by user 5 points 4.0 yearsMay 6, 2021 06:36:04 ago (+5/-0)

account deleted by user

[ - ] SilentByAssociation 0 points 4.0 yearsMay 6, 2021 09:43:13 ago (+0/-0)

Precisely. Although I store my silver at home. Fiat money is still fiat, whether in your possession or ones and zeros.

Tangible assets and goods are imperative.

[ - ] i_scream_trucks 0 points 4.0 yearsMay 6, 2021 14:09:20 ago (+0/-0)*

and thats the mistake people make with the hurr fiat is fake.

it what the military gets paid with.

it has value.

it is legal tender for all transactions.

it is not fake. regardless of mechanics behind it.

another mistake made is thinking crypto is of any value. this is patently false. the only value behind crypto is the money backing the crypto from other people buying crypto from whatever vendor is selling the monopoly money to you. that is called a ponzi scheme. if everyone invovled with it demanded their money at once the entire system collapses because the money is long gone and has been for a long time. the dregs you get now are the first and second round victims keeping the scam going long enough until they can get their money back by getting more stupid people to buy it off them. youre being robbed.

[ - ] Nosferatjew [op] 1 point 4.0 yearsMay 6, 2021 20:40:59 ago (+1/-0)

You can't sell your crypto holdings unless someone else buys it. There is no bank, so there are no bank runs. Crypto exchanges are not banks, they are platforms that facilitate trades between buyers and sellers. When a crypto market crashes, it's because there is more demand to sell than there is to buy, thus the price tanks. The money is not "long gone", crypto is not a ponzi scheme (except of course for bitconnect coin, but that fell apart a while ago). Cryptocurrencies are always only ever worth what someone else is willing to pay for them. Right now, bitcoin is worth around $56,000/coin because that is what other people are willing to pay for it. If there are more sellers than there are buyers, the price doesn't fall because some sort of "bank" doesn't have enough dollars in reserve to payout to sellers, it's because in order to get enough buyers to accommodate the sellers, the price has to come down, so as to entice more buyers into buying at the now lower price.

[ - ] Version6 2 points 4.0 yearsMay 6, 2021 09:05:36 ago (+2/-0)

Why anyone would use robinhood for anything is beyond me. They should be out of business.

[ - ] pshawman 2 points 4.0 yearsMay 6, 2021 06:28:34 ago (+2/-0)

If you buy crypto on ANY marketplace site, and don't withdraw it, you don't own it.

Also if the marketplace is hacked you have no recourse.

[ - ] Wemustremainpure 2 points 4.0 yearsMay 6, 2021 06:16:23 ago (+2/-0)*

Don’t use robinhood for any trading. I use Schwab, at least the founder is white.

[ - ] JillBidensTaint 0 points 4.0 yearsMay 6, 2021 10:51:57 ago (+0/-0)

And they reimburse ATM fees

[ - ] AndrewBlazeIt 1 point 4.0 yearsMay 6, 2021 18:08:20 ago (+1/-0)

“You can deposit your money here but not withdraw”

Yeah, that’s called theft.

[ - ] yesiknow 1 point 4.0 yearsMay 6, 2021 15:19:15 ago (+1/-0)*

People have been herded into giving up property rights, and it's been going on a long time.

Buying a computer device that won't allow you to take out their software and put in your own means you didn't buy fuck all. They just took your money. As if they borrowed a library book for free. They didn't.

Starting a group and calling it "right to repair" is a losing position. No normal person asks for the right to own what they bought.

Cars are the same now and people don't fucking care. They're being owned and controlled and programmed by the owners of the software because it's all based on the slavemaster religion of jews.

[ - ] Spiral_Out 0 points 4.0 yearsMay 6, 2021 10:21:41 ago (+0/-0)

Think this just means you cant trade the coins in or out. You can sell the coins for money and withdraw your money anytime. Takes like 5 days.

[ - ] chrimony 1 point 4.0 yearsMay 6, 2021 12:28:30 ago (+2/-1)

That defeats the whole purpose of crypto, which was created to eliminate the middleman and allow transparency. So if you "buy" crypto on Robinhood, you "own" a virtual crypto, which is already virtual to begin with? The whole thing screams of market manipulation.

[ - ] i_scream_trucks 0 points 4.0 yearsMay 6, 2021 14:13:10 ago (+0/-0)

meanwhile i can go to the bank and get 'fake' fiat money instantly that actually has a value.

[ - ] AndrewBlazeIt 0 points 4.0 yearsMay 6, 2021 18:09:35 ago (+0/-0)

fiat money

actually has a value

Good one.

[ - ] Teefinyomouf 0 points 4.0 yearsMay 6, 2021 08:49:17 ago (+0/-0)

Does this mean that when you sell it it's regular income and not capital gains?

[ - ] account deleted by user 0 points 4.0 yearsMay 6, 2021 06:31:12 ago (+0/-0)

account deleted by user

[ - ] toobaditworks 0 points 4.0 yearsMay 6, 2021 12:27:27 ago (+0/-0)*

Yes you can but they are shady. They limit how much you can buy (DOGE) and they don't have wallets (like this post basically says) so you can't withdraw your coins. They did the same with the GME stock. I'd never use them for anything. Anytime something pumps they shut it down.

[ - ] i_scream_trucks -1 points 4.0 yearsMay 6, 2021 14:08:14 ago (+0/-1)

which is convenient because if you own crypto you own nothing of any value