Making money online was made easier than ever by Robinhood. Any stock of your preference can be accessed with just a few taps on your phone. Unless you aren’t aware of the stock market or have been living under the rocks, you’ve surely heard of it.
Robinhood kicked off the commission-free trading revolution that led to the ditch of trading commissions on many brokerage platforms. Let’s begin our money-making journey on the question…
What is Robinhood?
Robinhood is a financial technology business that makes an understandable and friendly investing experience for all experts and beginners alike. By offering free cryptocurrency exposure, no account minimums, a commission fee, and a mobile-friendly sign-up process, this platform has surely captured the hearts of many investors around the world.
It has an easy-to-use and smart design that has forged a niche market with tech-savvy investors. All thanks to the user experience and clean design that concentrates on the basics.
From stocks, ETFs, cryptocurrencies, and options, you can trade them all for free on the Robinhood platform. This is a huge stroke of luck for investors, especially options investors.
Options traders know how expensive it is to trade and in out the market because brokers charge a huge fee for each contract. The system quickly accumulates the costs. However, it is a great option for investors looking to enter the market.
One good thing about Robinhood is that it allows trades 24/7 a day, seven days a week. Cryptocurrencies can be bought directly and not through futures. The only downfall is that they won’t be able to take custody of their coins as you can in other cryptocurrency exchanges.
You now know what Robinhood is. Now, let’s get started on how you can effectively make money through it.
Create Your Own Portfolio Online
On the Robinhood homepage, click Get Started Now and sign-up to create an account. Once you’ve signed up with the platform, you can begin building your portfolio.
You can hold stocks that will earn you dividends and reinvest the dividends to make compound interest. Moreover, you can make money through asset appreciation. You can sell your stocks for a higher price than you purchased them for.
For instance, if you buy an Apple stock for $150, you can make money when the value of Apple hits $300per share. This gives you a net gain of $300, which is worth double your investment.
A dividend income is the amount of money that a company gives to shareholders from its profits. This is given when a company does not reinvest profits but divides them among shareholders.
The dividend is paid according to the percentage of stock prices. For instance, if a company delivers an individual dividend of about $0.50/share, and you own $2,000 shares, you would be given $1,000 every year.
Making money on Robinhood by creating a portfolio boils down to two simple strategies: the first is through dividends, and the second is the “buy low, sell high” philosophy.
Buying exchange-traded funds (ETFs) is, by far, the fastest way to earn through Robinhood. They provide exposure to the vast stock market without the need to buy an individual share.
One of the EFTs that track the market best is Vanguard’s Total Stock Market Fund. This one is perfect for long-term investments since the stock market yields about 10% profit every year. However, you have to pay capital gains tax every time you earn a profit. And so, to avoid this, hold on to the funds long term.
Your funds are secured with Robinhood. This security brokerage is regulated by SEC, or Securities and Exchange Commission, so your funds are protected for up to $500,000 for securities and about $250,000 for cash claims.
For this strategy, you need to have the ability to predict which shares will grow and when is the best time to sell them. Investing your time and effort in making buying and selling decisions is the best thing you can do.
When it comes to the stock market, Robinhood only provides limited asses that are focused on the United States. This limitation can make you reconsider the asset appreciation strategy.
Similar to any other investment, you can also lose money in Robinhood. However, you could avoid losing too much money through shrewd risk management.
Avoid margin trading or lending some funds from a broker to trade a financial asset. If you loan money from them and shares go down, you’ll have to pay for the loss. Thus, sidestepping margin trading and going for other strategies will help minimize risk.
Join Robinhood’s Affiliate Program
Commissions from investment trades have been a legitimate way to earn money online. Affiliate marketing has long been a profitable way to earn commissions for marketing someone else’s or a company’s products.
With the affiliate program, you will get to enjoy connecting with Robinhood 1-1, attend exclusive timetables, get insights and news, privilege beta testing access, and earn special offers all throughout the year.
Join Robinhood’s affiliate program by filling out the application provided by the platform and wait for the response in the next couple of days. Once you get accepted as an affiliate, you will be given an affiliate link, which you have to market across your favorite networks.
For every successful referral you make, you will be rewarded money. Once you hit $50 after the invoice and locking period have passed, you will be given the payment. You can also receive stocks as a reward. However, there are requirements that should be met.
Buy Cryptocurrencies
Cryptocurrencies are also available in Robinhood. Robinhood offers various kinds of cryptocurrencies like Dogecoin, Bitcoin, Ethereum, and Bitcoin Cash, which users can buy and sell within the platform.
However, you should be mindful when buying cryptocurrencies. Don’t buy them to get into what’s trending, which is why beginners often fail. Go for value. Most crypto neophytes fail to make massive gains because they forget to comprehend this investing foundation.
Cryptocurrency investors nowadays just buy a coin, crossing their fingers with the hopes of having its value moon soon. This shouldn’t be the case.
You should know your “why” when it comes to crypto investing. Why is this worth buying? Why would this crypto go up in value in the following months or years?
Examine all the cryptocurrencies that are available on the platform. Look at its performance and the community supporting it. The more active the community is, the more it is likely to thrive.
Similar to stocks, you can go for “buy high, sell low” and “buy and hold” strategies to earn money from cryptos.
There are a lot of opportunities awaiting you in Robinhood if you are an aspiring investor. Go and see for yourself.
