Robinhood down: App struggling with cryptocurrency trading issues as Dogecoin booms
POPULAR trading app Robinhood struggled to keep up with surging demand for cryptocurrencies.
The platform is back up and running after going down for a short time for buyers and sellers of bitcoin, dogecoin and other cryptocurrencies.
🔵 Read our cryptocurrency live blog for the latest Bitcoin updates
On Robinhood's status page. the tech company said "all systems are now operational" but earlier it experienced technical issues leaving users unable to trade.
An earlier message said: "We are experiencing issues with crypto trading. We are working to resolve this as soon as possible."
The company also shared the issue message on Twitter, where many bitcoin and crypto investors are active.
Furious traders took to Twitter to complain about the issue, which occurred happened as the price of Dogecoin rocketed.
One user said: "There it is again! Robinhood limiting buy and sell orders during a surge!"
5 risks of crypto investments
THE Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
Another said: "Literally every time with you guys".
Annoyed users also shared images of an error message they get on the app.
According to Down Detector, a website which monitors outages, users started reporting the issue at around 3pm UK time.
In an update on the issue, Robinhood tweeted: "Crypto trading is now fully restored.
"We know some customers may have experienced intermittent issues earlier.
"We’ll continue to monitor the situation closely and we’re sorry if you were impacted. Please contact us if you have outstanding issues"
Robinhood restricted crypto trading back in January due to "extraordinary market conditions" after a massive spike in trading.
In February another crypto trading platform, eToro, crashed leaving investors unable to sell their holdings.
What is Bitcoin?
BITCOIN got you baffled? Here's what you need to know:
- Bitcoin is a virtual currency
- It's traded between people without the help of a bank
- Every transaction is recorded in a public ledger, or "blockchain"
- Bitcoin is created by mining
- Mining involves solving difficult maths problems using computer processors
- Bitcoin can be traded anonymously, which can make it a popular way of funding illegal activities
- The value of Bitcoin fluctuates wildly
- Bitcoin is one of many different cryptocurrencies, but by far the most popular
Today dogecoin, a cryptocurrency that has gained in popularity in recent months but initially started as a joke, hit a record high.
Cryptocurrencies are not regulated in the same way as other investments or savings and come with very high risks.
Prices can go up and down very quickly and this volatility means you can lose all your money.
Another risk is that you may not be able to access your holdings, as Robinhood users have experienced.
Most read in Money
Robinhood is available in the US and shot to popularity among amateur investors this year.
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