Reddit playground Robinhood to launch crypto recurring investment option
Robinhood announces a new trading investment option that would allow its users to invest recurrently in the crypto space.
Per a Wednesday announcement, Robinhood, a crypto trading app, has introduced a fee-free crypto recurring investment feature, which would allow customers to buy digital coins without the platform charging commission.
The September 8 announcement indicated that the trading platform’s new feature would allow users to be able to make scheduled crypto investments at will. This could be scheduled to be daily, weekly, bi-weekly, or monthly in multiple crypto assets.
Robinhood promotes crypto investments
Robinhood highlighted that the new strategy is called the dollar-cost averaging. According to the press statement, it was explained to be a strategy that involves “investing money gradually at regular intervals, rather than all at once and regardless of where market prices stand, in order to help smooth out the price swings that can sometimes occur.”
While this feature is already live, the company published the schedule to process recurring crypto orders on its website. The web post reads it would always process recurring crypto orders at 2:30 pm and 4:00 pm ET (6:30 pm to 8:00 pm UTC).
It also added that there might be a change in the amount of crypto to receive when purchased due to volatility. However, if users receive less crypto than their purchase, they would get a refund in fiat after the trade is completed.
With this feature, users can buy as little as $1 on a schedule of their choice. It was also revealed that New York-based customers would not have access to this service.
It is worth adding that crypto-based retail trading gained popularity on the platform earlier in the year when it gained notoriety for its role in the spike of Dogecoin’s price.
Robinhood recently boasted of generating $233 million in Q2, representing 42 percent of its total $565 million revenue. This figure is higher compared to the 2020 crypto revenue of $5 million.