Robinhood announces new functionality for scheduling cryptocurrency investments
Robinhood announces new functionality for scheduling cryptocurrency investments By Hannah Perez

The platform launched a feature that allows its users to leave recurring crypto purchases scheduled, an investment strategy known as dollar cost averaging (DCA).

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Robinhood

, the popular financial services mobile app, announced Wednesday the launch of a new cryptocurrency investing feature. The news comes amid the platform’s rapidly growing cryptocurrency business.

In a statement, the company reported that its users will now be able to take advantage of a new feature that will allow them to automatically make investments in the cryptocurrency market on a recurring basis. Robinhood

unveiled

the details of the new ceo fee service through a post on its official blog

.

Today we are rolling out recurring crypto investments, a new feature that allows you to regularly buy your favorite coins, commission-free and with as little as USD$1 on a daily, weekly or monthly schedule of your choice.

Robinhood launches new crypto investing feature

The brokerage app company said the feature would help reduce the impact of cryptocurrency volatility by allowing users to invest in intervals rather than large sums of money, a strategy known as dollar cost averaging (DCA). This way, investors can leave scheduled purchases regardless of market prices.

Dollar cost averaging encourages investing money gradually at regular intervals, rather than all at once and regardless of where market prices are, to help smooth out price fluctuations that can sometimes occur

,” the company detailed in the statement.

Robinhood isn’t the only cryptocurrency trading platform that allows users to make recurring investments automatically. According to The Block, digital asset exchanges like Coinbase

and FTX also offer similar features.

In the statement, the platform highlighted that the advantage of their service is that it does not include commissions, as it does with other companies. They stressed that the functionality is initially available to a select number of users as of Wednesday; but they will be enabling the product for more customers over the course of the month.

Growing cryptocurrency business

The launch of Robinhood’

s latest feature represents a step towards expanding a line of business focused on cryptocurrencies, an area that has become more important to the brokerage firm in recent months.

According to its latest earnings report, the company’s revenue-based

in cryptocurrency trading transactions increased 4,282% from Q2 2020 to Q2 2021. In fact, digital currencies accounted for more than 51% of Robinhood’s total transaction revenue, eclipsing its core options and equity trading business.

Likewise, the platform also reported that it has seen significant growth in its customer base; and most seem to be coming in primarily to access crypto services, with that being the first trade for new users rather than stocks.

Amid the growing popularity of the cryptocurrency business, Robinhood Crypto‘s Chief Operating Officer (COO) Christine Brown has already advanced that the company is working towards a more comprehensive wallet service that would allow users to send and withdraw their cryptocurrencies to external wallets. Currently, Robinhood users can only buy and sell cryptocurrencies with no ability to move them outside of the app.

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Sources: Robinhood, The Block, Forbes, archive

Version by Hannah Estefania Perez / DiarioBitcoin

Image by Unsplash