their purchase price through recurring investments. Sponsored Sponsored
trading platform Robinhood
has announced a new recurring investment feature for cryptocurrencies, according to a
published on September 8. The feature allows users to buy their favorite cryptocurrencies on a regular basis. The feature is commission-free and can be scheduled on a daily, weekly, bi-weekly or monthly basis.
Robinhood will gradually roll out this feature to users by the end of the month. It claims that it can help portfolios grow while reducing the effects of market volatility. Basically, the feature can help investors average the cost of their investments, which is a reliable strategy.
Cost Averaging is considered a good way for investors, especially amateur investors, to build profits. It helps overcome the wild price swings that the market is prone to, offsetting potential losses from dips.
The platform notes that unlike other trading platforms, Robinhood will not charge a commission fee. This is sure to attract some users, as commission fees can slim down a portfolio
when buying regularly. Especially for smaller amounts.
Robinhood ended the announcement by emphasizing its mission, “democratizing finance for all,” which has become the subject of ridicule. He has had a tumultuous last 18 months, with the GameStop incident and his congressional hearings. The platform continues to do well, however, supported by an intuitive interface and popularity among young investors.
Robinhood continues to generate trading activity
Despite the controversy that Robinhood has been embroiled in, it has seen a huge increase in users over the past year. The number of users has jumped 600% since Q4 2020 – at a time when the controversy was reaching its peak. 34% of its Q1 2021 revenue came from Dogecoin investments
This year they came under a lot of scrutiny from regulators and were ordered to pay
a total of $70 million by FINRA. However, the company marched on and seems to be doing well.
Robinhood’s stock dropped noticeably in August 2021, although its shares gained 123% after launching <a href=”https://beincrypto.pl/learn/coinba
se-ipo/” target=”_blank” rel=”noopener”>IPO this month. The platform plans to release more cryptocurrency features in the near future, which should give it some clout in an increasingly competitive space.
Robinhood will compete with the likes of Coinbase, which has faced its own controversies. Trading platforms in North America are growing in popularity as young investors become more money conscious.
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