The Robinhood crypto and stock trading platform will release a feature later this month that allows users to dollar cost average through recurring investments.
Trading platform Robinhood has announced a new recurring cryptocurrency investment feature, according to a blog post published on Sep. 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, biweekly, or monthly basis.
Robinhood will gradually roll out the feature to users by the end of the month. It says that this could help grow portfolios while simultaneously reducing the effects of the market’s volatility. Essentially, the feature can help investors dollar cost average their investments, which is a reliable strategy.
Dollar-cost averaging has been touted as a good way for investors, especially amateur ones, to build up their returns. It helps overcome the wild price swings that the market is prone to, evening out any potential losses from dips.
The platform notes that, unlike other trading platforms, Robinhood will not charge a commission fee. This will certainly attract some users, as commission fees can add when buying regularly.
Robinhood ended the announcement by highlighting its mission, “democratizing finance for all,” which has become the subject of mockery. It has had a tumultuous past 18 months, what with the GameStop incident and its congressional hearings. The platform continues to do well, however, supported by its intuitive interface and popularity with young investors.
Robinhood still hotbed of trading activity
Despite the controversies that Robinhood was embroiled in, it experienced tremendous user growth over the past year. The number of users jumped by 600% from Q4 2020 — at the time when the controversies were peaking. 34% of its revenue from Q1 2021 was from investments in Dogecoin.
This year, they were subject to great scrutiny from regulators and were ordered to pay $70 million by FINRA. The firm has marched on, however, and seems to be doing well.
Robinhood’s stock dropped noticeably in August 2021, though its shares gained 123% following its IPO launch earlier that month. The platform plans to release more crypto features in the near future, which should give it some clout in an increasingly competitive space.
Robinhood will be competing against the likes of Coinbase, which has faced its own controversies. Trading platforms in North America are gaining ground as young investors become increasingly savvy about their money.
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Original Source: Be In Crypto Robinhood to Launch Recurring Crypto Investment Feature This Month