Robinhood Markets Inc. is launching a brand new cryptocurrency recurring funding function that lets prospects routinely put money into cryptocurrencies in a day by day, weekly or month-to-month schedule.
The US monetary companies firm acknowledged that such a service would let prospects routinely put money into cryptocurrencies like Bitcoin, Ethereum, Dogecoin, and different supported crypto tokens and not using a fee price.
The new function is about to permit its prospects to buy cryptocurrency commission-free and with just a little as $1 value of cryptocurrency of their alternative month-to-month, weekly and even day by day.
Christine Brown, the Chief Operating Officer of Robinhood Crypto, talked in regards to the growth and mentioned that the power of shoppers to purchase small quantities commonly is particularly helpful in relation to the particularly risky crypto markets.
Brown acknowledged that the brand new function for Robinhood’s cryptocurrency product will enable prospects to autonomically make investments out there on a recurring foundation and assist to cut back the affect of cryptocurrency’s volatility by permitting traders to put money into intervals fairly than in massive lump sums – a well-liked technique often called dollar-cost averaging.
“Dollar-cost averaging encourages investing money gradually at regular intervals, rather than all at once and regardless of where market prices stand, to help smooth out the price swings that can sometimes occur,”
Brown additional talked about that the recurring buy function would particularly attraction to traders new to cryptocurrency and intimated the market’s frequent crashes, like on Tuesdays September 7, Bitcoin and Ethereum plunged their values by as a lot as 15% earlier than partially recovering.
“The crypto markets can be volatile due to the nature of the industry. Investing on a recurring basis can help you focus on long-term growth, reduce risk, and reduce the stress of timing the markets,” Brown mentioned. “This permits prospects to take a long-term method to crypto,” she added.
The product is now out there to various choose customers on the RobinHood funding platform, starting Wednesday, September 8.
Robinhood just isn’t the one cryptocurrency platform that permits customers to speculate routinely. Rival opponents, comparable to Coinbase and FTX.US additionally present comparable options.
However, throughout the announcement of the brand new function, Robinhood acknowledged that any recurring function would include no price or fee, contrasting this to different cryptocurrency platforms the place transaction charges will be as much as 4%. The remark could have focused Coinbase, the biggest cryptocurrency retail service, which expenses a price on each transaction and is working to be Robinhood’s greatest strategic rival.
Making Crypto Trading Easy
After helping a brand new technology of traders in moving into inventory markets, RobinHood is more and more doing the identical for cryptocurrencies. And its traders seem to like cryptocurrencies.
In its first earnings report as a public firm, Robinhood acknowledged that cryptocurrency buying and selling accounted for 52% of its predominant income, and Dogecoin made up 62% of cryptocurrency buying and selling quantity.
During the spring, greater than $4 of each $10 that the agency made in income got here from prospects buying and selling Dogecoin, Bitcoin, and different crypto-assets.
Due to such spectacular outcomes, RobinHood acknowledged that it needs to make it simple to commerce any asset its prospects are fascinated with, which more and more means cryptocurrency.
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