Cryptocurrency exchanges and brokerages are launching new offerings to attract more traders and investors to their platforms
Brokerage app Robinhood launched a new feature for its cryptocurrency product yesterday. The feature will make it possible for users to automatically invest in cryptocurrencies on a recurring basis. Robinhood launched this latest feature to attract more people to its platform and to entice existing users into investing more in cryptocurrencies.
In a blog post yesterday, Robinhood said the new feature allows users to buy their favourite cryptocurrencies with as little as $1, and the platform wouldn’t charge them any commission for it. The users can choose the recurring investment period to be daily, weekly, biweekly or monthly.
“Saving is a habit, and recurring investments introduce a strategy to grow holdings over time while potentially reducing the impact of market volatility,” Robinhood wrote. The brokerage platform describes this as dollar-cost averaging, a process where users invest in intervals rather than in large lump sums. Robinhood said doing so would reduce the impact of the cryptocurrency market’s volatility.
The brokerage platform’s strategy is to invest in the cryptocurrency market and not to trade it. Robinhood won’t sell the cryptocurrencies for you. Rather, Robinhood helps you to steadily build your cryptocurrency portfolio.
Robinhood added that “There’s another advantage to recurring investments in crypto through Robinhood. You can set recurring investments across multiple coins without ever incurring a fee.” According to the broker, this feature helps users avoid paying a commission of up to 4% when they trade cryptocurrencies on some platforms.
Robinhood is not the only cryptocurrency platform that offers such a service to its users. Cryptocurrency exchanges FTX.US and Coinbase also allow users to steadily invest in the cryptocurrency market at regular intervals.
The cryptocurrency broker has seen a massive surge in its cryptocurrency trading activities over the past year. According to Robinhood, its transaction-based revenues from crypto trading rose by 4,282% from the second quarter of 2020 to the second quarter of 2021.