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On Wednesday, the stock and cryptocurrency trading platform Robinhood rolled out recurring crypto investments and now customers can purchase as little as $1 in crypto commission-free daily, weekly, biweekly, or monthly. The company’s announcement discusses the strategy of investment called dollar-cost averaging “in order to help smooth out the price swings.”
Robinhood Rolls Out Recurring Crypto Purchases
The investment platform Robinhood (Nasdaq: HOOD) is now providing customers with the ability to purchase crypto assets in a recurring fashion. This means that customers can purchase a set amount of digital currency ($1 or more) and buy it every day, week after week, every two weeks, or on a monthly basis. Additionally, Robinhood says that clients can “set recurring investments across multiple coins without ever incurring a fee.”
“Today we’re rolling out crypto recurring investments, a new feature that allows you to regularly buy your favorite coins, commission-free and with as little as $1 on a daily, weekly, biweekly, or monthly schedule of your choice,” Robinhood’s announcement notes. “Saving is a habit and recurring investments introduce a strategy to grow holdings over time while potentially reducing the impact of market volatility.”
The company has become well known in the crypto industry, and following Coinbase’s initial public offering (IPO), Robinhood also went public this year. On June 29, Bitcoin.com News reported on Robinhood’s IPO and how it fell short of expectations. Robinhood is also often associated with dogecoin (DOGE) and crypto-focused armchair sleuths believe Robinhood is the largest DOGE wallet owner.
In fact, dogecoin helped Robinhood’s revenue quite a bit in 2021 as reports note that DOGE made up 62% of the company’s cryptocurrency revenue in the second quarter. The latest recurring crypto purchasing feature indicates that Robinhood aims to be a mainstay in the digital currency exchange world. Many other digital currency exchanges like Crypto.com and Coinbase have offered recurring purchases for a while now.
Robinhood Insists Competition’s Fees Are Higher
Robinhood’s announcement insists that its competitors are charging 4% for every crypto trade and the company’s “mission is to democratize finance for all.” “Fees on other platforms are higher for smaller recurring purchases than they are for a single large one,” Robinhood’s announcement stresses.
“While that may make your strategy to regularly invest small dollar amounts more profitable for those companies, it ends up being counterproductive to building long-term wealth. At Robinhood, if you place an order and spend $100 to buy bitcoin, you’ll get $100 worth of bitcoin. Period,” Robinhood’s announcement concludes.
Robinhood’s stock HOOD has not been faring well during the last month as it was trading for $56.83 per share on August 9. Today, HOOD is down 29.52% and trading for $40.05 per share on September 9.
What do you think about Robinhood adding the recurring crypto purchase feature to the trading platform? Let us know what you think about this subject in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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