As fintech apps are increasingly competing for crypto users, US online trading platform Robinhood has announced it is rolling out crypto recurring investments. It will enable its users to buy cryptoassets on a regular basis, commission-free and starting at USD 1 on a daily, weekly, biweekly, or monthly schedule.
Robinhood said that its feature enables users to pursue a strategy to grow their bitcoin (BTC), ethereum (ETH), dogecoin (DOGE), and other holdings over time, all the while potentially reducing the impact of market volatility.
“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. This is a strategy referred to in the industry as dollar-cost averaging,” the platform said.
Dollar-cost averaging, or DCA for short, is the process of dividing up an investment in a series of smaller purchases spread out over time, rather than going into an investment with a larger amount at one time.
Another advantage to implementing such a strategy was related to the platform’s commission-free offer, designed to lure customers away from its competition.
“Many other crypto trading platforms charge a commission fee up to 4% for each crypto trade,” the company said, adding that “at Robinhood, if you place an order and spend USD 100 to buy bitcoin, you’ll get USD 100 worth of bitcoin.”
Robinhood is not the first platform to provide such a feature to its users, with competitors such as the UK-based Revolut also offering the recurring buy functionality to its customers.
The latest development provides yet another proof that major fintechs are stepping up their game in order to attract new customers from the cryptosphere. ____Learn more: – Set and Forget: Top Auto-DCA Services in Bitcoin – This Is Why Robinhood Doesn’t Allow You to Withdraw Bitcoin, DOGE & Co.
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