Robinhood Expands Crypto Services: Launches Zero-Fee Recurring Purchase Feature For Hodlers
In an effort to promote long-term cryptocurrency holdings, popular digital asset investment app Robinhood said it has launched a Dollar-Cost Average (DCA) feature for investors.
Promoting Long-term Crypto Investments
The service, termed Crypto Recurring Investments, will enable Robinhood users to automatically schedule purchases of their favorite cryptocurrencies in bits and at regular intervals.
Announcing the new feature in a recent blog post, the trading platform disclosed that users can automatically schedule to regularly buy any crypto on their account for as low as $1 on a daily, weekly, bi-weekly, or monthly basis.
“Our mission is to democratize finance for all. No matter what your goal is – grow your crypto portfolio, become a whole coiner, create a long-term investment plan – recurring investments can help you get there with less stress and hassle,” Robinhood said in the statement.
Although the company did not state which cryptocurrency will be incorporated into the service, it is expected that customers will be allowed to DCA into any coin or token supported. These include Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE), among others.
The initiative will be launched to enable users to develop better savings habits and grow their investments over time, the announcement added.
Zero-fee Recurring Crypto Purchase
Robinhood believes the new service will help reduce the impact of high market volatility on investors as they will be more focused on long-term growth, while reducing the inconveniences of always keeping track of crypto prices.
According to the company, interested traders can buy their favorite coins at regular intervals without incurring any transaction fees.
“If you place an order and spend $100 to buy bitcoin, you’ll get $100 worth of bitcoin. Period.”
The new crypto investment strategy will be rolled out to all Robinhood customers later this month with the exception of New York clients, the firm added.
Per details on the platform, all recurring crypto orders will be processed between 6:30 pm and 8:00 pm UTC. In addition, during market volatility, users may receive less coins than the amount specified when setting up the service.
While this is the first time Robinhood will be launching a service to reduce the impact of high market volatility, the U.S. financial services company had taken extreme measures earlier this year by restricting crypto trading due to “extraordinary market conditions.”Source