Robinhood trading platform has said that it would be rolling out a new feature that will let users regularly invest in their favourite coins commission-free and with as little as $1 (roughly Rs. 73.66) on a schedule of their choice. The recurring cryptocurrency investments will allow users of the Robinhood app to automatically invest in virtual coins like Bitcoin, Ethereum, Dogecoin or any other cryptocurrency on a daily, weekly, bi-weekly or monthly basis. Recurring investments are tools that allow people to save money for the long-term and build a rainy-day fund.
By their very nature, the cryptocurrency industry can be very volatile and the fear of losing money can put off many potential investors. So, investing on a recurring basis (regularly) can help investors focus on reducing risks and stress of timing the markets.
Robinhood announced the rollout out of the feature via a blogpost and said that recurring investments introduce a strategy to grow wealth over time while potentially reducing the impact of the volatility in the cryptocurrency market.
The online brokerage firm's approach of launching the feature is to encourage automatic investing, not trading. That is investors should not worry about the market fluctuations and invest the same amount regularly to build a corpus that should eventually lead to gains.
Robinhood is enticing investors by saying that they can invest in multiple coins without “ever incurring a fee” and comparing this to other platforms, which, it added, charge a commission fee of up to four percent for each cryptocurrency trade. "If you spend $100 to buy Bitcoin, you'll get $100 worth of the cryptocurrency. Period," reads the blog “Our mission is to democratise finance for all".
Robinhood said the feature will be rolled out gradually to all its customers this month.
Recently, Robinhood said that Dogecoin, the meme-based cryptocurrency, massively boosted its Q2 revenue, accounting for nearly 62 percent of its crypto revenue. The commission-free crypto trading app launched its IPO towards the end of July.
Robinhood, which allows investors to buy and sell leading digital currencies, brought commission-free trading to new investors and has benefitted hugely from cryptocurrency.
Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.