Robinhood launches commission-free crypto recurring investments feature

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The commission-free investment platform Robinhood has expanded its cryptocurrency products by announcing the launch of a recurring investment feature for digital currencies.

In a blog post, Robinhood reported that inventors can purchase cryptocurrencies starting at $ 1 per day, week, biweekly, or month, all without commission.

The platform notes that with the volatility of the cryptocurrency market, recurring investments are meant for long-term gains. According to Robinhood:

“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 markets. This is a strategy called in the industry the average dollar cost. The dollar cost average encourages investing money gradually at regular intervals, rather than all at once and regardless of the market price position. “

The feature also allows investors to allocate recurring investments in different cryptocurrencies like Bitcoin and Ethereum without commission.

Robinhood will gradually roll out the feature to users by the end of the month. The company adds that investors can grow their portfolios through such democratization of investments while simultaneously reducing market volatility.

Recurring crypto investing may be indicative of the position cryptocurrencies occupy in the Robinhood ecosystem.

Cryptocurrencies Make Up Nearly 50% of Robinhood’s Revenue

During the company’s recent second quarter earnings announcement, Robinhood revealed that digital currencies accounted for more than half of all transaction-based sales.

Interestingly, around 62% of crypto revenue came from transactions around the memes-inspired Dogecoin coin. Dogecoin gained popularity in 2021 with the support of celebrities like Elon Musk, CEO of Tesla.

“The quarter ended June 30, 2021 is the first quarter that a greater share of new clients made their first transaction in crypto rather than in stocks,” Robinhood said in the income statement.

Revenue emerged from overall cryptocurrency growth despite the correction experienced in the second quarter.

Currently, the Robinhood app allows investors to buy and sell seven digital currencies, including Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, and Litecoin.

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