Robinhood has added a recurring investing function to its crypto offerings to promote long-term ownership while limiting the impact of market volatility.
Robinhood, a prominent digital asset trading app, has announced the development of a Dollar-Cost Average (DCA) tool for users to boost long-term bitcoin ownership.
Promoting Cryptocurrency Investments for the Long Run
As the program is known, Crypto Recurring Investments would allow Robinhood customers to arrange purchases of their favorite cryptocurrencies in chunks and at regular intervals.
The trading site announced the new function in a recent blog post, stating that users may automatically arrange to buy any cryptocurrency on their account for as little as $1 daily, weekly, bi-weekly, or monthly.
“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 business did not specify which cryptocurrencies would be supported, it is believed that consumers will be able to DCA into any coin or token accepted by the service. Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) are just a few examples.
According to the statement, the program will help customers establish better saving habits and expand their assets over time.
Recurring Crypto Purchase with No Fee
The new service, according to Robinhood, would assist investors in coping with excessive market volatility by focusing them on long-term growth rather than the inconvenient task of constantly monitoring crypto prices.
According to the firm, interested traders may acquire their chosen currencies at regular intervals without suffering transaction costs.
“If you place an order and spend $100 to buy bitcoin, you’ll get $100 worth of bitcoin. Period.”
The new crypto investing approach will be handed out to all Robinhood customers later this month, except for New York consumers.
All recurring crypto orders will be handled between 6:30 and 8:00 p.m. UTC, according to the site. Furthermore, during periods of market volatility, customers may get fewer coins than the quantity stated when the service was set up.
While this is the first time Robinhood has launched a solution to mitigate the effects of significant market volatility, the American financial services firm took drastic measures earlier this year, limiting crypto trading owing to unusual market circumstances.