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 indicated that inventors could buy cryptocurrencies from as low as $1 daily, weekly, biweekly, or monthly, all at commission-free.
The platform notes that with the cryptocurrency market’s volatility, recurring investments are meant for long-term gains. According to Robinhood:
“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. Dollar-cost averaging encourages investing money gradually at regular intervals, rather than all at once and regardless of where market prices stand.”
The feature also allows investors to allocate recurring investments across different cryptocurrencies like Bitcoin and Ethereum at zero 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 the market’s volatility.
The recurring crypto investment possibly indicates the position cryptocurrencies hold in the Robinhood ecosystem.
Cryptocurrencies account for almost 50% of Robinhood revenue
During the recent announcement of the company’s Q2 results, Robinhood revealed that digital currencies accounted for more than half of all transaction-based sales.
Interestingly, about 62% of crypto revenue came from transactions around meme-inspired coin Dogecoin. Dogecoin has gained popularity in 2021 with support from celebrities like Tesla CEO Elon Musk.
“The three months ended June 30, 2021 is the first quarter where a larger share of new customers placed their first trade in crypto rather than equities,” Robinhood said in the earnings statement.
The revenue emerged from the overall growth of cryptocurrencies despite the correction experienced in Q2.
Currently, the Robinhood app allows investors to buy and sell seven digital currencies, including Bitcoin, Bitcoin Cash, Dogecoin, Ethereum, and Litecoin.