The Robinhood trading platform has announced the launch of a new feature that will allow users to invest in their favourite coins on a timetable of their choosing, commission-free and with as little as $1. Users of the Robinhood app will be able to invest in virtual coins such as Bitcoin, Ethereum, Dogecoin, or any other cryptocurrency on a daily, weekly, bi-weekly, or monthly basis using the recurring cryptocurrency investments feature. Recurring investments are financial instruments that enable people to save money over time and develop a rainy-day fund.
What is Robinhood?
Robinhood is an online investing platform that offers commission-free trading on a variety of US-listed investment types, as well as high-yield cash management, margin trading, and IPO investments.
The cryptocurrency market may be highly volatile by its very nature, and the risk of losing money might deter many potential investors. As a result, buying regularly can assist investors to focus on lowering the risks and stress of market timing.
In a blog post, Robinhood announced the function’s launch, stating that recurring investments provide a plan for growing wealth over time while potentially decreasing the impact of cryptocurrency market volatility.
The approach taken by the online brokerage firm in offering the function is to encourage automatic investing rather than trading. As a result, investors should not be concerned about market swings and should invest the same amount every month to establish a corpus that would eventually result in profits.
Advantages of Robinhood
You may set up regular investments across different coins with no fees ever. However, many other crypto trading platforms impose a commission fee of up to 4% for each crypto trade. Furthermore, fees for smaller recurring transactions are higher on other platforms than for a single large purchase. While this may make your strategy of regularly investing modest amounts of money more beneficial for those companies, it is contradictory to generating long-term wealth.
Robinhood is luring investors by claiming that they may invest in numerous coins without “ever paying a cost,” contrasting this to other platforms, which charge a commission fee of up to 4% for each cryptocurrency trade, according to the company. “If you buy Bitcoin for $100, you will receive $100 worth of the cryptocurrency. “Our mission is to democratise finance for all,” the site states.
According to Robinhood, the feature will be gradually rolled out to all of its consumers this month.
Robinhood just announced that Dogecoin, the meme-based cryptocurrency, boosted its Q2 earnings by about 62 per cent, accounting for roughly 62 per cent of its total crypto revenue. The commission-free cryptocurrency trading app went public at the end of July.
Robinhood, a platform that allows users to purchase and sell popular digital currencies, pioneered commission-free trading for newcomers and has reaped significant benefits from bitcoin.