Investing.com – The neobroker Robinhood (NASDAQ 🙂 wants to benefit even more from the lucrative cryptocurrency business with a new function. In the future, its customers should be able to buy digital assets at recurring intervals via a kind of savings plan.
As announced by the company behind the popular trading app, this feature enables investors to regularly purchase tokens for just one dollar at daily, weekly, bi-weekly or monthly intervals.
The new function enables the use of the so-called cost-average effect, in which money is invested gradually at regular intervals, regardless of the price of the asset. This strategy can be used to reduce the effects of price fluctuations in the volatile crypto markets.
“Saving should become a habit, and recurring investing is a strategy that can increase inventory over a longer period of time while reducing market volatility. Crypto markets are very volatile by the nature of the industry. Recurring investing helps them do this to focus on long-term growth, reducing risk and relieving the stress of timing markets. “
According to the online broker, its new recurring crypto investment tool offers a more efficient way to invest in digital assets. The feature will be available to all customers later this month, according to Robinhood.
Coinbase (NASDAQ 🙂 offers a similar function with which its customers can invest in crypto currencies such as, and Co. at regular intervals.
In January, Robinhood had banned its customers from buying cryptocurrencies with reference to “exceptional market conditions”. In addition, the company prevented its customers from buying shares in GameStop (NYSE 🙂 (GME), whose share price soared in part due to the hype on the online Reddit platform.
The popular trading app recently announced that a large part of its sales in trading cryptocurrencies in the second quarter were generated by the Scherz cryptocurrency.
Crypto trading revenues totaled $ 233 million in the second quarter, up 4,560 percent year over year. That number exceeded the proceeds from stock and options trading combined. Dogecoin accounted for 62 percent of crypto sales in the reporting period.
Wolfe Research then lowered its target price for Robinhood from 45 US dollars to 41 US dollars and wrote in a statement after the results presentation that the cooling off in trading in Dogecoin in the third quarter “could be much more drastic than many investors expect”.
“HOOD’s growth in the crypto space is truly amazing, but DOGE’s oversized contribution just cannot be ignored.”
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