Cryptocurrency News

Robinhood Announces Automatic Crypto Buying Service

Robinhood Announces Automatic Crypto Buying Service

Extending the convenience of buying cryptocurrency automatically on their trading app, Robinhood has made an announcement that anybody can purchase coins automatically on a daily basis, weekly basis, fortnightly basis, and monthly basis. The minimum spending requirement for using this feature has been set at as low as $1. This move is expected to encourage the majority of users to try out this new feature. 

The feature is known as dollar-cost averaging and helps investors to minimize losses by avoiding sharp increases or decreases in the prices of coins. In its official blog post, Robinhood also suggested that this particular feature is more cost-effective in nature although experts opine that a definite conclusion in this regard can be made only once the feature is used by investors in real-world scenarios. There are many factors that define the cost of investment including the level of market turbulence at any given point in time. Noting that such services are already on offer by rivals and competitors in the market, Robinhood contends that such services are counterproductive owing to the heavy commission fees charged. 

It is important to note that cryptocurrency-related services are one of the significant drivers of growth for Robinhood. In fact, the relevance of crypto services can be determined from the fact that the company generated more than half of its revenue based on crypto transactions in the second quarter of the year. Interestingly, the company has earned 26% of its total revenue from transactions based only on Dogecoin, This also triggered a warning from the company’s executives that any kind of slowdown in the growth prospects of DOGE could prove devastating for the bottom line of the organization. 

It will be interesting to witness the users the organization is able to add to its existing client list through this particular new feature. The distinctive competence of this new convenience is its low investment barrier which should appeal to the wider section of investors and potential users.

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