“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,” the platform said.
Dollar-cost averaging, or DCA for short, is the process of dividing up an investment in a series of smaller purchases spread out over time, rather than going into an investment with a larger amount at one time.
Another advantage to implementing such a strategy was related to the platform’s commission-free offer, designed to lure customers away from its competition.
“Many other crypto trading platforms charge a commission fee up to 4% for each crypto trade,” the company said, adding that “at Robinhood, if you place an order and spend USD 100 to buy bitcoin, you’ll get USD 100 worth of bitcoin.”
Robinhood is not the first platform to provide such a feature to its users, with competitors such as the UK-based Revolut also offering the recurring buy functionality to its customers.
The latest development provides yet another proof that major fintechs are stepping up their game in order to attract new customers from the cryptosphere.
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Learn more:
– Set and Forget: Top Auto-DCA Services in Bitcoin
– This Is Why Robinhood Doesn’t Allow You to Withdraw Bitcoin, DOGE & Co.
– Robinhood Gets USD 70M Penalty Due To ‘Signigificant Harm’
– Fintech Heavyweights Revolut, Robinhood Gun for More Crypto Gains
