This Wednesday, Robinhood has announced the dollar-cost averaging launch. It is for the Bitcoin derivative product. They have also claimed about the recurring Bitcoin and investment tools added to help investors habitually save.
It may also be an attempt to encourage DCA to seamless market volatility on the platform and win over Bitcoin investors with their language.
In 2020, Robinhood defined DCA as the process of slowly investing money regardless of the market price. It will help to smooth out the volatility. They also said that the idea is that you will not make as much as you may, but it will also reduce the chances of being at a loss.
Dollar-Cost Averaging Approach
The company’s approach is automatic investing, not trading. It will not sell the crypto for you when the algorithm decides. Rather it will make financial sense to do so. As a result, it will build up your crypto portfolio.
This feature lets users set up recurring investments in various crypto assets daily, bi-weekly, or monthly. By keeping the announcement at mine, the minimum purchase amount will be 1$. This is because the firm is promoting the feature as a simple way to DCA into crypto markets without paying fees.
Repeated crypto orders will be handled between 2:30 and 4:00 pm ET (7:30 am to 9:00 am WAT) They also mention that users will receive less crypto than the set purchase amount during times of market volatility.
The difference is that they will be refunded in fiat after completing the trade. However, this service is currently not available to New York-based customers.
Their cryptocurrency revenues grew by almost 4500 percent in the second quarter of 2021, from $5 million to $233 million. During the second quarter of 2021, more than 60% of Robinhood accounts with funds exchanged digital assets.
According to the report, HOOD is listed in the NASDAQ exchange. The current trading is up by $41.26, up 3.02$ for the day as per the Nasdaq website.
