Robinhood Now Allows Investors to Automatically Buy $1 of Crypto a Day

Robinhood has unveiled a new feature that allows crypto investors to purchase their favorite coins automatically on daily, weekly, fortnightly or monthly basis.

The trading app says that the minimum spend for this feature is $1 — meaning that it should appeal to a greater cross-section of users.

Performing recurring purchases in this way is known as dollar-cost averaging, and some enthusiasts regard it as a way of navigating the wild swings seen in the crypto markets.

In a blog post announcing the feature, Robinhood provided an example of how dollar-cost averaging can compare with lump sum investing — and suggested that this new approach can reduce the average cost per coin. Of course, whether this translates into reality depends on market activity.

Wooing Crypto Enthusiasts 

Robinhood noted that similar features are offered by a number of other exchanges, but claimed its rivals’ services are “counterproductive to building long-term wealth” because of the commission fees they charge.”

The team added:

“Our mission is to democratize finance for all. No matter what your goal is — grow your crypto portfolio, become a whole coiner, create a long-term investment plan — recurring investments can help you get there with less stress and hassle. Crypto recurring investments is rolling out gradually to all customers this month.” 

Robinhood completed an IPO in the summer — raising $2.1 billion by selling 55 million shares at $38 each.

Although the stock rallied to highs of $85, they have since fallen back down to Earth — closing Wednesday’s trading session at $40.

Crypto is a crucial driver of revenues for Robinhood — accounting for more than half of transaction-based revenue in the second quarter of this year.

Meanwhile, 26% of the company’s entire revenue over this period came from just one cryptocurrency: Dogecoin.

This prompted Robinhood executives to warn that any slowdown in demand for DOGE could hurt its bottom line.