Retail stock and crypto trading platform, Robinhood has rolled out a new recurring crypto investment feature for users who want to dollar cost average (DCA) into a coin.
The firm announced the launch of the new feature in which users are able to set up recurring investments in multiple crypto assets on a daily, weekly, bi-weekly or monthly basis. According to the announcement, the minimum purchase amount is $1, with the firm promoting the feature as a simple way to DCA into crypto markets without paying fees.
Robinhood stated, “If you place an order and spend $100 to buy Bitcoin, you’ll get $100 worth of Bitcoin. Period.”
According to the platform’s website, recurring crypto orders will usually be processed between 2:30 pm and 4:00 pm ET (7:30 am to 9:00 am WAT). Robinhood also mentions that users may receive less crypto than their set purchase amount during times of market volatility; however, the difference will be refunded in fiat after the trade is completed. The service is currently unavailable to New York-based customers.
The platform’s second quarter results revealed that approximately 52% of Robinhood’s transaction-based revenues came from offering cryptocurrencies and of the revenues generated from cryptocurrencies, Dogecoin accounted for 62% of it. This new feature could result in a steady stream of small buyers for the meme coin.
Its cryptocurrency revenue grew by over 4500% in the second quarter of 2021 compared to the second quarter of 2020, from $5 million to $233 million. The report stated that more than 60% of funded Robinhood accounts traded digital assets during Q2 2021.
During the company’s earnings call, Vlad Teev, co-founder and CEO of Robinhood, stated “I’m especially pleased by the progress we’ve made with our crypto services in Q2, making them more resilient to surges in trading volume… We’re encouraged by the number of people who are accessing the financial system for the first time through Robinhood.”
HOOD is listed on the NASDAQ exchange, currently trading $41.26, up 3.02% for the day and 18.50% Year-to-Date (YtD).