Robinhood Added Recurring Daily Crypto Purchase Options Starting At $1

Robinhood added recurring daily crypto purchases options that start at $1 joining other companies in offering recurring purchases but without charging fees so let’s read more in our latest cryptocurrency news today.

Robinhood will allow customers to make weekly and daily recurring purhcases for $1. the offerings provide a way for customers to purchase crypto gradually and to hedge against volatility. Robinhood announced the new feature recently, saying it will allow crypto customers to acquire as little as a dollar worth of coins per month, week, or daily basis. The type of buying known as recurring purchases or dollar-cost averaging is a common investment strategy in the world of stocks and it is seen as a useful way to hedge against swings on the market.

According to the COO of Robinhood crypto Christine Brown, the ability that investors have in acquiring small amounts on a regular basis is useful when it comes to crypto markets which are quite volatile:

“This allows customers to take a long-term approach to crypto.”

She added that Robinhood added recurring crypto purchases options that will be appealing to those that are new to crypto and intimidated by the market’s crashes like the one happening just recently which saw BTC and ETH drop as much as 15% before recovering partially. In announcing the feature, Robinhood touted that any recurring feature will come with no fee or commission and will contrast to other crypto platforms where teh transaction fees can be up to 4%. the comments implicit dig at coinbase as the biggest crypto retail service which charges a fee on each transaction and which is shaping up to become Robinhood’s biggest strategic rival.

Robinhood is not providing crypto services for free as the company makes more money by obtaining rebates when it passes along the bulk orders to crypto liquidity providers and rebates that it keeps for itself but Brown explained that this system allows consumers to obtain better value than the fee-based platforms. She noted that some competitors charge higher rates for recurring purchases than for one-off transactions which creates an incentive for consumers to make bigger purchases rather than frequent smaller ones. Robinhood’s announcement came at a time when the company best known as a place to purchase stocks, saw its crypto business expand dramatically. Robinhood disclosed that most of the first-time consumers last quarter bought crypto rather than stocks and hinted at its bigger crypto ambitions like adding more coins to its platform and launching a crypto wallet.