Robinhood has announced that it will introduce recurring cryptocurrency investments on its trading platform.
Investors can use the feature using just $1
The feature allows retail investors to buy cryptocurrencies on a daily, weekly, or monthly basis for amounts starting at $1.
The company cites market volatility as a reason for using the feature, noting that recurring investments can help investors “reduce the stress of timing the markets” and achieve long-term growth.
Another reason why it is beneficial for an investor to use this feature is because there are no fees, making this strategy potentially more profitable than other sites that charge up to 4% trading fees. However, Robinhood points out elsewhere that investors may receive less than their recurring investment amount to “help protect against dramatic price moves.”
Robinhood is not the only platform offering recurring investments
Robin Hood is not the only crypto trading platform to offer this feature. Coinbase, Gemini, and Binance.US also provide this feature. Binance’s global exchange introduced recurring investments just days before Robinhood’s announcement.
Another way how investors use cryptocurrencies to get a passive income is by staking. In proof-of-stake systems, miners put up their crypto as collateral for a chance to create a block, and if they’re chosen, they’ll get a reward. A lot of investors do this to get their hands on more coins or earn a passive income by staking enough of a particular currency.