The Robinhood platform has introduced a new feature for regular investments in cryptocurrencies based on the “average dollar value”.
According to Robinhood, regular investments using the company’s new financial product – the dollar average value (DCA) – will help the company’s clients get a more predictable return on investments, reducing the risks of cryptocurrency volatility. The idea behind price averaging is that “you won’t earn as much as you could, but you will not lose as much as you could.”
Robinhood announced the launch of the new feature on September 8th. Users will be able to independently configure the frequency of investments in several cryptoassets on a daily, weekly, bi-weekly or monthly basis.
The minimum purchase amount is $ 1, while the company promises that no commission will be charged for withdrawing transactions to cryptocurrency markets. The company says that “if you place an order and spend $ 100 to buy bitcoins, you will receive $ 100 worth of bitcoins.” But it is not entirely clear how the user will be able to control the purchase price, since averaging, especially over a long period, is a very favorable ground for “hidden commissions”.
The popularity of cryptocurrency retailing on the Robinhood platform is growing rapidly in 2021. According to the Robinhood report for the II quarter, revenues from operations with cryptocurrencies brought in about $ 233 million in the quarter, an increase of up to 41% of the total revenue of $ 565 million. For comparison: for the whole of 2020 the company received revenue from cryptocurrency trading in the amount of $ 5 million. This 62% of the profits from cryptocurrency trading in 2021 were generated by transactions with Dogecoin.
