Robinhood launches recurring cryptocurrency investment feature. Dogecoin could be the one to benefit.
How recurring cryptocurrency investments work on Robinhood
The recurring investment strategy involves the user selecting a set period within which to make a purchase of cryptocurrencies. They can choose to make the purchase:
- twice a week,
The minimum amount is 1 dollar.
This strategy is very useful to hedge against market volatility and allows the trader not to invest a certain amount all at once.
In addition, Robinhood will not charge commissions. In fact, the company explains that through Robinhood, it will be possible to make recurring investments in multiple cryptocurrencies without running into fees. Indeed, the platform points out, this contrasts it with other exchanges that charge up to 4% commission for recurring investments.
Robinhood allows traders to invest any amount of money and find the corresponding amount of cryptocurrencies in their wallet.
This is also part of Robinhood’s strategy of making finance democratic.
They explain from Robinhood:
“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”.
The relationship between Robinhood and Dogecoin
The introduction of recurring investments for cryptocurrencies on Robinhood benefits one crypto in particular, Dogecoin.
on the popular trading app dedicated to retail investors.
Robinhood’s Q2 2021 report found that 62% of cryptocurrency revenue is represented by transactions in the most famous of all meme coins. It is easy to assume that DOGE lovers will be able to use this feature by setting up recurring investments.
After all, DOGE has proven to be very volatile, but resilient to the market at the moment. This is why the strategy of recurring investments may prove particularly useful and perhaps attract new investors.
For its part, Robinhood made headlines during last spring’s 2020 lockdown. Many young and very young people in the United States (the only country where the app is active) downloaded the app to start making investments, finding an alternative source of income in a period of economic and employment crisis caused by the pandemic.
However, last January saw the episode that changed the history of finance forever: the short squeeze on Gamestop (GME) shares. Many small retail investors who had coordinated on the Reddit group WallStreetBets used Robinhood to drive up the price of GME shares, bringing at least a couple of hedge funds to their knees.
The same technique was used for the price of Dogecoin. Thanks to WallStreetBets and Elon Musk’s constant tweets, the cryptocurrency went from being worth a few thousandths of a dollar to 70 cents in May.
Now all that remains is to wait and see how crypto will react to this new feature introduced by Robinhood, and see what effect it will have on prices and buyers.