Dogecoin could be looking at a healthy stream of retailers and smaller investors following a new Robinhood rollout.
The altcoin, created initially as a meme, accounts for over 60% of Robinhood’s cryptocurrency service revenue and with the new feature that allows the exchange’s users to dollar cost average (DCA) and set up repeat investments for a coin, both the platform and the coin might see a flourish of steady investment.
Robinhood announced the news earlier this week, explaining that users can set up recurring investments to buy multiple or single crypto assets on a regular basis. The platform stated that this strategy will help to make cryptocurrency investment will help to encourage steady saving a habit with fewer fees and better opportunity to enjoy less market volatility. As per the announcement:
“Saving is a habit and recurring investments introduces a strategy to grow holdings over time while potentially reducing the impact of market volatility.”
What is dollar-cost averaging in cryptocurrency?
The dollar-cost average approach also helps users and investors focus on buying Bitcoin and other altcoins with a long-term commitment in mind. This is helpful in reducing risk and trying to trade according to the market, making the process of crypto accumulation a less stressful, more passive part of saving and investment.
Robinhood’s approach to dollar-cost averaging is a no-fee, maximum reward one to encourage users to focus on long-term growth. According to the platform, “if you place an order and spend $100 to buy bitcoin, you’ll get $100 worth of bitcoin.” This alleviates fees adding up and countering the saving aspect of investing in cryptocurrency projects.
A rise in cryptocurrency retail trading
Where 2020 was a good year for Bitcoin and cryptocurrency project’s prices, 2021 has been good for retail trading so far. The platform, according to the second quarter’s report generated over 40% of its total revenue. Comparing 2020, where the platform made $5 million in revenue for 2020, 2021’s second quarter has brought in a whopping $233 million. This highlights how the cryptocurrency trading industry has risen over the past six months – and it’s not showing signs of slowing down.