Just buy one dollar! Binance and Robinhood launch cryptocurrency dollar-cost averaging feature consecutively

Brokerage platform Robinhood has launched a new cryptocurrency feature - dollar-cost averaging. In addition to promoting commission-free trading, the minimum investment amount per transaction can be as low as $1. Meanwhile, Binance exchange also recently introduced a dollar-cost averaging feature, but currently only accepts credit card payments.

Robinhood Introduces Cryptocurrency Dollar-Cost Averaging

According to the announcement on the platform, the new recurring investment feature allows users to regularly purchase cryptocurrencies on a daily, weekly, or monthly basis. Known as Dollar Cost Averaging (DCA), Robinhood believes that this feature will help users reduce the risks associated with market volatility:

Due to the high volatility of the crypto market, dollar-cost averaging helps to focus on long-term growth, reduce risk, alleviate buying pressure, and emphasizes regular, incremental investments rather than a one-time investment ignoring market prices, which can further mitigate potential market fluctuations.

The announcement also mentions that users can diversify their recurring investments across different cryptocurrencies and highlights Robinhood's zero-commission structure, which is more favorable compared to many platforms that charge a 4% transaction fee.

Binance Also Launches Recurring Investments

On September 6th, Binance also introduced recurring investment features, available on both the Binance main site and App. Users can customize the investment period and amount, but currently, it is limited to VISA/Mastercard credit cards.

Previously, mainstream exchanges such as Coinbase, Gemini, Binance.US, among others, have already offered similar features. Robinhood's move undoubtedly aims to increase its market share in the crypto market, especially since cryptocurrency trading accounted for over 40% of its total revenue in the second quarter. While there are expectations for a decrease in the third quarter, cryptocurrencies are expected to remain a significant revenue stream for Robinhood in the future.

Despite Robinhood's involvement in cryptocurrencies, it has faced criticism for its inability to withdraw assets. CEO Vlad Tenev previously stated that users do not actually want to manage private keys, which is why they introduced a wallet that does not allow deposits, withdrawals, or transfers. However, they plan to offer users the ability to manage their assets independently in the future.