How does M1 Finance's drip feature work with digital currencies?

3 answers

• Nov 27, 2021 · 3 years ago
  Sure! M1 Finance's drip feature allows investors to automatically reinvest their dividends from digital currencies. When you enable the drip feature, any dividends you receive from your digital currency investments will be used to purchase additional shares of the same digital currency. This can help you compound your returns over time and potentially increase your investment portfolio. It's a convenient way to reinvest your earnings without having to manually make additional purchases.
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• Nov 27, 2021 · 3 years ago
  The drip feature offered by M1 Finance is similar to a dividend reinvestment plan (DRIP) in traditional stock investing. However, with digital currencies, the process is slightly different. Instead of receiving cash dividends, you receive additional shares of the same digital currency. This can be beneficial for long-term investors who want to accumulate more digital currency holdings over time.
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• Nov 27, 2021 · 3 years ago
  BYDFi, a digital currency exchange, also offers a similar drip feature for its users. With BYDFi's drip feature, you can automatically reinvest your digital currency dividends to purchase more shares of the same digital currency. This feature is especially useful for investors who want to maximize their returns and take advantage of the compounding effect. By automatically reinvesting your dividends, you can potentially grow your digital currency holdings faster.
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