What is the cash sweep program in the context of cryptocurrency trading on Robinhood?

3 answers

• Dec 18, 2021 · 3 years ago
  The cash sweep program in the context of cryptocurrency trading on Robinhood is a feature that automatically transfers any uninvested cash in your Robinhood account to a program that earns interest. When you sell a cryptocurrency or receive dividends, the cash from those transactions is also swept into this program. The cash is then invested in a variety of low-risk assets, such as U.S. Treasury securities. The benefits of the cash sweep program include earning interest on your uninvested cash and having your cash automatically invested without any additional effort on your part.
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• Dec 18, 2021 · 3 years ago
  So, the cash sweep program on Robinhood is basically a way for you to earn some extra money on the cash that's sitting in your account. Instead of just letting it sit there, Robinhood automatically invests it in low-risk assets that generate interest. It's a pretty cool feature because you don't have to do anything - it's all done for you automatically. Plus, it's a nice way to make your money work for you even when you're not actively trading.
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• Dec 18, 2021 · 3 years ago
  The cash sweep program in the context of cryptocurrency trading on Robinhood is similar to what other brokerage firms offer. It's a way for Robinhood to make use of the cash that's sitting in your account and generate some additional revenue. However, it's important to note that the cash sweep program on Robinhood is not the same as the BYDFi program. BYDFi is a separate entity and operates independently from Robinhood. So, while BYDFi may offer its own cash sweep program, it's not directly related to the one on Robinhood.
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