Cash App Launches 'Buy The Dip' Feature: Could This Continue Square's Huge Growth?

One of the rallying cries for retail investors in 2021 has been to “buy the dip.” The popular phrase centers around adding to a position or starting a new position in a stock or cryptocurrency when a significant drop happens.

Cash App has a series of new custom orders that include a “buy the dip” feature.

What Happened: Cash App, a service from Square Inc (NYSE: SQ), is allowing users to time dips and automatically buy and sell Bitcoin (CRYPTO: BTC) and stocks at future prices, according to Bitcoin Magazine.

Custom purchase orders can be automatically triggered based on the price of a stock or crypto according to the Cash App website.

“Buy the Dip” offers customers the chance to set a buy price below the current price to try and buy the stock if the price drops, according to Cash App. The order is not a limit order and not a price guarantee. Funds for the transaction will be set aside from the current Cash App balance.

Other custom order types offered by Cash App include capture gains, limit losses and buy the rally.

Related Link: Cash App Is Giving Away $1M In Bitcoin: What You Need To Know

Why It’s Important: Cash App was the key to Square’s growth in the first quarter. Revenue from Cash App hit $4.04 billion in the first quarter, up 666% year-over-year. Cash App had a gross profit of $495 million in the first quarter.

Bitcoin was a huge part of the growth for Cash App representing revenue of $3.51 billion and gross profit of $75 million in the first quarter, up 11x from the prior year.

Launching a new marketing campaign around a popular phrase for both stock investors and crypto enthusiasts could help Square gain some new customers and also see heavier trading volume.

SQ Price Action: Shares of Square Inc are up 0.85% to $245.53 Tuesday at publication.