Coinbase vs Robinhood: Which is Best to Choose?

Cryptocurrency investing is one thing that’s comparatively new nonetheless, however undeniably standard. Decentralized currencies promise traders a hedge towards issues like inflation. However what’s the perfect platform to commerce crypto: Robinhood vs Coinbase?

Loads of traders need data to match Coinbase vs Robinhood and we’re right here to assist. Whereas each are digital platforms the place you may commerce cryptocurrencies, there are some essential variations. Which platform is best to your crypto funding wants?

Robinhood is an digital buying and selling platform that’s regulated by the SEC. On the corporate’s standard app, traders should buy shares, ETFs, and a restricted variety of crypto cash. A number of the hottest cryptocurrencies can be found, together with Bitcoin, Ethereum, and Dogecoin. In whole, they provide 19 completely different cash for buy.

Robinhood’s declare to fame is that they don’t cost a price for trades. They do provide a premium subscription choice, Robinhood Gold, that prices $5 per thirty days.

Coinbase can be a buying and selling platform, but it surely focuses completely on cryptocurrencies. They’ve roughly 240 digital property and 300 supported buying and selling pairs accessible with Coinbase Prime.

Individuals who need their alternative of cryptocurrencies or who need entry to cryptocurrency sources could desire Coinbase.

The SEC says it has regulatory authority over Coinbase, however Coinbase has contested that and is pursuing clarification in court docket. Their declare is that cryptocurrencies don’t fall below the present definition of ‘safety’ and require a brand new definition and separate regulation.

The first distinction between Robinhood and Coinbase is within the variety of cryptocurrencies which you could commerce there and whether or not different funding lessons can be found. We’ll get into the main points of each points later on this evaluation.

Now, let’s dive into whether or not Coinbase vs Robinhood for crypto is the best alternative for you.

Robinhood vs Coinbase – Which Platform is Finest for Cryptocurrency?

There’s no query that each Robinhood and Coinbase provide worth to customers. Which one’s finest for which sort of investor? Right here’s our rundown.

Robinhood presents no-fee crypto buying and selling for all supported property, though there are some quantity charges baked into their charges. That stated, they nonetheless declare to supply traders extra worth for his or her cash than different platforms, together with Coinbase.

When you’re already a Robinhood buyer, then you might need to think about getting your toes moist with crypto within the app you’re already utilizing for different investments. There’s a comfort issue for current Robinhood customers and it’s undeniably helpful to have the ability to handle your entire investments, together with crypto, in a single place: thereby simplifying your funding technique.

Individuals who aren’t already utilizing Robinhood or who need a broad array of crypto to purchase usually tend to profit from utilizing Coinbase. Customers have the flexibility to simply convert one cryptocurrency to a different, which can be helpful.

By way of investor varieties, we must always discuss concerning the threat concerned with shopping for crypto basically. Cryptocurrencies are sometimes much more unstable than shares or ETFs. We wouldn’t advocate shopping for solely crypto. Our rule of thumb is that traders shouldn’t put more cash into digital property than they’ll afford to lose.

On the entire, we’d say that newbie traders and those that need an all-in-one funding buying and selling answer might be higher off utilizing Robinhood, whereas skilled crypto merchants could desire Coinbase for its giant collection of cash and crypto conversion.

Professional Tip:

Enroll right now and get $50 of BTC after making your first commerce on Coinbase, or obtain as much as $1500 of inventory per 12 months by referring pals on Robinhood!

Robinhood vs Coinbase – Characteristic Comparability

Robinhood and Coinbase each have options which are helpful to traders. Let’s begin with Robinhood. Listed here are the options that you just’ll get should you commerce crypto with Robinhood.

Person-friendly app

Skill to commerce 19 completely different crypto cash, together with Bitcoin, Ethereum, Dogecoin, Shiba Inu, and extra

Charge-free buying and selling

In-app help

Robinhood crypto pockets

Fractional shares are allowed for all accessible cyrtocurrencies besides Dogecoin, the place the minimal quantity to purchase is one coin

Begin shopping for cryptocurrency with as little as $1

Robinhood has applied a broad array of safety features to guard customers from hacking and theft. Right here’s a breakdown of what they’ve put in place.

Two-factor authentication (2FA) in order that no one can entry your account and not using a texted code

Devoted crypto pockets for traders

Most of traders’ cryptocurrencies are saved offline in a chilly pockets

Robinhood has bought insurance coverage to supply some safety to insurers. (As a reminder, Robinhood deposits will not be insured by the FDIC the best way financial institution deposits are.)

Now, let’s take a look at Coinbase. Listed here are the options you’ll discover there.

Purchase and promote over 240 forms of crypto 

Ship and obtain cryptocurrencies at no cost (amongst Coinbase customers, exterior mining charges apply)

Cryptocurrency one-stop-shop, together with main steadiness service, an alternate, and service provider instruments inside the similar interface

Use with an current crypto pockets should you desire

Start buying and selling with as little as $2

Right here’s a listing of Coinbase’s safety features:

State-of-the-art encryption and safety

Transparency about how and when data is shared

2FA with safety key help

Password safety

Insurance coverage to guard some property from theft or safety breaches

You’ll have to understand that neither firm’s insurance coverage coverage will shield you should you share your password and expertise theft of crypto property because of this.

Robinhood vs Coinbase – Charge Comparability

Now, let’s take a look at Robinhood vs Coinbase charges. Be mindful as you evaluation these that some charges is probably not apparent, and we’ll level these out. 

Buying and selling Charges

Robinhood touts its “free-free” buying and selling, however let’s speak about what that actually means. It’s true that you just gained’t see any itemized price if you purchase or promote crypto. That stated, you’re undoubtedly getting charged a price.

Robinhood makes its cash by rolling the price of buying and selling into an expansion markup on the commerce. What meaning is that you just’ll pay extra if you’re shopping for and obtain much less if you’re promoting than you’d should you obtained the perfect market worth. You possibly can estimate what you’re paying by evaluating the acquisition worth to the dwell market worth.

Coinbase is equally cagey about its charges, however they’re utilized in tiers. You’ll pay extra if you buy a small quantity and fewer if you buy a considerable amount of crypto. For instance, with a small commerce you’ll pay a flat price plus a 0.5% markup of the acquisition worth of no matter coin you’re shopping for.

Further Charges

Robinhood expenses charges (below some circumstances) for withdrawing cash out of your account. Commonplace withdrawals are free, however should you do an prompt financial institution withdrawal or a withdrawal to a linked debit card, you might pay as much as 1.75% as a price.

Coinbase presents free ACH transfers, however expenses $10 for wire deposits and $25 for wire withdrawals. In addition they cost $3.99 for debit card withdrawals.

Abstract Desk of Charges

Right here’s a fast comparability of charges (insofar as charges have been disclosed) so that you can evaluation.

Professional Tip:

Enroll right now and get $50 of BTC after making your first commerce on Coinbase, or obtain as much as $1500 of inventory per 12 months by referring pals on Robinhood!

Robinhood vs Coinbase – Person Expertise Comparability

Each Robinhood and Coinbase have centered closely on the person expertise to make it possible for their respective platforms are straightforward to navigate.

Coinbase has a easy interface and is user-friendly for each newbies and skilled customers. There’s a menu on the prime of the house web page. Right here’s a glance what you’ll discover should you click on on Cryptocurrency.

Buyer help is a key ingredient of the person expertise. Coinbase presents 24/7 phone help. In addition they have a devoted Coinbase Assist Heart the place you may ask questions, get on-line assist, or make ideas.

Robinhood additionally has an easy-to-understand interface. They began as a cellular app, so it ought to come as no shock that the app expertise is sweet for customers. 

We like that it’s straightforward to entry Robinhood. Transactions take nearly no time to finish and general, the UX is great.

There’s 24/7 customer support by the app. One factor we want have been completely different is that there’s no telephone help. Presently, the one choice is to ship a message by the app and await a response.

Robinhood vs Coinbase – Which Platform is Finest for Crypto Buying and selling?

Right here’s our overview of which platform is finest for crypto buying and selling.

Coinbase’s Crypto Choices

As we’ve already famous, Coinbase presents a formidable listing of cryptocurrencies for buying and selling. These embrace those everyone knows, similar to Bitcoin, Ethereum, and Dogecoin. It additionally features a bunch of others that you could be not be accustomed to:

Polkadot

Avalanche

Pepe

SWELL

Fantom

Arbitrum

Filecoin

There are too many to listing right here: greater than 240 in whole, plus 300 pairings. If you wish to purchase quite a lot of cryptocurrencies and supported property, Coinbase presents much more choices than Robinhood for crypto buying and selling for superior crypto merchants.

Robinhood’s Crypto Choices

Robinhood began as a buying and selling platform for shares and ETFs and is a relative newcomer on this planet of crypto buying and selling. As of November 2024, they provide a complete of 19 cash for buying and selling, together with:

Bitcoin

Ethereum

Dogecoin

Litecoin

Solana

It’s possible that Robinhood will add extra cash sooner or later. We are saying it’s choice for current Robinhood customers who need to get their toes moist with cryptocurrency, however not the best alternative for superior crypto traders.

Comparability Desk: Obtainable Cryptos

That is only a small sampling of what Coinbase has accessible. 

Professional Tip:

Enroll right now and get $50 of BTC after making your first commerce on Coinbase, or obtain as much as $1500 of inventory per 12 months by referring pals on Robinhood!

Is Robinhood Higher than Coinbase?

By now, you’re in all probability questioning if Robinhood is best than Coinbase. Right here’s our rundown.

Coinbase has a ton of academic sources plus a broader coin choice than Robinhood. The platform’s deal with crypto signifies that it’s perfect for skilled crypto traders and may additionally be helpful for newbies who need to get began with crypto.

We additionally like that Coinbase has prioritized safety and that there’s the pliability to make use of your current crypto pockets.

Robinhood has a user-friendly app that makes it very straightforward to commerce shares and to get began with crypto investing. It presents zero-commission trades, though there are some baked-in charges to think about.

Like Coinbase, Robinhood has taken pains to make its platform safe and to guard traders. We admire that traders, notably newbies, can combine their crypto investing with different securities, together with shares and ETFs.

Conclusion

Evaluating Coinbase vs Robinhood, our takeaway is that Coinbase is designed for individuals who need to get severe about cryptocurrency buying and selling and their crypto property and are searching for a big selection of cash to purchase and promote. It has greater than 10 occasions the variety of cash that Robinhood does, it’s straightforward to transform one forex to a different, and there are many academic sources to assist traders study crypto. If you’re interested by how Coinbase stacks as much as a competitor similar to eToro, try our evaluation evaluating the 2: ETORO VS COINBASE!

Newbie traders who need an app to seamlessly combine cryptocurrency buying and selling with shares and ETFs could desire Robinhood. Whereas there aren’t as many cash that can be purchased, the most well-liked cash are there. Take a look at our information reviewing crypto buying and selling on Robinhood right here should you nonetheless want extra data.

On the entire, we give Robinhood the sting on the subject of charges and as a instrument to handle a number of securities. Coinbase will get the sting for people who find themselves already skilled buying and selling crypto or who simply need a extra complete platform for digital property.

All the time do not forget that investing includes threat and that cryptocurrency buying and selling on each Coinbase and Robinhood also can include some threat!