Which is Best to Choose?

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

Numerous buyers 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 vital variations. Which platform is best in your crypto funding wants?

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

Robinhood’s declare to fame is that they don’t cost a charge for trades. They do supply a premium subscription possibility, Robinhood Gold, that prices $5 per 30 days.

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

Individuals who need their selection of cryptocurrencies or who need entry to cryptocurrency assets could choose Coinbase.

The SEC says it has regulatory authority over Coinbase, however Coinbase has contested that and is pursuing clarification in courtroom. Their declare is that cryptocurrencies don’t fall beneath the prevailing 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 that you could commerce there and whether or not different funding courses can be found. We’ll get into the small print of each points later on this evaluation.

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

Robinhood vs Coinbase – Which Platform is Greatest for Cryptocurrency?

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

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

In case you’re already a Robinhood buyer, then it’s possible you’ll need to contemplate 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 all your investments, together with crypto, in a single place: thereby simplifying your funding technique.

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

When it comes to investor varieties, we should always discuss in regards to the threat concerned with shopping for crypto basically. Cryptocurrencies are sometimes way more risky than shares or ETFs. We wouldn’t suggest shopping for solely crypto. Our rule of thumb is that buyers shouldn’t put extra money into digital property than they will afford to lose.

On the entire, we’d say that newbie buyers and people who need an all-in-one funding buying and selling resolution can be higher off utilizing Robinhood, whereas skilled crypto merchants could choose Coinbase for its giant number of cash and crypto conversion.

Professional Tip:

Join at present 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 – Function Comparability

Robinhood and Coinbase each have options which might be helpful to buyers. Let’s begin with Robinhood. Listed here are the options that you just’ll get if you happen to commerce crypto with Robinhood.

• Person-friendly app
• Capacity to commerce 19 completely different crypto cash, together with Bitcoin, Ethereum, Dogecoin, Shiba Inu, and extra
• Payment-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 carried out 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 with out a texted code
• Devoted crypto pockets for buyers
• Most of buyers’ cryptocurrencies are saved offline in a chilly pockets
• Robinhood has bought insurance coverage to supply some safety to insurers. (As a reminder, Robinhood deposits should not 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 sorts of crypto 
• Ship and obtain cryptocurrencies without spending a dime (amongst Coinbase customers, exterior mining charges apply)
• Cryptocurrency one-stop-shop, together with major stability service, an alternate, and service provider instruments inside the identical interface
• Use with an current crypto pockets if you happen to choose
• 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 must understand that neither firm’s insurance coverage coverage will defend you if you happen to share your password and expertise theft of crypto property in consequence.

Robinhood vs Coinbase – Payment Comparability

Now, let’s take a look at Robinhood vs Coinbase charges. Have in mind 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 discuss what that actually means. It’s true that you just gained’t see any itemized charge once you purchase or promote crypto. That mentioned, you’re undoubtedly getting charged a charge.

Robinhood makes its cash by rolling the price of buying and selling into a ramification markup on the commerce. What which means is that you just’ll pay extra once you’re shopping for and obtain much less once you’re promoting than you’d if you happen to bought the very best market value. You’ll be able to estimate what you’re paying by evaluating the acquisition value to the dwell market value.

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 charge plus a 0.5% markup of the acquisition value of no matter coin you’re shopping for.

Further Charges

Robinhood fees charges (beneath some situations) for withdrawing cash out of your account. Commonplace withdrawals are free, however if you happen to do an instantaneous financial institution withdrawal or a withdrawal to a linked debit card, it’s possible you’ll pay as much as 1.75% as a charge.

Coinbase provides free ACH transfers, however fees $10 for wire deposits and $25 for wire withdrawals. Additionally 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:

Join at present 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 be sure that their respective platforms are simple to navigate.

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

Buyer help is a key aspect of the person expertise. Coinbase provides 24/7 phone help. Additionally they have a devoted Coinbase Assist Heart the place you may ask questions, get on-line assist, or make recommendations.

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 simple to entry Robinhood. Transactions take nearly no time to finish and total, the UX is superb.

There’s 24/7 customer support by the app. One factor we want had been completely different is that there’s no cellphone help. Right now, the one possibility is to ship a message by the app and watch for a response.

Robinhood vs Coinbase – Which Platform is Greatest 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 provides 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 acquainted with:

• Polkadot
• Avalanche
• Pepe
• SWELL
• Fantom
• Arbitrum
• Filecoin

There are too many to listing right here: greater than 240 in complete, plus 300 pairings. If you wish to purchase a wide range of cryptocurrencies and supported property, Coinbase provides way 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 a great possibility for current Robinhood customers who need to get their toes moist with cryptocurrency, however not the best selection for superior crypto buyers.

Comparability Desk: Out there Cryptos

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

Professional Tip:

Join at present 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 most likely questioning if Robinhood is best than Coinbase. Right here’s our rundown.

Coinbase has a ton of academic assets plus a broader coin choice than Robinhood. The platform’s deal with crypto signifies that it’s splendid for knowledgeable crypto buyers 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 simple to commerce shares and to get began with crypto investing. It provides zero-commission trades, though there are some baked-in charges to contemplate.

Like Coinbase, Robinhood has taken pains to make its platform safe and to guard buyers. We recognize that buyers, 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 on the lookout 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 simple to transform one foreign money to a different, and there are many academic assets to assist buyers study crypto. In case you are interested by how Coinbase stacks as much as a competitor similar to eToro, take a look at our evaluation evaluating the 2: ETORO VS COINBASE!

Newbie buyers who need an app to seamlessly combine cryptocurrency buying and selling with shares and ETFs could choose Robinhood. Whereas there aren’t as many cash that can be purchased, the preferred cash are there. Try our information reviewing crypto buying and selling on Robinhood right here if you happen to nonetheless want extra data.

On the entire, we give Robinhood the sting in terms of charges and as a software 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 desire a extra complete platform for digital property.

All the time keep in mind that investing entails threat and that cryptocurrency buying and selling on each Coinbase and Robinhood also can include some threat!