Cryptocurrency investing is one thing that’s comparatively new nonetheless, however undeniably in style. Decentralized currencies promise traders a hedge in opposition to issues like inflation. However what’s the very best platform to commerce crypto: Robinhood vs Coinbase?
Quite a lot of traders need info to check Coinbase vs Robinhood and we’re right here to assist. Whereas each are digital platforms the place you may commerce cryptocurrencies, there are some necessary 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 in style app, traders can purchase 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 complete, they provide 19 completely different cash for buy.
Robinhood’s declare to fame is that they don’t cost a payment for trades. They do supply a premium subscription choice, Robinhood Gold, that prices $5 monthly.
Coinbase can also be a buying and selling platform, however it focuses solely on cryptocurrencies. They’ve roughly 240 digital belongings and 300 supported buying and selling pairs accessible with Coinbase Prime.
Individuals who need their alternative of cryptocurrencies or who need entry to cryptocurrency assets could desire 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 below 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 you could commerce there and whether or not different funding courses can be found. We’ll get into the main points of each points later on this evaluate.
Now, let’s dive into whether or not Coinbase vs Robinhood for crypto is the appropriate alternative 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 presents no-fee crypto buying and selling for all supported belongings, though there are some quantity charges baked into their charges. That mentioned, they nonetheless declare to supply traders extra worth for his or her cash than different platforms, together with Coinbase.
For those who’re already a Robinhood buyer, then chances are you’ll need to take into account 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 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 also be helpful.
By way of investor varieties, we must always speak in regards to the threat concerned with shopping for crypto on the whole. Cryptocurrencies are usually way 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 belongings than they will 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 will likely be higher off utilizing Robinhood, whereas skilled crypto merchants could desire Coinbase for its giant choice of cash and crypto conversion.
Professional Tip:
Enroll in the present day 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 associates on Robinhood!
Robinhood vs Coinbase – Characteristic Comparability
Robinhood and Coinbase each have options which might be helpful to traders. Let’s begin with Robinhood. Listed below are the options that you just’ll get for those who commerce crypto with Robinhood.
Consumer-friendly app
Capability 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 with no 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 should not insured by the FDIC the best way financial institution deposits are.)
Now, let’s take a look at Coinbase. Listed below are the options you’ll discover there.
Purchase and promote over 240 forms of crypto
Ship and obtain cryptocurrencies totally free (amongst Coinbase customers, exterior mining charges apply)
Cryptocurrency one-stop-shop, together with main steadiness service, an change, and service provider instruments inside the similar interface
Use with an current crypto pockets for those who 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 info is shared
2FA with safety key help
Password safety
Insurance coverage to guard some belongings from theft or safety breaches
You’ll must needless to say neither firm’s insurance coverage coverage will defend you for those who share your password and expertise theft of crypto belongings consequently.
Robinhood vs Coinbase – Charge Comparability
Now, let’s take a look at Robinhood vs Coinbase charges. Take note as you evaluate these that some charges will not be 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 basically means. It’s true that you just received’t see any itemized payment whenever you purchase or promote crypto. That mentioned, you’re positively getting charged a payment.
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 whenever you’re shopping for and obtain much less whenever you’re promoting than you’ll for those who received the very best market value. You possibly can estimate what you’re paying by evaluating the acquisition value to the stay 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 payment plus a 0.5% markup of the acquisition value of no matter coin you’re shopping for.
Further Charges
Robinhood costs charges (below some circumstances) for withdrawing cash out of your account. Customary withdrawals are free, however for those who do an on the spot financial institution withdrawal or a withdrawal to a linked debit card, chances are you’ll pay as much as 1.75% as a payment.
Coinbase presents free ACH transfers, however costs $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 evaluate.
Professional Tip:
Enroll in the present day 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 associates on Robinhood!
Robinhood vs Coinbase – Consumer Expertise Comparability
Each Robinhood and Coinbase have centered closely on the person expertise to make it possible for their respective platforms are simple to navigate.
Coinbase has a easy interface and is user-friendly for each inexperienced persons and skilled customers. There’s a menu on the high of the house web page. Right here’s a glance what you’ll discover for those who click on on Cryptocurrency.
Buyer help is a key component of the person expertise. Coinbase presents 24/7 phone help. Additionally they have a devoted Coinbase Help 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 cell app, so it ought to come as no shock that the app expertise is nice for customers.
We like that it’s simple to entry Robinhood. Transactions take virtually no time to finish and general, the UX is great.
There’s 24/7 customer support by means of the app. One factor we want have been completely different is that there’s no cellphone help. Presently, the one choice is to ship a message by means of 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 presents a formidable listing of cryptocurrencies for buying and selling. These embody those everyone knows, reminiscent of 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 complete, plus 300 pairings. If you wish to purchase quite a lot of cryptocurrencies and supported belongings, Coinbase presents 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 the earth 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 further cash sooner or later. We are saying it’s a very good choice for current Robinhood customers who need to get their toes moist with cryptocurrency, however not the appropriate alternative for superior crypto traders.
Comparability Desk: Accessible Cryptos
That is only a small sampling of what Coinbase has accessible.
Professional Tip:
Enroll in the present day 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 associates 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 instructional assets plus a broader coin choice than Robinhood. The platform’s deal with crypto signifies that it’s splendid for knowledgeable crypto traders and may additionally be helpful for inexperienced persons 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 presents 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 traders. We respect that traders, notably inexperienced persons, 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 critical about cryptocurrency buying and selling and their crypto belongings and are searching for a big selection of cash to purchase and promote. It has greater than 10 instances the variety of cash that Robinhood does, it’s simple to transform one foreign money to a different, and there are many instructional assets to assist traders find out about crypto. If you’re inquisitive about how Coinbase stacks as much as a competitor reminiscent of eToro, take a look at our evaluate 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 available for purchase, the preferred cash are there. Try our information reviewing crypto buying and selling on Robinhood right here for those who nonetheless want extra info.
On the entire, we give Robinhood the sting in terms 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 desire a extra complete platform for digital belongings.
All the time keep in mind that investing includes threat and that cryptocurrency buying and selling on each Coinbase and Robinhood may include some threat!
We expect Robinhood is an efficient all-around app for inexperienced persons, notably those that need to get began with crypto however don’t need to use multiple instrument to handle all their investments. The one space the place we predict Robinhood might do extra for inexperienced persons is in training, however there are different locations the place you will get free assets that will help you find out about cryptocurrency if you wish to use Robinhood.
As a result of each platforms might be extra clear with charges, it’s tough to say for certain. Nevertheless, Coinbase’s 0.5% payment plus flat payment construction signifies that normally, they’re dearer than Robinhood.
Each Coinbase and Robinhood have taken pains to guard customers and protect them from losses associated to hacking or theft. They each supply password safety, 2FA, and insurance coverage. Neither is insured by the FDIC. By way of safety, we predict they’re equal.
Sure, Bitcoin is certainly one of 19 cryptocurrencies accessible to commerce on Robinhood as of November, 2024.
