Cryptocurrency investing is one thing that’s comparatively new nonetheless, however undeniably common. Decentralized currencies promise buyers a hedge towards issues like inflation. However what’s the most effective platform to commerce crypto: Robinhood vs Coinbase?
Loads of buyers need info to check Coinbase vs Robinhood and we’re right here to assist. Whereas each are digital platforms the place you’ll be able to commerce cryptocurrencies, there are some necessary variations. Which platform is healthier on your crypto funding wants?
Robinhood is an digital buying and selling platform that’s regulated by the SEC. On the corporate’s common app, buyers can purchase shares, ETFs, and a restricted variety of crypto cash. Among the hottest cryptocurrencies can be found, together with Bitcoin, Ethereum, and Dogecoin. In complete, they provide 19 totally different cash for buy.
Robinhood’s declare to fame is that they don’t cost a price for trades. They do supply a premium subscription possibility, Robinhood Gold, that prices $5 monthly.
Coinbase can be a buying and selling platform, nevertheless it focuses solely on cryptocurrencies. They’ve roughly 240 digital belongings and 300 supported buying and selling pairs obtainable with Coinbase Prime.
Individuals who need their selection of cryptocurrencies or who need entry to cryptocurrency assets could favor 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 suitable 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 gives 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 buyers extra worth for his or her cash than different platforms, together with Coinbase.
Should you’re already a Robinhood buyer, then you could need to think about getting your ft 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 flexibility to simply convert one cryptocurrency to a different, which can be helpful.
By way of investor sorts, we must always discuss concerning the threat concerned with shopping for crypto usually. Cryptocurrencies are usually much more risky than shares or ETFs. We wouldn’t advocate shopping for solely crypto. Our rule of thumb is that buyers shouldn’t put more cash into digital belongings than they’ll afford to lose.
On the entire, we’d say that newbie buyers and people who need an all-in-one funding buying and selling answer will probably be higher off utilizing Robinhood, whereas skilled crypto merchants could favor Coinbase for its giant number of cash and crypto conversion.
Professional Tip:
Join 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 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 below are the options that you just’ll get if you happen to commerce crypto with Robinhood.
Consumer-friendly app
Potential to commerce 19 totally different crypto cash, together with Bitcoin, Ethereum, Dogecoin, Shiba Inu, and extra
Payment-free buying and selling
In-app assist
Robinhood crypto pockets
Fractional shares are allowed for all obtainable 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 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 are usually not insured by the FDIC the way in which financial institution deposits are.)
Now, let’s have a look at Coinbase. Listed below are the options you’ll discover there.
Purchase and promote over 240 varieties 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 if you happen to favor
Start buying and selling with as little as $2
Right here’s an inventory of Coinbase’s safety features:
State-of-the-art encryption and safety
Transparency about how and when info is shared
2FA with safety key assist
Password safety
Insurance coverage to guard some belongings from theft or safety breaches
You’ll have to take into account that neither firm’s insurance coverage coverage will shield you if you happen to share your password and expertise theft of crypto belongings because of this.
Robinhood vs Coinbase – Payment Comparability
Now, let’s have a look at Robinhood vs Coinbase charges. Consider as you evaluate 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 basically means. It’s true that you just gained’t see any itemized price while you purchase or promote crypto. That mentioned, you’re positively getting charged a price.
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 while you’re shopping for and obtain much less while you’re promoting than you’d if you happen to received the most effective market worth. You may 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.
Extra Charges
Robinhood prices charges (below some circumstances) for withdrawing cash out of your account. Commonplace withdrawals are free, however if you happen to do an on the spot financial institution withdrawal or a withdrawal to a linked debit card, you could pay as much as 1.75% as a price.
Coinbase gives free ACH transfers, however prices $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:
Join 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 pals 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 straightforward 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 assist is a key factor of the person expertise. Coinbase gives 24/7 phone assist. Additionally they have a devoted Coinbase Assist Heart the place you’ll be able to ask questions, get on-line assist, or make options.
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 straightforward to entry Robinhood. Transactions take nearly no time to finish and general, the UX is great.
There’s 24/7 customer support by way of the app. One factor we want had been totally different is that there’s no cellphone assist. At the moment, the one possibility is to ship a message by way 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 gives a powerful listing of cryptocurrencies for buying and selling. These embrace those everyone knows, resembling 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 belongings, Coinbase gives 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 a superb possibility for current Robinhood customers who need to get their ft moist with cryptocurrency, however not the suitable selection for superior crypto buyers.
Comparability Desk: Accessible Cryptos
That is only a small sampling of what Coinbase has obtainable.
Professional Tip:
Join 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 pals on Robinhood!
Is Robinhood Higher than Coinbase?
By now, you’re in all probability questioning if Robinhood is healthier than Coinbase. Right here’s our rundown.
Coinbase has a ton of instructional assets plus a broader coin choice than Robinhood. The platform’s concentrate on crypto implies 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 straightforward to commerce shares and to get began with crypto investing. It gives 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 admire 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 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 straightforward to transform one foreign money to a different, and there are many instructional assets to assist buyers find out about crypto. In case you are interested by how Coinbase stacks as much as a competitor resembling eToro, try our evaluate evaluating the 2: ETORO VS COINBASE!
Newbie buyers who need an app to seamlessly combine cryptocurrency buying and selling with shares and ETFs could favor 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 if you happen to nonetheless want extra info.
On the entire, we give Robinhood the sting in the case 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 entails threat and that cryptocurrency buying and selling on each Coinbase and Robinhood also can include some threat!
We expect Robinhood is an effective all-around app for newbies, 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 may do extra for newbies is in training, however there are different locations the place you may get free assets that can assist you find out about cryptocurrency if you wish to use Robinhood.
As a result of each platforms could possibly be extra clear with charges, it’s troublesome to say for certain. Nevertheless, Coinbase’s 0.5% price plus flat price construction implies that usually, 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 considered one of 19 cryptocurrencies obtainable to commerce on Robinhood as of November, 2024.
