It’s no surprise that Coinbase and Robinhood are the preferred crypto buying and selling apps within the U.S. Each firms supply superbly designed, extraordinarily intuitive cellular apps, a guided person expertise, and schooling to assist flip newbies into crypto professionals. Each additionally supply in-app newsfeeds to assist customers keep up on the present information for every funding on the platform.
Oh, and each have questionable payment buildings, however extra on that in a minute.
Whereas Coinbase provides a wide array of cryptocurrency and a number of buying and selling platforms, Robinhood provides crypto, shares, and choices buying and selling with “no commissions.”
Sure, each platforms supply entry to Bitcoin and different standard crypto, however these apps supply very completely different approaches to buying and selling and investing. We’ve in contrast the crypto choice, charges, safety, and options of each Coinbase and Robinhood that can assist you discover the perfect trade in your wants.
Robinhood vs. Coinbase Abstract
Each Robinhood and Coinbase supply entry to Bitcoin, Ethereum, and different high cryptocurrencies; nonetheless, Coinbase provides a a lot wider collection of crypto, and the power to switch crypto on and off the platform.
Robinhood provides commission-free buying and selling for all property on the platform (shares, choices, crypto), however does cost a selection payment.
Each platforms supply entry to intuitive cellular apps for buying and selling on-the-go, in addition to built-in market newsfeeds.
About Coinbase
- Charges: $0.99–$2.99, for orders beneath $200; 1.49%–3.99% for trades over $200. Superior: as much as 0.60%/0.60%, relying on 30-day commerce quantity.
- Buying and selling choices: Purchase/promote, staking.
- Funding choices: Wire switch, ACH, debit card, PayPal, crypto deposit.
- Forex choice: 160+ crypto, 5 fiat.
- Verification course of: 2–3 minutes.
Coinbase is a U.S.-based cryptocurrency trade based in 2012 by Brian Armstrong and Fred Ehrsam that has change into one of many largest crypto exchanges on the earth by buying and selling quantity. With over 170 crypto obtainable to commerce on the platform, and practically 100 million prospects across the globe, Coinbase has change into one of the standard crypto exchanges on the planet.
Coinbase focuses on simplicity, with an intuitive cellular app superb for crypto newbies. It additionally provides a complicated buying and selling platform with extra buying and selling instruments and charts than the usual platform. Coinbase does cost excessive charges on the usual model, however the superior buying and selling platform provides aggressive charges for high-volume merchants.
Execs
- Straightforward to make use of. The Coinbase platform and cellular app make for one of many best crypto-buying processes round, good for novices.
- Massive crypto choice. Coinbase provides over 170 crypto (and counting), which isn’t probably the most within the trade, however a decent choice for any crypto dealer.
- Academic sources. Coinbase provides built-in video coaching and a crypto rewards program, encouraging crypto newbies to earn whereas they study, with out spending hours to understand pretty complicated material (i.e., crypto initiatives).
Cons
- Excessive charges. Straight up, Coinbase costs excessive charges for orders underneath $200. Add to that an extra surcharge on debit/bank card purchases, and customers can shortly pay over 10% for small purchases. Fortunately, the Superior Commerce platform simply launched to supply way more affordable charges.
- No margin or derivatives buying and selling. Whereas Robinhood provides margin buying and selling on its platform, Coinbase eliminated margin buying and selling again in 2020. It additionally doesn’t supply any future buying and selling or by-product merchandise.
Take a look at our full evaluation of Coinbase.
About Robinhood
- Charges: No charges on shares, ETFs, choices, or crypto trades. Robinhood does acquire a “unfold” payment, which is the distinction between the purchase and promote worth of a commerce.
- Buying and selling choices: Purchase/promote, choices buying and selling.
- Funding choices: Checking account, wire switch (USD solely).
- Forex choice: 11 crypto, 1 fiat (USD solely).
- Verification course of: 2–3 minutes.
Robinhood is a well-liked inventory buying and selling app primarily based within the U.S., boasting fee-free buying and selling of shares, ETFs, choices contracts, and crypto. Whereas “commission-free” buying and selling sounds engaging, it’s necessary to notice that Robinhood does acquire a “unfold” payment, which is the distinction between the purchase and promote worth of an asset.
Robinhood has designed one of the intuitive investing apps for novices, making it straightforward for brand spanking new merchants to get began. It additionally provides entry to 11 cryptocurrencies, together with Bitcoin and Ethereum.
Robinhood is understood for meme “stonks” and a few shady savvy ways in which they earn cash, however total supplies a easy person expertise and entry to a variety of property.
Execs
- No-fee buying and selling. Sure, Robinhood costs a selection, however total, the “no-fee” buying and selling is a perk for customers who need to keep away from paying excessive charges for trades.
- Entry to greater than crypto. Whereas crypto has been a well-liked asset on the platform, buyers can diversify into shares, ETFs, and even choices buying and selling on the Robinhood app.
- Cell app. The Robinhood cellular app is hands-down one of many easiest buying and selling apps round, with guided excursions of the buying and selling screens, easy summaries of every funding, and a stay, built-in newsfeed.
Cons
- Hidden charges. Robinhood has been in scorching water for accepting “cost for order stream,” receiving charges for routing funds to most well-liked processors, in addition to accumulating a selection payment, probably charging you greater than an asset is price. Control these order costs.
- Very small crypto choice. There are solely 11 crypto to select from, which is 10x lower than most exchanges, limiting your collection of crypto to commerce.
Strive Robinhood or learn our full evaluation.
Coinbase vs. Robinhood Charges
Coinbase costs charges for getting, promoting, and buying and selling crypto, with a number of completely different payment buildings, relying on the transaction and platform used. Purchases made with a debit or bank card additionally cost a really excessive surcharge along with the buying and selling payment. There isn’t a payment schedule on the usual platform, making it arduous to decipher how a lot you’re truly paying till the ultimate commerce affirmation display screen.
Robinhood doesn’t cost fee or charges on shopping for or promoting crypto on its platform, however does acquire a “unfold,” which is the distinction between the “bid” and “ask” worth of a transaction. This payment is non-transparent, and will lead to you paying extra for an asset than its present worth.
Coinbase provides free crypto deposits, and crypto withdrawal charges are primarily based on the foreign money and blockchain community. Robinhood doesn’t presently enable crypto deposits or withdrawals.
Robinhood has a waitlist for its crypto pockets launch, which is able to finally enable customers to deposit and withdraw cryptocurrency from the platform. You’ll be able to see a breakdown of Coinbase trade charges and Robinhood trade charges on their web sites.
Learn extra: Finest crypto wallets to stash your Bitcoins
Right here’s a side-by-side comparability of Coinbase and Robinhood charges:
Coinbase charges | Robinhood charges | |
---|---|---|
Purchase/promote charges | $0.99–$2.99, for orders beneath $200.
1.49%–3.99% for orders over $200 |
● No charges on shares, ETFs, choices, or crypto trades ● Robinhood does acquire a “unfold” payment, which is the distinction between the purchase and promote worth of a commerce |
Buying and selling charges | Coinbase Superior: As much as 0.60%/0.60% (maker/taker), relying on 30-day commerce quantity | ● No charges on shares, ETFs, choices, or crypto trades ● Robinhood does acquire a “unfold” payment, which is the distinction between the purchase and promote worth of a commerce |
Credit score/debit card charges | 3.99% | N/A |
ACH transfers | Free | Free |
Wire transfers | ● Deposits – $10 ● Withdrawals – $25 |
Free (financial institution could cost charges) |
Crypto | ● Deposits – free ● Withdrawals – varies by foreign money |
N/A |
Coinbase vs. Robinhood Safety
Each Coinbase and Robinhood supply stable safety features, guarding crypto property and person information with bank-level safety.
Listed here are just a few of the safety features shared by Coinbase and Robinhood:
- Chilly storage. Each platforms maintain a majority of your crypto property in offline chilly storage, eradicating the danger for on-line cyber assaults.
- Two-factor authentication (2FA). Each platforms supply organising 2FA with a third-party app (like Google Authenticator) to safe your account.
- FDIC insurance coverage. Each platforms supply as much as $250k in FDIC insurance coverage for money deposits. Robinhood additionally carries SIPC insurance coverage for inventory and ETF balances.
Along with these safety features, every platform provides extra distinctive methods to guard your cash:
- Robinhood crypto asset insurance coverage. Robinhood carries insurance coverage in opposition to a portion of person crypto holdings underwritten by Lloyd’s to guard in opposition to theft.
- Coinbase vaults. Coinbase provides an optionally available cold-storage vault service that protects person funds with multi-signature wallets, time-delayed withdrawals, and offline storage.
Total, each Robinhood and Coinbase supply nice safety for crypto merchants and haven’t misplaced any person funds resulting from a safety breach, although Robinhood did undergo an information hack again in November of 2021.
Coinbase vs. Robinhood Options
Whereas Robinhood and Coinbase each supply entry to crypto buying and selling, they’re very completely different platforms. Listed here are among the options which might be distinctive to every platform:
Coinbase options
- Crypto choice: Coinbase provides over 170 cryptocurrencies for buying and selling, with extra being added regularly. Whereas this isn’t the most important collection of any crypto trade, it far exceeds Robinhood’s 90+ crypto choice.
- Coinbase Be taught: Coinbase provides a singular studying program, constructed into the web site and cellular app. Customers can find out about cryptocurrencies by short-form movies, and even earn crypto rewards by taking a quiz after every video sequence.
Robinhood options
- Inventory buying and selling: Robinhood provides entry to greater than crypto, and is primarily a inventory buying and selling platform. It provides 1000’s of particular person shares and ETFs for buying and selling, in addition to choices buying and selling.
- Margin buying and selling: Robinhood provides entry to margin buying and selling on the platform, with solely a $2,000 stability required for entry.
My Expertise with Coinbase and Robinhood
Coinbase is my principal crypto buying and selling platform, having been a person since late 2020. As my first crypto expertise, Coinbase was straightforward to enroll and begin utilizing, and I used to be capable of shortly confirm my identification throughout the app. I related my checking account by Plaid and deposited funds that have been instantly obtainable to commerce with.
Shopping for crypto was a straight-forward expertise, with the charges clearly listed earlier than making a purchase order.
I’ve additionally used Coinbase Professional, which is a extra superior buying and selling platform with decrease charges. Now that Coinbase has launched “Superior Buying and selling,” the charges are an identical on each platforms, and I’ll be switching again to the usual Coinbase app.
Total, Coinbase is an easy-to-use platform that was good for a newbie like me.
I used Robinhood to purchase a meme inventory in 2021, which was a enjoyable, however short-lived experiment. The sign-up course of and identification verification have been pretty simple and fast. The buying and selling platform could be very easy, with easy-to-read charts and an order kind that makes it straightforward to purchase and promote.
Total, Robinhood was as marketed: a easy buying and selling platform that walked me by every display screen to discover ways to commerce.
Who’s Coinbase Finest for?
Crypto Newbies
Coinbase caters to new crypto buyers, providing a easy onboarding expertise, easy-to-use cellular app, and useful instructional movies.
Superior Crypto Merchants
With the launch of Superior Commerce, Coinbase provides extra buying and selling instruments for energetic crypto merchants, in addition to decrease charges throughout.
Strive crypto buying and selling with Coinbase.
Who’s Robinhood Finest for?
New Buyers
Robinhood pioneered “no-fee” buying and selling, and its simplified design helps new buyers get comfy making their first commerce.
Inventory Merchants
Sure, Robinhood provides crypto, however solely 11 of them. It’s at the beginning a inventory buying and selling app, providing entry to 1000’s of shares and ETFs, in addition to choices buying and selling for extra superior customers.
Strive crypto and inventory buying and selling with Robinhood.
So, Which One is the Finest?
Coinbase and Robinhood each assist novices begin investing in crypto with simple-to-use cellular apps and a give attention to person schooling. Each additionally assist defend your cash with offline chilly storage and each carry standard crypto for buying and selling.
Coinbase provides way more crypto to commerce, and is a full-featured crypto trade, providing methods to earn curiosity on cash, in addition to the power to switch crypto property on and off the platform. Coinbase additionally provides superior buying and selling with low charges, superb for energetic crypto merchants {and professional} buyers.
Robinhood, however, is nice for novices who need entry to greater than crypto. With 1000’s of shares and ETFs, in addition to choices contracts and margin buying and selling, Robinhood is extra aimed toward energetic merchants. It provides no-commission buying and selling, however does cost a selection, so keep watch over the costs paid for property.
Total, Coinbase is our favourite platform for crypto novices, however Robinhood could be a respectable possibility for decreasing charges and permitting customers to commerce extra than simply crypto.
Featured picture: Rabanser/Shutterstock.com
Advertiser Disclosure – This commercial comprises data and supplies supplied by Robinhood Monetary LLC and its associates (“Robinhood”) and MoneyUnder30, a 3rd occasion not affiliated with Robinhood. All investments contain danger and the previous efficiency of a safety, or monetary product doesn’t assure future outcomes or returns. Securities supplied by Robinhood Monetary LLC and Robinhood Securities LLC, that are members of FINRA and SIPC. MoneyUnder30 shouldn’t be a member of FINRA or SIPC.”