It’s no marvel that Coinbase and Robinhood are the most well-liked crypto buying and selling apps within the U.S. Each corporations provide superbly designed, extraordinarily intuitive cell apps, a guided consumer expertise, and schooling to assist flip newbies into crypto execs. Each additionally provide 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 provide entry to Bitcoin and different widespread crypto, however these apps provide 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 will help you discover one of the best alternate to your wants.
Robinhood vs. Coinbase Abstract
Each Robinhood and Coinbase provide entry to Bitcoin, Ethereum, and different prime 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 belongings on the platform (shares, choices, crypto), however does cost a selection payment.
Each platforms provide entry to intuitive cell apps for buying and selling on-the-go, in addition to built-in market newsfeeds.
About Coinbase
- Charges: $0.99–$2.99, for orders under $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.
- Foreign money choice: 160+ crypto, 5 fiat.
- Verification course of: 2–3 minutes.
Coinbase is a U.S.-based cryptocurrency alternate based in 2012 by Brian Armstrong and Fred Ehrsam that has turn out to be one of many largest crypto exchanges on this planet 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 turn out to be some of the widespread crypto exchanges on the planet.
Coinbase focuses on simplicity, with an intuitive cell 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.
Professionals
- Straightforward to make use of. The Coinbase platform and cell app make for one of many best crypto-buying processes round, excellent for inexperienced persons.
- Massive crypto choice. Coinbase provides over 170 crypto (and counting), which isn’t probably the most within the business, however a good choice for any crypto dealer.
- Instructional 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 advanced material (i.e., crypto tasks).
Cons
- Excessive charges. Straight up, Coinbase fees excessive charges for orders below $200. Add to that a further surcharge on debit/bank card purchases, and customers can rapidly 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 provide 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 gather a “unfold” payment, which is the distinction between the purchase and promote value of a commerce.
- Buying and selling choices: Purchase/promote, choices buying and selling.
- Funding choices: Checking account, wire switch (USD solely).
- Foreign money 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 gather a “unfold” payment, which is the distinction between the purchase and promote value of an asset.
Robinhood has designed some of the intuitive investing apps for inexperienced persons, making it straightforward for brand 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 general gives a easy consumer expertise and entry to a variety of belongings.
Professionals
- No-fee buying and selling. Sure, Robinhood fees a selection, however general, the “no-fee” buying and selling is a perk for customers who wish 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 cell 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 reside, built-in newsfeed.
Cons
- Hidden charges. Robinhood has been in sizzling water for accepting “cost for order circulation,” receiving charges for routing funds to most well-liked processors, in addition to accumulating a selection payment, presumably charging you greater than an asset is value. Regulate 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.
Attempt Robinhood or learn our full evaluation.
Coinbase vs. Robinhood Charges
Coinbase fees 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 any payment schedule on the usual platform, making it exhausting to decipher how a lot you’re really 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 gather a “unfold,” which is the distinction between the “bid” and “ask” value of a transaction. This payment is non-transparent, and should 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 forex and blockchain community. Robinhood doesn’t at the moment permit crypto deposits or withdrawals.
Robinhood has a waitlist for its crypto pockets launch, which is able to finally permit customers to deposit and withdraw cryptocurrency from the platform. You’ll be able to see a breakdown of Coinbase exchange fees and Robinhood exchange fees 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 under $200.
1.49%–3.99% for orders over $200 |
● No charges on shares, ETFs, choices, or crypto trades ● Robinhood does gather a “unfold” payment, which is the distinction between the purchase and promote value 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 gather a “unfold” payment, which is the distinction between the purchase and promote value 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 might cost charges) |
Crypto | ● Deposits – free ● Withdrawals – varies by forex |
N/A |
Coinbase vs. Robinhood Safety
Each Coinbase and Robinhood provide stable safety features, guarding crypto belongings and consumer knowledge with bank-level safety.
Listed here are just a few of the safety features shared by Coinbase and Robinhood:
- Chilly storage. Each platforms hold a majority of your crypto belongings in offline chilly storage, eradicating the danger for on-line cyber assaults.
- Two-factor authentication (2FA). Each platforms provide organising 2FA with a third-party app (like Google Authenticator) to safe your account.
- FDIC insurance coverage. Each platforms provide 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 consumer crypto holdings underwritten by Lloyd’s to guard in opposition to theft.
- Coinbase vaults. Coinbase provides an non-obligatory cold-storage vault service that protects consumer funds with multi-signature wallets, time-delayed withdrawals, and offline storage.
General, each Robinhood and Coinbase provide nice safety for crypto merchants and haven’t misplaced any consumer funds as a result of a safety breach, although Robinhood did undergo a data hack back in November of 2021.
Coinbase vs. Robinhood Options
Whereas Robinhood and Coinbase each provide entry to crypto buying and selling, they’re very completely different platforms. Listed here are a few of 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 alternate, it far exceeds Robinhood’s 90+ crypto choice.
- Coinbase Study: Coinbase provides a novel studying program, constructed into the web site and cell 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 hundreds 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 important crypto buying and selling platform, having been a consumer since late 2020. As my first crypto expertise, Coinbase was straightforward to enroll and begin utilizing, and I used to be in a position to rapidly 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 equivalent on each platforms, and I’ll be switching again to the usual Coinbase app.
General, Coinbase is an easy-to-use platform that was excellent 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 easy and fast. The buying and selling platform may be very easy, with easy-to-read charts and an order type that makes it straightforward to purchase and promote.
General, 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 cell 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.
Try crypto trading 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 start a inventory buying and selling app, providing entry to hundreds of shares and ETFs, in addition to choices buying and selling for extra superior customers.
Attempt crypto and inventory buying and selling with Robinhood.
So, Which One is the Finest?
Coinbase and Robinhood each assist inexperienced persons begin investing in crypto with simple-to-use cell apps and a concentrate on consumer schooling. Each additionally assist shield your cash with offline chilly storage and each carry widespread crypto for buying and selling.
Coinbase provides way more crypto to commerce, and is a full-featured crypto alternate, providing methods to earn curiosity on cash, in addition to the power to switch crypto belongings on and off the platform. Coinbase additionally provides superior buying and selling with low charges, superb for energetic crypto merchants {and professional} buyers.
Robinhood, then again, is nice for inexperienced persons who need entry to greater than crypto. With hundreds of shares and ETFs, in addition to choices contracts and margin buying and selling, Robinhood is extra geared toward energetic merchants. It provides no-commission buying and selling, however does cost a selection, so control the costs paid for belongings.
General, Coinbase is our favourite platform for crypto inexperienced persons, however Robinhood is usually a first rate 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 celebration 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.”