This article compares Coinbase vs Robinhood, which are both user friendly cryptocurrency platforms based in the U.S. that provide easy access to cryptocurrencies for beginners.
At a Glance
When comparing Coinbase vs Robinhood, each platform has some similar features, but they also have some different features. Robinhood is more like a traditional stockbroker because you can buy and exchange funds that are represented on the stock market. However, it has only a limited number of cryptocurrencies.
Coinbase is different in that it provides its users access to cryptocurrencies only. It also offers a lot more of them than Robinhood. Coinbase provides some features that are helpful to traders when buying and selling crypto. They have a maker-taker pricing structure which makes their fees a little higher than Robinhood.
How the Best Choice Was Determined
We reviewed the Coinbase vs Robinhood platforms to determine all of the available features, fee structure, benefits, and limitations. We know how important it is that we use real data and facts to make determinations about the best overall platform choice. We have taken the time to understand and compare the features each platform offers fully. We spend as much time as necessary reviewing them. This allows us to have a deep understanding of the differences between the features and functionality found at Coinbase vs Robinhood. We always verify the accuracy of the information we are using.
We do this by gathering feedback from users, traders, and investors. We verify the current pricing and services for each platform. We believe there is a significant value in the feedback from the users and that feedback is essential when making sound decisions. We feel it is critical to ensure that no false claims are used in our comparison. We dig deep into every feature to understand the options each platform provides.
Keep Reading
We have outlined the strengths of both platforms so you can determine which platform, Coinbase vs Robinhood, is right for you and your needs.
Coinbase vs Robinhood
Coinbase Overview
Coinbase is perfect for the first time crypto investor that does not know a large amount about investing or trading. They have more than 150 currencies. In addition, Coinbase has several educational features that can help beginners to learn about the buying and selling of cryptocurrencies. This platform is easy to use, including trading one cryptocurrency for another or buying cryptocurrencies.
Coinbase does tend to have higher fees, which could be as high as a 0.50% spread for a trade. The fees depend on how you purchase, such as your bank account, credit card, or Coinbase wallet.
Pros:
- Paypal can be used for transactions
- Earn crypto as you use educational resources
- User-friendly designed interface
Cons:
- Highest fees of most platforms
- Fewer altcoins that can be traded
- Fewer fee discounts
Robinhood Overview
Robinhood is an intuitive application supporting the buying and selling of crypto, stocks, and ETFs. They have a limited number of cryptocurrencies, with only seven options. Robinhood is more similar to traditional stock brokers because of the high number of stocks a user can buy and sell.
Robinhood does not have commission fees, but there is a fee for order flow that changes based on the trade. There are no limits to trading, but the funds you add to the platform must clear first.
Pros:
- No commission fees
- Application is user-friendly and easy to use
- Can trade both stock and crypto
Cons:
- Not able to withdraw crypto funds
- Only offers seven cryptocurrencies
- Available to only U.S. users
Comparison of Features
Fees
As a trader, one of the biggest differences between all of the platforms, especially Coinbase vs Robinhood, is the fees that they charge. You always want to know the fee structure of each platform. Fees impact your bottom line because they come directly from your cash flow. Understandably, most traders are looking for fees to be as low as possible.
Robinhood does not charge a fee to purchase cryptocurrencies. Therefore, you are able to buy and sell crypto as often as you want with no fees. However, there is still a spread, which is the difference between the bidding price and the asking price, that you have to pay.
Coinbase charges a fee if you make purchases with a credit card. Coinbase also uses a maker-taker fee schedule. These fees range from 0.00% to 0.40% for maker fees and range from 0.05 to 0.60 % in taker fees. Unfortunately, Coinbase is not the most transparent about its crypto trading fees. The fees are calculated when you place your order but are not published like other platforms.
Similar to their trading fees, Coinbase has a withdrawal fee that is only disclosed once you go through the transaction process. You can move money to your Coinbase wallet for free. However, if you move your crypto to a different external waller, there is a fee associated with doing so.
If fees are most important to you, then Robinhood is the winner in this category because it has much lower fees.
Available Cryptocurrency
When it comes to the cryptocurrency that is available in the platforms, Coinbase has more to offer. However, Robinhood has a more secure footing in the sale of stocks and ETFs. Coinbase has over 100 tradable cryptocurrencies, but Robinhood only offers seven.
You will find that Coinbase offers the same cryptocurrencies as Robinhood. They include:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Bitcoin SV (BSV)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
Coinbase supports multiple currencies: GBP, EUR, and USD, but Robinhood only supports USD fiat currency.
Security and Safety
Another key factor that is fundamental to determining which platform to select is security. Both Coinbase vs Robinhood has top of the line security measures in place to help protect their users and their platforms. They are both safe, and use industry standard or above industry standard security for the residents based in the U.S. Both platforms are well known and trusted.
Both platforms have two-factor authentication and Federal Deposit Insurance Corporation (FDIC) insurance on USD balances. Users on the Robinhood platform must opt in for FDIC insurance. In addition, Coinbase keeps 98% of currencies in cold storage and has insurance to cover breaches of coins in hot storage.
Robinhood also stores coins in cold storage but does not offer any details about it. They do have Securities Investor Protection Corporation (SIPC) to cover ETF, stock, and cash funds if something happens on the platform. Coinbase uses an encrypted 12-word recovery phase to protect the currency of those using a digital wallet. Robinhood has device management, which allows users to disconnect devices from their accounts.
Both of these platforms are fairly evenly matched when it comes to security and safety.
Coinbase vs Robinhood: The Winner
Best Overall
While there are some similar features between Coinbase vs Robinhood, when it comes to the best overall platform for crypto, Coinbase is the best option. Coinbase is easy to use, has low fees, and wide variety of cryptocurrency options for users to select. There is a slight amount of learning that you need to do to use the platform effectively, but it is easy to navigate. Even though Coinbase has a higher fee, the amount of crypto options available makes up for it.
Best for a Stock Trader
If you are more interested in buying and selling stock over crypto, then Robinhood is the perfect platform for you. It has lower fees and a simple use interface. In addition, Robinhood has a much simpler fee structure that is easy to understand and navigate. Robinhood is continuing to work on its platform and ensuring that it improves. It is intended to be more of a one stop platform.
Once you have all of this information about the differences between Coinbase vs Robinhood, you may want to jump right in and get started. First, you need to go to the Coinbase website on your computer. They do not recommend that you create an account on a mobile device.
Once on the website, click on the get started button. You must provide your full name, email address, password, and the state in which you live. Next, you must review the user agreement and privacy policy before clicking on creating an account. You will receive an email to the email address you provided that allows you to verify yourself. Next, you have to complete the two step verification process, for which you need a smartphone.
Once you have entered your phone number, you can click on send code. This will send you a seven digit code texted to the phone on file. After this, you must enter information that is on your government issued photo ID. This includes first and last name, address, and date of birth. Then there are a series of questions you must answer, which provides for your occupation and source of funds. The application process is now complete. There is one last step you must take to be able to buy and sell crypto. You must verify your identity one more time, set up two step verification, and then link to a payment method.
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