It’s no surprise that Coinbase and Robinhood are the preferred crypto buying and selling apps within the U.S. Each corporations supply superbly designed, extraordinarily intuitive cell apps, a guided person expertise, and schooling to assist flip newbies into crypto execs. 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 price buildings, however extra on that in a minute.
Whereas Coinbase gives a big selection of cryptocurrency and a number of buying and selling platforms, Robinhood gives 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 very best alternate to your wants.
Robinhood vs. Coinbase Abstract
Each Robinhood and Coinbase supply entry to Bitcoin, Ethereum, and different prime cryptocurrencies; nonetheless, Coinbase gives a a lot wider number of crypto, and the power to switch crypto on and off the platform.
Robinhood gives commission-free buying and selling for all property on the platform (shares, choices, crypto), however does cost an expansion price.
Each platforms supply 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 into one of many largest crypto exchanges on the planet by buying and selling quantity. With over 170 crypto out there to commerce on the platform, and almost 100 million clients across the globe, Coinbase has turn into probably the most standard crypto exchanges on the planet.
Coinbase focuses on simplicity, with an intuitive cell app preferrred for crypto newbies. It additionally gives a sophisticated 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 gives aggressive charges for high-volume merchants.
Execs
- Straightforward to make use of. The Coinbase platform and cell app make for one of many best crypto-buying processes round, good for rookies.
- Giant crypto choice. Coinbase gives over 170 crypto (and counting), which isn’t essentially the most within the trade, however a decent choice for any crypto dealer.
- Academic sources. Coinbase gives built-in video coaching and a crypto rewards program, encouraging crypto newbies to earn whereas they be taught, with out spending hours to understand pretty complicated material (i.e., crypto initiatives).
Cons
- Excessive charges. Straight up, Coinbase prices excessive charges for orders below $200. Add to that a further 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 far more affordable charges.
- No margin or derivatives buying and selling. Whereas Robinhood gives 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 overview of Coinbase.
About Robinhood
- Charges: No charges on shares, ETFs, choices, or crypto trades. Robinhood does accumulate a “unfold” price, 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).
- 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 accumulate a “unfold” price, which is the distinction between the purchase and promote worth of an asset.
Robinhood has designed probably the most intuitive investing apps for rookies, making it simple for brand spanking new merchants to get began. It additionally gives 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 prices an expansion, 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, traders can diversify into shares, ETFs, and even choices buying and selling on the Robinhood app.
- Cellular 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 scorching water for accepting “fee for order movement,” receiving charges for routing funds to most well-liked processors, in addition to gathering an expansion price, probably charging you greater than an asset is value. Keep watch over these order costs.
- Very small crypto choice. There are solely 11 crypto to select from, which is 10x lower than most exchanges, limiting your number of crypto to commerce.
Attempt Robinhood or learn our full overview.
Coinbase vs. Robinhood Charges
Coinbase prices charges for getting, promoting, and buying and selling crypto, with a number of completely different price 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 price. There is no such thing as a price schedule on the usual platform, making it arduous to decipher how a lot you might be truly paying till the ultimate commerce affirmation display.
Robinhood doesn’t cost fee or charges on shopping for or promoting crypto on its platform, however does accumulate a “unfold,” which is the distinction between the “bid” and “ask” worth of a transaction. This price is non-transparent, and will end in you paying extra for an asset than its present worth.
Coinbase gives free crypto deposits, and crypto withdrawal charges are primarily based on the forex and blockchain community. Robinhood doesn’t presently permit crypto deposits or withdrawals.
Robinhood has a waitlist for its crypto pockets launch, which can ultimately permit customers to deposit and withdraw cryptocurrency from the platform. You possibly can see a breakdown of Coinbase exchange fees and Robinhood exchange fees on their web sites.
Learn extra: Greatest 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 accumulate a “unfold” price, 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 accumulate a “unfold” price, 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 forex |
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 hold a majority of your crypto property in offline chilly storage, eradicating the chance 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 gives extra distinctive methods to guard your cash:
- Robinhood crypto asset insurance coverage. Robinhood carries insurance coverage towards a portion of person crypto holdings underwritten by Lloyd’s to guard towards theft.
- Coinbase vaults. Coinbase gives an non-compulsory 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 attributable to a safety breach, although Robinhood did undergo a data hack back 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 a number of the options which can be distinctive to every platform:
Coinbase options
- Crypto choice: Coinbase gives over 170 cryptocurrencies for buying and selling, with extra being added frequently. Whereas this isn’t the biggest number of any crypto alternate, it far exceeds Robinhood’s 90+ crypto choice.
- Coinbase Study: Coinbase gives a novel studying program, constructed into the web site and cell app. Customers can study cryptocurrencies by short-form movies, and even earn crypto rewards by taking a quiz after every video collection.
Robinhood options
- Inventory buying and selling: Robinhood gives entry to greater than crypto, and is primarily a inventory buying and selling platform. It gives 1000’s of particular person shares and ETFs for buying and selling, in addition to choices buying and selling.
- Margin buying and selling: Robinhood gives 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 most important crypto buying and selling platform, having been a person since late 2020. As my first crypto expertise, Coinbase was simple to enroll and begin utilizing, and I used to be in a position to shortly confirm my id throughout the app. I linked my checking account by Plaid and deposited funds that had been instantly out there 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 id verification had been pretty easy and fast. The buying and selling platform could be very easy, with easy-to-read charts and an order type that makes it simple to purchase and promote.
Total, Robinhood was as marketed: a easy buying and selling platform that walked me by every display to discover ways to commerce.
Who’s Coinbase Greatest for?
Crypto Newbies
Coinbase caters to new crypto traders, providing a easy onboarding expertise, easy-to-use cell app, and useful academic movies.
Superior Crypto Merchants
With the launch of Superior Commerce, Coinbase gives extra buying and selling instruments for lively crypto merchants, in addition to decrease charges throughout.
Try crypto trading with Coinbase.
Who’s Robinhood Greatest for?
New Traders
Robinhood pioneered “no-fee” buying and selling, and its simplified design helps new traders get comfy making their first commerce.
Inventory Merchants
Sure, Robinhood gives 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.
Attempt crypto and inventory buying and selling with Robinhood.
So, Which One is the Greatest?
Coinbase and Robinhood each assist rookies begin investing in crypto with simple-to-use cell apps and a deal with person schooling. Each additionally assist shield your cash with offline chilly storage and each carry standard crypto for buying and selling.
Coinbase gives much 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 property on and off the platform. Coinbase additionally gives superior buying and selling with low charges, preferrred for lively crypto merchants {and professional} traders.
Robinhood, then again, is nice for rookies 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 geared toward lively merchants. It gives no-commission buying and selling, however does cost an expansion, so keep watch over the costs paid for property.
Total, Coinbase is our favourite platform for crypto rookies, 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 info and supplies supplied by Robinhood Monetary LLC and its associates (“Robinhood”) and MoneyUnder30, a 3rd occasion not affiliated with Robinhood. All investments contain threat 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 isn’t a member of FINRA or SIPC.”