Robinhood and Coinbase are both easy-to-use, reliable U.S.-based platforms that you can consider if you are a beginner trying to purchase and sell cryptos. But which one is better? The Coinbase vs Robinhood debate is pretty relevant – which one should you choose in 2024?
While Coinbase is a detail-oriented digital asset exchange that offers a wide range of payment methods and tradeable crypto assets, Robinhood allows all users to purchase a limited collection of crypto apart from stocks.
In this comparative blog, we will look at different factors, including platform features, security, payment methods, supported assets, and fee structures. Stay tuned to find out more.
Coinbase vs Robinhood: Features
Both Robinhood and Coinbase offer beginner-friendly platforms to trade in cryptos. Both these platforms allow new investors to purchase and sell cryptocurrencies easily and with ease.
Coinbase is one of the most popular digital asset exchanges available in over a hundred countries. It is also available in all states in the United States, apart from Hawaii. In contrast, Robinhood is only available in all U.S. states apart from Nevada and Hawaii.
Features Of Coinbase:
Coinbase happens to be a digital asset and full-service investment platform that provides a wide range of features, including:
1. Staking:
Users on Coinbase can earn rewards from staking on over fifteen assets held by the platform itself.
2. Learning Rewards:
Users on this platform can use tiny amounts of cryptocurrencies to finish e-learning modules that cover different crypto projects.
3. Advanced Trading:
Professional and experienced traders can easily depend on the Advanced Trading platform of Coinbase.
4. Derivatives:
Coinbase offers crypto futures trading for anyone trying to gain some leverage in trading cryptocurrencies.
5. NFTs:
Coinbase offers a marketplace for non-fungible tokens, allowing users to collect, sell, and buy non-fungible tokens.
6. Web3 Wallet:
Users can store all their funds in the platform’s own wallet, a web3 non-custodial wallet that the platform provides apart from hot wallets on the app and website.
Features Of Robinhood:
Robinhoos is also a pretty popular trading application, best known for new investors. Apart from offering beginner-friendly crypto trading, the platform also allows users to purchase and sell ETFs, options, and stocks.
The best Robinhood features are as follows:
1. Crypto Trading:
Users on Robinhood can trade fifteen crypto assets on the application.
2. ETFs And Stocks:
Users on Robinhood can also trade a vast collection of ETFs and stocks.
3. Options:
Robinhood offers options trading, but this is ideal for experienced traders.
4. Cash Management:
Users on the Robinhood platform can earn a solid 4.4% APY on cash they haven’t invested.
Coinbase Vs Robinhood: Security
Both Coinbase and Robinhood put a solid emphasis on safety and security, offering strong security measures for safeguarding customer funds.
Moreover, both platforms offer 2FA or two-factor authentication and FDIC (Federal Deposit Insurance Corporation) insurance. However, you have to opt for cash management if you are going for FDIC insurance via Robinhood.
Coinbase keeps around 98% of its digital assets in secure, air-gripped cold storage. The platform also holds a robust insurance policy for covering any potential breach of cryptos kept inside hot wallets.
While Robinhoo also stores digital assets in cold storage, they do not really specify the percentage of assets in offline storage. Additionally, the users of Robinhood can actually benefit from SIPC (Securities Investor Protection Corporation), which is responsible for covering cash, ETFs, and stocks.
Coinbase Vs Robinhood: Fees
Coinbase has a complicated fee structure. The platform determines the fees based on some factors like the location of the user, mode of payment, size of the whole trade, and market conditions.
In contrast, Robinhood does not charge trading commissions from its users. But that does not mean that that platform is free of all fees. In fact, Robinhood earns money by using a PFOF (Payment For Order Flow) system.
Under this system, a company like Robinhood will earn profits by routing the user’s orders via a market maker who will subsequently execute the trade and compensate the company for the business.
Coinbase Vs Robinhood: Supported Currencies
Coinbase actually supports more than 250+ digital tokens and currencies, while Robinhood literally offers only fifteen crypto assets. You will find these 15 assets easily on Coinbase.
So, both platforms support the following digital assets:
- Bitcoin (BTC),
- Ethereum (ETH),
- USD Coin (USDC),
- Cardano (ADA),
- Solana (SOL),
- Dogecoin (DOGE),
- Polygon (MATIC),
- Shiba Inu (SHIB),
- Avalanche (AVAX),
- Ethereum Classic (ETC),
- Uniswap (UNI),
- Litecoin (LTC),
- Chainlink (LINK),
- Stellar Lumens (XLM),
- Bitcoin Cash (BCH),
- Tezos (XTZ),
- Aave (AAVE), and
- Compound (COMP).
Additionally, users on Robinhood can also sell and buy stocks, ETFs, and options, while users on Coinbase only offer cryptocurrencies. On the other hand, Robinhood supports USD only, while users on Coinbase can deposit GBP, EUR, and USD.
Coinbase vs Robinhood: Ease Of Use
Both Coinbase and Robinhood have kept ease of use at the heart of their platforms. Moreover, both platforms also offer an easy sign-up process and simple navigation for web-based and mobile interfaces.
Buying and selling cryptos are simple and straightforward trading platforms for individuals who have actually used online brokerages in the past. Once you have funded your account, you can easily trade cryptocurrency in the same way you would trade traditional assets or stocks.
You can do the same for Robinhood since the platform allows users to basically trade a collection of ETFs, options, and even stocks.
Coinbase Vs Robinhood: Which One Should You Choose In 2024?
Coinbase and Robinhood are both leading, user-friendly platforms that enable crypto trading for new investors.
While Robinhood is more focused on crypto newbies and provides a wide collection of asset classes like ETFs and Stocks, Coinbase provides a much bigger number of tradable crypto assets as well as advanced investment services like crypto derivatives trading and staking.
So, it’s up to you to decide which one works better for you: Coinbase or Robinhood.
