Are you confused about deciding on your next investment and looking for the best platform for you? If so, this comparison of Robinhood vs. Coinbase will help you. We’ll explain almost every aspect of these two platforms to make the decision easy for you.
Nowadays, everyone wants to create several ways to generate income like trading, buying, selling cryptocurrencies, etc. These are some well-known ways, but fame doesn’t signify that it is easy to earn through any method.
Instead, it isn’t easy, but some platforms make this procedure easier with their features. For instance, platforms like Coinbase and Robinhood provide a reliable way to invest in crypto, do trading, etc.
So, if you think you’re the only one worried, then be relaxed, and you’re not alone. And the good thing is we’re here for you; in this article, we’ll guide you or, in other words, share the bigger picture about both platforms. So, be with us and decide which platform is best for you.
Robinhood Vs. Coinbase: Overview
Let’s start with the overview of both platforms, meaning the origin of their companies.
Coinbase is a famous American crypto exchange founded in 2012 by Brian Armstrong and Fred Ehrsam. Since then, the platform has been working and providing services to numerous users who have now crossed 70 million.
It is available in almost 100 countries while other platforms are not. So, if you’re looking for some reliable crypto exchange, you should jot down the name of Coinbase in the first place.
The next we have is Robinhood; it’s also a famous American platform started in April 2013 by Vladimir Tenev and Baiju Bhatt. Like Coinbase, Robinhood also has millions of users. According to Statista, the number of users was 22.4 million in 2021, increasing.
The service of Robinhood is also good; you can buy or sell crypto and invest in trades, and it also offers commission-free stock. So no doubt there are many things for you in Robinhood baskets.
Although both platforms are excellent, provide the same services, and are trusted by millions of users, it doesn’t mean they are the same. They are two different platforms, and the thing that differentiates them is the features both platforms offer.
So, here’s a brief overview of the features Robinhood and Coinbase offer.
- The user-friendly interface, make buying, selling, and trading process simpler
- This platform allows users to trade one crypto for another one
- Lets you withdraw your funds to a crypto wallet of your choice
- You get real-time alerts about market metrics and changing prices
- It’s an educational platform, educating its users about crypto projects
- Easy-to-use platform, letting you purchase crypto, stock, and trade in them.
- You get no commissions for what you purchase as you earn in Coinbase
- No limits on the maximum trading amount after ACH funds clearance
- You can place a limit on your orders — set for buying or selling
- Charge no fees on buying and selling crypto; any coin you purchase
Deposits & Withdrawals
After features, the first thing you want to know about might be the fee for deposits and withdrawals, right? We know about it because no one can select a platform to invest in without comprehending the fee structure.
You’ve to be ready to pay a fee while using Coinbase because there are some fees. If we talk about deposit fees, there’s no fee on a bank account (ACH) deposit, but for Fedwire, the fee is $10, and for Swift International Wire, the fee is $25.
Withdrawal is free in Coinbase, but only if you’re withdrawing from a bank account (ACH) and Silver Exchange Network. In the case of using Fedwire and Swift International Wire, you’ve to pay a withdrawal fee of $25.
Deposits on Robinhood are free, and you can use only bank transfers. Time varies with or without limits. It offers two options for instant deposits with limits, Instant and Gold. On an Instant account, you can deposit $1000. However, a Gold account lets you deposit $50,000 instantly.
Robinhood has no fee for ACH withdrawals. A fee is applicable on wire transfers only and is costly. For domestic withdrawal, it charges $25, and for international transfers, it charges $50. It takes about 3 to 5 days with a maximum of $50,000 per day.
It’s an excellent opportunity for traders to shop using a crypto credit card. Some best crypto platforms offer this feature of crypto-based banking, but not all. So, before using any service, make sure whether it provides card options or not.
Coinbase: Coinbase Card
Coinbase, as a pioneer in the crypto industry, offers a credit card, the Coinbase Card, which has several benefits. One feature is whenever you make a purchase using this card; you get a reward (4% cashback). It also has no annual fees, and you can go shopping with no worries.
Robinhood: Robinhood Card
Like Coinbase, Robinhood also offers its debit card, Robinhood Card, usable virtually worldwide. You can spend from your available balance for making any purchase, whether at an online or offline store or bookings. There is a $5000 daily limit, which is more than enough for a day.
Trying luck on multiple assets or working on different assets is a way to make more. If you want to switch from one coin to another, you must have this option on the same platform. So, here is what Coinbase and Robinhood offer in this regard.
Coinbase supports over a hundred different cryptocurrencies. But you can only trade in crypto and not in stocks. You can enjoy two trades, fiat-to-crypto and crypto-to-crypto. To find your desired crypto, you can navigate supported cryptos on Coinbase’s homepage.
For trading, Robinhood offers cryptocurrencies, stocks, and other digital assets. You get limited currencies (only 7) to trade in but access over 5,000 stocks. On Robinhood, you can buy assets only in USD, unlike Coinbase, where you can buy in USD, EUR, and GBP.
Mobile apps make the trading process effective as you have direct access to your account anytime, anywhere. Some crypto platforms have mobile apps to read news, do market analysis, and learn other stuff. So, ensure starting on the right platform with a good app.
Coinbase has an app for Android and iOS users with multiple features.
- Easy-to-use and secure app for performing most of your operations
- Send and receive bitcoin from friends and shop through your bitcoin.
- Work as your crypto wallet; know all details about your transactions.
- Connect your bank account to your phone to buy and sell bitcoin.
Robinhood also has an app for Android and iOS users, which offers many features, including:
- Easy-to-use mobile interface for traders who want to trade from mobile.
- You can use it for buying and selling your assets and trading in your stocks.
- Allows you to see statistics, do market analysis, and place orders.
- You can see your profile and account details and manage your account.
Buying and trading cryptocurrencies is a tough job to do — you pay some amount for it. You don’t make millions overnight, and that’s why you need to focus on your income. Choose a platform that charges you low fees as a beginner. Here is Robinhood vs. Coinbase fee details:
Coinbase has a variable fee structure applied when placing an order and depends on your payment method. The standard Coinbase account charges 4%, and Coinbase Pro charges 0.5% using credit cards. So, it follows a “pay fee per trade” mechanism for transactions.
Robinhood does not charge traders for opening accounts, services, and funds transfers. It only charges some regulatory fees for which they get charged by FINRA. However, some rules apply to day trading when buying stocks with comparatively high prices.
Crypto accounts and wallets are always at risk from breaches or unauthorized access. Security is the most critical concern you must consider before getting any services from trading platforms. It would help if you went for a platform that uses robust security measures in such a case.
Coinbase has top-notch security and has a proven record of keeping funds secure. Your funds remain in cold storage, meaning they are difficult to hack. It has a 2-factor authentication feature on the user end, ensuring safety every time you log in.
Robinhood also claims that they use cold storage for storing your crypto funds. They offer the same 2-factor authentication security option for login into your account. For the safety of your funds, consider going for Cash Management which provides you with FDIC insurance.
Another factor you should consider before deciding on your future trading platform is customer support. It’s necessary because you can face problems with your account at any moment of the day. Almost all trading platforms offer excellent support, but there are differences in modes.
If you have any problems while using Coinbase services, you can contact them anytime through their support center. For personal assistance, you need to open a ticket. If you see suspicious activity from your account, you can call them on their phone numbers to disable your account.
For contacting Robinhood, you can use email or live chat service on their website. They have a support or help center where you can get answers to your questions. If you want to contact them directly, you can talk to a team member through their app.
Pros and Cons
When it comes to crypto services, make sure they fit your needs. There are many differences when comparing Robinhood vs. Coinbase platforms regarding services. If you have decided to choose one of them, please read these pros and cons at a glance.
- You can earn considerable crypto through cashback
- Technically reliable, strictly maintain their services
- Supports more than a hundred cryptocurrencies
- Offers multiple payments and withdrawal methods
- You can’t trade in stocks
- Fees are a bit high
- User-friendly interface; making it easy for beginners
- No fees on sending, receiving, and managing accounts
- You can trade in both crypto (limited) and stocks
- Set limit on orders when buying or selling crypto
- It offers a limited number of cryptocurrencies
Frequently Asked Questions (FAQs)
Why is Coinbase and Robinhood price different?
Coinbase and Robinhood offer different pricing structures because people prefer fame and quality. The former is a well-known platform, and everyone will go for it without thinking for a second time. So, it can charge any amount. The latter is not that famous and attracts more users; they keep low fees.
Why is Robinhood bad for crypto?
Robinhood is not suitable for cryptocurrency because of the following two main reasons:
- Promotes risky trading
- Harms the market value
So, it is susceptible to speculation, which can harm investors with less crypto education.
Can I transfer Robinhood to Coinbase?
Direct crypto transfers from Robinhood to Coinbase are not currently possible. This feature is not yet available for this platform, and it has restrictions.
Why is Coinbase better than Robinhood?
For those interested in getting a taste of cryptocurrency, Coinbase provides a secure platform. Robinhood, which offers limited cryptocurrency options, is also an excellent place to start. Also, if you want to invest in both crypto and stock, Robinhood should be your option.
Why can’t I withdraw my money from Robinhood?
If you face issues with withdrawing your funds from Robinhood, it could have many reasons. One is that you might have tried to withdraw funds before the settlement date. Also, you might have got blocked within the same day for multiple withdrawals.
Conclusion: Robinhood Vs. Coinbase
Well! That’s all about the comparison of Robinhood vs. Coinbase so far. Coinbase and Robinhood are two competitive platforms, making decisions that are a daunting task. We would also recommend giving a quick read to the comparison of Coinbase and Gemini.
If we compare some of its best features at a glance, it’ll help.
- Coinbase is for trading crypto, while Robinhood lets you trade in stocks.
- Anyone can use Coinbase, even a beginner, making it the best choice.
- Coinbase offers over 100 currencies, while Robinhood offers just seven.
- No feature offered by Robinhood can beat the features of Coinbase Pro.
So, it’s up to you now which platform you want to start your journey on. Before getting started, understand your needs and invest wisely with proper planning. Invest the amount that won’t affect you even if you lose.