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Cryptocurrency

Coinbase vs. Robinhood: Which is Best For You?

written by Nitin Garg | Dec 28, 2021
Coinbase vs. Robinhood: Which is Best For You?

Now, these days most people are fascinated by cryptocurrency trading. There are many platforms for the crypto trade. Coinbase and Robinhood both are U.S based cryptocurrency trading platforms for beginners. Coinbase is a trusted platform based in San Francisco and thousands of investors trust it. 

Coinbase

Coinbase Cryptocurrency trading platform

Coinbase is a trading platform that offers 50+ cryptocurrencies to purchase, sell and store. It also offers Coinbase cards, visa cards to earn rewards and manage the portfolio of the users. 

Till August 2020 Coinbase generated revenue of $547 million. It is really helpful for beginners. The user experience is really very well developed by Coinbase. You can consider Coinbase as one of the prestigious platforms because of 1 MB, and the platform offers 1 MB for each block. Coinbase offers cold wallets for the storage of cryptocurrency.

Robinhood

robinhood cryptocurrency platform

Robinhood is a Melono park-based platform that offers cryptocurrency and stock trading options. Where you can sell and purchase cryptocurrency platforms. It is a free platform and does not charge anything for crypto & stock trading transactions. Also, Robinhood offers cold storage. 

It generated $202 million in revenue in 2020. It follows the traditional trading formula. 

General Difference between Coinbase and Robinhood

S.NOMeasureCoinbaseRobinhood
1Editor rating 3.92/53.45/5
2Fees0.50% transaction fees for buy/sell transactions.Transaction fee from $0.99 to $2.99, up to 0.50% for Coinbase Pro0%($5/month  Robinhood gold) 
3Account minimum$2$0, ($1 Fractional share, $2,000 Robinhood Gold) 
4BBRD-F
5PromotionGet $5 dollar when you sign upA free stock when you sign upFree stock for the successful referral
6No Of cryptocurrency available50+ Cryptocurrency availableOnly 7 Cryptocurrency available 

The Major Difference between Coinbase and Robinhood 

S.NoObjectiveCoinbaseRobinhood
1Account TypeIndividual brokerage, the margin accountPersonal investment account & institutional account
2Investment choiceStocks, ETF’s, Options, ADR, and CryptocurrencyCryptocurrency & coins 
3Account perksCommission-free trading, Fractional share, cash management option, crypto trading, and margin trading.Coinbase Pro, staking, coin base earn crypto rewards, Wallet services
4Customer supportNONO
5Robo adviceNONO
6Type of transactionBuy, Sell, Send, Receive & Exchange Buy, Sell & Limit Order
7Security FeatureFDIC Insured USD Balance, 2- STep verification, Biometric fingerprint lock, Cold storage, AES-256 Encryption for digital wallets.Cash funds, 2- step verification, insurance against cryptocurrency platform, SIPC

Coinbase Pros & Cons

Pros

  1. 50+ Cryptocurrency is available to trade. 
  2. The lowest account balance is needed.
  3. Digital wallet app like coinbase are available.
  4. Interest rewards. 

Cons

  1. There is no future for margin trading in upcoming years.
  2. High charges for low trading.

Robinhood Pros & Cons

Pros

  1. Cryptocurrency and stocks both are available on one platform. 
  2. Commission-free crypto trading platform, No minimum account. 
  3. Good, login & Referral are provided.
  4. Easy cash management perks are available.
  5. Easily manageable website and mobile platforms.

Cons

  1. Limited cryptocurrency options are available on the platform.
  2. In limited cities/countries available.
  3. No transaction to the accounts 

The Difference Inconvenient

Coinbase is a simple and easily accessible platform for users. With the help of the Coinbase application, you easily signup and connect with your bank accounts for bitcoin transactions. You need an email ad password to sign up at Coinbase since as you know identity for realistic confirmation is compulsory so you need a government-approved photo Identity to upload at the application. 

Robinhood is also a simple and easily accessible platform for users. The user experience is really very good. In this application, users can quickly see the price of the cryptocurrency. You can create an account the same as Coinbase by using an email id and password. Once you verify the account it will be authenticated with two-step verification. 

The Difference in Security

It has a secured system that is protected with 2 -step authentication via SMS OTP and google authentication. Both required a time-sensitive passcode to open your Coinbase account. Coinbase keeps its currency in cold storage far from the internet. Coinbase wallet is protected with a 12 digit passcode for the transaction with a passcode no one can do transactions. Also, it offers secured banking systems like banks. Also for the account opening purpose government identity is needed. 

Robinhood needed 2FA via Google authentication and Mobile based SMS account recovery for disable to avoid hacking. Also, Robinhood permits you to review all the devices that are accessed with your account. Like Coinbase, Robinhood also offers Cold storage wallets.

The Difference in Features

Coinbase

  • Coinbase offers to buy, sell, send, receive and trade in cryptocurrency. 
  • It has its own news feature in which they share everything about the crypto world.
  •  It offers an option of watchlist in which you can put cryptocurrency on a regular basis. Cryptocurrency prices are going up and down so it helps to check your favorite cryptocurrency. 
  • It offers stocks, ETFs, Options, ADR, and cryptocurrency. 

Robinhood

  • It offers limited options like BuySell & Limit Order only. 
  • This offers more control to the investors.
  • Robinhood offers no fees for trades.

The Difference in Fees

Coinbase charges a fee of 0.50 % for all transactions. Apart from that, they do charge according to the trades and investments. 

Robinhood does not charge anything for cryptocurrency transactions. Also, they do not take any hidden charges. 

S. NOAccountCoinbaseRobinhood
1U.S Bank Account1.49%0 % 
2Wallet1.49%NA
3Debit/ Credit card buy3.99%NA
4Instant card WithdrawalUp to 1.5% transaction NA
5Account transferFreeNA
6Wire transaction$ 10 NA

The Difference in Supported Currencies

Coinbase offers 51 + cryptocurrencies for trade. 

Robinhood offers only 7 Cryptocurrency, that you can easily find over Coinbase accept dogecoin. 

These cryptocurrencies are-

  1. Bitcoin 
  2. Litecoin 
  3. Ethereum 
  4. Dogecoin
  5. Bitcoin classic
  6. Bitcoin SV 
  7. Etherum classic

Read More: Top 10 Cryptocurrency Alternative to Bitcoin

Fight For The Best

Both cryptocurrency platforms is useful according to the needs of the customers. We are going to conclude here. As you know, it is really helpful for people who are starting their careers in cryptocurrency. It has a good user experience and a better way to trade in cryptocurrency. You can easily understand how to invest in cryptocurrency if you start your career as a fresher. 

Robinhood is one of the best platforms for experienced users and who deal in a higher investment like Bitcoin. It is really hard to understand for new people and also too risky without proper knowledge.

Conclusion

Here we can say that according to the features, chargers, and security both platforms are worthy for the target customer audience. We can not say that anything will change their image. If you want to go for the investment opportunity then make sure to understand these two tools.

Nitin Garg

I am Nitin Garg Founder of BR Softech PVT LTD - an Award-winning, app, web & game development company. We are armed with 180+ geeks & 2753 clients worldwide, I have driven by the spirit of entrepreneurship and dream to build a billion-dollar-company.

About Us

BR Softech Pvt. Ltd. excels in providing cost-effective IT Solutions. Established in August 2010 with over 10+ years of rich experience. An Apex rated IT serving company around the world. Our team of innovative and creative designers deals in web designing, mobile/ software development and other digital marketing services intending to deliver outstanding digital outcomes.

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