Coinbase vs. Robinhood

Coinbase vs Robinhood? Coinbase is ideal for those focused on cryptocurrency, while Robinhood is better for investors who wish to combine cryptocurrency and stock trading.

The crypto community has grown rapidly in the last decade. This growth has led to an increase in cryptocurrency exchanges and brokers. Among the many options available, Coinbase and Robinhood stand out as popular platforms. They are both known for their user-friendly interfaces for trading crypto.

But which platform is right for you? This Coinbase vs. Robinhood comparison guide explores their different services and offerings to help you decide on the best crypto broker for your specific preferences and goals. 

Robinhood vs. Coinbase: At a Glance

​​Coinbase vs. Robinhood: Overview

Coinbase and Robinhood are two prominent platforms in the financial technology sector, each with a unique approach to granting access to different financial markets.

Coinbase

Coinbase is a top platform for trading cryptocurrencies, where people can easily buy, sell and store various digital currencies. It was started in June 2012 by Brian Armstrong and Fred Ehrsam. 

The platform aims to create a financial system that's open to everyone around the globe. They want to be the go-to brand worldwide for helping folks convert digital money into their local currency and back again.

Robinhood

Robinhood is a financial services company that made a name for itself by introducing commission-free trading of stocks and exchange-traded funds (ETFs) through its mobile app. It was set up in 2013 by Vladimir Tenev and Baiju Bhatt. 

Robinhood's primary mission is to make finance accessible to everyone by providing an easy-to-use platform where users can invest in the stock market without needing a minimum account balance or paying commissions. Over time, it has also added cryptocurrency trading to its list of services.

Coinbase vs. Robinhood: Key Features

Coinbase focuses on providing a comprehensive crypto ecosystem with educational support, while Robinhood emphasizes easy access to the market with no commissions and additional financial products like stocks and options.

​​Coinbase Features

• Intuitive trading platform: Coinbase shines with a user-friendly platform equally suitable for beginners and active traders. Users can simply and securely trade over 200 cryptocurrencies, including Bitcoin, Ethereum and Dogecoin, among others.
• Coinbase Prime: Tailored for sophisticated investors and institutions, Coinbase Prime is a full-service prime brokerage platform that integrates trading, financing and custody services to manage crypto investments effectively
• Visa debit card: Provides a Visa debit card to spend your cryptocurrency easily.
• Coinbase wallet: A personal, separate cryptocurrency wallet to store digital assets. This crypto wallet gives users control over their crypto, allowing them to engage with decentralized finance (DeFi), buy and sell non-fungible tokens (NFTs) and more.
• Staking: Users can earn rewards by staking their cryptocurrencies.
• Educational resources: Offers educational courses and quizzes about crypto that reward users with small amounts of crypto.
• Advanced trading tools: Designed for the advanced trader, these tools include real-time order books, deep liquidity and advanced charting capabilities for a comprehensive trading experience.

Robinhood Features

• Commission-free trading: Robinhood allows users to trade stocks and ETFs without paying any commission, although additional fees may apply.
• Interest on uninvested cash: Users can earn interest on cash that's not currently invested, with higher rates available for Gold subscribers.
• 24/5 trading: The platform enables trading at any time, day or night, from Monday to Friday, providing 24-hour trading opportunities.
• Fractional shares: Users have the option to buy and sell fractional shares of stocks and ETFs, allowing for smaller investments.
• Stock lending: Robinhood offers a stock lending program that allows users to participate and earn extra income.
• Investment options: Robinhood provides access to a wide range of investment choices including stocks, ETFs, options and certain over-the-counter (OTC) securities.
• Cryptocurrency trading: Users can trade 15 cryptocurrencies on the platform.
• Robinhood wallet: A digital wallet by Robinhood that allows users to securely store, manage, and transfer their cryptocurrencies. Unlike traditional Robinhood accounts, it provides full ownership of crypto assets by enabling direct transactions on the blockchain.
• Cash management: The platform includes a spending account and a cash card for everyday transactions.
• Retirement accounts: Robinhood offers retirement account options, allowing users to plan for the future.

Coinbase vs. Robinhood: Fees

Coinbase has a minimum purchase requirements that may differ based on the specific cryptocurrency. If your intended purchase falls below the established minimum, you will receive a notification. There is also trading and transaction fees that vary based on factors such as payment method, cryptocurrency type, transaction size and market conditions. The platform includes a spread in the quoted price for simple buy and sell orders, as well as in the exchange rate for conversions. Coinbase also provides staking rewards on a selection of coins and takes a commission from the rewards.

Robinhood sets a minimum trade requirement of $1 and does not charge any trading or transaction fees. However, Robinhood may earn revenue from market makers for routing orders to them. 

Coinbase vs. Robinhood: Supported Cryptocurrencies

Coinbase boasts an extensive range of supported cryptocurrencies. As of August 2024, Coinbase Prime accommodates over 240 digital assets and facilitates trading across 300 different trading pairs. Users can securely custody more than 425 digital assets spanning 38 different chains. The platform has a simple user interface and supports a broad spectrum of cryptocurrencies, including major ones like Bitcoin (BTC), Ethereum (ETH) and numerous ERC-20 tokens.

Robinhood, however, provides a more curated selection, though it includes many popular cryptocurrencies. It allows the trading of cryptocurrencies such as Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Dogecoin (DOGE) Litecoin (LTC) and Shiba Inu (SHIB), among others. As of the latest data, Robinhood supports the buying and selling of 15 cryptocurrencies and provides real-time market data for an additional 61.

Coinbase vs. Robinhood: Cryptocurrency Custody

If you want to manage your crypto assets independently, Coinbase is an excellent choice. The cryptocurrency exchange provides its own digital wallet. However, you also have the option of using your own wallet for custody. This flexibility allows you to select the solution that best meets your needs, whether it's a hardware wallet, a software wallet, or leaving your assets with Coinbase for trading.

Robinhood also offers a dedicated app called Robinhood Wallet. This app is separate from the main Robinhood platform. As a self-custody wallet, it enables users to have full ownership of their crypto assets, as it provides them with the ability to send and receive digital currencies directly on the blockchain.

Coinbase vs. Robinhood: Security

While both platforms prioritize security, Coinbase provides a more comprehensive set of security features for cryptocurrency users.

Coinbase implements robust security measures, including two-step verification and cold storage for the bulk of customer funds. It also offers insurance for digital assets against certain types of losses and provides insurance for balances up to $250,000 per customer from the Federal Deposit Insurance Corporation (FDIC). Coinbase uses AES-256 encryption for digital wallets and allows users the option to store coins on the exchange as a hot wallet or create a non-custodial wallet.

Robinhood employs two-step verification and cold storage for customer funds. It also offers FDIC insurance for balances in U.S. dollars and SIPC coverage for ETFs, stocks and cash funds. However, unlike Coinbase, Robinhood does not provide insurance for crypto assets.

Coinbase vs. Robinhood: User Interface

Coinbase and Robinhood both prioritize user-friendliness, especially for beginners.

Coinbase offers a full-service cryptocurrency exchange experience through its website and mobile app. It provides easy navigation and includes educational resources, financial tools and a variety of features for trading and managing cryptocurrencies. The platform supports over 260 cryptocurrencies and more than 400 crypto-to-crypto trading pairs.

Robinhood is known for its simple and intuitive interface, making trading quick and easy. Its mobile app is particularly known for its user-friendly design, making it a preferred choice for those who primarily invest through mobile devices. Robinhood's interface provides access to charts, news and data both on its website and mobile app. While it may lack some of the advanced crypto-specific features of Coinbase, it serves as a functional platform for trading a limited set of cryptocurrencies alongside other asset classes like stocks and ETFs.

Coinbase vs. Robinhood: Customer Support

Customer support on both platforms has room for improvement in terms of response times and resolution effectiveness. 

Coinbase provides 24/7 customer support through various channels, including email, phone and a help center. Its phone service is direct, with a listed phone number for users to call. Still, the platform has faced criticism for delays in responding to support requests.

Robinhood also offers 24/7 customer support for logged-in customers via phone. However, users need to request a callback from the app, which some may find less convenient than having a direct phone line. Similar to Coinbase, Robinhood has received customer service criticism for slow response times and unhelpful responses.

Is It Better to Use Coinbase or Robinhood?

Coinbase offers an extensive range of supported cryptocurrencies, robust security measures and a user-friendly interface tailored to beginners and seasoned traders. Robinhood distinguishes itself with commission-free trading across various financial markets, making it an excellent option for those seeking a diversified portfolio.

The decision between Coinbase and Robinhood hinges on individual preferences and trading objectives. Coinbase appeals to crypto-focused investors looking for a wide array of digital assets and advanced trading tools. Robinhood is ideal for traders seeking a straightforward, commission-free platform with access to broader financial markets.

Regardless of the choice, both platforms offer avenues for exploration and engagement in cryptocurrency trading, each with its unique approach and offerings.