Coinbase vs. Webull

Coinbase is better for beginners and those looking for a large selection of cryptocurrencies, and Webull is better for anyone wanting a more advanced trading platform.

Webull and Coinbase are both prominent online investment platforms. Webull specializes in liquid assets and is popular among young millennial investors. However, it also appeals to medium-level and advanced traders because of its low fees. On the other hand, Coinbase is solely dedicated to cryptocurrencies and provides a range of related services.

Benzinga compares Coinbase and Webull to see how well a relatively new crypto exchange will stand up against the old guard of the crypto space. Whether you are looking for your first exchange or simply want to broaden your exchange options list, this article provides useful information to help you make an informed decision.

Coinbase vs. Webull: At a Glance

Coinbase vs. Webull: An Overview

Coinbase, founded in June 2012 by Brian Armstrong and Fred Ehrsam, has weathered the ups and downs of the cryptocurrency market. Bitcoin (BTC) was the sole cryptocurrency supported for the first 5 years. In early 2017, Coinbase added Ethereum (ETH) and Litecoin (LTC) to its list, which now includes over 200 coins, tokens and stablecoins. Coinbase can also boast that it has never been a hacking victim as it has prospered throughout the years.

Webull was founded on May 24, 2017, by former Alibaba Group (NYSE: BABA) employee Wang Anquan. Initially founded as a stock trading platform, Webull added crypto trading in November 2020. Currently, Webull only supports eight cryptocurrencies through Webull Pay. Transfers of cryptocurrencies into or out of Webull are not presently allowed. 

Coinbase vs. Webull: Products and Features

Features on Coinbase

The following is a list of Coinbase account features.

• Payment options: bank account, debit card, PayPal, wire transfer
• Order types: market orders 
• Recurring buys: daily, weekly or monthly
• Convert from 1 crypto to another
• Mobile app: Android or IOS
• Learn to earn: learn about, take quizzes and earn cryptocurrency
• Crypto transfers: transfer crypto into and out of your Coinbase account
• Crypto wallet: mobile or Chrome desktop extension; no Coinbase account required
• Coinbase card (US): spend crypto wherever Visa card is accepted
• FDIC insurance (through third party bank) for funds held in fiat

Features on Webull

The following is a list of Webull account features.

• Payment options: bank account  with same day trading after ACH transfer
• Order types: market and limit orders
• USD value or a fractional quantity of a coin or token orders permitted
• Desktop and browser platforms
• Mobile app: Android or IOS
• Crypto transfers: not allowed
• Other supported assets: stocks, ETFs, options, futures

Coinbase vs. Webull: Supported Cryptocurrencies

Coinbase is one of the largest and most well-known cryptocurrency exchanges in the world. The platform supports a variety of popular cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple. In total, Coinbase offers support for over 200 different cryptocurrencies, making it a great option for those looking to trade a diverse range of digital assets.

Some of the key cryptocurrencies supported on Coinbase include:

• Bitcoin (BTC)
• Ethereum (ETH)
• Litecoin (LTC)
• Ripple (XRP)
• Bitcoin Cash (BCH)
• Chainlink (LINK)
• Stellar (XLM)
• Ethereum Classic (ETC)
• and many more

On the other hand, there are only eight tokens that are tradable on Webull. Notable absences include Solana, Tether and Polygon. To access crypto markets, you need to download the Webull Pay app separately.

Coinbase vs. Webull: Fees

Webull's fee structure is relatively simple. It does not technically charge a fee but rather a 100 basis point spread. With its system, 1 basis point equals 1/100 of a percent, equating to a 1% charge on all cryptocurrency transactions. Incoming wire transfers cost $8 in the U.S. ($12.50 for international wires) while outgoing transfers cost $25 in the U.S. (and $45 for international). Webull does not impose an inactivity fee.

Coinbase has varying fee structures based on the trade tool used. Advanced trade, recommended for lower fees, charges based on trading volume and uses a maker-taker model. Taker fee applies to immediately filled orders, while maker fee applies to those not filled immediately.

Coinbase vs. Webull: Cryptocurrency Wallet

Coinbase provides users with the option of a custodial and a non-custodial crypto wallet. A custodial wallet is controlled by the exchange, in this case, Coinbase. If you choose to keep your crypto on Coinbase, it will be stored in a custodial wallet managed by the platform. However, Coinbase also offers a non-custodial wallet through Coinbase Wallet, a free app that anyone can download. When you transfer your crypto to Coinbase Wallet, you retain complete control over your assets and have the ability to send and receive crypto from external wallets. This gives users the flexibility to manage their cryptocurrencies independently and transfer them to other wallets if desired.

Webull does not offer crypto wallets for holding cryptocurrency assets. Users can only do so in either a margin or cash account. This means that if you want to trade cryptocurrencies on the platform, you will need to have funds available in one of these types of accounts.

Coinbase vs. Webull: Security

One of the most important considerations when selecting an exchange is security. Here is a brief comparison of the security measures implemented by Coinbase and Webull.

To protect electronic data, Coinbase employs AES-256 encryption. It also employs SSL encryption to help safeguard the website against phishing attacks. You have the option of using a Google or Duo authenticator for 2FA to add an extra layer of security to your account. Coinbase also provides two other types of 2FA: an SMS code and the use of a security key device. Only about 2% of customer funds are available online, with the rest kept offline in cold storage.

Webull uses Plaid to encrypt all data sent to its servers with AES-256 encryption, the industry standard for financial institutions. Plaid is used to connect to your bank account and protects the information in your bank account. Webull monitors your account for unusual activity, such as logins from unknown IP addresses, using an intrusion detection system. In addition, Webull employs a 2-step authentication process to keep your account secure. Plaid sends customers a text message containing an authentication code. You enter this code when logging in on the web or mobile devices.

So, Coinbase or Webull?

Both exchanges have features that appeal to different types of investors. The Coinbase platform is user-friendly and straightforward to navigate for new crypto investors. Other investors will be drawn to Coinbase because of its extensive list of cryptocurrencies and enhanced security features.

Webull, on the other hand, may appeal to those who are only interested in trading large-cap cryptocurrencies such as Bitcoin or Ethereum but want a more advanced trading platform. Webull is also a good option for investors and traders who wish to trade across multiple asset classes from a single platform. Webull supports stocks, ETFs and options in addition to cryptocurrencies. In the end, before choosing an exchange, you need to answer the following: What kind of investor/trader am I?