SoFi vs. Coinbase

Want to jump straight to the answer? Coinbase is better for new crypto investors. SoFi is better for those looking for a broader range of investments.

When comparing SoFi and Coinbase, it's essential to recognize that they serve different primary purposes and target audiences. SoFi is a financial services platform offering loans, investments and banking, while Coinbase is a user-friendly cryptocurrency exchange for trading and storing digital assets. SoFi includes features like stock trading and financial education, whereas Coinbase focuses on a secure experience for cryptocurrency users. While both Sofi and Coinbase offer unique advantages for investors, they also come with their own sets of drawbacks. Whether you’re a seasoned trader or just starting out, making an informed decision can save you time, money and frustration. In this article, we will delve into a comparative analysis of Sofi vs. Coinbase, highlighting key factors that will help you identify the perfect platform for your investment journey.

Coinbase vs. SoFi: At a Glance

Sofi vs. Coinbase: An Overview

About SoFi

SoFi, short for Social Finance, was founded in 2011 by four students from Stanford Graduate School of Business. Over the years, SoFi has evolved into a modern finance company. SoFi is a one-stop financial shop, stockbroker and financial services company. SoFi used to offer crypto services with both a web-based platform and mobile app. Users was able to buy a dollar amount or choose to buy a certain number of coins. However, in November 2023, SoFi decided to end its crypto services by the end of that calendar year. SoFi has partnered with two top digital asset platforms to provide users with access to an extensive array of cryptocurrencies and sophisticated crypto trading functionalities — Blockchain.com and BitGo.

About Coinbase

Coinbase was founded in 2012 by Brian Armstrong. In October 2012, it launched services to buy and sell Bitcoin through bank transfers. Coinbase added Ethereum in January 2017, then Litecoin in March of that same year. Coinbase now supports over 240 digital assets and 300 different trading pairs and regularly adds to that list. Coinbase has a web-based trading platform as well as a mobile app. The trading platform is pretty basic and allows users to buy, sell or convert from one cryptocurrency to another. Coinbase is available in over 100 countries and now has more than 56 million users. 

SoFi vs. Coinbase: Key Features

SoFi and Coinbase serve different purposes but both offer valuable financial services tailored to their respective audiences.

SoFi Invest Features

The following is a list features you can access with Sofi.

• Commission-free trading: SoFi members can trade stocks and ETFs without incurring any fees. This makes it a compelling choice for investors who want to minimize costs.
• Access to financial advisors: These professionals provide valuable guidance and support to users. Their expertise helps individuals make informed financial decisions.
• No account minimums: SoFi Invest has no account minimums. There are no balance requirements for maintaining an account. 
• Fractional shares: Investors have the option to purchase fractional shares of popular stocks. This allows them to invest smaller amounts of money. Fractional shares make stock investing more accessible to a wider range of investors.
• Automated investing: SoFi Invest offers automated and simplified investing options. This is ideal for those who prefer a hands-off approach.
• Retirement accounts: SoFi offers various retirement accounts including Traditional IRA, Roth IRA, SEP IRA and Rollover IRA.
• Other financial products: SoFi also provides financial services such as high-yield savings account, loans, including personal loans, private student loans and student loan refinancing, credit card and insurance.

Coinbase Features

The following is a list features you can access with Coinbase.

• User-friendly interface: Its intuitive design allows rookie investors to navigate the world of cryptocurrencies with ease. This accessibility helps newcomers feel more confident in their investments.
• Supported assets: Coinbase supports over 240 digital assets and 300 trading pairs. Clients can securely custody more than 425 digital assets. This includes assets from 38 different chains.
• Educational resources: Coinbase provides educational materials for users. By completing tasks, users can earn rewards in cryptocurrency. This incentivizes learning and engagement with the platform. It’s an effective way to enhance knowledge while earning digital assets.
• Coinbase card: A Visa debit card that allows users to spend their cryptocurrency as if it were fiat currency. This makes everyday transactions easier by seamlessly integrating digital assets into daily spending.
• Staking rewards: Users can earn rewards by staking specific cryptocurrencies. This incentivizes participation in the network. Staking not only supports the ecosystem but also allows individuals to profit from their investments.
• Coinbase Pro: Coinbase Pro is an advanced trading platform. It offers detailed charts for in-depth analysis. Users benefit from lower fees, making it ideal for seasoned traders.

SoFi vs. Coinbase: Fees

SoFi Invest Fees

Sofi Invest offers a competitive fee structure that distinguishes it from traditional investment platforms. For its automated investing services, Sofi charges no management fees, which makes it accessible for a broader range of investors. However, investors should be aware that there may be expenses tied to the underlying ETFs in which their funds are invested, typically in the form of expense ratios. Additionally, while stock and ETF trades are commission-free. Overall, the transparent fee system combined with no account minimums makes Sofi Invest an appealing option for both novice and seasoned investors looking to maximize their investment without incurring high costs.

Coinbase Fees

Coinbase fees can be a significant consideration for users engaging in cryptocurrency transactions on the platform, as they vary depending on the type of transaction being conducted. Generally, Coinbase charges a spread of about 0.5% for cryptocurrency purchases and sales, along with a separate variable fee that is calculated based on the transaction amount and payment method. For smaller transactions, these fees can be relatively high compared to the overall value of the transaction, which has led to criticism from users. Additionally, Coinbase Pro, the exchange’s advanced trading platform, offers a different fee structure that can reduce costs for higher volume traders. As a result, understanding these fees is essential for users looking to maximize their investment and trading efficiency on Coinbase.

SoFi vs. Coinbase: Security

Security is one of the most important aspects of choosing a platform. Here is a quick comparison between Coinbase and SoFi.

Coinbase Security Features

AES-256 encryption protects electronic data. SSL encryption protects its website from data breaches, phishing attacks and other threats. You have the choice of using either Google or Duo authenticator for 2-factor authentication (2FA) to add an extra layer of security on top of your password. The other two authentication options Coinbase offers are a code sent by text message and the use of a security key device. You can also enable 2FA for crypto transfers. Coinbase stores 98% or more of customer funds in cold storage offline. 

SoFi Security Features

SoFi offers two-factor authentication (2FA). After entering your email and password, SoFi sends a code via SMS, email or voice call. SoFi also uses SSL encryption to protect its website from data breaches, phishing attacks and other threats. SoFi does not offer or facilitate cold storage of cryptocurrencies. 

Sofi vs. Coinbase: Customer Support

SoFi Invest provides extensive 24/7 customer support through phone and chat, a help center with articles and FAQs, and direct assistance via email or phone during business hours for personalized needs, along with dedicated member services for more complex issues.

Coinbase offers 24/7 chat support in English and has expanded to include phone support. It provides a range of educational materials and allows users to seek assistance from the community for nonurgent issues.

So, Coinbase or SoFi?

So which platform wins? Well, both. They each have features that will be attractive to certain types of investors. The choice of which is best comes down to what type of investor you are. Sofi is primarily a personal finance platform that provides a wide range of financial services, making it appealing for users seeking a comprehensive financial solution. On the other hand, Coinbase is a cryptocurrency exchange specifically designed for buying, selling, and trading digital assets. While both platforms aim to improve users' financial situations, Sofi is more focused on traditional finance and wealth management, whereas Coinbase caters to the growing demand for cryptocurrency investment and trading. Weigh the pros and cons of each and decide which one is right for you. 

Frequently Asked Questions