Robinhood vs. Coinbase comparison

We compared Robinhood and Coinbase on these core factors: fees, coin selection, user experience, security, advanced features, and regulatory track record. Coinbase is best for users who want a more robust crypto platform with broader coin options and in-depth trading tools. Robinhood can be a good fit if you’re mainly a stock trader who occasionally buys crypto without needing advanced crypto functionalities.

Pros and cons of Robinhood

Robinhood’s primary appeal lies in its user-friendly interface and commission-free trading. This platform is ideal for beginners who want to manage both stocks and cryptocurrencies in one place. Additionally, Robinhood’s upcoming crypto futures offerings could attract more advanced traders.

Robinhood Pros

• Diverse investment options: Users can invest in stocks, ETFs, options, and cryptocurrencies.

• User-friendly interface: Simplifies trading for beginners with its intuitive mobile app.

• Low fees: No commission fees on cryptocurrency trades.

Robinhood Cons

Despite these drawbacks, Robinhood remains a strong contender for those who prioritize a seamless and cost-effective trading experience.

Read about Robinhood Alternatives.

Pros and cons of Coinbase

Coinbase is renowned for its extensive cryptocurrency offerings and additional features designed to educate and reward users.

The platform supports over 260 cryptocurrencies and provides robust security measures, including 2-step verification and cold storage for digital assets.

Coinbase Pros

• Extensive cryptocurrency options: Supports a wide range of cryptocurrencies, making it a haven for crypto enthusiasts.

• Additional features: Offers staking and educational modules that allow users to earn free crypto.

• Coinbase Card: Allows users to spend crypto and earn rewards.

Coinbase Cons

• Higher fees: Known for higher fees compared to other exchanges.

• No support for stocks: Unlike Robinhood, Coinbase does not offer stock trading.

While Coinbase’s fees may be higher, its comprehensive features and security measures make it a preferred choice for dedicated crypto investors. Learn more about how to make money on Coinbase.

Differences between Coinbase vs. Robinhood

The primary differences between Coinbase and Robinhood lie in their focus and feature sets. Coinbase is a dedicated cryptocurrency exchange with extensive offerings and advanced features like staking and crypto-to-crypto trading.

Robinhood, however, is a multi-asset platform that includes stocks, ETFs, and options alongside cryptocurrencies.

Robinhood’s commission-free trading is a significant draw, but users must consider the potentially higher costs due to spreads. Coinbase’s higher fees come with more robust features and a greater selection of cryptocurrencies.

Looking to calculate your crypto profit? Try our free crypto profit calculator.

Coinbase vs. Robinhood: Key features

Here’s a breakdown of key features to help you determine whether Coinbase or Robinhood is best for your crypto investments.

Fees

• Coinbase: Charges between 0.5 – 4.5% depending on the type of cryptocurrency and transaction volume.

• Robinhood: Offers commission-free trading but has higher spreads for lesser-known cryptocurrencies.

Supported Cryptocurrencies

User Interface

Want to learn more about Coinbase? Get the answers to the question: does Coinbase report to the IRS?

Coinbase vs. Robinhood: Supported currencies

Coinbase supports over 260 cryptocurrencies, including popular options like Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC).

Robinhood, in contrast, supports only 15 cryptocurrencies, all of which are also available on Coinbase.

Coinbase vs. Robinhood: Staking rewards

Coinbase offers various staking opportunities, allowing users to earn rewards on a selection of cryptocurrencies. This feature is part of Coinbase’s broader commitment to providing value-added services to its users.

Robinhood does not currently offer staking rewards, focusing instead on its commission-free trading model.

Looking to calculate your crypto taxes? Try our free crypto tax calculator.

Coinbase vs. Robinhood: Ease of use

Both Coinbase and Robinhood are designed with user-friendliness in mind. Robinhood’s intuitive mobile app makes it particularly appealing for users who prefer trading on the go, and those interested intrading both crypto and stocks.

For the casual crypto investor who simply wants exposure to the market, both of these platforms are easy to use.

Coinbase, while every bit as user-friendly as Robinhood, offers a more comprehensive set of features that cater to both novice and advanced crypto traders.

For those looking to begin in crypto and eventually become more advanced, with a specific crypto focus, Coinbase is the clear choice.

Robinhood vs. Coinbase: Trustworthiness and security

Security is a critical factor for any crypto trading platform. Coinbase employs rigorous security measures, including 2-step verification and cold storage for 98% of digital assets.

Robinhood also uses 2-step verification and offers SIPC coverage for certain assets. However, Coinbase’s longer track record and emphasis on security give it an edge in trustworthiness.

Learn more: Is Robinhood Safe?