Coinbase and Robinhood are two great investment platforms for investors of all levels. Although Robinhood is popular with beginner investors and Coinbase is popular for crypto investments, each platform has unique features to offer. In this article, we will dive into each component of these platforms to see which option is best suited for your investment needs and compare Coinbase Vs. Robinhood.
What Is Coinbase?
Coinbase is a popular cryptocurrency trading platform. This platform has features of buying, selling, transferring, and storing over 50 of their supported digital currencies.
Additionally, Coinbase offers two different account types for investors of all levels. The platform has educational resources for those who wish to learn more about the crypto space and create a community.
Lastly, Coinbase offers a high yield savings account and credit card for those who are interested.
What Is Robinhood?
Robinhood is a trading platform where users can trade crypto, stocks, ETFs, and options. Investors have the option to limit orders, buy, and sell at a commission-free rate.
It is a great option for investors who wish to trade on the go since it has a user friendly and trading mobile app. Also, Robinhood has two different account types which offer additional educational resources.
The platform offers trading tools such as technical indicators and charts along with fractional shares.
Comparing Coinbase & Robinhood
Both of these investment platforms have their own strengths and weaknesses. In this section we will be diving into the different features of Coinbase Vs. Robinhood to see which one will best align with your needs.
When it comes to main features, both platforms have their own strengths. Coinbase is available to those in more than 100 countries and allows its users to withdraw crypto into a Paypal or digital wallet.
Additionally, an investor can choose from over 50 digital currencies and the platform provides a user-friendly app. Robinhood additionally offers a mobile app and provides intuitive applications for the user to utilize. Robinhood has a wider variety of options to trade from such as ETFs, stocks, crypto, and options.
Since Coinbase’s app is available in more than 100 countries and Robinhood’s app is solely for those in the U.S., U.K., and Australia – we would recommend Coinbase for the app’s main features.
Investment Options Available
Since Coinbase is specifically for cryptocurrencies, the website’s investment options are limited. Even though Robinhood provides ETFs, stocks, and options – when it comes to cryptocurrencies this platform only supports 7.
If you are an investor looking for a more well-rounded trading platform, Robinhood may be better suited for you. However, if you are looking to specifically invest in cryptocurrencies, Coinbase is the more viable option to use.
When it comes to fees associated, each platform has their own complex fee structure. Coinbase fees consist of .5% per trade, 3.99% for credit card purchase, and a 1.49% fee for Coinbase wallet or bank account purchases.
Robinhood does not have any commission fees but it has a varying overflow fee which is dependent on the trade. However, if you wanted to purchase Robinhood Gold to access more educational resources, such as MorningStar reports, there is a $5 monthly fee.
Due to Robinhood’s simplistic fee structure, this is a great option for those who are more fee conscious when it comes to choosing a trading platform.
Both Coinbase and Robinhood offer similar transactions. Coinbase offers buying, selling, receiving, and exchanging cryptocurrencies. Whereas Robinhood supports limit orders, buying, and selling.
Since Coinbase offers more transaction types this may be a better option for crypto investors who wish for more flexibility in their trades.
Security features are important to look into prior to investing. When it comes to Coinbase Vs. Robinhood, both provide a wide variety of security options.
Coinbase has 2 step verification, logins with biometric fingerprint, insurance in the unlikely event Coinbase is compromised, AES-256 encryption, and cold storage. Additionally they have FDIC-insured USD balances.
Robinhood has 2 step verification, cold storage, SIPC coverage for their ETFs, insurance against crypto breaches, and FDIC-insured balances. Even though both platforms offer security measures, Coinbase takes additional measures with the biometric fingerprint login that Robinhood does not have.
Minimums and Maximums
For Coinbase, there is an account minimum of $2 whereas Robinhood has no account minimum. Additionally, for Coinbase Pro there is a maximum daily withdrawal limit of $50,000 per day.
Similarly, for Robinhood Gold there is a maximum amount of $50,000 per day withdrawal limit. However for Robinhood, the instant deposit limit will be $1,000 and Coinbase it can be up to $25,000.
Depending on the account level, both of these platforms may be a good option.
Which Platform is Best for You?
Depending on what you are looking for in a trading platform, Coinbase or Robinhood could be a good option for you. If you are looking specifically to invest in cryptocurrencies, Coinbase will be best for you. However, if you are looking for an inexpensive and well-rounded investment platform, Robinhood will be a better option for you.
Consult with your financial advisor on what investment platform could be best for you. If you do not have a financial advisor, read more here about how to get one.
Frequently Asked Questions
Since Coinbase specializes in cryptocurrencies and offers more than 50 different currencies, Coinbase is a better option. This is mainly due to the fact that Robinhood only offers 7 types of digital currencies.
Robinhood isn’t necessarily bad for crypto but it has limited options. If you are looking specifically to invest in crypto, Coinbase would be a better option for you.
Robinhood is a good place to buy Bitcoin due to their zero commission fees. However, if you are looking to purchase more currencies than just Bitcoin, it may not be a great option.
No, unfortunately you can not transfer your Robinhood crypto into Coinbase. It may be a better option to open a Coinbase account in addition in order to access more digital currencies.