In this guide, we will explore the key differences between the two crypto exchanges.
Cryptocurrency exchange (Coinbase) vs trading platform (Robinhood)
Coinbase is one of the largest and most trusted cryptocurrency exchanges in the world. Coinbase deals with buying and selling cryptocurrencies. Robinhood on the other hand is a trading platform that allows you to buy and sell cryptocurrencies with Robinhood Crypto and trade in stocks, ETFs and other options with Robinhood Financial.
Coinbase is available in over 100 countries, including the United States of America, the Eurozone (41 European countries, the United Kingdom included), India and Australia. Robinhood is only available to customers of the United States of America. US customers can access their Robinhood account when traveling to other countries.
When did Robinhood get into cryptocurrencies?
Robinhood originally focussed on stocks and did not include support to buy and sell cryptocurrencies until February 2018. Bitcoin and Ethereum were the first two cryptocurrencies offered to traders.
Robinhood was launched in 2013 and is headquartered in Menlo Park, California, USA. The trading platform was founded by Vladimir Tenev and Baiju Bhatt.
Coinbase vs Robinhood Features Comparison
Read on to discover the features on offer at both crypto exchanges.
Both crypto trading exchanges offer a plethora of payment options.
Coinbase allows customers from certain countries to deposit and withdraw funds from and to their bank account via bank transfer. US and UK customers for example can use bank transfers to deposit and withdraw funds while Australian customers cannot. You can check the available payment methods in your country by clicking on this link. It takes up to 4-5 business days for a bank transfer to be processed.
Robinhood permits you to deposit and withdraw via Bank ACH transfer (US banks – USD payment only).
Customers from certain countries can deposit and withdraw via debit card and/or credit card. Such countries include the US, the UK, Australia, Singapore, France, Switzerland, Canada and Mexico. Other payment options on offer at Coinbase include PayPal.
Robinhood does not provide support for debit card and credit card payments.
How to buy cryptocurrencies on Robinhood?
Once you have deposited funds into your Robinhood account, buying Bitcoin or any other cryptocurrency of your choice is simple. You must navigate to your preferred cryptocurrency’s page on the Robinhood app (Android or iOS) and follow these steps:
1. Tap on the ‘Trade’ option
2. Tap on the ‘Buy’ option
3. Tap on the ‘Order Types’ option and select your preferred type
4. Confirm your order
5. Submit your order
If you are crypto trading on the Robinhood website, follow these steps:
1. Choose a cryptocurrency you want to buy
2. Enter the amount you would like to purchase
3. Click on the ‘Review’ option
4. Confirm your order
It must be noted that you cannot withdraw cryptocurrencies from Robinhood.
Fund liquidity (24h/month/year to date)
Coinbase users enjoy high liquidity (among the best in the business). If you click on this link, you can view the hourly, 24 hourly, weekly, monthly and yearly market data representation of the top cryptocurrencies on offer at the crypto exchange.
Bitcoin for example has enjoyed a 181.95% increase in the past year (last 365 days), a 46.18% increase in the past month and a 1.18% increase in the last 24 hours, at the time of writing. Aave is the top gainer in the last 365 days with an incredible 13,714.91% increase!
That said, Coinbase is known to struggle with spikes in cryptocurrency trading volumes and web traffic. Robinhood does not enjoy as high liquidity as Coinbase does. Given that Robinhood is only available to customers in the US and offers fewer cryptocurrencies than Coinbase, this is understandable.
We will delve into the cryptocurrencies on offer at both exchanges in the next section of this guide.
Both Coinbase and Robinhood offer a variety of crypto trading options.
Coinbase offers a large number of tradable assets (36), including Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC) and Ripple (XRP). The cryptocurrency exchange offers market information on over 3,950 cryptocurrencies.
Robinhood allows you to buy 7 cryptocurrencies – Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic and Litecoin. Robinhood supports real-time market data for a further 10 cryptocurrencies, including Dash, Monero, Ripple, Stellar and Zcash.
Fees: Why are Coinbase fees so high?
It is fair to say that Coinbase charges extravagant trading fees – 1.49 – 3.99% per trade depending on the amount that you are trading (compared to the 0.1% spread fee you pay on buying cryptocurrencies at Robinhood, which is commission-free).
Coinbase is a secure and convenient platform that comes with a stellar reputation. Crypto users would rather pay more fees for a service that commands trust and respect – Coinbase fits the bill.
Both Coinbase and Robinhood offer excellent apps for both Android and iOS users. You can download either app via Google Play Store (Android users) or Apple App Store (iOS users). Both Coinbase and Robinhood offer an easy-to-use interface, readily available options of access and overall convenience.
From the process of signing up to making your first trade, both Coinbase and Robinhood ensure that you are at ease.
Robinhood vs Coinbase Pro
While Robinhood is suited to beginners, Coinbase Pro is a trading platform that is ideal for seasoned crypto traders.
Both Coinbase and Coinbase Pro come with the same level of security. You can set up Two-Factor Authentication (2FA) to further secure the process of withdrawing from Coinbase Pro. Coinbase Pro has never had a security breach and is among the most secure online wallets out there.
Only 2% of Coinbase Pro’s online user funds are stored online – the rest are tucked away on FIPS-140 USB drives and paper backups in the encrypted form (AES-256 encryption) and stored in vaults around the planet.
That said, you do not own your private keys and are reliant on the crypto platform to perform transfers. While Coinbase Pro comes with high-level security, Robinhood offers medium-level security. Robinhood has faced many security issues over the years. Fortunately, Robinhood operates on the traditional financial system – this allows transactions to be reversed quite easily.
The Robinhood crypto app uses several security measures to safeguard your funds. These include 2FA, data encryption and the BCrypt hashing algorithm.
Ease of use
Robinhood’s all-in-one trading platform is easy to use.
Why is Robinhood better for beginners?
The free trading app is a better choice for beginners. While both apps offer simplicity and a great user interface, Robinhood is a better option because it is an all-in-one platform for traders of all kinds – you can explore the world of cryptocurrencies, stocks, ETFs and other assets.
Robinhood exclusively offers Bitcoin SV as well. We will dive deeper into this argument in the following section.
Which one should you use?
If you are a beginner who wants to explore traditional stock trading options and ETFs as well, look no further than Robinhood. Robinhood is also perfect for you if you just want to buy and sell Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Dogecoin and/or Litecoin – the crypto trading app charges low fees when compared to Coinbase.
If you want to explore the world of cryptocurrencies and delve deeper into the crypto realm, Coinbase is your best bet – Coinbase offers more options to buy and sell cryptocurrencies and is more secure than Robinhood.
If you are an advanced crypto trader or aspire to be one and want to explore day trading, a transition from Coinbase to Coinbase Pro makes utmost sense.