Coinbase vs. Robinhood: How Do They Compare?

  Coinbase Robinhood
Features Simple interface Buy, sell, and exchange crypto Credit card purchases available No-fee trades Simple interface All-in-one option for crypto and stock trading
Fees 0.00%-0.60% per trade depending on factors like size of order Additional 1.49% for bank account or Coinbase Wallet purchases Additional 2% for debit or credit card purchases $10 deposit $25 withdrawal fee for wire transfers  0% fee for buying and selling crypto Cost of buying crypto may be marked up a significant amount due to payment for order flow 
Number of cryptocurrencies supported Over 50 cryptocurrencies supported  7 cryptocurrencies supported 
Security features 2FA via SMS or Google Authenticator app Cold storage and multi-signature wallets USD balances are FDIC insured (up to $250K) KYC and anti-money laundering protections in place  2FA via SMS or Google Authenticator app Cold storage of crypto USD balances are FDIC insured (up to $250K) Biometric access controls on app 
Types of transactions Buy Sell Exchange Send Receive  Buy Sell Limit order 

Coinbase vs. Robinhood : facilitate of Use

Coinbase gives users a simple means to sign up, connect their fiscal accounts, and buy crypto via its app. You can register for Coinbase with an e-mail address and password and, once signed up, you will need to verify your identity with a government-issued photograph ID by uploading a mental picture of it to the app or web site. once verified, you can connect a bank account or credit menu to immediately begin purchasing crypto .
Robinhood is evenly simple to use. The user-friendly app allows users to quickly see the price of crypto, and target an order with a few clicks. To sign up for Robinhood, create a free history using your electronic mail address and a password. Once you verify your e-mail address, secure your report with two-factor authentication. To deposit funds, simply connect to a bank account and transfer funds. Up to $ 1,000 is instantaneously available for purchasing cryptocurrency .
While deposited funds are available for purchasing crypto, they can not be withdrawn until the transaction clears. This may take up to seven business days on either platform.

Coinbase vs. Robinhood : security

Coinbase and Robinhood both offer full-bodied security features, but Coinbase goes the extra nautical mile to secure your crypto. here are a few of the security options available on each chopine :

Coinbase Security Features

Two-factor authentication: Coinbase offers two-factor authentication ( 2FA ) via SMS or the Google Authenticator app, which both require a time-sensitive passcode to access your account .
Built-in wallet: The Coinbase digital wallet, a password-protected wallet that besides uses an code 12-word convalescence phase, allows users to withdraw their cryptocurrency from Coinbase. It besides allows users to store and trade their crypto on decentralized exchanges .
Cold storage and crypto vaults: Coinbase stores 98 % of all crypto balances in “ cold storage, ” keeping these currencies disconnected from the internet. This helps protect your assets from on-line larceny .
Coinbase besides offers a cryptocurrency vault, far securing your store digital assets. These vaults can be set up to require multiple user approvals before funds are withdrawn .
FDIC insurance (up to $250K): Similar to a traditional bank, Coinbase offers FDIC indemnity on USD ( U.S. dollar ) deposits up to $ 250K. note, however, that this does not insure your cryptocurrency funds .
Identity verification: Coinbase complies with the Know Your Customer ( KYC ) standards in the U.S., verifying a photograph ID and address of customers to secure their account further .

Robinhood Security Features

Two-factor authentication: Robinhood requires 2FA via Google Authenticator. SMS account recovery is disabled to avoid hacking via call .
Device management: Robinhood allows you to review all the devices that have accessed your account, and remove any that you don ’ t spot .
Cold storage: Robinhood states that most of their cryptocurrency is stored offline ( though it doesn ’ t say what share ) .
FDIC insurance (up to $250K): Robinhood offers FDIC policy on USD deposits, but note that it does not insure your cryptocurrency funds .

Coinbase vs. Robinhood : Features

Coinbase and Robinhood both allow users to buy crypto, but they are basically unlike types of platforms. Robinhood acts more as a broker for crypto purchases while Coinbase is a entire exchange with far more capabilities. here are a few of the unique features on each platform :

Coinbase Unique Features

Trade or withdrawal crypto: Coinbase allows users to trade their crypto for another crypto directly on their platform. It besides allows users to withdraw their crypto to a digital wallet to use on decentralize applications and investing .
News articles: Coinbase has a newsworthiness feed built into their platform, keeping users updated on the earth of crypto. These articles are specific to the crypto you are looking at within the app .
Price alerts: Coinbase allows you to create a watchlist of cryptocurrencies that will give you price alerts. When the price of a crypto goes up or toss off by a large share, the alert will be pushed to your mobile device, or show up in your Coinbase notifications .
Built-in education: Coinbase has user education built into their platform and mobile app. These educational videos teach users about a certain cryptocurrency project and will even reward them with a small bonus sum of the currency .

Robinhood Unique Features

Limit orders: Robinhood allows users to place a terminus ad quem order on their crypto—an order placed to buy or sell a specified sum of crypto at a specify price or better. This gives investors more dominance over their orders .
No-fee trades: Robinhood does not charge fees when buying or selling crypto. While the leverage price may not be exact due to payment for order flow, no barter fees is a courteous perk up for investors .

Coinbase vs. Robinhood : Currencies

Robinhood offers a very limited choice of crypto, including Bitcoin, Ethereum, and Dogecoin ( seven sum crypto supported ). Coinbase, on the early handwriting, offers over 50 of the top cryptocurrencies and is constantly adding to their listings .
Both platforms allow you to purchase cryptocurrency in dollar amounts, so you can buy fractions of coins. Coinbase has a $ 2 minimum order amount. Robinhood, on the early hand, measures its minimal purchase come in the native token. For exemplar, the minimal Bitcoin purchase measure is 0.0001 Bitcoin ( BTC ). so if Bitcoin ‘s price is $ 60,000, you can purchase equally little as $ 6 of Bitcoin .
To explore more currencies on Robinhood, review their cryptocurrencies investing page. To view all the tradable assets on Coinbase, check their list prices .

Coinbase vs. Robinhood : Fees

Robinhood claims “ no-fee trade ” for both stocks and crypto. And while this may technically be true, Robinhood was under examination from the SEC for their practice of payment for ordain flow. basically, all trades are brought to market makers to execute the deal, who pay Robinhood a tip, typically a share of the craft. The accurate amount for crypto trades is not disclosed .
Coinbase, on the other pass, charges a fee of up to 0.60 % for transactions, and extra fees based on which method of payment was used. These fees are fairly high .
here is a breakdown of how Coinbase and Robinhood tear fees based on account type :

Account Coinbase Fees Robinhood Fees
U.S. Bank Account 1.49% 0% fee
Wallet 1.49%  N/A 
Credit/Debit Card Buy 2.00% N/A 
Instant Card Withdrawal Up to 1.5% of any transaction and a minimum fee of $0.55  N/A
ACH Transfer Free Free
Wire Transfer $10 ($25 outgoing)  N/A 

Robinhood is the drawing card in no-fee trade but it does charge a requital for arrange menstruate, which may end up costing you more to buy your crypto through them, depending on the trade. The miss of transparency around these fees makes it unmanageable to compare fee structures between the two services .
overall, Coinbase is on the higher-end of fee structures for buying and selling crypto while Robinhood can be less expensive, depending on the trade .

Coinbase vs. Robinhood : access

Coinbase is available globally in over 100+ countries around the world. Robinhood is entirely available in the United States .
Coinbase is offered in 49 states in the U.S. with Hawaii being the excluded state. Robinhood is available in 48 states. They are actively working to add the final two states of Nevada and Hawaii .
Each area has its own regulations around cryptocurrency. Be sure to review your local guidelines before buying or selling crypto.

Final verdict

There are respective similarities between Coinbase and Robinhood. For model, both are U.S.-based companies ; both offer access to Bitcoin ; and both are secure places to buy and sell crypto .
Although Robinhood offers no-fee trade, it does charge a payment for rate flow, which might inflate the price of your crypto buy. It besides allows limit orders for more manipulate over your trade. But Robinhood is simply a custodian of your crypto ; you can never own the actual coins or withdraw them to store in your own digital wallet .
Coinbase is a true cryptocurrency switch over that is great for beginners due to its minimalist design and comprehensive mobile app. Buying and selling crypto on Coinbase alone takes a few clicks, and your digital funds are safely stored at all times. You can besides trade and transfer your crypto to your own digital wallet, giving you full control of your cryptocurrency .
No matter which platform you choose, understand that investing in cryptocurrencies is highly bad. never induct more than you are willing to lose .

Coinbase vs. Robinhood FAQ

What Are Coinbase and Robinhood ?

Coinbase and Robinhood are platforms designed for buying and selling cryptocurrencies. Robinhood acts as a custodian where you can buy and sell crypto. Robinhood alone recently added wallet functionality .
Coinbase, however, is a true exchange, allowing you to trade crypto for other crypto and withdraw your coins into a digital wallet .

How Do Coinbase and Robinhood Work ?

Robinhood is an on-line broke and allows you to buy and sell crypto. Coinbase is an on-line substitute and allows you to buy, sell, trade, and withdraw your crypto .
For both platforms, signing up is a reasonably similar action. Users create an report and add funds via a standard fiscal report ( or card ) to purchase cryptocurrency. But Coinbase allows users to exchange one crypto for another .
When buying Bitcoin with Robinhood, the platform would act as a broke for the transaction. You would create an history, connect your bank account, and submit an rate to purchase BTC. You are exchanging USD for BTC, and Robinhood stores that BTC for you until you decide to sell it .

Should I Use the Coinbase Wallet ?

The Coinbase Wallet is a democratic option for exchanging crypto and can be used on many decentralized applications. If you are looking to trade cryptocurrency, or just hold the keys to ones you already own, Coinbase Wallet is a impregnable manner to store them. It is besides ERC-20 compatible, allowing you to trade your crypto on your front-runner decentralized substitute. Robinhood only recently added a wallet function.

Who Should Use Coinbase vs. Robinhood ?

Robinhood is best for investors who want vulnerability to Bitcoin but don ’ metric ton have a need to own the actual currentness. It is besides ideal for customers who want their standard trade and crypto trade all in one application .
Coinbase is ideal for novice investors who are merely getting started with cryptocurrency but want full access to their currency. With its easy onboard and intuitive interface, angstrom well as the ability to trade between currencies ( and even move them off the platform ), it ’ randomness simple to buy cryptocurrency and have control over your investments. Add in their user education department and crypto bonuses, Coinbase is a bang-up option for modern cryptocurrency investors .

How We Evaluated Coinbase vs. Robinhood

When reviewing Coinbase vs. Robinhood we compared each platform based on relief of use, fee structure, security, unique features, and support currencies. We besides took into score the types of trades available on each platform and their proportional cost to the wide cryptocurrency exchange market .
While Coinbase and Robinhood are both user-friendly apps for buying crypto, they are two different types of platforms. Coinbase is a true crypto exchange and is best suited for crypto investors who want more entree to crypto investing options adenine well as entire control of the currency they purchase. Robinhood is a simple investment broker that is better suited for fooling investors who want to buy one of their seven crypto offerings for investment purposes only .
Both platforms are fairly limited in their trade capabilities, so boost crypto traders would be effective suited with another exchange option .

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