If you happen to’re a newbie who’s studying how to buy cryptocurrency, you might have a wide range of buying and selling platforms to select from. Two choices are Robinhood and Coinbase.
Though each of those buying and selling apps make it comparatively simple to start out shopping for and promoting crypto, there are some essential variations between every product.
For example, Coinbase gives a greater variety of crypto property, together with non-fungible tokens (NFTs) in addition to the flexibility to earn curiosity. Robinhood, then again, is a extra primary platform by way of crypto, which lets you purchase and promote a restricted variety of cryptocurrencies.
We’ll overview Robinhood vs. Coinbase that can assist you resolve which platform makes extra sense for you.
Robinhood vs. Coinbase
Robinhood
Coinbase
Options
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Pockets
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Staking
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Rewards
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Rewards debit card
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NFTs
Price constructionSupported cryptocurrencies
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Avalanche (AVAX)
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Bitcoin (BTC)
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Bitcoin Money (BCH)
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Bitcoin SV (BSV)
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Compound (COMP)
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Dogecoin (DOGE)
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Ethereum (ETH)
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Ethereum Basic (ETC)
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Litecoin (LTC)
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Polygon (MATIC)
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Shiba Inu (SHIB)
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Solana (SOL)
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Stellar Lumens (XLM)
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Uniswap (UNI)
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Bitcoin (BTC)
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Dogecoin (DOGE)
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Ethereum (ETH)
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Cardano (ADA)
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Wrapped bitcoin (WBTC)
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Sushiswap (SUSHI)
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Aave (AAVE)
Proprietary tokenSupported transactions
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Market order
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Cease order
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Restrict order
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Coin-to-coin
Funding strategies
LiquidityAccessibility (state-wise)
SafetyGreatest for …Visit RobinhoodVisit Coinbase
How does Robinhood work?
Robinhood was based in 2013, with the mission to “democratize finance for all.” Robinhood is thought for its easy-to-use buying and selling interface that lets newbie buyers get began shortly.
Robinhood founders Baiju Bhatt and Vlad Tenev met at Stanford and created buying and selling software program they bought to hedge funds. After spending time in New York, they went to California to start out Robinhood, designing it for ease of use and pioneering the commission-free buying and selling mannequin.
The app gives 4 major investing classes: Inventory buying and selling and exchange-traded funds (ETFs), choices, margin investing, and cryptocurrencies.
Utilizing Robinhood to purchase a cryptocurrency is pretty simple. You merely select which coin you need to purchase after which provoke the acquisition.
Robinhood lets you fund your account by linking your checking account with an on the spot switch so you possibly can entry your deposit to purchase cryptocurrencies. It’s essential to notice that Robinhood is a brokerage, nonetheless, and never an precise cryptocurrency trade.
Pockets choices
Robinhood additionally gives a custodial crypto wallet with no entry to personal keys in your crypto. If you wish to use a non-custodial pockets of your personal, you could switch your cash out of Robinhood and pay any relevant community charges.
It’s additionally doable to ship cash you got elsewhere to your Robinhood crypto account. Nonetheless, this characteristic is barely out there with the next cash:
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Bitcoin (BTC)
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Bitcoin money (BCH)
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Bitcoin SV (BSV)
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Dogecoin (DOGE)
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Ethereum (ETH)
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Ethereum basic (ETC)
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Litecoin (LTC)
Superior options
Robinhood doesn’t provide some other options for crypto merchants presently. For example, you possibly can’t earn rewards or earn curiosity with Robinhood, nor do you might have entry to an NFT market.
Robinhood is finest for many who are considering shopping for well-liked cryptocurrencies and holding on to them. Nonetheless, it’s unsuitable for coin-to-coin trades or for these considering extra superior cryptocurrency investing and buying and selling.
Study extra about Robinhood in our full Robinhood review.
Tip
Robinhood is an effective alternative for those who’re casually considering publicity to cryptocurrency and need to diversify your portfolio with some crypto holdings.
How does Coinbase work?
Established in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase is among the oldest and best crypto exchanges nonetheless in operation immediately. As with Robinhood (HOOD), Coinbase (COIN) is listed on the NASDAQ trade.
Along with easy cryptocurrency transactions, Coinbase gives a Professional model with extra superior crypto buying and selling choices that requires a separate account. You may be taught concerning the variations between Coinbase and Coinbase Pro for those who’re considering superior cryptocurrency buying and selling.
Coinbase is among the best cryptocurrency exchanges to make use of. It focuses on shopping for cryptocurrency with a wide range of fiat fee strategies, together with debit playing cards and PayPal. Trade web site CoinMarketCap constantly ranks Coinbase excessive for reliability and liquidity.
Pockets choices
Coinbase options a wide range of pockets choices, together with a custodial and non-custodial pockets. It’s also possible to preserve your cash in Coinbase Vault, which is a solution to retailer your property off the trade. As a result of Coinbase is a cryptocurrency trade, you possibly can full coin-to-coin exchanges and use crypto transfers for supported cash.
Superior options
Coinbase makes it doable to earn further cryptocurrency cash by studying about new choices by means of the Coinbase Rewards program. Coinbase additionally gives staking for some cash, which lets you earn curiosity just by holding the cash on the trade.
Coinbase additionally not too long ago launched an NFT market, which lets you create your personal NFTs and purchase and promote NFTs others have made.
Charges
Coinbase was once one of the crucial costly choices for getting cryptocurrency. Nonetheless, the corporate not too long ago shifted its price construction to a tiered maker/taker mannequin. Because of this, it’s now extra aggressive with different cryptocurrency exchanges.
Study extra about Coinbase in our full Coinbase review.
Tip
Coinbase is an effective choice if you wish to be taught concerning the digital asset ecosystem and entry extra methods to commerce crypto.
What each excel at
Robinhood and Coinbase are very intuitive for inexperienced persons. The interface for each is easy and lets you clearly see what you’re shopping for. Every additionally gives a cell app for iOS and Android gadgets.
Each corporations additionally make it simple to purchase cryptocurrencies utilizing fiat cash. Robinhood focuses extra on financial institution transfers, and Coinbase permits for debit and PayPal purchases as effectively. Each platforms permit on the spot entry to your transferred financial institution funds for purchases.
Each Robinhood and Coinbase additionally provide crime insurance coverage to assist defend towards theft and cybersecurity breaches. This gives peace of thoughts to inexperienced persons who need to know that their digital property are protected within the occasion of a hacking assault or information breach.
Moreover, each corporations have met the itemizing necessities for NASDAQ, which gives some extent of confidence to buyers hoping to get began with cryptocurrencies.
6 essential variations between Robinhood and Coinbase
1. Cryptocurrencies
Coinbase gives a whole bunch of cryptocurrencies that may be purchased, bought, and exchanged. Coinbase gives greater than 150 cash for buy, whereas Robinhood gives simply 15.
If you happen to’re solely considering how to buy bitcoin, ethereum, and well-liked altcoins reminiscent of dogecoin or litecoin, Robinhood ought to work effective. Nonetheless, if you would like a greater variety of cash to select from, Coinbase may very well be a better option.
2. Charges
That is an space by which Robinhood excels over Coinbase. Robinhood doesn’t cost buying and selling charges whenever you purchase or promote a coin. Coinbase, then again, does cost charges. However Coinbase has improved on this space in latest months — it now has a tiered maker/taker mannequin.
Within the Coinbase mannequin, what charges you pay depend upon how a lot you commerce in a 30-day interval, in addition to whether or not you’re thought of a maker or a taker.
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Maker: Somebody who locations a restrict order to be fulfilled later when sure circumstances are met. Relying on how a lot you commerce, maker charges may be decrease than taker charges.
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Taker: Somebody who locations a market order to be stuffed instantly. These charges are normally larger than maker charges as you progress by means of the out there tiers based mostly on how a lot you commerce.
For many who don’t need to fear about transaction charges, Robinhood is a better option.
3. Rewards
Coinbase gives a rewards program by means of its Earn characteristic. Whenever you watch movies and reply questions on newer altcoins, you obtain free cryptocurrency. These cash may be exchanged or bought later, or you possibly can maintain them and see whether or not they enhance in worth afterward.
Robinhood doesn’t provide a means so that you can earn free cryptocurrency.
4. Staking
One solution to earn cash from holding on to cryptocurrencies is thru staking crypto. With staking, you’re paid curiosity for conserving sure cash within the type of extra cryptocurrency.
As of Aug. 29, 2022, Coinbase pays as much as 5.75% APY, relying on the coin in query. The cash are added to your holdings of the actual asset.
Robinhood, nonetheless, doesn’t provide staking.
5. Pockets choices
Robinhood gives a crypto pockets choice, but it surely’s strictly custodial. Which means you don’t have entry to personal keys to safe your pockets and make it your personal. Robinhood’s pockets principally simply allows you to ship cash from exterior Robinhood to your Robinhood account.
Coinbase, then again, gives completely different pockets choices. You may preserve your cash on the trade, which acts as a custodial sizzling pockets in your cash. If you wish to ship and obtain cash on the trade, you’re supplied with a pockets handle you need to use.
Coinbase additionally gives a non-custodial pockets referred to as Coinbase Pockets which supplies you management of your keys and doesn’t monitor or have entry to your pockets. It’s also possible to retailer cash off the trade by utilizing Coinbase Vault.
In order for you true management over a few of your crypto property, Coinbase may very well be a better option.
6. NFTs
If you happen to’re considering NTFs, Coinbase generally is a more sensible choice as a result of it gives a market the place you possibly can create, purchase, and promote NFTs.
Robinhood doesn’t provide entry to some other crypto property past its restricted variety of cryptocurrencies.
Which one do you have to select?
In deciding between Robinhood vs. Coinbase, it’s essential to contemplate which platform is finest in your wants and targets. Listed here are some gadgets to contemplate:
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Charges: For some buyers, charges are an essential a part of selecting a platform. Robinhood generally is a sensible choice as a result of it doesn’t cost buying and selling charges. Nonetheless, for those who’re extra considering different options, paying some buying and selling charges won’t matter to you.
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Accessible cash: If you happen to’re considering a selected coin, search for a platform that provides that coin. Coinbase helps a greater variety of cash, whereas Robinhood is extra restricted. Until you’re solely searching for a handful of well-liked cash, Coinbase gives a greater choice.
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Superior crypto options: Robinhood solely gives you the flexibility to purchase and promote cryptocurrencies. If all you need to do is purchase and maintain or purchase and promote, Robinhood makes it simple. Nonetheless, for those who’re considering studying about different varieties of digital property, reminiscent of NFTs, or accessing perks reminiscent of staking, Coinbase is a greater choice.
Warning
When deciding between Robinhood vs. Coinbase, it’s essential to notice that Robinhood is a brokerage that provides you the chance to purchase cryptocurrency, whereas Coinbase is an precise cryptocurrency trade.
FAQs
Is it secure to purchase crypto on Robinhood?
Shopping for any crypto comes with dangers, regardless of the platform. Cryptocurrency is a unstable asset class with extensive worth swings. Nonetheless, Robinhood does provide crime insurance coverage to guard your purchases from breaches and hacks. Now, crypto buyers may get SIPC insurance to cowl their property.
Is Coinbase safer than Robinhood?
Each Coinbase and Robinhood meet the necessities to be listed on the NASDAQ trade, and each carry crime insurance coverage. Each providers additionally attempt to enact safety measures to guard your account as finest as doable.
Why is there a worth distinction between Coinbase and Robinhood?
Robinhood doesn’t cost a buying and selling price. As an alternative, its course of features a unfold, or a distinction between what somebody is asking for the coin and what somebody is keen to pay. Coinbase merely expenses a price based mostly in your buying and selling quantity and the kind of order you place.
Is Coinbase Professional completely different from Coinbase?
Coinbase Professional is a distinct trade than Coinbase. It gives extra superior buying and selling choices and talents. You want a distinct login and account to entry Coinbase Professional. You may be taught extra from our Coinbase and Coinbase Pro review.
Backside line
Each Robinhood and Coinbase make it simple to buy cryptocurrencies utilizing fiat cash. Nonetheless, Robinhood is a brokerage that occurs to supply entry to a restricted variety of cash, whereas Coinbase is an precise cryptocurrency trade. Because of this, you might have extra choices for crypto property when utilizing Coinbase.
Notice, although, that cryptocurrency represents an alternate asset class. When investing money, some specialists advocate you restrict different property to not more than 20% of your portfolio.
Earlier than you put money into crypto property, rigorously contemplate your personal wants and targets, and remember to do your finest to restrict your danger publicity.
Disclosure: The writer owns positions in each HOOD and COIN. She additionally owns cash talked about on this article, together with BTC, ETH, DOGE, MATIC, COMP, LTC, ADA, and SUSHI.
This text Robinhood vs. Coinbase {% now ‘Y’ %}: Which Investing App is Right for You? initially appeared on FinanceBuzz.
