Coinbase Vs Robinhood: Which Should You Choose
- Main platform features: User-friendly apps, available in more than 100 countries, can withdraw crypto to PayPal or a digital wallet and choose from a variety of coins
- Fees: 0.50% per trade, 3.99% for credit card purchases, and 1.49% for Coinbase wallet or bank account purchases
- Number of cryptocurrencies supported: 51
- Security features: 2-step verification, cold storage, biometric fingerprint logins, insurance in the event Coinbase is breached, FDIC-insured USD balances, AES-256 encryption for digital wallets
- Types of transactions supported: Buy, sell, send, receive, and exchange
- Maximum trading amount: Limits vary based on your payment method and region
Ability to earn crypto while you learn
Over 50 cryptocurrencies
Multiple payment and withdrawal options
Cant complete advanced transaction types
Millions Of Gamers Are In For An Unpleasant Surprise This Tax Season
Play-to-earn games could have tax implications.
In a matter of months, NFT gaming became a multibillion-dollar industry by combining two things people already loved: video games and getting rich from crypto. But it turns out the play-to-earn model also has the incredibly inconvenient side effect of turning even minor actions taken in a video game into taxable events.
Did you sell your cute digital creature on Axie Infinity? That’s a taxable event. Did you sell it less than a year after you bought it? Well, then it’s a short-term capital gain. If you converted your NFT into a cryptocurrency before cashing out, that counts as two separate investment transactions. Even seemingly trivial in-game item swaps can have tax implications.
Making matters worse, NFT games don’t typically keep track of all your transactions for tax documentation purposes. So while there are plenty of services designed to assist with crypto tax filings, it can be difficult to get the raw data that feeds into those products. By contrast, mainstream crypto-trading platforms like Coinbase prepare customer trade data for tax services either in the form of CSVs or direct software integrations.
“Taxes may come as more of an afterthought for a lot of the investors,” noted Jen Kim, head of Product at NFTBank.ai. “We’re actually getting more questions,” she said. “There’s quite a number of people reaching out, and I think that is associated with just general mindset toward the end of the year.”
Stage : Is That All You Got
Toyota: Toyota has fared remarkably well in spite of operating at such a large scale. Production by around 40% in August and September but the company expects to recover to normal levels by the end of November. Overall, Toyota only downgraded its fiscal year production forecast from 9.3 million to 9 million. In an online news conference, Toyota CFO Kenta Kon said, “We are also affected by the global semiconductor shortage, but for now, we’re not experiencing big cuts to production.”
Tesla: Tesla’s handling of the chip shortage reiterated the benefits of operating at a smaller scale than the legacy automakers. Musk acknowledged in his Q2 2021 earnings call that “the chip supply is fundamentally the governing factor on our output.” However, he went on to detail how Tesla was able to “substitute alternative chips and then write the firmware in a matter of weeks.” This approach paid off in Q3 2021, when Tesla was able to report a record profit with shipments up 73% compared to the same period a year prior.
Also Check: What To Do When Crypto Crashes
How We Make Money
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Day Trading On Robinhood
Many use Robinhood for day and short-term trading strategies. The platform is great for these investors as they enjoy zero commission fees and good margin fees. The app is incredibly easy to use and it is easy to trade from anywhere.
Advanced traders, however, may want more from their trading brokerage and software. Companies like Charles Shwab, Fidelity and Ameritrade have been around much longer and provide professional day traders with all the advanced tools they need to do business. They have also started offering commission-free trading in a bid to compete with Robinhood. Whether or not you choose Robinhood as a day trading platform will ultimately come down to which tools and support you need as a trader.
Also Check: What Is Blockchain Stock Symbol
Who Should Use Coinbase Or Robinhood
First-time investors and people who want to invest small amounts find Coinbase and Robinhood extremely user-friendly. Both platforms are excellent for beginners. However, Coinbase fees can take a chunk out of your investment, whereas Robinhood doesnt charge a commission, so users may pay less per trade.
People who dont want to withdraw crypto and prefer a single platform to trade crypto, ETF, stock, and options use Robinhood because you can only trade crypto on Coinbase. But if you want to remove your coins or have more cryptocurrency choices, Coinbases 51 coins and digital wallet offer a better solution.
Which Documents Should You Provide To Your Cpa
You should record every single cryptocurrency transaction you make throughout the year and share it with your CPA. How each transaction will be taxed can depend on several different variables. For this reason, its essential that your accounting service has all the records to make sure that your crypto taxes are filed correctly.
Founders CPA specializes in crypto tax filing. If you want to talk with one of our crypto-tax experts, set up a free consultation and make sure that there are no gaps in your crypto filing to the IRS.
Read Also: How Do You Buy Bitcoin On Cash App
Does Robinhood Charge Fees For Crypto Trading
There are several cryptocurrency exchanges today. Each with a different business model than the other, and each is in tough competition with one other. No matter how many cryptocurrency exchanges there might be, none could ever beat Robinhood in terms of commission fees, not even Webull. Thats because Robinhood effectively charges you a 0% commission on all your buy and sell orders on its platform. While several other exchanges charge up to 4% of your investment amount, Robinhood charges 0.
This is made possible by a method called payment of order flow. Essentially Robinhood earns its profits by taking a share of the profits from the big market makers who are incentivized to give them this share for proving the business to them through Robinhood. It is a way to protect the money from small retail investors and ensure that large investors can make their trades in a timely fashion.
Although there are critics that say this mode of business is wrong and causes a conflict of interest, Robinhood proudly claims it provides better prices and allows commission-free trading, which essentially protects the interests of small-scale retail investors who are more in number over the large-scale institutional buyers that are less and have greater flexibility.
Is The Robinhood Gold Account Worth It
The great thing about the Robinhood Gold account is that it boosts your purchasing power and allows you to leverage your money through borrowing. If you’re not interested in buying on margin, the standard Robinhood app should be enough to cover your needs.
Another great thing about the Gold Account is that you’ll have quick access to your cash up to the amount of the Gold Tier limits. Extra funds quickly arrive after the regular settlement period.
All throughout, you don’t have to worry about fees with Robinhood crypto because there are none.
Don’t Miss: How To Keep Your Crypto Safe
How Does Robinhood Crypto Work
Whether youre buying or selling crypto, an estimated price is provided on the order screen of the Robinhood app. This amount is based on various exchanges, market centers, and trading venues, allowing Robinhood to decide on the best price they will offer.
Robinhood customers are also protected from the volatility of the market through trade collaring. Your order will not be processed if the current price is lower than the last trading price by a set percentage.
You can also set limit orders so your trade is executed once a crypto hits a certain price.
Stock And Etf Trading
Robinhood’s original product was commission-free trades of stocks and exchange-traded funds. In February 2016, Robinhood introduced instant deposits, crediting users instantly for deposits up to $1,000 previously, funds took three days to appear via ACH transfer. In September 2016 they launched Robinhood Gold, a premium subscription plan that offers up to $50,000 in instant deposits, trading, and more market analytics. As of February 2017, the company had executed over $30 billion in trades. In August 2017, the company began offering free stocks in exchange for referring new users. In December 2017, options trading was introduced. Services not offered include retirement accounts, mutual funds and bonds.
Robinhood typically only supports trading stocks and ETFs listed on the Nasdaq and New York Stock Exchange, and normally does not support over-the-counter securities such as those traded on OTC Markets. In August 2018, Robinhood introduced support for American depositary receipts, adding 250 highly searched international stocks. Robinhood has prohibited its users from purchasing some high-risk penny stocks, such as banning purchases of Helios and Matheson Analytics, the owner of MoviePass, in August 2018.
Read Also: How To Get Started In Crypto
I Wish You Had More Crypto And Coins In General
I would like to invest in some other securities that robinhood doesnt have. I feel you guys are losing clients to this matter. Also, there are some stocks you guys dont allow on the site but are on others. Finally, I wish you guys would make trading extended from 4am-8pm. Again some other brokerages allow that. I feel that these 3 main reasons are holding you guys back alittle when you could have 100 million users instead of where we stand today. Im with you 100%. Two wks ago I was alittle weary and Alot of fellow traders im friends with all started discussing leaving robinhood for other brokerages like webull and ameritrade etc etc again some prob left your brokerage over the squeeze ordeal. I had an issue with it also. I know you guys float money but this should have been thought of before you became a bank pretty much per say. We lost thousands and tens of thousands of dollars off of the retrained that were put on us. Even with crypto. That was alittle outside of character. I understand why but it screwed us when if we were on or with another brokerage per say that wouldnt have happened and Id have another 7-12k or more in my acct. right now. Just giving you the word on the street lol anyway you guys have made your site very easy to use and its all at your fingertips all in all. Thanks and hope this helps. Mike
Coinbase Vs Robinhood: Which Is The Better Crypto Brokerage
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks or securities.
A proper comparison of Coinbase and Robinhood depends on what service youre looking for. Robinhood follows the playbook of a traditional stockbroker. Through the app, you can buy stocks and exchange-traded funds on the stock market, but it also has a limited menu of cryptocurrencies.
Coinbase, on the other hand, only offers cryptocurrencies , and a lot more of them. Plus, Coinbase has capabilities that could be considered essential when buying crypto capabilities Robinhood currently doesnt have.
One advantage Robinhood has over Coinbase is the cost to purchase cryptocurrencies. On Robinhood, its free. You can buy and sell crypto as frequently as you want with no fees whatsoever . Youll still have to pay the spread .
Fees winner: Robinhood.
Robinhood, on the other hand, currently lists seven.
Cryptocurrency selection winner: Coinbase.
Crypto capabilities winner: Coinbase.
Read Also: How To Take Crypto Off Exchange
Robinhood Platform Dashboard And Account Creation
This platform is quite easy for both beginners and advanced investors. You can start trading through Robinhood in four minutes alone. Below are the five steps that one need to take to start trading:
1. Create a Robinhood profile 2. Enter contact information 4. Fund your account 5. Download the App
Its web trading platform and mobile App are quite easy to use. The trader isnt allowed to customize the platform. However, the default workplace is simple to understand.
After the account creation process, the platform would ask you to create a Watchlist. After setting up the watchlist, you are free to trade any stock, ETF, cryptocurrency or options.
Its mobile trading platform is also available both on Android devices and iOS. The design of the mobile platform is similar to the web.
However, its mobile app does not offer the stock screener. Some functions like the collections, the analyst ratings and the price paid are only available on the web platform.
The platform shows the basic information about the stock along with other fundamental data both on mobile and on the web trading platform.
Its charting feature is same on web and mobile. They offer basic and simple charts. Traders can only see the price change on these charts the platform does not offer technical charts and signals.
What Are The Cons Of Robinhood
Robinhood is much better than the competition wants you to believe. But there are some limitations.
First, you will not have access to a deep set of technical analysis tools. Robinhood is more about placing orders than it is about deciding when to order. If you have another way to make your decisions or receive signals and you just need a place to execute trades, then this is a non-issue.
Second, as mentioned above, volume information is not there for cryptocurrency yet. Wed prefer a bit more transparency as well as some insight into when the most liquid times to trade are.
Third, it is geographically limited which excludes many of our global Crypto-ML Members.
- This is about the extent of your analytics.
Also Check: How Much Is Bitcoin Cash Now
What To Provide To Your Tax Professional
Even though it may seem mainstream nowadays, the reality is that crypto is still some time away from truly having widespread use. In tax terms, crypto taxation is still in its infancy. It was only back in 2014 when the first IRS guidelines were introduced. As such, it can become challenging to manage your crypto gains and losses since very few CPA firms have real expertise on the subject.
Robinhood Commissions And Fees
Robinhood was the first major brokerage platform to eliminate commissions on stock and options trading, helping to revolutionize the industry. Today, commission-free trading of stocks and exchange-traded funds has become the standard.
Customers must pay at least $5 per month for Robinhood Gold to get access to a margin account, including $1,000 in margin credit, and research materials. Robinhood Gold also provides customers with quicker access to funds and the ability to make larger deposits.
For any margin above $1,000, there is a very competitive 2.5% annual interest rate, which is calculated daily and charged to the customers account at the end of each monthly billing cycle.
Robinhood receives payment for order flow, or directing orders to third-party market makers in exchange for a fee. These third parties may or may not be able to provide faster trades or better prices. But because Robinhood gets paid whether or not they improve order speed and price for its clients, some industry experts are critical of this practice.
Don’t Miss: What Are Nodes In Cryptocurrency
Can I Transfer Crypto From Coinbase To Robinhood
You cant transfer any coins into or out of Robinhood. To use Robinhood, you must purchase crypto using the USD fiat currency via a connected bank account. You cant move your coins unless you sell them for cash. Coinbase provides a digital wallet for users, so you can transfer supported currencies to your Coinbase wallet and use it to make crypto to crypto trades.
Robinhood Crypto Vs Robinhood Financial
When thinking about purchasing crypto on the Robinhood Crypto platform, it’s important to keep in mind that Robinhood Crypto and Robinhood Financial are two separate companies. There are a couple of key implications that this has on Robinhood users.
Robinhood Financial housed your brokerage account and Robinhood Crypto houses your crypto account. This means that if you have a margin account through Robinhood Gold, that only applies to your Robinhood Financial account. You cannot purchase cryptos on margin, nor can you use your cryptos as collateral to increase your buying power on Robinhood Financial. In the eyes of Robinhood, these are two totally separate accounts with two separate companies.
That being said, if your Robinhood Financial account is restricted or suspended, you may also find your Robinhood Crypto account restricted. While it’s unlikely you will have your account suspended unless you are engaging in dangerous or illegal behavior, know that they will treat the accounts as separate or as connected when it most benefits them.
Essentially, when it is beneficial to Robinhood to treat these accounts as separate, they will do so. At the same time, when it works to their advantage to treat both accounts as one, they will opt for that treatment. In the grand scheme of things, this shouldn’t have a significant impact unless you are trying to take on a significant amount of margin from Robinhood.
Don’t Miss: How To Mine Cryptocurrency 2021