Coinbase Vs Robinhood: Currencies
Robinhood offers a very limited selection of crypto, including Bitcoin, Ethereum, and Dogecoin . Coinbase, on the other hand, 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 other hand, measures its minimum purchase amount in the native token. For example, the minimum Bitcoin purchase amount is 0.0001 Bitcoin . So if Bitcoin’s price is $60,000, you can purchase as little as $6 of Bitcoin.
Should You Use Robinhood To Trade Crypto
We have been pleasantly surprised with nearly all aspects of Robinhood. It certainly paints a bright future for traders.
If you can accept it as a platform to execute trades and nothing more, then you will find it to be excellent as well. Just ensure you have an alternate way to do your analysis and receive signals.
Whats your experience? Let us know below.
Robinhood Crypto Review: The Cons
At this point, the Robinhood Crypto exchange probably sounds like a pretty safe bet. A simple, gamified investment experience with zero fees? Its a great tool to get started.
Like everything, though, there are a few drawbacks to using Robinhood Crypto. Weve already touched a little bit on the biggest one: functionality.
Robinhood Crypto was introduced in 2018. Two years on, the company still hasnt made it possible to withdraw your coins. That means all you can do, besides buying and selling, is look at your crypto.
This is a shortcoming, especially given that there are other exchanges that do allow withdrawal. Some of them even have no fees, just like Robinhood.
You can, of course, withdraw your investment to a US bank account. The unfortunate reality of this is youll need to pay capital gains tax on any earnings.
Another limitation is the number of coins available. Other exchanges offer a wider range of currency selection. That gives you more options and allows you to diversify your crypto holdings more.
The limited range of coins is complemented by a relative lack of extra features. This is a basic interface for trading. While its a great way to get started, its not necessarily the right choice for investors who want more.
Recommended Reading: What Does Each Cryptocurrency Do
Coinbase Vs Robinhood: Customer Support
Coinbase has begun to offer phone support in select regions, with further expansion in 2022. Otherwise, users in trouble can use the Coinbase support center on their website to try to find the answer to their questions. If they are in need of personal assistance, users must file a support ticket. This process can take days to get resolved.
Robinhood offers a similar support center and, as with other traditional brokerages, including email and live chat.
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.
Also Check: What Is Riot Blockchain Stock
Coinbase Vs Robinhood: Which Is Better For Trading Crypto
Objectively, its a challenge to compare Coinbase and Robinhood, as they are different kinds of trading platforms. One is specifically designed for trading cryptocurrency, while the other is a brokerage trading platform that wants to extend its services on the crypto market.
With that being said, Coinbase is the better choice for buying crypto. Its easy to use, and it still represents the best options for new cryptocurrency investors. Although its fee structure is confusing, all registered users on Coinbase can access Coinbase Pro using the same account. This tier of the exchange offers significantly lower trading fees and other features.
Pros & Cons Of Robinhood
- No fees or commissions on trading activities on Robinhood.
- Robinhood offers an easy-to-use trading app, both for Android & Apple users.
- Your investments are secure for up to $500K by Securities Investor Protection Corporation, in case Robinhood fails.
- Both traditional investment & emerging investment like cryptocurrencies options are available on Robinhood.
- Supports weekly, bi-weekly, monthly, and quarterly automatic transfers.
- No crypto deposits & withdrawal options are available on Robinhood.
- Robinhood does not support retirement accounts & mutual funds, or bonds.
- Quite limited in terms of research capabilities.
- Extremely limited customer support. No phone or live chat service is available for brokerage account holders.
- Compared to some of the leading crypto exchanges, Robinhood offers fewer cryptocurrencies for trading.
- Robinhood app is highly prone to failure. It had failed three times in March 2020 alone. It can be a pressing issue for advanced & professional traders.
- There are geographical restrictions for using Robinhood as only US-baser users are allowed to use Robinhood.
- Robinhood can place restrictions on your account in some circumstances like being flagged for pattern day trading, which in turn, will prevent you from trading on Robinhood.
Also Check: How Does Bitcoin Look Like
Coinbase Vs Robinhood: Deposits Methods
On both Coinbase and Robinhood, users need to register for an account to be able to deposit funds and trade crypto.
Coinbase requires users to verify their identity and home address before getting access to crypto trading.
On Coinbase, users can deposit fiat via SEPA bank transfers, which take between one and three working days and up to seven days if sent over the weekend or holiday. The second and more convenient option is to instantly purchase crypto using a credit or debit card. The platform accepts USD, EUR, and GBP. For level 2 verified accounts, there is a limit of 3,000/week for 3D Secure purchases for EU clients. There is no limit to depositing crypto to your Coinbase account.
Robinhood is also easy to use. Users can purchase crypto with only a few clicks. To deposit funds on Robinhood, users need to link their bank account. However, users get access to up to $1000 for purchasing crypto, and the rest of the funds are available after normal settlement times. Traders cannot deposit crypto to their Robinhood account.
Youre Losing Money By The Day
While this article contains affiliate links, everything stated in this article is my genuine opinion.
With Bitcoins recent bull run and all the accompanying hype around it, many investors are looking into buying Bitcoin or Etherium. But many find the concepts and technology backing Bitcoin to be quite confusing. Stories of Bitcoin hacks and no FDIC insurance scares away many potential investors who dont have time to worry over their money at this level. Is the potential growth worth the potential risk of losing everything to an internet scammer?
Since itsconception in 2013, the young stock brokerage has risen in popularity for its simple-to-use app and zero trading commissions. And in 2018, Robinhood added the ability to trade a few of the top cryptocurrencies.
At first, glance, using Robinhood to invest in crypto seems amazing. No trading fees, an app with a clean interface and credibility, plus no worries of all the scammer stuff. Just buy in and sit back. Right?
If its too good to be true, it is. And that applies to Robinhood.
No, Robinhood isnt trying to scam people and steal your money. Everything about the no fees and no scammers is true. But Robinhood is missing a few key elements that prohibit it from being a service I recommend .
Also Check: Why Is Blockchain Called Blockchain
User Interface And Mobile App
When compared to most exchanges, the trading interface on Robinhood Crypto is fairly basic. For those that are new to cryptocurrency, this might be considered a positive. For traders who want to use more advanced interfaces , Robinhood is not likely to be the best option for you. However, the fact that this exchange offers access to fiat trading makes it an enticing option.
Robinhood Crypto doesnt have its own dedicated app. Instead, youll have to download the ordinary Robinhood app for iOS or Android. The cool thing about this app is that you can also use it to invest in other markets . For many people, Robinhood provides a more convenient option than having to use multiple platforms to manage various investments, assets, etc.
Mobile app reviews are quite positive overall. On Google Play, Robinhood has 4.6 stars with 80,595 reviews. On iTunes, it has 4.8 stars with over 628,200 reviews. Its also ranked as the 14th most popular app in the Finance category on iTunes.
Robinhood Crypto has a simple user interface.
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: Which Crypto Exchange Accepts Credit Card
Coinbase Vs Robinhood: Fees
Robinhood claims no-fee trading for both stocks and crypto. And while this may technically be true, Robinhood was under scrutiny from the SEC for their practice of payment for order flow. Essentially, all trades are brought to market makers to execute the trade, who pay Robinhood a fee, typically a percentage of the trade. The exact amount for crypto trades is not disclosed.
Coinbase, on the other hand, charges a flat fee of 0.50% for transactions, and additional fees based on which method of payment was used. These fees are fairly high.
Here is a breakdown of how Coinbase and Robinhood charge fees based on account type:
Coinbase Vs Robinhood: Supported Assets
Coinbase only supports cryptocurrency trading and doesnt offer any other assets, such as stocks. The exchange supports fiat-to-crypto and crypto-to-crypto trades on its platform, and it offers over 100 cryptocurrencies.
Robinhood offers access to over 5,000 stocks, options, and digital assets, including U.S. Exchange-Listed Stocks and ETFs. Using the app, users can trade stocks listed on NYSE and NASDAQ, except for Mutual Funds or Bonds. Over 650 global stocks are offered through American Depositary Receipts .
However, Robinhood is a crypto broker and only offers seven cryptocurrencies for trading. Users can buy assets such as bitcoin and ethereum on Robinhood in USD, while Coinbase supports USD, EUR, and GBP.
Read Also: Where To See Cryptocurrency Prices
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
Robinhood Vs Coinbase: The Biggest Differences
Robinhood and Coinbase are both popular online investment platforms offering a vast range of investment choices for active traders. Both investment apps let you trade multiple cryptocurrencies like bitcoin, ethereum, dogecoin, and more.
But the platforms each have evident differences that you should consider before signing up. Robinhood is ideal for traders looking for exposure to multiple asset types . Coinbase, on the other hand, is a better option for traders in search of trading features specific to cryptocurrencies.
- Limited educational resources and investment research
- No joint accounts, IRAs, or custodial accounts
- Limited cryptocurrency selection Robinhood crypto isn’t available to residents of Hawaii, New Hampshire, West Virginia, or Nevada
- Can’t designate beneficiaries, nor can you transfer crypto into or out of your Robinhood account
Robinhood is an online brokerage offering commission-free trading on stocks, ETFs, options, and cryptocurrencies. In addition to its lack of minimum account size requirements, Robinhood also offers Robinhood Gold , cash management perks, fractional shares, and American depositary receipts .
Compared to Coinbase, Robinhood is the best option for traders who want to merge traditional investments and cryptocurrencies under the same umbrella. Though Robinhood has a much smaller crypto selection than Coinbase, it does offer a wider variety of investment choices.
Read Also: What Is Kyc In Crypto
Protection Against Drastic Market Changes
Cryptocurrency prices can be quite volatile. Robinhood Crypto uses a collar to keep your buy/sell prices within a certain range.
A limit order tells the system to buy or sell a specific amount at a specified price. Market orders are adjusted against limit orders, providing a collar.
That means your limit order may not execute if the price moves outside an acceptable range. This can protect sellers against dramatic drops in prices. It also protects buyers safe from huge upswings.
Youre Our First Priorityevery Time
NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
We believe everyone should be able to make financial decisions with confidence. And while our site doesnt feature every company or financial product available on the market, were proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.Here is a list of our partners.
Don’t Miss: How To Buy Amazon Cryptocurrency
Coinbase Vs Robinhood: At A Glance
|Buy, sell, and exchange cryptoCredit card purchases available||All-in-one option for crypto and stock trading|
|Fees||Additional 1.49% for bank account or CoinbaseWallet purchasesAdditional 3.99% for debit or credit card purchases$10 deposit$25 withdrawal fee for wire transfers||0% fee for buying and selling cryptoCost of buying crypto may be marked up a significant amount due to payment for order flow|
|Number of cryptocurrencies supported|
|2FA via SMS or Google Authenticator appCold storage and multi-signature walletsUSD balances are FDIC insured KYC and anti-money laundering protections in place||2FA via SMS or Google Authenticator appCold storage of cryptoUSD balances are FDIC insured Biometric access controls on app|
|Types of transactions||Limit order|
Should You Choose These Over Traditional Exchanges
Even the more popular cryptocurrency exchanges like Coinbase and Gemini may not be platforms youve ever heard of or trust with your financial information. And others are simply difficult to navigate, making the process of buying crypto even more complicated for beginners.
Because theres little federal regulation, it can be difficult to evaluate how secure or reputable a traditional crypto trading platform is. While apps like Venmo or PayPal cant protect your crypto holdings under FDIC insurance like they can your cash, familiarity with these apps can make the experience a bit simpler maybe you already have your financial information linked, or the user interface is just more familiar.
How much transaction volume and transparency into their financials and business operations I really think is the stuff you want to look at, says Douglas Boneparth, a financial advisor and president of Bone Fide Wealth in New York. Are most people going to do that? No, theyre going to find the easiest app to download and link their bank account, and make it easy to buy crypto again. Thats kind of the appeal of mobile apps and the like.
But many experts view the apps as a jumping off point, not necessarily somewhere theyd recommend you keep your coins long-term.
You May Like: Is Cryptocurrency Safe To Buy