When Bitcoin and other cryptocurrencies surged into mainstream awareness in 2017, the options for cryptocurrency trading multiplied. Today, Coinbase and Robinhood stand as two of the most trusted platforms for crypto trading. Deciding between them can be challenging, so let’s explore their features, fees, security, and more to help you choose the right fit.
Coinbase vs Robinhood Compared
Coinbase
- Funding Methods: Debit & Credit Bank, PayPal, ACH, Bank Transfer, e-Transfer
- Cryptocurrencies: 100+
Robinhood
- A streamlined platform for crypto and stock investing.
- Easy onboarding with minimal user requirements.
- Fully regulated in the United States.
- Supported Cryptocurrencies: BTC, ETH, LTC, BCH, DOGE, ETC, BSV
- Fees: Commission-free trading
Coinbase Overview
Synonymous with cryptocurrency accessibility, Coinbase revolutionized Bitcoin purchases in 2012 by prioritizing ease of use.
Pros
✅ Pioneer in Crypto Accessibility: Simplified Bitcoin purchases since 2012.
✅ High Liquidity: Trusted by regulators, ensuring market stability.
✅ Curated Coin Selection: Thoughtful additions to avoid low-quality assets.
✅ Versatility: Caters to beginners and advanced traders.
Cons
❌ Higher Fees: Standard platform fees are steeper than Coinbase Pro.
❌ Scalability Issues: Struggles with traffic spikes during market volatility.
👉 Explore Coinbase’s advanced features
Robinhood Overview
Launched in 2013, Robinhood initially focused on stocks before expanding into crypto, leveraging its user-friendly design.
Pros
✅ Dual Marketplace: Trade crypto and stocks in one app.
✅ Low Fees: Near-zero trading costs (though buy/sell spreads apply).
✅ No Minimum Deposits: Start investing with any amount.
Cons
❌ No Crypto Withdrawals: Assets must remain on the platform.
❌ Limited Altcoins: Only seven cryptocurrencies supported.
Key Comparison Factors
1. Beginner Friendliness
- Robinhood: Ideal for first-time investors in stocks and crypto.
- Coinbase: Better for crypto-focused users seeking broader coin options and wallet withdrawals.
2. Trust & Security
- Coinbase: No major hacks reported, but wallet withdrawals increase theft risk.
- Robinhood: Operates within traditional finance, enabling reversible transactions.
3. Fees
- Robinhood: ~0.1% spread on trades (no direct fees).
- Coinbase: 1.5% fee on standard trades; lower rates on Pro.
4. Sign-Up Process
- Robinhood: Requires only a Social Security number for full access.
- Coinbase: Demands ID verification for higher limits.
5. Cryptocurrency Selection
- Coinbase: 100+ coins.
- Robinhood: 7 coins (including Bitcoin SV, unavailable on Coinbase).
Standout Features
- Robinhood: Unified investing for crypto and stocks.
- Coinbase: Empowers users with wallet control and crypto education.
👉 Discover more about crypto trading strategies
FAQ
Q: Can I withdraw cryptocurrencies from Robinhood?
A: No. Robinhood restricts withdrawals, unlike Coinbase.
Q: Which platform has lower fees?
A: Robinhood generally offers lower costs, but Coinbase Pro is competitive.
Q: Is Coinbase better for altcoin trading?
A: Yes, with 100+ coins vs. Robinhood’s 7.
Final Verdict
- Choose Robinhood if you want a simple, all-in-one investing app for stocks and crypto.
- Opt for Coinbase if you prioritize crypto diversity, wallet control, and deeper market engagement.
Both platforms excel in different ways—align your choice with your financial goals and trading style.