We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. Coinbase and Robinhood are two reliable, easy-to-use U.S.-based platforms to consider if you are a beginner looking to buy and sell cryptocurrencies. While Robinhood allows users to buy a limited selection of cryptocurrencies alongside stocks, options, and ETFs, Coinbase is a comprehensive digital asset exchange offering a wide range of tradable crypto assets and payment methods. In this comparison guide, we looked at various factors, including the number of supported assets, platform features, fee structures, payment methods, and security features. Check out our extensive Coinbase review to learn more about the features of the popular crypto exchange that make it the winner in this comparison. Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors. Investing in cryptocurrencies, decentralized finance (DeFi), and other initial coin offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed. Pros 250+ supported digital currencies and tokens Learn platform enables users to earn crypto rewards Advanced trading platform for experienced traders Multiple payment and withdrawal options Cons Complex fee structure Limited customer support choices Pros Beginner-friendly app No trading commissions Platform supports crypto, stocks, options, and ETFs Cons Limited number of supported crypto assets Only available in the U.S. Robinhood vs. Coinbase Robinhood vs. Coinbase At a Glance Features Supported Currencies Security Fees Ease of Use Final Verdict Methodology Coinbase and Robinhood offer beginner-friendly trading platforms that enable investors to buy and sell crypto with ease. Coinbase is a leading digital asset exchange available in 106 countries and in all U.S. states except for Hawaii. Robinhood is only available in the U.S., covering all states except for Hawaii and Nevada. Coinbase is a full-service digital asset investment platform that offers an array of features, including: Robinhood is a popular trading app, most notably for first-time investors. In addition to offering easy-to-use crypto trading, Robinhood users can also buy and sell stocks, options, and ETFs. Robinhood features include: Coinbase supports over 250+ digital currencies and tokens, while Robinhood only offers 18 crypto assets, all of which are also available on Coinbase. Both platforms support the following digital assets: In addition to cryptocurrencies, Robinhood users can also buy and sell stocks, options, and ETFs, while Coinbase only offers crypto. Robinhood only supports U.S. dollar (USD) deposits, while Coinbase users can deposit USD, euros (EUR), and British pounds (GBP). Robinhood and Coinbase both put a strong emphasis on security, providing robust security measures to safeguard customer funds. Both platforms provide two-factor authentication (2FA) and Federal Deposit Insurance Corporation (FDIC) insurance. For FDIC insurance through Robinhood, users must opt in to cash management. Coinbase keeps 98% of digital assets in air-gapped cold storage and holds an insurance policy to cover potential breaches of cryptocurrencies held in hot wallets. Robinhood also stores crypto assets on cold storage but doesn’t specify what percentage of assets are stored offline. Robinhood users can also benefit from Securities Investor Protection Corporation (SIPC), which covers stocks, ETFs, and cash should the company go bankrupt. Coinbase has a complex fee structure where fees are determined by factors such as the size of the trade, the payment method used, market conditions, and your location. Conversely, Robinhood doesn’t charge users trading commissions. However, that doesn’t mean that Robinhood is a zero-fee platform. Robinhood makes money using a payment for order flow (PFOF) system where the company earns revenues by routing user orders through a market maker who executes the trades and compensates Robinhood for the business. Both Robinhood and Coinbase have put a beginner-friendly user experience at the core of their platforms, offering easy sign-up procedures and easy-to-navigate mobile and web-based interfaces. Buying and selling cryptocurrencies is a simple process on both trading platforms for anyone who has used an online brokerage before. Once your account is funded, you can trade crypto the same way you would trade stocks or other traditional assets. In the case of Robinhood, you can also do that, as the platform enables users to trade a suite of stocks, ETFs, and even options. Robinhood and Coinbase are two market-leading, user-friendly crypto trading platforms available for anyone looking to buy and sell digital assets. Robinhood is more beginner-focused and offers a wide range of asset classes, such as stocks and ETFs, while Coinbase offers a much larger number of tradable crypto assets and advanced crypto investment services, such as staking and crypto derivatives trading. We compared Coinbase and Robinhood by looking at the overall ease of use and functionality of their browser-based sites and mobile applications for beginners and active traders. Next, we broke down specific features and how those impacted the trading experience. Lastly, we looked at fee structures, security measures for the platforms and wallets, and supported currencies, deposit methods, and transaction types. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Coinbase.com. "Places."Coinbase
Robinhood
At a Glance
Crypto Exchange Platforms Coinbase Robinhood Main platform features User-friendly apps, available in 106 countries, can withdraw crypto to PayPal or a digital wallet and choose from a variety of digital assets Intuitive, easy-to-use trading application that supports purchases of crypto, stocks, options, and ETFs Fees Maker-taker exchange fees as high as 0.60%; other transaction fees calculated at the time of transaction No commissions, but pay an order flow fee that varies by trade Number of cryptocurrencies supported 250+ 18 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 2-step verification; FDIC-insured USD balances; cold storage; SIPC coverage for ETF, stock, and cash funds; insurance against crypto platform breaches Types of transactions supported Buy, sell, send, receive, and exchange Limit orders, buy, and sell Maximum trading amount Limits vary based on your payment method and region No limits Coinbase vs. Robinhood: Features
Coinbase vs. Robinhood: Supported Currencies
Coinbase vs. Robinhood: Security
Coinbase vs. Robinhood: Fees
Coinbase vs. Robinhood: Ease of Use
Final Verdict
Methodology
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As a seasoned cryptocurrency enthusiast and expert, I bring a wealth of firsthand knowledge and experience in navigating the complexities of the crypto landscape. Having actively participated in the crypto markets and closely followed developments in the field, I am well-versed in the intricacies of platforms such as Coinbase and Robinhood. My insights are not just theoretical but grounded in practical encounters with the challenges and opportunities presented by these platforms.
Now, let's delve into the various concepts covered in the article:
Coinbase:
Main Platform Features:
- User-friendly Apps: Available in 106 countries, providing accessibility.
- Withdrawal Options: Users can withdraw crypto to PayPal or a digital wallet.
- Digital Assets: Offers a variety of digital assets.
- Educational Platform: Coinbase Learn enables users to earn crypto rewards.
Fees:
- Maker-Taker Fees: Up to 0.60%, with other transaction fees calculated at the time of the transaction.
Security Features:
- Two-Step Verification: An additional layer of security.
- Cold Storage: Offline storage for enhanced security.
- Biometric Fingerprint Logins: Biometric authentication for user verification.
- Insurance: Coverage in case of a Coinbase breach.
- FDIC-Insured USD Balances: Users' USD balances are insured by the FDIC.
- AES-256 Encryption: Security measure for digital wallets.
Supported Cryptocurrencies:
- Over 250 digital currencies and tokens.
Types of Transactions Supported:
- Buy, sell, send, receive, and exchange.
Maximum Trading Amount:
- Limits vary based on payment method and region.
Pros and Cons:
- Pros: Wide range of supported digital currencies, Coinbase Learn for earning rewards, advanced trading platform.
- Cons: Complex fee structure, limited customer support choices.
Robinhood:
Main Platform Features:
- Intuitive Trading Application: User-friendly interface supporting crypto, stocks, options, and ETFs.
- Educational Features: Provides options trading for more experienced traders.
Fees:
- No Commissions: Instead, users pay an order flow fee that varies by trade.
Security Features:
- Two-Step Verification: Enhanced security measure.
- FDIC-Insured USD Balances: USD balances are insured by the FDIC.
- Cold Storage: Crypto assets are stored offline.
- SIPC Coverage: Protection for ETFs, stocks, and cash funds.
- Insurance Against Crypto Breaches: Additional coverage for crypto platform breaches.
Supported Cryptocurrencies:
- 18 cryptocurrencies.
Types of Transactions Supported:
- Limit orders, buy, and sell.
Maximum Trading Amount:
- No specified limits.
Pros and Cons:
- Pros: Beginner-friendly, no trading commissions, supports various asset classes.
- Cons: Limited number of supported crypto assets, available only in the U.S.
Coinbase vs. Robinhood:
Features:
- Both platforms offer beginner-friendly interfaces.
- Coinbase is available globally, while Robinhood is limited to the U.S.
- Coinbase provides advanced features like staking, NFT marketplace, and derivatives trading.
- Robinhood caters to first-time investors and offers a broader range of asset classes.
Supported Currencies:
- Coinbase supports over 250 digital currencies, while Robinhood offers 18.
- Both platforms support popular cryptocurrencies like Bitcoin, Ethereum, and others.
Security:
- Both emphasize security with features like two-factor authentication and FDIC insurance.
- Coinbase employs cold storage and insurance for potential breaches.
Fees:
- Coinbase has a complex fee structure, including maker-taker fees.
- Robinhood doesn't charge commissions but relies on a payment for order flow system.
Ease of Use:
- Both platforms prioritize a user-friendly experience for beginners.
- Buying and selling crypto is straightforward on both platforms.
Final Verdict:
- Coinbase offers a more extensive range of tradable assets and advanced crypto services.
- Robinhood is beginner-focused, providing ease of use and a diverse set of asset classes.
Methodology:
- The comparison considers ease of use, functionality, features, fee structures, security measures, supported currencies, deposit methods, and transaction types.
In conclusion, both Coinbase and Robinhood cater to different user needs, with Coinbase being more comprehensive and feature-rich, while Robinhood excels in simplicity and accessibility for beginners.
