If you are new to cryptocurrency trading, Coinbase and Robinhood are two reliable, easy-to-use platforms based in the U.S. that you can consider. Both platforms allow beginners to buy and sell cryptocurrencies, but they differ in terms of features, available assets, and trading options.
While Robinhood allows users to buy a limited number of cryptocurrencies alongside stocks, options, and ETFs, Coinbase is a full-fledged crypto exchange that supports a wide variety of digital assets and multiple payment methods.
In this guide, we compare Coinbase and Robinhood based on several factors, including the number of supported cryptocurrencies, platform features, fee structures, security, payment methods, and overall usability.
For a deeper look at Coinbase’s features and services, check out our detailed Coinbase review, which highlights why Coinbase is often considered the stronger choice for crypto investors.
Coinbase vs. Robinhood: What You Need to Know
Important Warning
Unlike traditional brokerage firms, cryptocurrency exchanges are not insured by the Securities Investor Protection Corporation (SIPC). This means that unless the platform specifies otherwise, if a custodial crypto exchange is compromised or goes bankrupt, users could potentially lose their funds as unsecured creditors.
Risk Reminder
Investing in cryptocurrencies, DeFi projects, or initial coin offerings (ICOs) is highly speculative and risky. Crypto markets are very volatile, and prices can change rapidly. Always consult a qualified financial professional before making investment decisions. This content is not financial advice and is intended for informational purposes only.
Coinbase Overview
Coinbase is a popular digital asset platform available in over 100 countries (all U.S. states except Hawaii). It allows users to buy, sell, send, receive, and exchange over 250 cryptocurrencies and tokens, making it one of the largest crypto exchanges in the world.
Key Features:
- User-friendly apps: Easy to navigate for beginners and advanced traders alike.
- Payment flexibility: Deposit and withdraw using PayPal, digital wallets, or bank transfers.
- Security: Offers two-step verification, biometric logins, AES-256 encryption, cold storage of 98% of assets, and insurance for hot wallet breaches. USD balances are FDIC-insured.
- Advanced trading tools: Coinbase Advanced Trade provides professional-level features for experienced traders.
- Additional services:
- Staking rewards: Earn rewards by holding certain crypto assets.
- Learning rewards: Complete educational modules and earn crypto incentives.
- Crypto derivatives: Trade futures and leverage-based crypto products.
- NFT marketplace: Buy, sell, and collect NFTs.
- Web3 wallet: Store funds securely in a non-custodial wallet alongside Coinbase’s hot wallets.
Fees:
Coinbase’s fee structure can be complex, with costs varying based on trade size, payment method, location, and market conditions. Maker-taker fees can go up to 0.60%, while other transaction fees are calculated during the trade.
Pros:
- Supports 250+ cryptocurrencies and tokens
- Learning rewards and staking options
- Advanced tools for professional traders
- Multiple payment and withdrawal methods
Cons:
- Complex fee system
- Limited customer support options
Robinhood Overview
Robinhood is a beginner-friendly trading platform that supports crypto, stocks, options, and ETFs, making it more of a general investment app than a dedicated crypto exchange. It is only available in the U.S., but all states are supported.
Key Features:
- Intuitive interface: Easy to use, ideal for first-time investors.
- Crypto trading: Buy and sell 15 cryptocurrencies directly on the platform.
- Stocks and ETFs: Access a wide range of U.S. stocks and ETFs.
- Options trading: For more experienced traders.
- Cash management: Earn up to 3.25% APY on uninvested cash.
- Crypto wallets: Since 2022, users can store crypto in Robinhood wallets.
Fees:
Robinhood does not charge trading commissions, but it makes money through a payment for order flow (PFOF) system. This means that user orders are routed through market makers, who compensate Robinhood for executing trades.
Pros:
- Beginner-friendly and easy to navigate
- No trading commissions
- Offers crypto, stocks, options, and ETFs
Cons:
- Supports only 15 cryptocurrencies
- Only available to U.S. residents
Supported Cryptocurrencies
Coinbase supports over 250 crypto assets, while Robinhood offers 15 assets, all of which are available on Coinbase. Both platforms support popular cryptocurrencies such as:
- Bitcoin (BTC)
- Ethereum (ETH)
- USD Coin (USDC)
- Cardano (ADA)
- Solana (SOL)
- Dogecoin (DOGE)
- Polygon (MATIC)
- Shiba Inu (SHIB)
- Avalanche (AVAX)
- Ethereum Classic (ETC)
- Uniswap (UNI)
- Litecoin (LTC)
- Chainlink (LINK)
- Stellar Lumens (XLM)
- Bitcoin Cash (BCH)
- Tezos (XTZ)
- Aave (AAVE)
- Compound (COMP)
Unlike Robinhood, Coinbase allows users to deposit in USD, EUR, or GBP, while Robinhood only accepts USD deposits.
Security Comparison
Both Coinbase and Robinhood prioritize security, using industry-standard measures to protect funds:
- Two-factor authentication (2FA)
- FDIC insurance on USD balances
- Cold storage for crypto assets
Coinbase stores 98% of crypto in offline cold storage and has insurance for hot wallet breaches. Robinhood also stores crypto offline but doesn’t disclose the percentage. Additionally, Robinhood users benefit from SIPC coverage for stocks, ETFs, and cash balances in case of platform insolvency.
Ease of Use
Both platforms are beginner-friendly, offering simple signup processes, intuitive apps, and easy-to-navigate web platforms. On both platforms, trading crypto works similarly to buying stocks. Robinhood adds extra flexibility by allowing users to trade multiple asset classes, including ETFs and options.
Final Verdict
Both Robinhood and Coinbase are top choices for buying and selling digital assets.
- Robinhood is best for beginners who want a simple app to trade crypto, stocks, ETFs, and options without commissions.
- Coinbase is ideal for investors who want access to a wide variety of cryptocurrencies, advanced trading tools, staking, crypto derivatives, NFTs, and educational rewards.
Your choice depends on whether you prioritize variety of crypto assets and advanced features (Coinbase) or simplicity and multiple investment options in one app (Robinhood).
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