| Fees | Coinbase | Robinhood |
|---|---|---|
| Bank account | 1.49% | 0% fee |
| Wallet | 1.49% | N/A |
| Debit/credit cards | 3.99% | N/A |
| ACH transfer | Free | Free |
| Wire transfer | $10 deposit, $25 withdrawal | N/A |
| Crypto conversion | 0.50% to 2% | N/A |
| Purchases | 0% to 0.50% | N/A |
| Trades | 0.50% | N/A |
| Other fees | $0.99 to $2.99 based on the amount | N/A |
Coinbase vs. Robinhood: Ease of Use
Although Coinbase and Robinhood differ in many ways, both are incredibly user-friendly and built for first-time investors. It’s slightly quicker to sign-up and trade on Coinbase because it accepts debit or credit card payments, whereas Robinhood only allows ACH transactions. Both applications provide mobile apps for Android and iOS devices, with the Coinbase app receiving higher ratings.
You’ll find a knowledge base and articles about trading on both sites. Still, Coinbase goes a step further by offering videos and opportunities to earn small amounts of crypto for watching short video snippets.
Both companies offer customer service via email, and responses aren’t always timely, so regardless of which platform you use, you may not get an immediate reply to your question.
Frequently Asked Questions (FAQs)
What Are Coinbase and Robinhood?
Coinbase and Robinhood provide platforms for investors to buy and sell cryptocurrency. Coinbase is a crypto exchange, so you can make crypto to crypto trades and withdraw your coins to PayPal or your Bitcoin wallet. In contrast, Robinhood is a brokerage. Although you can withdraw cash funds, you can’t transfer crypto coins out of your account. However, Robinhood also offers stock, options, and ETF trades, whereas you can only buy or sell crypto on Coinbase.
How Do Coinbase and Robinhood Work?
Both platforms function in similar ways, allowing users to create an account using an easy sign-up process and similar verification measures to ensure security. Robinhood gives your trade to a market maker for execution and charges investors an order flow fee. Once you connect your bank account, you can purchase crypto, but you can’t access your coins or move them to a digital wallet until you sell them for cash.
By comparison, Coinbase is an online cryptocurrency exchange. You have complete control over your coins and can withdraw them to your digital wallet or cold storage at any time.
Can I Transfer Crypto From Coinbase to Robinhood?
You can’t 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 can’t 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.
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 doesn’t charge a commission, so users may pay less per trade.
People who don’t 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, Coinbase’s 51 coins and digital wallet offer a better solution.
How We Evaluated Coinbase vs. Robinhood
We put Coinbase and Robinhood side-by-side and looked at the mobile applications and web-based platforms to see what types of features best support new users. Since both platforms are geared towards beginners, we considered ease of use and attributes that make trading easy and help users learn more about investing. Furthermore, we reviewed supported transaction types, currencies, and fees. Lastly, we examined unique features and security measures provided by each platform.