Let’s start by doing a quick breakdown of the key differences between Robinhood and Coinbase.
Coinbase is the better choice if you’re looking for a crypto-first, beginner-friendly platform that offers a diverse selection of cryptocurrencies!
Robinhood is the better choice if you’re looking for a user-friendly platform that can help you manage your stocks and cryptocurrencies in one place!
Robinhood has faced criticism in the past for issues such as lack of transparency over spreads and the company’s handling of the GameStop short squeeze in 2021.
What are the pros and cons of Robinhood?
Robinhood may be a better option for investors looking for a user-friendly platform that allows users to invest in stocks and cryptocurrencies.
Pros:
Diverse Investment Options: Robinhood is ideal for those looking to invest in a variety of assets including stocks, ETFs, options, and cryptocurrencies.
User-Friendly Interface: Robinhood is a great platform for beginners due to its user-friendly mobile app!
Low Fees: Robinhood offers no commission fees on cryptocurrency trades.
Cons:
Limited cryptocurrency features: Because Robinhood is not a crypto-first platform, the platform lacks features like cryptocurrency interest and staking.
Spreads: Some customers have complained that while Robinhood has no fees for crypto, the platform may have high ‘spreads’ — the difference between the listed price and the real price of the asset.
Is Robinhood trustworthy?
While Robinhood is considered a safe and secure option for stocks and cryptocurrencies, the platform has faced criticism in the past.
In 2021, Robinhood restricted trading of GameStop and other stocks due to liquidity issues. This incident raised questions about Robinhood’s commitment to retail investors and its overall reliability.
Robinhood currently holds a D rating from the Better Business Bureau — partially due to a history of unresolved customer complaints.
What are the pros and cons of Coinbase?
Coinbase is considered one of the best platforms for beginner crypto investors due to its easy-to-use platform, educational resources, and selection of cryptocurrencies. However, the platform has relatively high fees and no support for stocks and equities.
Pros:
Extensive Cryptocurrency Options: With over 260 cryptocurrencies, Coinbase is a haven for crypto enthusiasts.
Additional Features: Coinbase has robust features for beginner investors — including cryptocurrency staking and educational modules that allow you earn free crypto!
Coinbase Card: The Coinbase Card allows you to spend crypto and earn rewards!
Cons:
Higher Fees: Coinbase is known to have higher fees than other exchanges.
No stocks: Unlike Robinhood, Coinbase does not support stocks and equities.
Is Coinbase trustworthy?
Coinbase is considered one of the most trustworthy cryptocurrency platforms in the world. The platform has operated since 2012 and has not faced hacks or security issues.
While the company does have a B+ rating from the Better Business Bureau, Coinbase has faced legal challenges — such as lawsuits from the SEC and individual states challenging the company’s ability to offer a staking-as-a-service feature.
Coinbase vs. Robinhood: Key Features
Let’s see how Coinbase and Robinhood compare on key features.
Fees
Winner: Robinhood
Coinbase: Charges fees between 0.5 - 4.5% depending on the type of cryptocurrency and the volume of your transaction. Coinbase is known for charging relatively high fees compared to other crypto exchanges.
Robinhood: Offers commission-free trading. However, Robinhood does have ‘spreads’ for cryptocurrencies. According to the Robinhood website, these spreads are higher for lesser known cryptocurrencies.
Supported Cryptocurrencies
Winner: Coinbase
Coinbase is a better option for investors looking for a diverse selection of cryptocurrencies.
Coinbase: Supports over 260 cryptocurrencies.
Robinhood: Supports over 15 cryptocurrencies.