A Detailed Review and Comparison of the Coinbase and Robinhood Crypto Fees and Other Trading Features
Robinhood and Coinbase have been hailed as one of the best trading platforms, not only for cryptocurrency, but also other types of investments. Cryptocurrency investments have become quite popular with today’s generation, despite the controversy revolving around it.
However, which one is a better trading platform between the two? The choice of your trading platform depends on factors such as the amount of capital you are investing in cryptocurrency and the costs of transactions you are willing to pay, among other features. In this article, we will make a comparison of the two best trading platforms, the Robinhood and Coinbase.
Robinhood Vs. Coinbase
The choice of the crypto trading platform depends with the features and tools you are looking for. Robinhood is a wide trading platform not just the cryptocurrencies, but other investment options such as stocks and ETFs. Coinbase does not support the traditional investment options such as ETFS or stocks. It majorly deals with cryptocurrencies. Here is a review of the two platforms.
1. Availability of Coins
If you are looking for a platform with a wider choice of coins, Coinbase has close to 100 different types of coins. The main coins you can find at Coinbase are Bitcoin, Solana, Dogecoin, Ethereum, among others. You can basically find any coin you are looking for at Coinbase.
On the other hand, Robinhood has seven coins, which gives you are limited scope of selection. However, the seven coins offered at Robinhood are among the markets greatest. They include the Bitcoins, Ethereum, Bitcoin SV, Bitcoin Cash, Ethereum classic, Dogecoin, and Litecoin. Trading on the app allows you to access real time data on the coins as well as nine more on the application. Robinhood intends to add more coins in its platform in the near future.
So when it comes to availability of wide selection of coins, Coinbase has the advantage over Robinhood. However, if you are trading in a few popular coins, the Robinhood crypto fees is attractive.
2. The Crypto Fees
The Robinhood crypto fees is much friendly as compared to Coinbase. Robinhood does not charge any fees on purchases and stocks. Coinbase charges a fee of 4% which considered to be on the higher side.
The zero Robinhood crypto fees charges leaves many wondering how they make their profits. The brokerage earns its profits by taking a percentage of the trade executed by the market makers.
Robinhood does not disclose the order flow charges similar to Coinbase, so it’s hard to tell the cost of buying cryptocurrency. The Robinhood Zero commission, means you do not meet the cost of selling and buying the crypto directly. Rather, the cost of trading is transferred to the spread mark up of trade. Coinbase charges varying fees depending with the amount of coins you purchase. Therefore, Robinhood Crypto fees structure is simpler compared to that of Coinbase.
3. Ease of Use
Robinhood and Coinbase have different features, but both are easy to use and beginner friendly. When it comes to speed, the Coinbase is a bit faster compared to Robinhood. This is because, Coinbase accepts debit and credit cards, while Robinhood only accepts ACH transactions.
The two brokers have applications for Android and iOS devices. Both applications have good ratings. Also, they offer customer care services via email as well as responses. Both sites have knowledge base and articles that help you learn about crypto trading. Coinbase has short trading videos and you can earn a few crypto by watching the video clips.
4. Technical Reliability
Like most online sites, both of these platforms struggle sometimes when they are experiencing huge traffic. Technical hitches and delays dealing with the sites are normal and should not discourage you as they are resolved asap.
Technical aspects you should consider when choosing the best crypto trading platform is the wallet's customer support. You need someone to take care of your questions as soon as they arise in regards to your wallet. While Coinbase has faster customer support services, generally both platforms have highly responsive customer support.
5. Safety and Security
Both Robinhood and Coinbase have similar safety features: the two-factor (2F) authentication and the Federal Deposit Insurance Corporation (FDIC) insurance for USD balances.
With the Robinhood FDIC insurance, the user must select the opt into Cash Management. Coinbase stores 98% of the coins in the cold storage. For the currency stored in the hot storage, the platform has taken an insurance cover in case of security breaches.
Robinhood use cold storage to store its digital coins and does not give out much information about its storage.
The Coinbase uses encrypted 12-word recovery phase protection for the digital wallet users. Robinhood has the device management which allows you to disconnect from your account when an unknown device is being used to access your account.
6. Types of Securities
Coinbase deals only with cryptocurrencies. If you want other types of trades, you will need to use a different platform. Robinhood offers not just cryptocurrency trades, but also stocks, EFTs, and options.
When it comes to crypto wallets, there are major differences between the two platforms. Coinbase has several crypto wallets. You can keep your digital coins on the Coinbase hosted wallet, then send them to your wallet. Alternatively, you can send the coins to your crypto wallet of your choice.
On the other hand, Robinhood as a trading platform, you can only sell or buy the cryptocurrency within the platform. You cannot send and receive the coins to your Robinhood account from external wallets. Also, you cannot spend the digital coins bought or sold through Robinhood platform. To use your cryptocurrency in a Robinhood account, you need to convert the digital coins to USD or the USD to any of the seven cryptocurrencies offered.
The difference between the two are, Coinbase allows you to spend your cryptocurrency, while Robinhood allows you to speculate on the market prices.
Pros and Cons of Coinbase
· Easy to navigate user interface-Coinbase has one of the easiest to navigate user interface. Creating an account is easy and straightforward. Signing in to your account and buying the cryptocurrencies of your choice is just a matter of a few minutes. In addition, the system has a learning program which assists the cryptocurrency investors to learn more about crypto trading.
· High Liquidity- Coinbase is among the top-ranked liquid exchanges. Since the cryptocurrency markets are volatile, the liquidity nature of the platform protects the investors from slipping into massive losses.
· A wide variety of coins-Coinbase uses more than 100 cryptocurrencies available for trade and investment.
· The fee charges are higher, especially when not trading using the Coinbase pro. The new traders joining Coinbase will use the standard account where the fees are quite high and overwhelming as compared to zero Robinhood Crypto fees.
Pros and Cons of Robinhood
· Easy and quick to use- Robinhood has been designed with new traders in mind. The platform is easy and quick to use. The mobile app and the website are easy to navigate.
· Robinhood allows the traders to place smaller quantities of cryptocurrencies trades. Most cryptocurrency platforms have a minimum in which you can place the order.
· Robinhood is highly efficient for getting your money into the market. Every Robinhood user can instantly access their deposits and an immediate access to their funds even after closing positions. In addition, Robinhood increases your buying power immediately you make a deposit into your account.
· Robinhood has friendly and basic features for new traders who want to get into the cryptocurrency trading. The users as they grow need to access other advanced features which are not available in Robinhood.
As seen above, both companies are good when it comes to cryptocurrencies trading. While choosing the broker to work with, you need to consider factors such as the cost of trading, the availability of the coins you want, the cost of trading, among other features. Most people will highly consider the costs of trading and the security of the platform. Between the two companies, Robinhood crypto fees is considerably lower as compared to Coinbase.
1. How much is Robinhood crypto fees charges?
Robinhood offers free crypto trading. That, is you can buy and sell your crypto coins as many times as you want without any charges. However, the pattern day trading rules for stocks do not exist for crypto trading. Also, when trading the crypto with Robinhood, you have to pay spread costs, which is for the difference between bid and the ask price.
2. Is Robinhood good for crypto trading?
Yes, Robinhood is a good platform for crypto trading, especially for new people intending to start crypto investments. However, there are few advanced features not present, especially for more advanced crypto traders. Also, you cannot transfer your crypto benefits out of Robinhood app to another platform. But you can sell your coins and transfer the cash balance to your personal accounts. Robinhood allows you to only monitor the volatility of the crypto markets.
3. Is Robinhood beginner friendly?
Robinhood is a good introductory platform for new crypto investors. The platform and features are easy to use. However, the simple features may not be adequate for experienced crypto traders.