Coinbase, as well as Robinhood, have become two well-known sites to trade cryptocurrency; However, in Coinbase Vs Robinhood, which one is best for you? The answer is contingent on your requirements, particularly the amount of crypto trading you're planning to engage in and the amount you're willing to cover. Coinbase and Robinhood could attract different types of traders. However, there's probably a significant overlap.
Coinbase is an exchange for cryptocurrency which targets traders within the realm that is a digital currency. However, Robinhood can be described as a trading application that lets users purchase and sell ETFs, stocks, options, and other types of cryptocurrencies at absolutely no cost out of pocket. This is the way Coinbase, as well as Robinhood, differ in several other critical dimensions.
Coinbase Vs Robinhood: Ease of Utilization
Coinbase offers users a straightforward process to sign up to connect their accounts with financial institutions and then buy crypto through its application. You can sign up with Coinbase using your email and password. After signing up, you'll need to prove your identity by using an official photo ID issued by the government and uploading a photograph of it on the website or app. After verification, you can join a bank account or credit card and immediately buy cryptocurrency.
Robinhood is equally easy to use. The user-friendly application lets users instantly see the price of crypto and then place an order in only a couple of clicks. Make an account free of charge with your email address and password to sign up with Robinhood. Once you've verified that your email is correct, protect your account by securing it with two-factor authentication. To deposit money, connect your banking account and then transfer the funds. The funds up to $1,000 are instantly accessible for buying cryptocurrency.
Coins Available for Purchase
Coinbase allows trading in over 90 different currencies, including the most popular ones like Bitcoin, Ethereum, Cardano, Solana, Dogecoin, and many more. You'll likely discover what you're looking for and more, even if you don't. Indeed, Coinbase does not offer many other less expensive digital currencies. However, that shouldn't be a problem for anyone other than specialized traders.
However, Robinhood lets users trade only seven cryptocurrency types: Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic, and Litecoin. The app gives traders access to live data about these cryptos as well as nine more. The company has stated that it's currently adding additional cryptos to its platform, but it's not known when this will happen.
Coinbase Vs Robinhood: Currencies
Robinhood provides a limited choice of cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin (seven total supported crypto). Coinbase, On the other hand, provides more than 50 top cryptos and is constantly adding new listings. Both platforms let you buy cryptocurrency in dollars, meaning you can purchase small amounts of coins. Coinbase has a minimum of $2 purchase amount. On the other hand, Robinhood determines the minimum amount of purchase in the native currency. For instance, Robinhood's minimum Bitcoin buy amount for purchases will be 0.0001 Bitcoin (BTC). If Bitcoin's value at $60,000, you could buy as little as $6 worth of Bitcoin.
Platform Features
The two platforms, Robinhood and Coinbase, offer user-friendly platforms that even beginners can utilize. On Robinhood, you can exchange ETFs, stocks, and options and buy cryptocurrencies. Coinbase only offers cryptocurrencies. Robinhood is only available within the U.S. Coinbase can be utilized in more than 100 countries and 49 states.
The significant difference between these two platforms is when you're using Robinhood, it is not possible to transfer the moneyout of your account unless you want to withdraw them except if you intend to buy ETFs. They allow exchanges of ETFs. In addition, Robinhood allows limited orders, and Coinbase isn't except if you are using Coinbase Pro.
Currencies and Types of Transactions
Coinbase has greater than 64 currency coins. Robinhood has just seven coins. It does, however, support Dogecoin but Coinbase doesn't. Both platforms allow investors to purchase fractional coins. Robinhood will only take U.S. dollars for transactions. Coinbase can accept U.S. dollars, the euro as well as the British pounds.
Robinhood allows limited order on cryptocurrency and also allows exchanges with ETFs. Coinbase accepts purchase, sell or send, as well as exchange orders. Coinbase does not permit restricted orders unless you have Coinbase Pro.
Conclusion
There are a lot of things that Coinbase and Robinhood have in common. For instance, both are U.S.-based businesses; both provide access to Bitcoin as well as safe and secure platforms to buy or sell cryptocurrency. While Robinhood provides no-cost trading, it will charge an amount for each order that could increase the cost of your crypto purchase. Also, it allows for restricted orders to give you greater control over your trading. However, Robinhood is just the custodian of your crypto. You will never actually own the coins or take them out to keep in your digital wallet.
