Coinbase vs Robinhood | Which one is Best for You? [2021]

Coinbase is operating as one of the biggest and most reliable crypto exchanges in various countries worldwide. On the other hand, Robinhood is a giant trading platform for buying and selling cryptocurrencies along with stocks and other commodities. 

However, while choosing the one which will suit you the best can be a tedious job. So to help you through this, we bring forward a comparison between the two exchanges.

Summary (TL;DR)

  • Coinbase is one of the most popular crypto trading exchanges offering its services in the USA.
  • Robinhood provides various trading options such as stocks, options, crypto exchange, etc.
  • You can only use Robinhood if you are the US or Puerto Rico resident. Whereas, Coinbase is available in many countries. 
  • Coinbase offers you free crypto assets through Learn and Earn window. You can use these assets to trade in your initial trading days.
  • Both exchanges have intuitive and easy-to-use user interfaces; however, Coinbase offers a better mobile app.
  • Robinhood does not charge any commission fees, and you can trade freely without paying any extra fees.
  • Coinbase has its fixed and very high charges for trading.
  • Both the exchanges have friendly and 24×7 customer support.

What is Coinbase?

Coinbase is a crypto exchange that was established in 2012 by Brian Armstrong and Fred Ehsom. The exchange allows its users to deal in their FIAT currency, offering a simple user interface.

Coinbase Exchange
Coinbase Exchange

The exchange also gains the title of the first crypto exchange to be legally allowed by the US government. The reason behind this is apparent its policies are transparent and accountable to the laws.

What is Robinhood?

Robinhood came into existence in the year 2013. You can use Robinhood from almost all the countries, with a few exceptions. However, only a US citizen owning an SSN can open an account at Robinhood.

The exchange offers features like cash management which describes transparency and efficiency to its brokers, users, and partners. The exchange also claims to be a zero fees broker.

Robinhood did not support trading in cryptocurrency until 2018. Bitcoin and Ethereum were the first two crypto assets available on the platform in their early days. Apart from this, Robinhood is not just trading in crypto but also stocks. It occupies a vast space in the financial industry of the USA.

Robinhood Exchange
Robinhood Exchange

Coinbase vs Robinhood: Trading Features

Both the trading platforms hold their terms and conditions. Coinbase just deals with crypto assets, while Robinhood deals in stocks as well as cryptocurrency. Let us review both in detail below.

Robinhood Trading Features

Cash management

Going ahead the limits of free stock trading Robinhood allows cash management on the uninvested money in your account. You can use both savings and checking accounts linked with a debit card for this purpose. In this, you can spend your cash in groceries or anywhere. Secondly, you can sweep or move your money into a network of banks. The banks then pay you interest for the same.

Robinhood Products
Robinhood Products

Stocks and Funds

As already discussed earlier, you can also deal with a company’s stocks or groups of stocks on Robinhood. Robinhood does not charge any commission fees for trading in stocks(ETFs). You can access the stock market right from the comfort of your phone through the Robinhood mobile app.

Options Contract

Robinhood charges no commission fee when you are using options trading. When you sell an options contract, it simply means you are selling the contract to a buyer to collect premiums. Whereas, buying options contract means you’re buying back what you sold.

Robinhood Crypto exchange

On Robinhood, you can trade in significant crypto assets like Bitcoin, Dogecoin, etc. Yes, you can not forget that it charges no fee while you are trading in cryptocurrencies. Apart from this, Robinhood is a safe and secure platform.

Gold

With Robinhood, you can supercharge your gold. Through this, you can trade on margin with your gold investments. Investing like this provides you with higher extra buying power, flexibility, and sooner access to your deposit funds. Also, it gives access to in-depth stock research reports for over 1,700 stocks.

Coinbase Trading Features

Buy and Sell Crypto

You can buy and sell digital currencies on Coinbase. Apart from this, you can manage all your crypto assets in one place. Coinbase offers a different platform to buy and sell crypto assets which is called Coinbase Pro

Coinbase: Buy and Sell Crypto
Coinbase: Buy and Sell Crypto

Coinbase Pro

With Coinbase pro, you can trade in cryptocurrency. Coinbase Pro exists for institutional and pro-level investors, and the exchange also mitigates the charges for its users. The pro version offers bundles of information with higher functionality. 

Coinbase Prime

Coinbase Prime comes into existence for fintech, brokerages, and exchanges. This platform helps financial institutions to deliver efficient crypto to their clients. It holds some exciting features like multiple alternatives for liquidity, custody cold storage solutions, and institutional-grade APIs.

Learn and Earn Crypto

Above all, Coinbase delivers you with some amount of cryptocurrency for free. It works in this way; there are some courses related to some select crypto assets. After completing a particular course, you earn some amount of the crypto asset to test and analyze how it works out in the practical market.