Cryptocurrency investing is something that’s relatively new still, but undeniably popular. Decentralized currencies promise investors a hedge against things like inflation. But what’s the best platform to trade crypto: Robinhood vs Coinbase?
A lot of investors want information to compare Coinbase vs Robinhood and we’re here to help. While both are electronic platforms where you can trade cryptocurrencies, there are some important differences. Which platform is better for your crypto investment needs?
Robinhood is an electronic trading platform that’s regulated by the SEC. On the company’s popular app, investors can buy stocks, ETFs, and a limited number of crypto coins. Some of the most popular cryptocurrencies are available, including Bitcoin, Ethereum, and Dogecoin. In total, they offer 19 different coins for purchase.
Robinhood’s claim to fame is that they don’t charge a fee for trades. They do offer a premium subscription option, Robinhood Gold, that costs $5 per month.
Coinbase is also a trading platform, but it focuses exclusively on cryptocurrencies. They have approximately 240 digital assets and 300 supported trading pairs available with Coinbase Prime.
People who want their choice of cryptocurrencies or who want access to cryptocurrency resources may prefer Coinbase.
The SEC says it has regulatory authority over Coinbase, but Coinbase has contested that and is pursuing clarification in court. Their claim is that cryptocurrencies don’t fall under the existing definition of ‘security’ and require a new definition and separate regulation.
The primary difference between Robinhood and Coinbase is in the number of cryptocurrencies that you can trade there and whether other investment classes are available. We’ll get into the details of both issues later in this review.
Now, let’s dive into whether Coinbase vs Robinhood for crypto is the right choice for you.
Robinhood vs Coinbase – Which Platform is Best for Cryptocurrency?
There’s no question that both Robinhood and Coinbase offer value to users. Which one’s best for which type of investor? Here’s our rundown.
Robinhood offers no-fee crypto trading for all supported assets, although there are some volume fees baked into their rates. That said, they still claim to offer investors more value for their money than other platforms, including Coinbase.
If you’re already a Robinhood customer, then you may want to consider getting your feet wet with crypto in the app you’re already using for other investments. There’s a convenience factor for existing Robinhood users and it’s undeniably useful to be able to manage all of your investments, including crypto, in one place: thereby simplifying your investment strategy.
People who aren’t already using Robinhood or who want a broad array of crypto to buy are more likely to benefit from using Coinbase. Users have the ability to easily convert one cryptocurrency to another, which is also useful.
In terms of investor types, we should talk about the risk involved with buying crypto in general. Cryptocurrencies are typically far more volatile than stocks or ETFs. We wouldn’t recommend buying only crypto. Our rule of thumb is that investors shouldn’t put more money into digital assets than they can afford to lose.
On the whole, we’d say that beginner investors and those who want an all-in-one investment trading solution will be better off using Robinhood, while experienced crypto traders may prefer Coinbase for its large selection of coins and crypto conversion.
Pro Tip:
Sign up today and get $50 of BTC after making your first trade on Coinbase, or receive up to $1500 of stock per year by referring friends on Robinhood!
Robinhood vs Coinbase – Feature Comparison
Robinhood and Coinbase both have features that are useful to investors. Let’s start with Robinhood. Here are the features that you’ll get if you trade crypto with Robinhood.
- User-friendly app
- Ability to trade 19 different crypto coins, including Bitcoin, Ethereum, Dogecoin, Shiba Inu, and more
- Fee-free trading
- In-app support
- Robinhood crypto wallet
- Fractional shares are allowed for all available cyrtocurrencies except Dogecoin, where the minimum amount to buy is one coin
- Start buying cryptocurrency with as little as $1
Robinhood has implemented a broad array of security features to protect users from hacking and theft. Here’s a breakdown of what they’ve put in place.
- Two-factor authentication (2FA) so that nobody can access your account without a texted code
- Dedicated crypto wallet for investors
- Most of investors’ cryptocurrencies are stored offline in a cold wallet
- Robinhood has purchased insurance to offer some protection to insurers. (As a reminder, Robinhood deposits are not insured by the FDIC the way bank deposits are.)
Now, let’s look at Coinbase. Here are the features you’ll find there.
- Buy and sell over 240 types of crypto
- Send and receive cryptocurrencies for free (among Coinbase users, external mining fees apply)
- Cryptocurrency one-stop-shop, including primary balance service, an exchange, and merchant tools within the same interface
- Use with an existing crypto wallet if you prefer
- Begin trading with as little as $2
Here’s a list of Coinbase’s security features:
- State-of-the-art encryption and security
- Transparency about how and when information is shared
- 2FA with security key support
- Password protection
- Insurance to protect some assets from theft or security breaches
You’ll need to keep in mind that neither company’s insurance policy will protect you if you share your password and experience theft of crypto assets as a result.
Robinhood vs Coinbase – Fee Comparison
Now, let’s look at Robinhood vs Coinbase fees. Keep in mind as you review these that some fees may not be obvious, and we’ll point those out.
Trading Fees
Robinhood touts its “free-free” trading, but let’s talk about what that really means. It’s true that you won’t see any itemized fee when you buy or sell crypto. That said, you’re definitely getting charged a fee.
Robinhood makes its money by rolling the cost of trading into a spread markup on the trade. What that means is that you’ll pay more when you’re buying and receive less when you’re selling than you would if you got the best market price. You can estimate what you’re paying by comparing the purchase price to the live market price.
Coinbase is similarly cagey about its rates, but they’re applied in tiers. You’ll pay more if you purchase a small amount and less if you purchase a large amount of crypto. For example, with a small trade you’ll pay a flat fee plus a 0.5% markup of the purchase price of whatever coin you’re buying.
Additional Fees
Robinhood charges fees (under some conditions) for withdrawing money from your account. Standard withdrawals are free, but if you do an instant bank withdrawal or a withdrawal to a linked debit card, you may pay up to 1.75% as a fee.
Coinbase offers free ACH transfers, but charges $10 for wire deposits and $25 for wire withdrawals. They also charge $3.99 for debit card withdrawals.
Summary Table of Fees
Here’s a quick comparison of fees (insofar as fees have been disclosed) for you to review.
| Robinhood | Coinbase | |
| SEC/FINRA fees | $27.80 per $1m of principle | |
| Trading Fee | Spread fee (hidden) | Base fee plus 0.5%. The base fee is $0.99 for transactions $10 or less and range up to $2.49 for transactions up to $200. Amounts over $200 still pay the 0.5% fee. |
| ACH | No fee | No fee |
| Wire Transfer | Up to 1.75% | $10 for deposits and $25 for withdrawals |
| Debit Card | Up to 1.75% | $3.99 flat fee |
Pro Tip:
Sign up today and get $50 of BTC after making your first trade on Coinbase, or receive up to $1500 of stock per year by referring friends on Robinhood!
Robinhood vs Coinbase – User Experience Comparison
Both Robinhood and Coinbase have focused heavily on the user experience to make sure that their respective platforms are easy to navigate.
Coinbase has a simple interface and is user-friendly for both beginners and experienced users. There’s a menu at the top of the home page. Here’s a look what you’ll find if you click on Cryptocurrency.
Customer support is a key element of the user experience. Coinbase offers 24/7 telephone support. They also have a dedicated Coinbase Support Center where you can ask questions, get online help, or make suggestions.
Robinhood also has an easy-to-understand interface. They started as a mobile app, so it should come as no surprise that the app experience is good for users.
We like that it’s easy to access Robinhood. Transactions take almost no time to complete and overall, the UX is excellent.
There’s 24/7 customer service through the app. One thing we wish were different is that there’s no phone support. At this time, the only option is to send a message through the app and wait for a response.
Robinhood vs Coinbase – Which Platform is Best for Crypto Trading?
Here’s our overview of which platform is best for crypto trading.
Coinbase’s Crypto Offerings
As we’ve already noted, Coinbase offers an impressive list of cryptocurrencies for trading. These include the ones we all know, such as Bitcoin, Ethereum, and Dogecoin. It also includes a bunch of others that you may not be familiar with:
- Polkadot
- Avalanche
- Pepe
- SWELL
- Fantom
- Arbitrum
- Filecoin
There are too many to list here: more than 240 in total, plus 300 pairings. If you want to buy a variety of cryptocurrencies and supported assets, Coinbase offers far more options than Robinhood for crypto trading for advanced crypto traders.
Robinhood’s Crypto Options
Robinhood started as a trading platform for stocks and ETFs and is a relative newcomer in the world of crypto trading. As of November 2024, they offer a total of 19 coins for trading, including:
- Bitcoin
- Ethereum
- Dogecoin
- Litecoin
- Solana
It’s probable that Robinhood will add additional coins in the future. We say it’s a good option for existing Robinhood users who want to get their feet wet with cryptocurrency, but not the right choice for advanced crypto investors.
Comparison Table: Available Cryptos
| Cryptocurrency | Coinbase | Robinhood |
| Bitcoin | Y | Y |
| Ethereum | Y | Y |
| Dogecoin | Y | Y |
| Solana | Y | Y |
| Cronos | Y | N |
| Aptos | Y | N |
| Litecoin | Y | Y |
| Render | Y | N |
| The Graph | Y | N |
| Popcat | Y | N |
This is just a small sampling of what Coinbase has available.
Pro Tip:
Sign up today and get $50 of BTC after making your first trade on Coinbase, or receive up to $1500 of stock per year by referring friends on Robinhood!
Is Robinhood Better than Coinbase?
By now, you’re probably wondering if Robinhood is better than Coinbase. Here’s our rundown.
Coinbase has a ton of educational resources plus a broader coin selection than Robinhood. The platform’s focus on crypto means that it’s ideal for experienced crypto investors and may also be useful for beginners who want to get started with crypto.
We also like that Coinbase has prioritized security and that there’s the flexibility to use your existing crypto wallet.
Robinhood has a user-friendly app that makes it very easy to trade stocks and to get started with crypto investing. It offers zero-commission trades, although there are some baked-in fees to consider.
Like Coinbase, Robinhood has taken pains to make its platform secure and to protect investors. We appreciate that investors, particularly beginners, can integrate their crypto investing with other securities, including stocks and ETFs.
Conclusion
Comparing Coinbase vs Robinhood, our takeaway is that Coinbase is designed for people who want to get serious about cryptocurrency trading and their crypto assets and are looking for a wide array of coins to buy and sell. It has more than 10 times the number of coins that Robinhood does, it’s easy to convert one currency to another, and there are lots of educational resources to help investors learn about crypto. If you are curious about how Coinbase stacks up to a competitor such as eToro, check out our review comparing the two: ETORO VS COINBASE!
Beginner investors who want an app to seamlessly integrate cryptocurrency trading with stocks and ETFs may prefer Robinhood. While there aren’t as many coins available to buy, the most popular coins are there. Check out our guide reviewing crypto trading on Robinhood here if you still need more information.
On the whole, we give Robinhood the edge when it comes to fees and as a tool to manage multiple securities. Coinbase gets the edge for people who are already experienced trading crypto or who just want a more comprehensive platform for digital assets.
Always remember that investing involves risk and that cryptocurrency trading on both Coinbase and Robinhood can also come with some risk!
We think Robinhood is a good all-around app for beginners, particularly those who want to get started with crypto but don’t want to use more than one tool to manage all their investments. The one area where we think Robinhood could do more for beginners is in education, but there are other places where you can get free resources to help you learn about cryptocurrency if you want to use Robinhood.
Because both platforms could be more transparent with fees, it’s difficult to say for sure. However, Coinbase’s 0.5% fee plus flat fee structure means that in most cases, they’re more expensive than Robinhood.
Both Coinbase and Robinhood have taken pains to protect users and shield them from losses related to hacking or theft. They both offer password protection, 2FA, and insurance. Neither is insured by the FDIC. In terms of security, we think they’re equal.
Yes, Bitcoin is one of 19 cryptocurrencies available to trade on Robinhood as of November, 2024.
