Depending on what type of crypto services you are looking for determines the best app for you. This article looks at Coinbase vs Robinhood and which crypto trading app will best for your needs.
To start with, Robinhood is more similar to a traditional stock trading app. Through the app you can buy, sell and trade stocks, do stock research and trade some cryptocurrencies. On the other hand, Coinbase only offers cryptocurrency trading. With this the features are designed around cryptocurrency. Now, let’s review what differences there are between Coinbase and Robinhood.
With Robinhood, cryptocurrency is a newer addition to the app and platform. As such, they currently only offer seven cryptocurrency options. These options are, Bitcoin SV, Bitcoin Cash, Bitcoin, Dogecoin, Ethereum Classic, Ethereum, and Litecoin.
Coinbase, however, is built around crypto. Thus, there are thousands of cryptocurrency options for users. The most popular include Bitcoin, Ethereum, Ethereum 2, Binance Coin and Tether.
A huge benefit of Robinhood is that buying and selling cryptocurrency is free. Users can buy and sell as much as they want, and all they have to do is pay the difference between the bid and ask price.
On Coinbase, buying and selling is not quite as simple. The fees structure on Coinbase varies depending on how much users buy and how they pay. These fees are detailed on the trade preview screen of every transaction. The fees start at 2.49% and increase depending on crypto type and frequency.
With Coinbase, users have the option to buy cryptocurrency and store it on the platform in a hosted wallet. Or, users can send and store their crypto in their separate Coinbase crypto wallet. Users can also send crypto to the Coinbase wallet. The wallet feature allows users to trade crypto with less fees in the future.
Now, Robinhood users can’t send crypto outside of the app, or receive it. Currently the only option available is to convert USD to crypto and crypto to USD. However, in 2022 we can expect to see Robinhood add crypto wallets to the app.
Truthfully, both Coinbase and Robinhood experience issues with outages, usually during a crypto surge. During 2021 Robinhood had 59 major outages whereas Coinbase had 68. Thus, Robinhood is slightly more reliable, but both have issues with overload.
Both Coinbase and Robinhood apps are intuitive and easy to use. The buy and sell process is straightforward on both, with clear steps for users. Thus, both platforms are suitable for beginners and experienced traders. Coinbase also offers a Pro platform for more experienced traders.
When choosing a cryptocurrency trading app, users must consider their needs. If users are looking for just a cryptocurrency app, Coinbase is the best option, even with the higher fees. Plus, as users gain experience they can upgrade to Coinbase Pro and enjoy lower fees. But, if users are looking for more of an investment app, Robinhood is the better option as users can invest and trade in both crypto and stocks without fees. Just remember to choose the best platform for your needs and research them thoroughly.