Which One Is Better Coinbase or Robinhood?

Robinhood and Coinbase are two of the biggest cryptocurrency trading platforms, but which is best for you?

The answer is contingent on your requirements, particularly how much cryptocurrency trading you plan to perform and how much you are willing to pay.

Although both may reach different types of traders, there is likely to be some overlap. Coinbase is a crypto exchange that caters to experienced digital currency dealers.

On the other hand, Robinhood is a free trading software that lets users purchase and stocks, options, ETFs, and some kinds of cryptocurrency.

Here are a few more important differences between Coinbase and Robinhood.

Cost

The pricing structures at Coinbase and Robinhood are vastly different. Coinbase hides most of its fee schedule from potential clients (though it discloses s them before you practically place a trade).

Robinhood, on the other hand, isn’t exactly forthcoming about how it gets compensated.

In comparison to Coinbase, Robinhood’s pricing structure is straightforward.

In line with the trader’s “no commissions” strategy for stocks and options, you will not have to spend any money upfront to purchase or sell cryptocurrency.

Rather, the cost of selling is effectively incorporated into the trade’s premium markup.

As a result, you’ll spend more when purchasing and get less when exchanging than if you got the best market value at the time of your transaction.

Coinbase’s pricing system is perplexing. It not only has varied rates depending on how much you buy, but it also has a basic and a pro tier of service, each with its own set of prices.

See also  FAQs About Opensea NFT Properties

And, more recently, Coinbase moved to disguise its basic service costs, making it impossible for potential consumers to understand how much they’re spending.

Advantage: Robinhood, owing to its cost structure’s simplicity, even though its disclosure isn’t any better than Coinbase’s.

Coins That Are Available

Coinbase allows you to trade over 90 different currencies, including the big names like Bitcoin, Cardano, Ethereum, Solana, Dogecoin.

As a result, you are likely to find what you’re after, as well as lots of things you aren’t. Sure, Coinbase doesn’t support thousands of other, far smaller cryptocurrencies, but for practically everyone except specialized traders, that won’t be a problem.

In contrast, Robinhood only accepts Bitcoin Cash, Bitcoin, Bitcoin SV, Dogecoin, Ethereum Classic, Ethereum, and Litecoin as virtual currencies.

The software does, however, provide traders with real-time information on these and 9 other cryptos.

The firm has stated that it is introducing new coins to its system, but no date has been set.

Advantage: Coinbase, due it its considerably larger selection of coins.

Types of Securities

Coinbase is all cryptocurrency, all the time in terms of the types of securities it offers. You’ll have to look elsewhere if you need anything else, such as stocks, ETFs, or options.

On the other hand, Robinhood provides a broader selection of products, including stocks, ETFs, options, and cryptocurrencies, but not mutual or bonds funds.

Despite this, the software will attract a large number of dealers in what it does have to offer, allowing it to reach a broad market even with a smaller crypto pool.

Robinhood has the upper hand due to its wider selection of services.

See also  What is Nobility Cryptocurrency?

Conclusion

Which firm is best for you depends on your demands. However, individuals who are significantly invested in bitcoin or several different forms of crypto would find Coinbase to be a better fit.

Those engaged in a few popular cryptocurrencies as part of a larger portfolio, on the other hand, may choose Robinhood.

They might also want to look into rival Webull, which also allows cryptocurrency trading.