Coinbase vs Robinhood | Which is best 2021 

coinbase vs robinhood

 Cryptocurrency is the new hype nowadays. More and more are getting involved in the crypto market and the shares of crypto coins increase tremendously as more people invest money. 

The crypto market has flourished a lot in the past few years and people are eager to buy new coins.

Big business tycoons are now getting involved with cryptocurrency and their involvement and investment have drastically affected the market value of cryptocurrency.

Trading of crypto is totally done online. It is a whole online money chain. 

Crypto trading is done on online apps like Binance and Bitmart etc. Coinbase and Robinhood are some famous trading platforms where you can buy cryptocurrency.

Both these apps provide a very user-friendly workflow and have top-notch coins like Bitcoin and Ethereum in their coin list. 

However, when compared these two apps are vastly different in means of their capabilities and features. 

Brian Armstrong and Fred Ehrsam are founders of Coinbase and after a lot of struggle.

In 2012 Coinbase was finally made official as an online cryptocurrency trading platform. 

This app has now become the largest exchange in the whole United States by the means of volume. 

With that being said, here is something you must know. If you are one of those people who is looking forward to giving either one of these trading apps for crypto a shot, then a comprehensive comparison is being provided to you below.

It comprises everything that you might need to know about these trading apps. 

 Hence, it’s advised to go through the article completely without skipping in between.

Without any further ado, let’s start!

Coinbase vs Robinhood: Security

Coinbase vs Robinhood

Coinbase and Robinhood, both of these trading apps promise users to offer highly robust security features.

 However, we believe that Coinbase goes the extra mile so that it can grab you the best crypto services. 

But that doesn’t mean that Robinhood lacks to win the heart of the people. 

This is why a comprehensive description of each of the security services are being described below.

It is important that you can have a much clear picture of the security service these trading apps offer.  

Coinbase Security Features:

Two-factor Authentication: 

Two-factor Authentication

If you have been a constant user of social media platforms like Facebook, then you must be aware of what a two-factor authentication security feature means.

However, if you are not, then don’t worry as we have got you covered in this regard. 

The two-factor authentication security feature is a gateway that allows the users to access this trading app by inserting a special type of security code.  

A user can choose where he wants the Coinbase trading app to send that secret code. 

This secret code is either sent to you on your email or on your phone. This is like the safest security feature to existing currently. 

Only the person who has access to your email or to your phone would be able to access your coinbase account!

Built-in Wallet:

What makes this coinbase crypto trading app stand out from the crowd is that it comes in handy with an inbuilt coinbase digital wallet feature.

This digital wallet happens to be a password-protected wallet that too uses an encrypted 12-word length recovery phase. 

This feature not only provides users with an opportunity to withdraw their cryptocurrency from the coinbase app in an efficient manner but also makes this process to be much easier for them. 

In addition to this, this feature also allows the user to trade their cryptocurrency decentralized exchanges or they can keep it safe within the app too. 

Cold Storage And Crypto Vaults:

Cold Storage And Crypto Vaults

According to the rules and regulations of Coinbase, this crypto trading app stores 98 percent of all crypto balances of the user in “cold storage”. 

FDIC insurance (up to $250K):

If you are one of those people who is aware of the proceedings of a traditional bank, then you would surely find this security feature of coinbase to be highly effective.

This coinbase crypto trading app offers users FDIC insurance if a user deposits US Dollars of up to 250K

However, people do need to keep in mind that this security feature doesn’t really apply to the cryptocurrency funds a user owns. 

Also Read: Sezzle Review: Buy-now, Pay-later App For Online Shopping

Identity Verification:

This is what we called one of the best security features of Coinbase. Coinbase crypto trading app happens to comply with the services of Know your Customer that is highly reputable all over the United States. 

This is the security feature that verifies the photo ID of the user. It also asks the users their address too.

It runs the checks in order to make sure that the person accessing your account is really an authorized person. 

Robinhood Security Features:

Robinhood Security Features

Two-Factor Authentication:

Just like the security feature one receives in Coinbase, Robinhood also provides its users with the security of Two-factor authentication. 

However, the thing doesn’t stop here. The point where Robinhood happens to beat coinbase in terms of its security feature is that this app has disabled the function where one can recover his account by receiving a text message on his phone. 

The reason behind this is that recovering code on one’s mobile isn’t a safe way to proceed.

 And in addition to that, this is the most common way a hacker hacks the trading account of the user, hence this is why this factor has been eradicated from the policy right away.

Device Management:

Again, what counts to be a supreme security feature of the Robinhood crypto trading app is that it allow the users to view the browser and the places where their trading app account or logged in.  

 This is essential if any browser or any place seems to be unfamiliar to you.  You can remove, log out and block that device easily by the Robinhood app. 

Cold Storage:

Cold Storage

On the off chance that you have read the policy along with the terms and conditions of the Robinhood crypto.

You would be surprised to know that most of the trading that a user does on this trading app is stored offline. 

 Hence, none of the tradings is being stored online.

The risk of getting your data hacked or stolen over the internet is reduced to the minimum. 

FDIC Insurance (up to $250K):

Just like the coinbase crypto trading app, the Robinhood crypto trading app also offers users FDIC insurance every time a person deposits dollars from this trading app

However, the thing that people need to be aware of is that neither coinbase nor Robinhood ensures the cryptocurrency funds you own in the apps. 

Coinbase vs Robinhood: Features

Coinbase vs Robinhood Features

Robinhood and Coinbase are both crypto trading apps that allow people to buy crypto. People can freely trade cryptocurrency using these apps.  

These apps have a user-friendly interface that allows them to easily interact with the app and make their investments.

Both the apps offer top-notch quality coins like Bitcoin and Ethereum to their valued users. 

However, when compared these are basically different types of apps.

Coinbase is a fully operated exchange that works very efficiently and has a large number of market coins available. It is one of the biggest exchanges throughout the United States. 

Coinbase has a lot of capabilities that aid the users in trading cryptocurrency. Meanwhile, Robinhood is more of a broker app that works as a third-party member in most of the investments made by people in trading cryptocurrency. 

It also has a vast amount of coins and works very efficiently. 

With that being said, let us take you to the part where we have described each and every detail about both of these crypto trading apps separately!

Trade or Withdrawal Crypto:

One of the most useful features of Coinbase is that it allows its users to trade cryptocurrency on their platform.

People can convert one crypto coin to another without any difficulty.  Due to this crypto trading is at the fingertips of the users.

Users can also withdraw their cryptocurrency into digital wallets. 

This enables them to use their crypto money in other applications.

News Articles:

News Articles

Coinbase also has a built-in news feed in their platform which has articles related to almost everything in the vast world of crypto. 

This is a great way of providing users with essential information that they need.

All the articles are related and specified to the cryptocurrency you are interested in.

Price Alerts:

Another cool feature of Coinbase is its price alert system. 

You can build your own price list of your favorite coins and coin base by informing you of their price updates from time to time. 

Whenever there will be a large change in the market price of your selected coin Coinbase will forward you an update on its price and a notification will be shown on your phone. 

Built-in Education:

Built-in Education

Coinbase takes good care of its users and this fabulous feature is proof of this. 

A built-in user education system has been configured on the platform and mobile app. Educational videos are continuously posted on this system. 

The purpose of these educational videos is to educate people about the crypto world. Upcoming crypto projects are also discussed in these videos. 

People are rewarded with a little bonus amount of cryptocurrency when they complete these videos.

Robinhood Unique Features:

Limit Orders:

Limit Orders

Robinhood offers a special feature to its users. It allows its users to place a limited order whenever they want to trade crypto whether it be selling or buying. 

Limit orders allow a user to sell or buy cryptocurrency at a specific amount of money and this specific amount is set by the user themselves. 

By placing a limit order investors can gain more control over their investments and trading.  

 No-Fee Trades:

A very efficient feature of Robinhood is its no-fee trades. Robinhood does not charge users when they are trading cryptocurrency.  

This feature is not available on almost all the crypto trading platforms because they charge little to a big trading fee.  

This feature encourages people to invest their money in cryptocurrency through Robinhood. 

This is a very handy factor when it comes to newbies because they can make investments without giving any extra charges which are very beneficial for them.

Sometimes the purchase price is not accurate and that’s because of the payment for order flow but still, no trade fees are a very good perk for crypto investors.

Coinbase vs Robinhood: Currencies

Coinbase vs Robinhood

Now here comes the part that most of you must be waiting for. As you all know that Crypto Currency comprises a huge mixture of other currencies that a user can buy within a trading app. 

Hence, a trading app comes with its limitations and doesn’t allow users to trade all types of crypto coins.  

Going with the Robinhood crypto trading app, you would be able to get a very limited selection of cryptocurrencies. 

These variants you may get would be Bitcoin, Ethereum, and Dogecoin. In total, 7 variants of cryptocurrency are easily supported by the Robinhood trading app. 

 However, you must know this if you decide to go with the Coinbase crypto trading app. You would be able to get your hands on more than 50 top cryptocurrencies.

Things don’t end here as Coinbase is adding other cryptocurrencies to their list too, hence soon this figure would soon go up! 

 The only benefit that both Robinhood and Coinbase provide to the users is that they allow the users to purchase their desired cryptocurrency in exchange for dollars. For this, one can easily buy a fraction of coins by trading dollars.  

The minimum order amount Coinbase comes in handy with happens to be two dollars. On the other hand, the Robinhood measures the amount of its minimum order in the native token.

 Haven’t heard about native tokens yet? Then we surely have got you covered. For example, if a minimum purchase amount of Bitcoin lies happens to be 0.00001.

Hence, if the price of bitcoin would be $60,000 dollar at that time, then the minimum fractional share of Bitcoin a user might need to buy would be 0.60 $.  

Coinbase vs Robinhood: Fees

Coinbase vs Robinhood Fees

Most of the crypto trading apps happen to come with their own fee charges. Some of these apps even charge users for literally nothing. 

Hence fee charges become an important consideration. If you are looking forward to investing in multiple cryptocurrencies, that too with the help of a crypto trading app. 

If you get the chance to read the terms and conditions of the Robinhood crypto trading app, you would be surprised to know that the Robinhood app claims “no-fee trading”. This term applies to both crypto and stocks as well. 

 And for a moment, if we believe this claim of Robinhood app, still the app used to be under scrutiny back in 2019 due to their practice of payment for order flow. 

Essentially, all of the traders are first brought in front of market makers in order to execute the trade. And these market makers happen to pay Robinhood a fee. 

The fee they might be paying to Robinhood was typically a percentage of the trade that has been made. However, the exact amount a person needs to pay for trading crypto is not disclosed by the app yet. 

However;

While going with the Coinbase crypto trading app, this app charges a flat fee of 0.50 percent for all the transactions that are being made by the user. 

In addition to this, a user might have to pay an additional amount to this trading app too. This additional amount is the fee that’s based on the method a user chooses to trade the cryptocurrency.

Honestly speaking, the charges that a user might need to pay in coinbase happens to be relatively higher than what they would be paying in Robinhood.  

Whilst of the fact that Robinhood proves itself to be the leader of “no-fee trading policy”.

However, it still charges users the payment for the flow of orders. And the amount a user would pay here might end up costing you a lot more for buying your desired cryptocurrency through the.

The lack of transparency of fee Robinhood comes in handy which makes it difficult for us to differentiate between the prices of both of the crypto trading apps.

 Lastly, cutting the long word short, Coinbase is simply the most expensive way to trade or buy cryptocurrency than the Robinhood app.

But people should remember that the fee solely depends upon the trade they are wishing to make via these crypto trading apps.

Coinbase vs Robinhood: Access

Lastly, here comes the most important part that the people need to be taken care of beforehand while opting for one of these crypto trading apps for themselves. 

This section is added in our review to provide our users with a glimpse of how easy or difficult it is to access any of the crypto trading apps, and how many areas these crypto trading apps happen to cover. 

First thing first, if you are looking forward to going with the crypto trading app that’s run in a wide range of countries, then we prefer you to go with Coinbase. Coinbase is available globally. That too in over more than a hundred countries around the globe. 

On the other hand, Robinhood happens to be only available for the people who reside in the United States. 

Another thing that gives coinbase an upper hand over Robinhood is that Coinbase is legally available in all of the fifty states of the United States.

However, Robinhood is only legally available in 47 of the United States.

The states that happen to be left out are Nevada, New Hampshire, and West Virginia. 

Though there’s no reason to break your heart. As per the modern incentives Robinhood crypto trading app has come up with, soon they would be able to provide their services in the whole of the United States. 

However;

Access

Here is the last consideration people need to be aware of before buying cryptocurrencies.

Before using both of these crypto trading apps, know that Cryptocurrency hasn’t been made legal in most of the states.  

Moreover, each country comprises its own rules and regulations for CryptoCurrency.

This simply means that if you do have a coinbase available in your country. 

However, if your country hasn’t made the usage of crypto legal, then there are high chances that you won’t be able to use the services of both of these crypto trading apps in your country.  

With that being said, one simply needs to review the local guidelines of his country. Before buying, selling, or trading cryptocurrency via these trading apps. 

Final verdict!

While wrapping it all up, we believe that if you managed to make it till this end of the article. At this point, you must now be fully aware of everything that coin base and Robinhood come with. 

 However, while doing Coinbase vs Robinhood comparison, you might witness a lot of similarities in these trading apps. 

Some of these trading apps are United States-based companies, both of these trading apps facilitate users with access to Bitcoin, and both of these platforms happen to be highly secure where a user can buy and sell his cryptocurrency super easily. 

Let’s see both of these apps individually. One thing that we like about Coinbase is that this trading app happens to provide users with FDIC insured up to 250K dollars.

This trading app is available in more than 100 countries. 

Here is The thing we like the most about Robinhood. This app doesn’t charge a single fee from the user when they trade.

This also works when buy or sell their cryptocurrency within their app.

This trading app happens to come with ease of operation. And this can be operated by anyone of any age, that too with ease.

With that being said, here is the complete review of Coinbase Vs Robinhood. Choose one that suits best with your taste and provides you with a profound experience!

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