Coinbase vs Robinhood: Reasons Why Should You Pick Coinbase over Robinhood

Coinbase vs Robinhood: Reasons Why Should You Pick Coinbase over Robinhood
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Even if you are a beginner in this crypto world, you must have come across Coinbase or Robinhood. These both are user-friendly platforms allowing users to sell and buy cryptocurrencies. But, there is a lot of difference in both of them.

Coinbase is the leading crypto exchange, and Robinhood is the innovative one. After having an honest comparison between Coinbase and Robinhood in terms of platform capabilities, fees, uses and selection of cryptocurrencies, we have come to conclude that Coinbase is better than Robinhood for trading.

Why should you pick Coinbase over Robinhood?

We have already said that as an investor, you must go for Coinbase over Robinhood. Let us understand the reasons behind it:

  • The Robinhood app only offers access to the seven cryptocurrency denominations. On the contrary, Coinbase has 110 crypto denominations to provide. It is one of the reasons why serious crypto investors aren’t using Robinhood for crypto exchanges.
  • Robinhood doesn’t allow you to send your stored cryptocurrencies to some different trading platform. It is because there aren’t any crypto wallets in Robinhood. Note that it might launch a crypto wallet in 2022.
  • Talking about the fee structure, Robinhood indeed has the cheapest structure compared to Coinbase, which has a complex structure. But, keeping in view the services offered by Coinbase, the fee structure doesn’t seem illegitimate.
  • As a payment method, Robinhood uses free ACH, while Coinbase allows you to choose from a variety of payment methods, including free ACH.
  • For transaction purposes, Robinhood only accepts USD, while Coinbase can accept USD, British pound and Euro.
  • With Robinhood crypto exchange, users can buy stocks and altcoins but cannot withdraw the crypto funds from their accounts. To withdraw the funds, users are required to transfer the balance to some external account after selling their cryptos. It is not the case with Coinbase.
  • Coinbase is available to be used in more than 100 countries, while Robinhood is an online brokerage company that can be used in only 48 states of the United States.
  • For security purposes, Robinhood and Coinbase use two-factor authentication.

Closing thoughts

The Robinhood platform might seem secure in some aspects, but it doesn't have much to offer its users. On the contrary, Coinbase has a lot to offer to its investors including, a full range of trading, technical analysis tools and digital wallets. This is the ultimate reason why you, the serious investors, are picking up Coinbase over Robinhood.

We aren’t saying that one shouldn’t use the Robinhood platform. Instead, it is a good platform if you're a beginner and want to invest minimal amounts in cryptocurrencies.