Robinhood vs. Coinbase: Which is Better in 2024?
Coinbase and Robinhood are two of the most popular trading platforms in the US. But which is better for you in 2024? Learn more about Robinhood vs. Coinbase.
Robinhood vs. Coinbase: At a glance
| Feature | Robinhood | Coinbase |
|---|---|---|
| Fees | $0 per trade, spreads apply | Maker/taker up to 0.6%, other transactions vary |
| Account minimum | $0 | $0 |
| Supported cryptocurrencies | 35+ | 260+ |
| User interface | Simple, mobile-focused | User-friendly with advanced trading features |
| Security | 2-step verification, SIPC coverage for fiat holdings | 2-step verification, cold storage |
| Customer support | 24/7 in-app, email support, 1.2 star Trustpilot score | Phone, email, chat support, 1.8 star Trustpilot score |
| Other crypto products | Limited crypto features | Multiple features including staking, crypto cards, and learn and earn |
| Stocks & equities | Available | Not available |
| Trust | Mixed reputation, legal challenges in some states | Generally trusted, legal challenges |
Coinbase vs. Robinhood: An overview
Robinhood
Robinhood offers cryptocurrency trading through an account with Robinhood Crypto, but it’s primarily an online brokerage for popular investment assets, including U.S.-listed stocks, options, and ETFs. It appeals to users with its minimal fees and user-friendly mobile interface. However, the simplicity of Robinhood has drawn criticism for making investments appear too easy and potentially risky, as well as drawing criticism for the GME scandal.
Read next: How to withdraw money from Robinhood
Coinbase
Coinbase is a full-service crypto exchange that debuted as the first major cryptocurrency platform to go public on the U.S. stock market in April 2021. Known for its user-friendly interface and robust research tools, Coinbase offers a wide selection of cryptocurrencies and advanced features for both beginners and experienced traders. However, its fee structure can be complex and relatively high compared to other exchanges.
Read next: Coinbase vs Coinbase Wallet
Robinhood vs. Coinbase: Key features
Fees
Robinhood: Offers commission-free trading for stocks, options, ETFs, and cryptocurrencies, with no account management fees. However, it charges for foreign-listed securities trading and broker-assisted trades.
Coinbase: Charges fees between 0.5% - 4.5% depending on the cryptocurrency, transaction volume, and the specific type of transaction you’re making. The exact fee can vary and includes a combination of flat rates and variable percentages.
Supported cryptocurrencies
Robinhood: Supports over 35 cryptocurrencies, including Bitcoin, Ethereum, Dogecoin, and Litecoin.
Coinbase: Supports over 260 cryptocurrencies, offering a more diverse selection of altcoins for crypto investors.
User interface
Both platforms are designed with user-friendliness in mind, catering to beginners with easy sign-up processes and intuitive navigation. Robinhood's mobile app is particularly praised for its simplicity, while Coinbase provides a clean interface with additional tools for advanced users.
Security
Robinhood: Uses 2-step verification and provides SIPC coverage for certain assets.
Coinbase: Employs 2-step verification, cold storage, and insurance for digital assets. It stores 98% of funds offline, providing additional protection in case of a hack.
Customer support
Both platforms offer limited customer support and have faced criticism for response times. Robinhood offers 24/7 in-app and email support, while Coinbase provides phone, email, and chat support, with priority support available for Coinbase One subscribers. Both platforms have relatively low Trustpilot scores and many customers claim to be unable to receive timely support.
Other crypto products
Robinhood: Offers some Learn and Earn programs but lacks the majority of crypto features that dedicated cryptocurrency exchanges do.
Coinbase: Allows users to earn cryptocurrency through features like Learn and Earn, staking, and USDC interest rewards, as well as offering a crypto card.
Stocks and equities
Robinhood: Offers trading in stocks, ETFs, options, and cryptocurrencies, along with features like fractional shares, margin trading, and IRA matching.
Coinbase: Does not support stocks and equities, focusing solely on cryptocurrencies.
Trust and reputation
Robinhood: Faced controversy during the GameStop trading incident in 2021, affecting its trustworthiness among some investors. It’s also facing legal challenges in some states.
Coinbase: Considered one of the most trustworthy crypto platforms, though it has faced legal challenges, including lawsuits from the SEC and individual states.
So which is better out of Robinhood vs. Coinbase?
Choosing between Robinhood and Coinbase depends on your investment strategy. If you’re looking for a platform that combines traditional investments and cryptocurrencies, Robinhood might be the better choice with its minimal fees and user-friendly interface. However, if you’re only trading cryptocurrencies, and looking for a wider range of cryptos and more advanced features, Coinbase is likely the better choice.
Don’t forget the tax bill…
Whether you’re using Robinhood or Coinbase to trade cryptocurrencies, one thing is certain - the inevitable tax bill as a result. Koinly can help keep your crypto taxes simple, with more than 800 integrations supported via API or CSV. Sign up free today.
