Coinbase vs Robinhood: Cryptos, Fees, Features comparison

Today we offer to analyze two major cryptocurrency companies - Coinbase vs Robinhood, identify their advantages and disadvantages, compare them by main parameters. Choosing between these exchanges can be difficult because both have been operating for a long time, have similar functionality, offer a wide range of options and available currencies.

Advantages and disadvantages of Coinbase

About Coinbase exchange

Coinbase is an ecosystem that includes the largest centralized cryptocurrency exchange in the U.S., a cryptocurrency wallet, an NFT marketplace, a digital asset custodial service and other products.

About Robinhood Exchange

Robinhood is an investment company that has been serving the market for more than 10 years. Its owners were originally engaged in creating software for hedge funds, and then they teamed up to build a company that would make investing accessible to all people. The broker is licensed to provide services and is a member of FINRA, the financial services regulatory service in the United States. 

Comparative analysis of Coinbase and Robinhood exchanges

Available features

Both crypto-exchanges focus on cryptocurrency trading. 

Coinbase offers: 

Robinhood offers:

Available countries

Coinbase and Robinhood exchanges are available in more than 100 countries. These exchanges do not provide trading services in sanctioned countries. 

Payment methods

You can fund your Coinbase and Robinhood account with a bank card, PayPal or cryptocurrency.

Card Support

All types of bank cards from supported countries are available on Coinbase and Robinhood.

Available Cryptos and Tokens

Coinbase currently supports 533 trading pairs and 219 coins. 

Robinhood supports 7 coins.

Regulation

Coinbase is regulated in the United States and also seeks licenses in other states where this is possible. Coinbase is currently licensed to conduct money transfers in most U.S. jurisdictions.

Most of Coinbase's remittance licenses cover U.S. dollar wallets and transfers. In some states, money transfer licenses also cover cryptocurrency wallets and transfers within the platform. Other states do not require a digital money transfer license.

Coinbase is also registered as a money services business with FinCEN.

The Robinhood broker is licensed to provide services and is a member of FINRA, the financial services regulatory service in the United States. 

Interface

The interface of the exchanges is quite convenient and clear. Any user can immediately understand all the functions. Do not worry, if you do not understand something, you can always see the training and tips.

Verification (KYC)

Both exchanges require verification, which includes: Indication of citizenship/residential address, providing proof of identity, providing passport and/or face validation selfies in "live" mode, providing contact information.

On Coinbase, users from unsupported countries cannot pass KYC.

Account deposit

Exchanges offer the following options for funding the account:

Comparison of Trading Fees

Coinbase:

Robinhood:

Account security

On Coinbase the level of protection is as follows: Password, Confirmation by SMS, 2FA, Hardware keys. It is possible to configure at what amount of money is sent the exchange will ask for two-factor authentication.

Robinhood offers cold storage for the vast majority of coins. This provides complete security for users.

Passive earn on exchanges

Coinbase has Ethereum 2.0, Tezos, Cosmos, Solana, Algorand, Cardano cryptocurrency stacking feature with yields up to 6% p.a. (varies).

Unfortunately, at the moment, broker Robinhood does not offer any opportunities for passive income.

Which to choose - Coinbase or Robinhood

Robinhood has more favorable commissions. However, Coinbase has a wider range of investment areas. Otherwise, the exchanges are almost equal - both have high trading volumes and have been operating for almost a decade.

Disclaimer:

NFTs trading entails a high level of risk and is not suited for all investors. You should carefully evaluate your investment objectives, degree of experience, and risk appetite before deciding to trade cryptocurrencies. You should not invest money that you cannot afford to lose because there is a chance that you will lose some or all of your initial investment.

You should be aware of all the dangers connected with cryptocurrency trading and seek counsel from a financial expert who is not affiliated with any cryptocurrency exchange. This website's opinions, news, research, analysis, pricing, and other information are offered as general market commentary and do not represent investment advice.

FAQs

Is Coinbase free to use?

Coinbase allows you to store your cash and supported cryptocurrency at no cost.

Is my money safe with Coinbase?

Yes, of course. Coinbase is a fully legal exchange which has passed many audits.

Is it good to buy crypto in Robinhood?

Yes, Robinhood is completely legal and safe. This broker is perfect for buying cryptocurrency.

Which is safer Coinbase or Robinhood?

It's hard to decide on this issue. Both exchanges are safe to use. You should study both offers and choose the right one for you.

Conclusion

When choosing a cryptocurrency exchange, pay attention to all of the above factors, as well as trading volumes, reviews, and supported currencies. It may happen that just one attribute is decisive, such as the presence of a certain token in the listing. Both exchanges we reviewed today have been operating for a very long time and are trustworthy for that reason alone. Both Coinbase and Robinhood keep growing along with the development of the whole cryptocurrency sector, which is necessary for any company to stay afloat.