Looking forward to starting trading and searching for the options to trade on. After browsing from one site to another you still did not find a conclusion after finding concluded Coinbase and Robinhood are the good ones.
Before expanding to trade you should understand which one is better.
In this article, we will point out a few of the differences between the two which will guide you to decide which you want to select.
You should know what Coinbase and Robinhood are.
You might have heard that Coinbase has taken the platform of trading as a gust of wind and that’s true. It provides cryptocurrencies and you can purchase, sell or store them in the account. You will also find a wallet in the Coinbase account.
The app has a distinct feature which means you can invest without any commission being charged. You can also trade in real-time. First-time users while signing up acquire stocks for free.
Both the trading app deals on cryptocurrencies like Bitcoins, Ethereum, and many more cryptos.
The secure app is Coinbase which is good for new users as they are diving their foot into cryptocurrency. Whereas, if you go deeper you can find that Robinhood, is also considered as a great trading platform for the new ones but you will find only limited cryptocurrencies. If you want to step in with little amounts to deal in cryptos and stocks then the Robinhood app is what you need.
We would like to make it clear that this article is only to make you understand so that you can decide which app is for you. We are not siding with nor sponsoring any apps to select according to us.
Differences between Coinbase and Robinhood
We have listed the differences into five categories:-
- Selection of cryptocurrency
- Technical Reliability
- Capabilities of Crypto
- Ease of Use
Let’s have a look at the points in detail.
Coinbase seems to be too costly but here Robinhood has taken the position as it does not charge any fees for purchasing cryptocurrencies. Only the difference in bid and the asking price is required to be paid.
As reported on Reddit, the previous year Robinhood offered trades at inferior rates that cost customers $34.1M as mentioned by SEC. In such a case Robinhood conceded to fund with $65 million in order to settle the penalties.
Whereas trading on Coinbase is not that simple as it seems. To make you understand we will be citing you with an example. Suppose you used a debit card to purchase Bitcoin for $100 and pay $3.99. In case you paid the fee $2.99 using the linked account. For purchases and sales of cryptocurrency, Coinbase will be charged 0.5%. This percent might change after fluctuation in the market. The prices on coinbase are a bit confusing and it feels somewhat obsolete to pay for each trade when different financiers have been creating some space from that for a really long time.
If you go according to the fees Robinhood will be a great option.
Selecting the Cryptocurrency
Coinbase is for cryptocurrency to trade. You will find many cryptos on this app and most importantly they add new cryptos on a regular basis.
Whereas, Robinhood, lists in the number of seven currently.
Most probably the two companies have strived to outages while trading on volume spikes.
Furthermore, this happens when customers are generally anxious to possess full constraints of the funds, regardless of whether it’s a crash or surge of crypto.
Unless anyone platform proves that it is capable of dealing with an abrupt inundation action, customers feel that this is a genuine opportunity.
If you check the reports stated on Reddit you will find that Robinhood in this current stage has already had 49 blackouts announced. But Coinbase had only 28 till now compared to Robinhood.
Robinhood converts USD into cryptocurrency because it is a stockbroker. But Coinbase is only a brokerage dealing in cryptocurrency and trading that offers a wallet, along with a personal wallet.
If you choose Coinbase, you can purchase cryptos using cash and store that cash in the account’s wallet. You can also opt to move the coins to your personal wallet. Getting an exchange on Coinbase Pro for free is indeed a good thing, where you choose to deposit coins from the wallet easily. These coins can be further used for trading at a low cost.
New users can have the opportunity to establish themselves in the trading field.
Robinhood on the other hand cannot transfer or send coins from the app. The most important point to be noted is that you cannot receive it from a different wallet. First, convert to cryptos, and after that convert to USD if you want gains when the price rises. After a few months, you might hear that Robinhood also includes wallets but till then you can use Coinbase for trading.
Ease of use
The apps are both spontaneous and simple to use. As many individuals are eager to sell and buy, they can also earn a huge sum of money. So, it’s in the best attraction to create a derivative that entices purchasing and selling, that too using in small amounts, and reducing the friction that exists on the route to press the “Purchase” tab.
Here the outcome is an item that is terrific for learners as the sale and purchase process is stripped down to the basics; though some contend that it actually shouldn’t be this simple for fledglings to exchange dangerous, theoretical resources like digital money.
Coinbase Pro realizes more as a trading platform of intermediate to advanced. In case you are not prepared however to glide, assuming the platform of Coinbase is easy to use and pay the fees as per them. Using Robinhood, you will not face any platform for advance trading as on Coinbase.
Hope you can select from the above-mentioned app to trade. Setting Binance vs Coinbase vs Robinhood in a single line where Coinbase will come up at the top listed as the best app.