When it comes to cryptocurrency trading, choosing the right platform can significantly impact your investment journey. In this article, we will compare two popular platforms, Coinbase and Robinhood, focusing on their fee structures and overall user experience. By the end of this comparison, you will have a clearer understanding of which platform suits your trading needs best. Throughout this Coinbase vs Robinhood piece, you will find actionable differentiating elements corresponding to fees, features, UI quality, and more.
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- What is Coinbase?
- What is Robinhood?
- At a glance: Robinhood vs. Coinbase
- Coinbase vs Robinhood: Major differences compared
- Coinbase vs Robinhood: Trading fees
- Coinbase vs Robinhood: Tradable currencies
- Coinbase vs Robinhood: Crypto staking
- Coinbase vs Robinhood: Investments beyond crypto
- Coinbase vs Robinhood: Ease of use
- Coinbase vs Robinhood: Customer support
- Coinbase vs Robinhood: Payment methods
- Coinbase vs Robinhood: Crypto wallet
- Coinbase vs Robinhood: Comparison table
- Coinbase vs Robinhood: A close call between two crypto giants
- Frequently asked questions
What is Coinbase?
Coinbase is a popular cryptocurrency exchange platform that makes buying and selling crypto easy. The site offers users the ability to buy, sell, and exchange over 100 tradable cryptocurrencies. As of January 2023, the firm boasts over 98 million users and $256 billion in assets. The platform is good for beginners looking to buy and sell orders. Moreover, advanced users can access additional features and order types through Coinbase Pro.
The company was founded in 2012 (making it a legacy institution in the crypto space!) by Brian Armstrong and Fred Ehrsam. It started as a way for people to send Bitcoin to each other without first having to exchange coins for fiat currencies. The platform has since grown at a clip. As of January 2023, it has over 5,000 employees working in more than 100 countries worldwide.
Coinbase is the only publically traded cryptocurrency exchange in the US. Yet, the company has fallen foul of compliance regulation controversy. The exchange reached a $100 million settlement with the New York Department of Financial Services in January 2023. The case brought against the exchange detailed “historical” shortcomings in AML (anti-money laundering) and KYC (know-your-customer) processes at the company. As a result of the settlement, Coinbase stocks responded positively, with a 12% price rise in early 2023.
Coinbase pros and cons
Pros |
Cons |
Unique selection of cryptocurrencies |
High trading fees |
24/7 customer support |
Recent security breach |
Quality educational materials |
Complex fee structure |
What is Robinhood?
Robinhood is a platform that offers commission-free trades of stocks, ETFs, options, and cryptocurrencies. Launched in 2013, the app boasts over 21 million customers and $102 billion in assets, as of January 2023.
The crypto broker is dominant in the investment world, offering an alternative to traditional, high-fee brokerages. Robinhood’s primary objective is to provide its users with tools that help them make smarter investments and save money on fees.
The platform offers commission-free trading of stocks, ETFs, options, and cryptocurrencies. Coinbase also provides access to third-party research reports about different companies so investors can make informed decisions on how best to use their money.
Users can also invest using the Robinhood Crypto feature and in gold or platinum through the “Gold Buying & Selling” feature. The platform also offers its debit card, Robinhood Gold, which allows customers to make purchases using their digital assets without paying fees or interest.
However, Robinhood has also been no stranger to controversy. The platform faced accusations of market manipulation after freezing customer withdrawals during the GameStop debacle. And, in 2021, the platform was ordered by FINRA — the financial industry regulatory authority — to pay nearly $70 million in fines.
Robinhood was found to have caused “widespread and significant” harm on multiple fronts; this included misleading customers about the money in their accounts. Then, in August 2022, Robinhood was fined another $30 million by the DFS for violations of AML and cybersecurity regulations.
Robinhood pros and cons
Pros |
Cons |
Easy to use design |
Can’t withdraw crypto funds |
Allows cryptocurrency and fractional share trading |
Limited cryptocurrencies available |
Instance access to funds |
Available to US players only |
No commission fees |
A reputation of misleading customers |
At a glance: Robinhood vs. Coinbase
Information |
Coinbase | Sign up |
Robinhood | Sign up |
|---|---|---|
Headquarters |
San Francisco, USA |
Menlo Park, USA |
Company Type |
Broker exchange, buy, and sell options |
Broker exchange plus traditional stocks |
Security |
High |
Medium |
Fees |
Medium-Low |
Low |
User friendly |
Yes |
Yes |
Year established |
2012 |
2013 |
Flat trading |
Yes |
Yes |
Coinbase vs Robinhood: Major differences compared
Here are the major differences you need to know:
Coinbase vs Robinhood: Trading fees
Coinbase vs Robinhood fees differ in how they charge trading fees. Robinhood charges no commissions for buying or selling cryptocurrencies. However, while this sounds appealing on the surface, ‘commission-free trades‘ isn’t necessarily a good sign. Robinhood makes money through a controversial process (banned in the UK and Canada) called payment for order flow.
In other words, the platform receives money from the exchanges themselves in exchange for sending orders to them first. Investors often do not benefit from the best execution and pay more than they should for trades. So, while investors pay no fees, they aren’t necessarily better off for it.
In contrast, Coinbase charges trading fees, but these are higher than those charged by other popular exchanges. As of June 2024, the basic platform charges 0.05% to 0.60% per trade and 2% for Coinbase credit card transactions. For banking, the fee varies. Coinbase Pro charges 0% to 0.50% per trade.
Trading fees winner: Draw
Coinbase vs Robinhood: Tradable currencies
As of June 2024, Coinbase supports over 200 cryptocurrencies with big names including Bitcoin, Ethereum, Solana, Dogecoin, and many more.
On the other hand, Robinhood allows users to trade a limited number of cryptocurrencies. These include Bitcoin Cash, Ethereum Classic, and Litecoin. If you want the widest range of crypto trades, Coinbase is your best bet.
Tradable coins winner: Coinbase
Coinbase vs Robinhood: Crypto staking
As of June 2024, Coinbase pays up to 5.75% APY, depending on the coin in question, while Robinhood does not offer staking. If you’re looking for a platform where you can both stake your coins and trade them, Coinbase is the obvious choice.
Crypto staking winner: Coinbase
Coinbase vs Robinhood: Investments beyond crypto
Robinhood started as a stock trading app and later added cryptocurrency trading to its platform. It allows you to invest in conventional assets like stocks, ETFs, and options. Coinbase focuses only on cryptocurrencies but offers derivatives trading for crypto and other assets.
Investments beyond crypto winner: Robinhood
Coinbase vs Robinhood: Ease of use
If you’re looking for a platform that makes it easy to buy and sell crypto, Coinbase and Robinhood are both worth checking out. Both platforms offer intuitive apps that are easy to use, fast, user-friendly, and work well on mobile devices.
Coinbase features an advanced trading platform that offers a learning curve for advanced users. The Coinbase basic platform remains easy for beginners while offering advanced options for those who want them.
Robinhood does not have any advanced trading feature—it’s strictly beginner-friendly—but users can still buy and sell crypto like BTC, ETH, LTC, BCH, XRP, XLM, and NEO on its app using their credit card or bank account. However, note that you cannot withdraw crypto funds from Robinhood.
Ease of use verdict: Draw
Coinbase vs Robinhood: Customer support
Coinbase offers several ways to contact its customer service team. You can email them or submit a ticket by clicking on the link in their footer. You can also call their phone number for live support. However, the platform does have a reputation for poor customer service. In 2021, many customers complained about Coinbase’s unsatisfactory response after their accounts were hacked and drained.
Robinhood offers 24/7 chat support. You can also reach out to Robinhood through Twitter. Just tweet @AskRobinhood with any questions, and they claim to respond as soon as possible.
Customer support winner: Robinhood
Coinbase vs Robinhood: Payment methods
As of June 2024, Robinhood and Coinbase offer users a wide range of payment methods. However, Coinbase’s list of payment options is slightly more extensive. They offer bank transfers, debit cards, wire transfers, PayPal, Apple Pay, and Google Play.
On the other hand, Robinhood only offers the debit card option for its users. The debit card option supports Apple Pay, Samsung Pay, and Google Pay.
Payment method winner: Coinbase
Coinbase vs Robinhood: Crypto wallet
When it comes to crypto wallets, Coinbase offers more options than Robinhood. Coinbase users can store their coins on the crypto exchange as a hot wallet or create a non-custodial wallet. In comparison, Robinhood users can’t access private keys or secure their wallets. You can only send coins from outside Robinhood to your account.
Crypto wallet winner: Coinbase
Coinbase vs Robinhood: Comparison table
If you are pressed for time and quickly want to learn the differences between Coinbase and Robinhood, here is a table for your reference:
| Features | Coinbase | Robinhood |
| Fee Structure | Variable fees based on transaction type | Commission-free trades for most assets |
| Trading Platform | Advanced with numerous features | Simplified and user-friendly |
| Crypto Exchange | Yes | No |
| User-Friendliness | Moderate | High |
| Payment Methods | Bank transfers, credit cards | Bank transfers, debit cards |
| Commission-Free Trades | No | Yes |
| Cryptocurrency Trading | Extensive list of coins | Limited selection |
Coinbase vs Robinhood: A close call between two crypto giants
The bottom line of the Coinbase vs Robinhood battle is that choosing the right platform really depends on individual needs. What you’re looking to invest, how much you’re willing to invest, and what kind of trading experience you prefer should all play a part in your decision.
However, Coinbase is overall a more beefed up platform, boasting more offerings but requiring a slightly steeper learning curve. Robinhood is especially geared towards newer traders and more casual investors, as it only offers seven cryptocurrencies. If you’re looking for a super intuitive with less of an initial learning curve and are happy with access to fewer cryptocurrencies, Robinhood may be more suitable. The platform revolutionized the ease with which the average person could invest, and that’s no mean feat. But if you’re looking for a platform with (slightly) less controversy, the option to withdraw crypto, and multiple wallet options, Coinbase comes out on top.
Frequently asked questions
One downside to Coinbase is its complex fee structure. The company uses different trading fee structures, whether on basic or advanced trade options. Simple crypto trades come with high fees for small transactions, while advanced trades are much cheaper than simple ones. This is a downside for beginners.
Robinhood is a good choice for beginners looking to dip their toes into crypto trading. But be warned, while Robinhood offers commission-free crypto trading, investors often end up paying more for trades than they should. This is because Robinhood makes money via payment to order flow.
It depends on what you’re looking for in a crypto platform. If you want for an easy to use platform suitable for beginners, Coinbase is a good choice. But other leading exchanges, including OKX, Kraken, eToro and Binance, offer cheaper fees.
It depends on what you’re looking for in a crypto platform. If you want for an easy to use platform suitable for beginners, Coinbase is a good choice. But other leading exchanges, including OKX, Kraken, eToro and Binance, offer cheaper fees.
Coinbase is the world’s largest cryptocurrency exchange. The exchange supports over 200 cryptocurrencies. It is beginner friendly, but also boasts a more advanced Coinbase Pro platform.
Coinbase charges a percentage of the transaction as a fee, varying by location, payment method, and size, often resulting in higher costs for small transactions. Robinhood, meanwhile, offers zero-commission trading, earning from spread markups, which subtly adjusts buying and selling prices.
Coinbase features a user-friendly interface with extensive educational resources, making it ideal for beginners, and includes Coinbase Pro for advanced traders seeking detailed tools and analytics. Robinhood offers a streamlined trading experience that combines stock and crypto trading, appealing to those familiar with stock markets but offers fewer cryptocurrencies and limited advanced trading features.
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