Robinhood vs. Coinbase: Full Comparison (2024)

Robinhood and Coinbase are two of the most popular options for beginning crypto investors — but which exchange is the right choice for you? In this guide, we’ll break down the key differences between the two platforms and help you choose the best exchange based on your unique needs!

Robinhood vs. Coinbase: What’s the better choice? 

Let’s start by doing a quick breakdown of the key differences between Robinhood and Coinbase. 

• Coinbase is the better choice if you’re looking for a crypto-first, beginner-friendly platform that offers a diverse selection of cryptocurrencies!
• Robinhood is the better choice if you’re looking for a user-friendly platform that can help you manage your stocks and cryptocurrencies in one place! 
• Robinhood has faced criticism in the past for issues such as lack of transparency over spreads and the company’s handling of the GameStop short squeeze in 2021. 

What are the pros and cons of Robinhood? 

Robinhood may be a better option for investors looking for a user-friendly platform that allows users to invest in stocks and cryptocurrencies. 

Pros:

• Diverse Investment Options: Robinhood is ideal for those looking to invest in a variety of assets including stocks, ETFs, options, and cryptocurrencies.
• User-Friendly Interface: Robinhood is a great platform for beginners due to its user-friendly mobile app! 
• Low Fees: Robinhood offers no commission fees on cryptocurrency trades. 

Cons:

• Limited cryptocurrency features: Because Robinhood is not a crypto-first platform, the platform lacks features like cryptocurrency interest and staking. 
• Spreads: Some customers have complained that while Robinhood has no fees for crypto, the platform may have high ‘spreads’ — the difference between the listed price and the real price of the asset. 

Is Robinhood trustworthy? 

While Robinhood is considered a safe and secure option for stocks and cryptocurrencies, the platform has faced criticism in the past. 

In 2021, Robinhood restricted trading of GameStop and other stocks due to liquidity issues. This incident raised questions about Robinhood’s commitment to retail investors and its overall reliability.

Robinhood currently holds a D rating from the Better Business Bureau  — partially due to a history of unresolved customer complaints. 

What are the pros and cons of Coinbase? 

Coinbase is considered one of the best platforms for beginner crypto investors due to its easy-to-use platform, educational resources, and selection of cryptocurrencies. However, the platform has relatively high fees and no support for stocks and equities. 

Pros:

• Extensive Cryptocurrency Options: With over 260 cryptocurrencies, Coinbase is a haven for crypto enthusiasts.
• Additional Features: Coinbase has robust features for beginner investors — including cryptocurrency staking and educational modules that allow you earn free crypto! 
• Coinbase Card: The Coinbase Card allows you to spend crypto and earn rewards! 

Cons:

• Higher Fees: Coinbase is known to have higher fees than other exchanges. 
• No stocks: Unlike Robinhood, Coinbase does not support stocks and equities. 

Is Coinbase trustworthy? 

Coinbase is considered one of the most trustworthy cryptocurrency platforms in the world. The platform has operated since 2012 and has not faced hacks or security issues. 

While the company does have a B+ rating from the Better Business Bureau, Coinbase has faced legal challenges — such as lawsuits from the SEC and individual states challenging the company’s ability to offer a staking-as-a-service feature. 

Coinbase vs. Robinhood: Key Features 

Let’s see how Coinbase and Robinhood compare on key features. 

Fees

Winner: Robinhood 

• Coinbase: Charges fees between 0.5 - 4.5% depending on the type of cryptocurrency and the volume of your transaction. Coinbase is known for charging relatively high fees compared to other crypto exchanges. 
• Robinhood: Offers commission-free trading. However, Robinhood does have ‘spreads’ for cryptocurrencies. According to the Robinhood website, these spreads are higher for lesser known cryptocurrencies. 

Supported Cryptocurrencies

Winner: Coinbase 

Coinbase is a better option for investors looking for a diverse selection of cryptocurrencies. 

• Coinbase: Supports over 260 cryptocurrencies.
• Robinhood: Supports over 15 cryptocurrencies. 

User Interface

Winner: Tie 

Both platforms are designed with user-friendliness in mind, catering to beginners with easy sign-up processes and an intuitive navigation. 

Robinhood may be a better option for users who plan to invest primarily through mobile due to how user-friendly the application is. 

Security

Winner: Coinbase 

Both Coinbase and Robinhood use security measures to keep customers safe. 

• Coinbase: Employs 2-step verification, cold storage, and insurance for digital assets.
• Robinhood: Also uses 2-step verification and provides SIPC coverage for certain assets.

However, we gave Coinbase the edge because the company stores 98% of its funds offline — protecting customers in the event of a hack. 

Customer Support

Winner: Tie 

Robinhood and Coinbase have both been criticized for offering limited customer support. 

While Robinhood offers 24/7 customer support in-app as well as email support, users have criticized Robinhood for taking days to respond to support requests and providing unhelpful responses. 

Coinbase has also faced criticism for delays in responding to support requests. The platform does offer priority support for those who subscribe to Coinbase One, a premium offering that costs $29.99 a month. 

Crypto Rewards 

Winner: Coinbase 

Coinbase: Coinbase offers users the ability to earn cryptocurrency through features like Learn and Earn, staking, and USDC interest rewards. 

Robinhood: While Robinhood does offer some Learn and Earn programs, the platform does not have the same depth of cryptocurrency reward features as Coinbase. 

Stocks & Equities 

Winner: Robinhood 

Robinhood: Robinhood offers many the ability to trade equities as well as features like fractional shares, margin trading, and IRA matching. 

Coinbase: Currently, Coinbase does not offer stocks and equities. 

Trust

Winner: Coinbase 

Reputation is a crucial factor when it comes to choosing an exchange. While Coinbase is widely considered to be a trusted platform, Robinhood has faced controversy in the past. 

Robinhood's involvement in the GameStop trading controversy caused some investors to lose trust in the platform. This incident, where Robinhood restricted trading of GameStop and other stocks, led to many users questioning the company’s commitment to the needs of retail investors. 

Conclusion

If you’re choosing between Robinhood and Coinbase, you should keep your investment focus in mind. If you're interested in traditional and digital assets on a single platform, Robinhood might be the better choice. 

However, if you’re interested in a crypto-focused portfolio with a wider range of currencies and advanced features, Coinbase is likely the better choice. 

Always consider factors like fees, supported assets, user interface, security, customer support, and trustworthiness when choosing an exchange.