Coinbase vs. Robinhood: Which Is Better?
With so many options for cryptocurrency ventures out there, it’s easy to get choice fatigue. Coinbase and Robinhood are among the best-known options for first-timers.
Does that mean you should just flip a coin? Not quite. Both of these services have their ups and downs, just like any other business. Choosing the right one will depend on your budget, your experience, and what you hope to achieve with your cryptocurrency down the line.
Coinbase vs Robinhood…which is better for you? Read below to find out.
The Rise of Cryptocurrency in 2022
What makes cryptocurrency such an appealing prospect these days? It could have something to do with the more flexible way people are viewing investment opportunities.
Digital currency is beloved for being reliable and impossible to duplicate. There are nearly 45 million users of Coinbase around the world, with the United States having the highest concentration of Bitcoin users.
Thanks to blockchain technology and user-friendly apps, more people than ever have the power to invest with a lower risk.
User Interface and Ease-Of-Use
Cryptocurrency is daunting for several reasons. Not only is this virtual currency a relatively new way of making money, but you can also run into many frustrating user interface problems.
Just like downloading a new app, you should invest in a service that’s user-friendly. Ease-of-use is a definition that involves smooth interfaces, clear directions, and fast loading times.
Coinbase Pros and Cons
We loved Coinbase for how easy it was to use for both beginners and experienced users. Cryptocurrency traders with a few years of experience should consider using Coinbase Pro (though that comes with a fee).
The one downside to Coinbase is that it can be a little too easy to use, which seems counterintuitive for a market as speculative as cryptocurrency. Your mileage will definitely vary here.
Robinhood Pros and Cons
Similar to Coinbase, Robinhood is also a silky smooth experience. You’ll never be confused about when or where to buy during your journey.
Keep in mind that both Robinhood and Coinbase will take a small cut of your transactions to keep the service going.
Which One is Best?
Coinbase and Robinhood are both fantastic options, though experienced users should use Coinbase for its Pro version.
Related: How to Buy a Banker With Coinbase or Binance
Financial access is something everyone should be able to do. We believe in providing modern blockchain infrastructure to families and business owners of all backgrounds.
Cryptocurrency Services
Coinbase and Robinhood boast some of the most convenient and varied cryptocurrency services on the market. As such, it’s best to look at these services as being different rather than superior to each other.
Coinbase Pros and Cons
When you want pure convenience, Coinbase is where it’s at. This fantastic platform not only provides you cryptocurrency brokerage services, but you can also use it as a wallet.
More specifically, you can use Coinbase as a hosted wallet or a personal wallet. If you want to send coins outside of the app to partners or friends, you’ll have an easy time doing so. This service is an ideal pick if you like to use your cryptocurrency for several purposes and don’t want to get confused during tax season.
Make sure to double-check with your tax accountant on how to report your cryptocurrency earnings so you can enjoy all the benefits.
Robinhood Pros and Cons
Robinhood struggles a little more in this department. This service doesn’t let you receive or send coins outside of the app.
Does that mean you don’t have any options? Far from it. With Robinhood, you can still convert your crypto into American dollars and back again.
Which One is Best?
Coinbase is the most flexible of the two options, offering both wallet and transfer options. If you want to keep your cryptocurrency as separate from your work as possible, then Robinhood is the better choice.
Related: Announcing the Crypto Payment Profile
General Cryptocurrency Selection
When diving into cryptocurrency, a more specialized approach is usually better. This area is where Coinbase really shines.
Coinbase Pros and Cons
Coinbase is filled with dozens of different cryptocurrencies and regularly adds new options every few months. You even have the choice to keep an eye on certain currencies on-the-fly.
On the other hand, if you’re someone who struggles with choice fatigue, this selection might be too daunting. Beginners would be better off using Robinhood until they gain some experience.
Speaking of which…
Robinhood Pros and Cons
Robinhood has a much more narrow selection than Coinbase, racking up just seven cryptocurrency types. This smaller focus isn’t all bad, though.
If you’re worried about becoming overwhelmed with too many options on display, Robinhood will provide an easier experience.
Which One is Best?
Coinbase has a wider selection, but Robinhood is more user-friendly.
Related: Purchase Litecoin With Your Bank Account
Conclusion
If you’re considering getting into cryptocurrency, Coinbase and Robinhood are solid places to get started. The platforms we recommend are based on your skill level and lifestyle.
Coinbase is an ideal choice for more experienced cryptocurrency traders who want a lot of options in both investing and saving. Robinhood is better for first-timers who don’t want to be overwhelmed with too many options.
Give yourself a headstart on the cryptocurrency market. Contact us today with your questions and concerns so you can get off on the right foot!
