A lot of crypto-curious people are asking the question: how are Coinbase and Robinhood different?
A lot of crypto-curious people are asking the question: how are Coinbase and Robinhood different? The crypto-savvy, on the other hand, are asking something different: which one is better? While investors can use both Coinbase and Robinhood to buy or sell cryptocurrencies, the simplest way to distinguish them is to understand that Coinbase is a cryptocurrency exchange and Robinhood is a brokerage firm.
This means that Coinbase users can trade cryptocurrencies with each other, or withdraw their coins to PayPal or theirBitcoin wallet. Robinhood users can withdraw cash funds, but they cannot transfer cryptocurrency out of their account until it is converted to cash (to Robinhood's credit, users can buy stocks, options, and ETFs in addition to buying and selling cryptocurrencies, while Coinbase is focused solely on cryptocurrency).
Robinhood employs market makers to execute a user’s trades, charging a flow fee. Users can establish an account on both platforms using a simple sign-up process and identical security measures, then they must transfer their crypto funds to cash before accessing them.
Coinbase is an online cryptocurrency exchange that allows users to withdraw their coins to their digital wallet or cold storage anytime. Coinbase even provides digital wallets for its users.
Since Coinbase and Robinhood are both very user-friendly, they are great for amateur investors and people who want to invest small amounts. However, because Coinbase takes a sizable fee out of investors' funds, using Robinhood means you pay less per trade (Robinhood doesn't charge a commission).
If you prefer to trade crypto, ETFs, stocks, and options all in one place, you’ll likely prefer Robinhood. However, if you’re looking to invest in a wide variety of cryptocurrencies and withdraw them directly, Coinbase's platform offers a better solution.
Sprocket is a hybrid banking platform that leverages tried and true banking services like debit cards and paycheck depositing in addition to full-service crypto trading and high-yield savings all in one place. Building out the new era of banking, Sprocket’s integrated experience is a force for innovation in the industry.