The Basics of Coinbase Pro vs. Robinhood
Before we get into the benefits and downsides of each platform, let’s take a look at what Coinbase Pro and Robinhood are all about.
Coinbase’s shares were listed on the NASDAQ exchange under the symbol COIN on April 14, 2021, after months of anticipation and hoopla. Coinbase’s stock began trading at $381 and rose to a high of $429.54 before closing at $328.28.
Coinbase released its first-quarter financial figures after the market closed on May 13, 2021. Despite the fact that Coinbase’s results were good in contrast to previous quarters, the company’s earnings and revenue fell short of Wall Street analysts’ expectations.
Even more intriguing was Coinbase’s presentation of three alternative levels of guidance based on how the crypto market performs in the next months. The decision by Coinbase demonstrates how volatile the cryptocurrency market can be.
Brian Armstrong, Coinbase’s CEO, stated on the company’s conference call that Dogecoin (DOGE) would be added in the next 6-8 weeks. DOGE has been one of the most actively traded cryptocurrencies in recent months, and the increased trading volume could have been exactly what Coinbase need.
Robinhood, another big cryptocurrency player, also intends to go public this year. Bloomberg recently reported that the company had filed for an IPO on a confidential basis (IPO). Bloomberg reports that Robinhood might go public as soon as the second quarter, however market conditions could change that.
This year, Robinhood has been in the spotlight a lot, thanks to its involvement in the GameStop (NYSE:GME) storey. It’s also one of the few traditional brokerages that accept cryptocurrency trades. In fact, Vlad Tenev, the CEO of Robinhood, appears to be so optimistic about cryptocurrency’s future that he intends to spend more resources to promoting it.
The company’s intention to focus on cryptocurrencies could be due to the surge in cryptocurrency trading that Robinhood saw in the first quarter of this year. The number of crypto traders jumped from 1.7 million in the fourth quarter of last year to 9.5 million in the first quarter of this year, according to Robinhood. That expansion is a pretty positive sign for a company that has received a lot of flak in the wake of the GameStop debacle.
Both of these companies are big players in the cryptocurrency market, especially for newcomers. While Robinhood has a single platform for all of its consumers, Coinbase provides a standard offering as well as Coinbase Pro, which is a somewhat more advanced platform. This blog will compare and contrast the features of Coinbase Pro and Robinhood. Both are simple to use, yet they have significant distinctions.
Deposits and Withdrawals: Coinbase Pro vs. Robinhood
Of course, a customer’s account must be funded before they may start trading. Robinhood will suffice for consumers who want to deal entirely with FIAT. Coinbase Pro, on the other hand, is a preferable option for consumers who want to deposit bitcoin into their account and then withdraw it, maybe to a privately encrypted cryptocurrency wallet like Ledger or MetaMask.
The only way to fund your Robinhood account is to link your bank account and then initiate a transfer via your account’s banking section. After that, you’ll be able to enter the deposit amount, review it, and then submit the transfer request formally. Customers can make up to five deposits each day, totaling a maximum of $50,000 each day.
Customers should be aware that because transactions are processed through ACH, they may have to wait up to 5 business days for funds to become available. Fortunately, consumers will have access to an instant deposit of $1,000 per month. Customers can upgrade to Robinhood Gold for $5 per month if they want to enhance their $1,000 immediate deposit limit.
Customers using Robinhood Gold will have the following instant deposit limits:
- Customers with a total portfolio worth of more than $50,000 are eligible for a $50,000 bonus.
- Customers with a total portfolio worth of more than $25k are eligible for a $25,000 bonus.
- Customers with a total portfolio worth of more than $10,000 will receive a $10,000 bonus.
- Customers with accounts worth less than $10,000 will receive $5,000.
Robinhood offers a free 30-day trial to consumers who are wondering whether Robinhood Gold is the appropriate answer for them.
In addition, Robinhood provides consumers with the option of receiving a debit card, which can be used to access the funds in their account. The available funds are also swept into Robinhood’s FDIC-insured bank network, which will pay interest on the sum. Customers can currently earn an annual percentage yield (APY) of 0.30 percent, which is paid out on the last business day of each month.
Customers can withdraw money using the same technique as they did when depositing money. The transfer box should be from Robinhood to your checking account this time.
Customers that use Coinbase Pro can trade in either FIAT or crypto.
Because there are no fees connected with ACH deposits and withdrawals, they will be chosen by the majority of casual traders. Customers must evaluate whether the delay is acceptable because ACH deposits and withdrawals can take up to 5 business days to process.
Customers can deposit via bank wire if time is of the essence. However, in addition to the $10 cost charged by Coinbase for receiving a bank transfer, your bank will additionally charge you a fee, which is often between $25 and $40. That is definitely OK for large-scale traders, but for those of you seeking to trade a few hundred dollars in crypto, ACH deposits are definitely the best option.
Customers can deposit bitcoin straight into their Coinbase exchange wallet in addition to making FIAT deposits and withdrawals. Customers will be able to examine their individual wallet addresses for each cryptocurrency and then deposit the desired amount. Customers must exercise utmost caution because making a mistake could result in money being lost. Customers should double-check that they are sending their cryptocurrency to the correct wallet and that the address is complete. This is the fastest and cheapest way to transact for traders who are comfortable transferring bitcoin across wallets.
When it comes to banking, both Robinhood and Coinbase Pro are viable solutions. Although Robinhood only deals in FIAT, most traditional brokerage customers will be satisfied. The ability to deposit and withdraw cryptocurrency between the exchange and private wallets, on the other hand, will be a huge benefit for more experienced crypto traders. As a result, Coinbase Pro takes first place in this category.
Trading Fees: Coinbase Pro vs. Robinhood
When it comes to choosing the best cryptocurrency platform, many traders would choose the one with the lowest fees. As a result, it’s critical to compare Robinhood’s fees to those of Coinbase Pro.
Robinhood created history in 2013 when it became the first large brokerage to offer commission-free trading to its users. Because it was so popular, numerous brokerages followed Robinhood’s lead in 2019 and went to a zero-commission model as well.
The Robinhood approach may be used to cryptocurrencies as well. As a result, Robinhood users do not pay commissions on their crypto trades. That raises the question of how Robinhood generates revenue. The company makes money via a variety of methods, including Robinhood Gold membership fees, stock loans, and order flow payment.
Although the advertised price on Coinbase Pro may appear to be lower than what clients will see on Robinhood, when costs are factored in, the vast majority of clients will benefit from trading at Robinhood.
Unless you’re trading millions of dollars to benefit from Coinbase Pro’s low taker fees at that tier level, Robinhood will almost probably be the less expensive alternative for the vast majority of traders. This category is won by Robinhood!
Transparency: Coinbase Pro vs. Robinhood
Transparency is a problem that all traders should be concerned about. Traders are curious in the price at which they are being filled in respect to the present market.
Robinhood simplifies things by displaying a trading price that is free of charge. However, because Robinhood is merely a broker who sells order flow to trading organisations, the difference between buy and sell prices is frequently in the $20 range. While there is no charge, there is a significant mark-up. Other orders and market pricing aren’t shown.
Coinbase is a cryptocurrency exchange that matches buy and sell orders immediately or allows users to post orders in the order book. The entire order book, which is generally $0.01 wide, is presented in real time. The charge schedule is also clearly displayed on their website, albeit calculating your net trading price can be challenging.
While the total cost of trading on Coinbase Pro is higher, the platform is more transparent in terms of market orders and trades, as well as the genuine fee (or markup) for trading.
Trading Experience: Coinbase Pro vs. Robinhood
Because each platform is best suited to a distinct audience, the trading experience on Coinbase Pro and Robinhood is significantly different. Whereas Coinbase Pro is great for traders searching for a high-end, adaptable, and complex crypto trading experience, Robinhood is excellent for users trying to save as much money as possible on trading costs.
The only buttons on Robinhood are Buy and Sell, albeit you can move from a market to a limit order. They also include a price chart that is both fixed and unlabeled. But, as you can see in the image above, that’s all there is to it. It has a restricted set of features and is probably best suited to traders looking for a low-cost, no-frills experience.
To start trading on Coinbase Pro, a user must first choose an asset, such as Bitcoin or Ethereum, then choose a trading action, such as buy or sell, and then specify the trade size they want to execute. Furthermore, although the default order type is market (which means it will fill at the best available price), traders can change it to a more specified kind such as limit, stop, or trailing stop. Customers can visit the Coinbase Pro help area to learn more about the different order types.
Coinbase Pro also adds a new “stop” order type, as well as a lot of real-time exchange market data in the form of an order book, trade history, and a customizable chart tool.
Coinbase Pro appears to have the upper hand when it comes to trading experience. Traders will find more order types, charting options, and a more polished overall offering on the new platform. The simplicity of Robinhood’s interface will likely appeal to traders who prefer a buy-and-hold strategy over aggressive trading.
Coinbase Pro vs. Robinhood – Cryptocurrencies Accepted
The number of cryptocurrencies you can trade is one of the most significant variables to consider when choosing a crypto trading platform. For this reason, as well as the opportunity to trade at the best available price, many consumers register numerous crypto exchange accounts. When it comes to the amount of cryptocurrencies that Coinbase Pro and Robinhood clients can trade, one platform clearly outnumbers the other.
Customers can presently trade Bitcoin (BTC), Bitcoin Cash (BCH), Bitcoin SV (BSV), Dogecoin (DOGE), Ethereum (ETH), Ethereum Classic (ETC), and Litecoin (LTC) on Robinhood (LTC). While this covers some of the most popular options, it leaves a lot to be desired for most crypto traders who want to diversify their holdings. Aside from having a limited selection, Robinhood does not allow residents of Hawaii, Nevada, New Hampshire, or West Virginia to trade cryptocurrencies.
While Robinhood may be weak in terms of coin selection, Coinbase Pro certainly isn’t. There are presently 50 cryptocurrencies and more than 150 trade pairs available on the site. Bitcoin (BTC/USD, BTC/EUR, BTC/GBP, BTC/USDC), Ethereum (ETH/USD, ETH/BTC, ETH/EUR, ETH/USDC), and other coins like Filecoin (FIL), Stellar (XLM), and Litecoin (LTC) are among the most popular pairs (LTC). Sites like CoinGecko and CoinMarketCap provide the most up-to-date information. In addition, Hawaii is the only state where Coinbase Pro is currently limited.
Coinbase Pro is the clear winner when it comes to the quantity of cryptocurrencies accessible for trading and the number of users who are allowed to trade those cryptocurrencies.
Customer Support: Coinbase Pro vs. Robinhood
While the cryptocurrency sector is at the cutting edge of innovation in many ways, customer support is one area where it consistently falls short. Companies appear to be struggling to keep up with their existing clients, let alone the daily influx of new account applications.
Almost all traditional brokerages provide client service via a range of channels, including phone, live chat, and email. Unfortunately, at this moment, Robinhood only provides support via email. Given the company’s size and ambitions to go public later this year, you’d think they’d provide faster assistance, especially for critical situations. Waiting hours, if not days, for a response from a trader who has a problem with an order may not be acceptable.
Despite the lack of help channels, Robinhood maintains a robust support centre on their website that answers many of the most frequently asked problems.
While this isn’t precisely a Coinbase Pro issue, it does have an impact on Coinbase Pro users. Coinbase, like many other cryptocurrency exchanges, lacks phone support. On Coinbase’s website, there is a help centre where users can see if their issue has already been addressed. Customers that require further assistance must complete a support form. Customers will most likely have to wait at least 24 hours for a response as a result of this. That might be a major issue in the case of an emergency.
Unfortunately, neither Robinhood nor Coinbase Pro excel when it comes to customer service.
The Final Word on Coinbase Pro vs. Robinhood
In the end, each platform may appeal to different types of users. Customers who want to trade a wide range of assets such as stocks, ETFs, options, and cryptocurrency may consider Robinhood. Robinhood also offers no-commission trading, which is likely to appeal to a large number of clients.
Customers that want additional visibility into their order and trade activities, as well as trades that are significant enough to qualify for a lower fee tier, would likely prefer Coinbase Pro. Furthermore, if traders want to diversify their portfolios and trade altcoins that aren’t in the top 10, they’ll need to establish a Coinbase Pro account because Robinhood won’t let them trade prominent cryptocurrencies like Cardano (ADA), Chainlink (LINK), and Uniswap (UNI).
Despite the fees, Coinbase Pro will be the best alternative for most active crypto traders. It’s crucial to understand that while Coinbase and Coinbase Pro are linked, each has its own wallet for individuals who choose to register an account with Coinbase. While you may have a Coinbase account with funds, you may not have a Coinbase Pro account with funds. Fortunately, transferring between the two is both free and simple. Please refer to this Coinbase help post for further information on how to complete this transfer, albeit the fundamental procedures are stated below:
- Go to the Coinbase Pro trading page to get started.
- Select Deposit from the Wallet Balance menu (a pop up window will appear)
- Choose the Coinbase currency type (e.g. BTC, ETC) that you’d like to deposit to Pro.
- Choose a Coinbase account.
- Enter the amount you’d want to transfer from Coinbase to Pro. Please keep in mind that you can only deposit monies that are “Available to Deposit.”
- At the bottom of the window, click Deposit.