Robinhood and Coinbase are two of the big names in cryptocurrency trading. In particular, these are the companies that crypto-trading newbies often find first. There are pros and cons to each. However, one of the biggest benefits of Coinbase in comparison to Robinhood is that it offers a wallet that allows for easy withdrawal of funds. Should Robinhood mirror Coinbase for maximum profits moving forward?
What is Robinhood?
Robinhood is a “commission-free stock trading and investing app.” The app is popular among new investors interested in learning about stock trading for the first time. In particular, it appeals to people who want a quick-and-easy mobile solution to investing. Robinhood, as you can tell, emphasizes stock trading. However, you can also trade cryptocurrency through the Robinhood app.
What is Coinbase?
Coinbase is “the easiest place to buy and sell cryptocurrency.” This is a mobile app solution for people who are interested in trading cryptocurrency. Coinbase launched in 2012. Initially, it was a Bitcoin trading app. However, today you can trade numerous forms of cryptocurrency through this app. Additionally, you can learn about different cryptocurrencies through their news sections.
Robinhood vs. Coinbase
The primary difference between Robinhood and Coinbase is their emphasis. Robinhood emphasizes stock trading, although it offers cryptocurrency trading as well. Coinbase emphasizes, and in fact focuses entirely on, cryptocurrency. Therefore, if you’re interested in both stocks and crypto, then you might feel drawn to Robinhood. In contrast, if you want to learn about cryptocurrency and maximize investing there then you’d likely choose Coinbase. Since Robinhood does have that stocks edge, should Robinhood mirror Coinbase in terms of cryptocurrency then it might eventually be the better options.
Other Major Differences: Pros and Cons
Here are some of the other major differences between Robinhood and Coinbase:
- Robinhood has a very limited number of cryptocurrencies. In contrast, Coinbase has dozens.
- Furthermore, Coinbase allows you to trade your cryptocurrency. You can buy, sell, send, receive, and exchange money easily through the app. Additionally, you can easily transfer your funds to multiple accounts. In contrast, Robinhood only allows you to purchase altcoins, which you then must sell to cash out to an external account. Transaction options are minimal.
- Coinbase has a lot of opportunities to help you learn more about cryptocurrency. In fact, you can earn cryptocurrency by watching videos on the platform to learn. Robinhood also has some learning tools. In fact, this is one of the ways that Robinhood mirrors Coinbase today. However, you’ll learn more about stocks than cryptocurrency.
- Robinhood charges no commission fees. In contrast, Coinbase has arguably high fees.
- Coinbase is a more global app. It supports use from people in over 100 countries. Robinhood, on the other hand, is for people in the United States.
- If you’re interested in investing in gold then you can do so through Robinhood. Unfortunately, you can’t do that through Coinbase.
Should Robinhood Mirror Coinbase for Maximum Profits?
As you can see, there are similarities and differences between Robinhood and Coinbase. Both are digital apps that allow you to learn about and trade cryptocurrency. However, Robinhood has fewer cryptocurrency options whereas Coinbase is a leader in crypto trading for newbies and more advanced traders alike. On the other hand, Robinhood offers the opportunity to trade stocks and invest in gold.
Should Robinhood mirror Coinbase to maximize profits moving forward? If Robinhood were to keep, or even expand upon, their own strengths (stocks, particularly) as well as adopting Coinbase’s strengths in cryptocurrency, then it could certainly make it a forerunner in the market again. After all, Robinhood offers commission-free trading. Therefore, they could easily compete with Coinbase in terms of people interested in cryptocurrency trading if they offer both more cryptocurrencies and easier trading/selling within the app.
But, Is It That Simple?
It sounds fairly simple, of course. If Robinhood can compete with Coinbase in cryptocurrency while retaining its strong base in stock trading, then the company should profit. However, business is never quite that simple. What would it take in terms of investment and technology in order for Robinhood to make those changes? Would they truly be able to compete with Coinbase in terms of cryptocurrency? Or, instead, would they end up losing their edge in their own strengths while failing to take over the cryptotrading market?
One of the things that any company should keep in mind is that they’re on their own path. It’s all too easy to give in to the pressure to make everyone happy. When you see your competitors doing well in a specific area, of course you want to press forward in that same area. However, if that’s not your true strength, then it rarely works out. Whether or not Robinhood makes changes that make it more similar to Coinbase really depends on the company’s own values, mission, and plans for the future. It’s not a simple decision.
I’m New To Cryptocurrency, Should I Try Robinhood or Coinbase?
As of right now, there are similarities and differences to Robinhood and Coinbase. Should Robinhood mirror Coinbase in the future then it may be tougher to choose between the two. But as it stands, a newbie investor can easily consider a few key factors to choose between one or the other:
- If you really want to learn about cryptocurrency, then you should choose Coinbase.
- Moreover, if you want to have the most options available to you in terms of cryptocurrencies, then you should choose Coinbase.
- However, if you’re just dipping a toe in the water and only plan to invest in major cryptocurrencies such as Bitcoin and Ethereum, then you might want to consider using Robinhood. After all, it’s commission-free.
- Furthermore, if you want to combine stock trading and gold investing with cryptocurrency investments then you should choose Robinhood.
Of course, you could always download both apps. Then you could invest a little in each to see which one feels right for you.
What is your opinion? Should Robinhood mirror Coinbase for maximum profits?
Read More:
If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.
Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.