Buying cryptocurrencies is easily done through crypto exchanges. These are readily accessible thru providers like Coinbase . These are just two of such providers. There are a large number of online brokers that permit CFD trading on crypto assets, too. However, since we are looking at how to buy virtual currency, we will be looking at crypto exchanges that enable us to purchase bitcoins.
Both Coinbase and Robinhood are favoured trading apps for buying cryptocurrencies. Nonetheless, while they both proffer user-friendly interfaces and access to popular crypto like Bitcoin (BTC) and Ethereum, these platforms are considerably diverse in terms of their attributes and capacities.
Coinbase, the largest centralised exchange in the U.S. (by volume), backs the leading cryptocurrencies . The intuitive app and ability to buy crypto with a credit card have made it uncomplicated for new investors to get started.
The Robinhood app is famed for its easy-to-use interface . They launched the buying cryptocurrencies ability in 2018 . They have since added a few more popular cryptocurrencies to their platform.
While there are a number of differences between Coinbase and Robinhood, the primary one is the number of cryptocurrencies available for purchase. Coinbase is a crypto-only platform that gives access to 40 +cryptocurrency options (more added each month). On the other hand, Robinhood is a stock-first platform with access to merely seven cryptocurrencies.
Coinbase vs. providers of other assets: comparison
Investing in cryptocurrencies, other Initial Coin Offerings (ICOs) and Decentralized Finance (DeFi), is highly risky and speculative, and markets can be extremely volatile. Consult a qualified professional prior to making any financial decisions towards your plan to invest bitcoin.
Coinbase vs. providers of other assets: Ease of Use
Coinbase offers users a straightforward way to sign up, link their financial accounts, and purchase crypto via its app. With an email address and password, You can register for Coinbase . Once signed up, you will require to confirm your identity with a government-issued photo ID . You could upload a picture of it to the app or website.
Following verification, you can link a bank account or credit card for buying cryptocurrencies immediately.
Providers of other assets like stocks, Robinhood ( for example)is equally straightforward to use. A standard user-friendly app permits users to quickly see the price of crypto, putting an order with a few clicks.
To sign up for Robinhood or any other brokerage that concentrates on assets other than cryptocurrencies, make a free account using your email address and a password.
Following the verification of your email address, you may secure your account with two-factor authentication. That much security infrastructure is now a given, whether we prefer to invest bitcoin with the help of a broker or a crypto exchange.
Coinbase vs. providers of other assets: Security
Coinbase and Robinhood/providers of other assets both suggest possible security features. However, naturally Coinbase makes that special effort to secure your crypto.
Here are several security options available on the platform that most concerns us:
Coinbase Security Features: buying cryptocurrencies
Two-factor authentication: Coinbase gives two-factor authentication (2FA) through SMS or the Google Authenticator app. The exchange that enables us to purchase bitcoins requires a time-sensitive passcode for account access.
Built-in wallet: The Coinbase digital wallet, a password-protected wallet that likewise operates an encrypted 12-word recovery phase, permits users to withdraw their cryptocurrency from Coinbase. It also facilitates storing and trading of their crypto on decentralised exchanges.
Cold storage and crypto vaults: Coinbase hoards 98% of all crypto balances in “cold storage,” maintaining these currencies disconnected from the internet. This aids the protection of your assets from online theft. Invest bitcoin was never easier.
Coinbase again offers a cryptocurrency vault, further confirming your stored digital assets. These vaults may be established and require multiple user approvals before fund withdrawal.
Identity verification: Coinbase is in compliance with the Know Your Customer (KYC) standards , verifying customers’ photo ID and address to further secure their account.
Coinbase vs. Robinhood & others: Features
Coinbase and Robinhood both permit users for buying cryptocurrencies. However, they are principally diverse sorts of platforms. Robinhood and such providers of other assets act more as brokers for crypto purchases. Conversely, Coinbase is a full exchange with a large number of capabilities.
Coinbase Unique Features
Trade or withdrawal crypto: Coinbase permits users to trade their crypto for another crypto straight on their platform. It also entitles users to withdraw their crypto to a digital wallet for use on investing and decentralised applications.
News articles: Coinbase maintains a built-in news feed , keeping users updated on crypto news.
Price alerts: Coinbase permits you to create a cryptocurrencies watchlist that will deliver you price alerts, facilitating buying cryptocurrencies. When a crypto price shifts up or down by a large percentage, the alert will be driven to your mobile device or show up in your Coinbase notifications.
Built-in education: Coinbase has user education that’s in built. These educational videos teach users about a specific cryptocurrency project , even rewarding them with a little currency bonus.
Coinbase vs. providers of other assets: buying cryptocurrencies
Providers of other assets like Robinhood offer a very limited selection of crypto. These include Bitcoin, Ethereum, and Dogecoin (seven total crypto supported). Coinbase, conversely, presents 50+ of the top cryptocurrencies . The crypto exchange is constantly adding to their listings, facilitating those who prefer to invest bitcoin.
Both platform sorts allow you to purchase cryptocurrency in dollar amounts to buy fractions of coins.
For instance, Coinbase has a $2 minimum order amount. Conversely, Robinhood and such providers of other assetstend to measure their respective minimum purchase amount in the native token. For instance, the minimum Bitcoin purchase amount is 0.0001 Bitcoin (BTC). Hence, if Bitcoin’s price is $60,000, you can buy as little as $6 of Bitcoin.
Coinbase vs. providers of other assets: Fees
Robinhood and such non-specialist brokers claim “no-fee trading” for both stocks and crypto. Practically, all trades are brought to market makers for trade execution. Robinhood is paid a fee, commonly a percentage of the trade. Nonetheless, the precise amount for crypto trades is not disclosed.
Coinbase, conversely, charges a 0.50% flat fee for transactions. Also, there are extra fees based on which payment method was used.These fees are relatively high.
It makes more sense to purchase bitcoins or buy bitcoin online to buy from crypto exchanges rather than from brokers whose priority clearly lies elsewhere. Robinhood and other brokers like it may be the leaders in no-fee trading .
However, a broker does charge a payment for order flow, which may cost you more to buy your crypto through them, depending on the trade. Additionally, the absence of transparency around these fees makes it challenging to compare fee structures between the two services.
Generally, Coinbase is on the higher-end of fee structures for buying cryptocurrencies . On the other hand, Robinhood can be less expensive, depending on the trade.
Coinbase vs. Robinhood: Access
Coinbase is available globally in 100+ countries for buying cryptocurrencies. Robinhood is merely only available in the United States.
Each country has its own regulations concerning buying cryptocurrencies. Make sure to review your national guidelines before buying or selling crypto.
Conclusion
There are several similarities between Coinbase and providers of other assets. Both offer relative security for your purchase. Although not a crypto exchange, ABinvesting offers cost effective CFD trading on cryptocurrencies.
Notwithstanding providers of other assets , say Robinhood, offering no-fee trading, you can be charged a payment for order flow. This might inflate the price of your crypto purchase. These also permit limit orders for more control over your trading.
However, Robinhood and such brokers are simply custodians of your crypto. You can never own the actual coins . Also, you cannot withdraw them to store in your digital wallet.
Coinbase is a cryptocurrency exchange that is excellent for beginners owing to its minimalist design and thorough mobile app. Buying cryptocurrencies on Coinbase solely takes a few clicks. Moreover, your digital funds are safely stored always. Likewise, you can trade and transfer your crypto to your own digital wallet, giving you full control of your cryptocurrency.
