Coinbase vs Robinhood
B oth Coinbase and Robinhood are prominent bitcoin trading applications. As they both have user-friendly interfaces and provide access to major cryptocurrencies such as Bitcoin (BTC) and Ethereum, the features and functions of this platform are considerably different.
Brian Armstrong and Fred Ehrsam created Coinbase in 2012.
It is the most centralized exchange in the United States (by volume), supporting the most popular cryptocurrencies. New investors may get started quickly thanks to the user-friendly software and the opportunity to buy cryptocurrency with a credit card.
Baiju Bhatt and Vladimir Tenev created Robinhood in 2013 to provide low-cost trading to average retail customers.
The Robinhood app is well-known for its user-friendly layout and ability to assist new investors in their trading endeavors. They started selling Bitcoin in 2018 and have added a few other prominent cryptocurrencies to their site.
Although there are some distinctions between Coinbase and Robinhood, the most significant is the number of cryptocurrencies accessible for buying. Coinbase is a cryptocurrency-alone platform with over 40 coin possibilities, whereas Robinhood is a stock-only service with only seven cryptocurrencies.
Coinbase's app makes it easy for customers to sign up, link their financial accounts, and buy cryptocurrency. After you've been confirmed, you may link a bank account or credit card to start buying cryptocurrency right away.
Both Coinbase and Robinhood have strong security protections, but Coinbase goes above and beyond to protect your cryptocurrency. A few of the security features offered on every network are as follows:
Authentication with two factors:
To activate your Coinbase account, you may use two-factor verification (2FA) through SMS or the Google Authenticator app, which both need a time-sensitive PIN.
Users may withdraw their bitcoin from Coinbase using the Coinbase digital wallet, password-protected and employing an encrypted 12-word recovery process. Users can also store and sell their cryptocurrency on decentralized exchanges.
Cold storage and crypto vaults:
Coinbase keeps 98 percent of all cryptocurrency balances in "cold storage," which keeps them off the internet.
Coinbase also has a bitcoin vault where you may keep your digital assets. Before money gets removed, you can set up these vaults to need numerous user confirmations.
FDIC protection (up to $250K):
Coinbase offers FDIC insurance on USD (US dollar) deposits up to $250K, much like a regular bank. However, this does not provide insurance for your bitcoin funds.
Coinbase complies with Know Your Customer (KYC) rules in the United States, requiring clients to provide an id Card and address to safeguard their accounts.
Security Features of Robinhood
Robinhood needs two-factor verification with Google Authenticator. SMS account recovery gets deactivated to prevent phone-based hacking.
You may check all devices that have visited your account and delete anything else you do not even recognize.
Robinhood claims to keep the majority of its cryptocurrencies offline.
FDIC protection (up to $250K):
Robinhood provides FDIC insurance on USD investments. However, cryptocurrency funds are not covered.
Coinbase vs. Robinhood: Who Has More Access?
Coinbase is available in more than a hundred countries across the world.
8 Robinhood can only be found in the United States.