I’ve written this article to provide the most comprehensive comparison possible.
Below, you’ll find a table that quickly explains the biggest differences.
Further below, you’ll be able to find a case for each platform.
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Excluded states are Delaware, Hawaii, Kentucky, Louisiana, Maine, Maryland, Minnesota, Nebraska, Nevada, New Hampshire, New York, North Carolina, South Carolina, Vermont, and Wyoming.
Coinbase has long been the most recognizable name in the cryptocurrency industry if you’re a new user looking to buy your first coins.
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Bitcoin took the world by storm as it rocketed from obscurity to nearly $20,000 in value per coin in 2017. The cryptocurrency markets have calmed down a bit since that record high, but many Bitcoin evangelists still claim Bitcoin to be the currency of the future. Follow along to learn more about how Bitcoin works and the best places to buy Bitcoin.
First of all, need some background information about what Bitcoin is? It’s a digital currency used mostly for online purchases and as an investment, albeit a very risky one.
What is the difference between buying bitcoin on robinhood vs coinbase? are you actually “owning” bitcoin if bought on robin hood?
If you buy on robinhood you can’t transfer the bitcoin to a private wallet or anywhere else.
With Coinbase you can transfer it wherever you want.
However you don’t actually own the physical BTC until you transfer it to your own private wallet.
so basically, in general terms, using robinhood for btc is like using coinbase w/o transfer capabilities. correct?
and is there any downside to using robinhood to invest in BTC other than the simple fact that:
you cant transfer it from RH to another entity. simply for Cash to BTC or vice versa ON RH.
since you cant do point 1, you cant transfer it to your own wallet, meaning you cant physically OWN BTC.
You can’t withdraw BTC bought on robinhood.
Wouldn’t touch a service that doesn’t allow me to hold MY investments in my own wallet
I wonder how far “in the future” it’ll be before Robinhood actually allows crypto withdrawals. I like Cash App as a Coinbase alternative, but it sucks they don’t have any altcoins.
They probably never will. Allowing withdrawals is where you end up getting scammed.
Im thinking about buying some but after seeing a few posts on here about the security made me unsure if RobinHood is a safe route to go?
One cannot buy Bitcoin on Robinhood.
What you purchase will not truly be yours.
Robinhood is just paper trading.
The may or may not have any actual bitcoin in their coffers
Sure you can buy something robinhood calls bitcoin. Its not REALY bitcoin, but you are free to buy it.
With Robinhood, you are only buying exposure to the bitcoin price. You do not get to withdraw them.
I don’t see if they treat these as something like a CFD where a long position could get closed during a rally (i.e., your upside is limited), or if this is full-reserve, where your investment is backed by that amount of bitcoins under Robinhood’s control/custody.
So I don’t think you have to worry too much about them “losing your funds”.
Robinhood will almost shutdown the coinbase.
Robinhood is commission free stock and now crypto trading.
More states will be allowed soon.
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You also can not send previously bought crypto to your robinhood crypto acccount.
Guess it’s not going to be much use to me at first.
Hi, has Robinhood allowed for people to transfer BTC and ETH from Coinbase to Robinhood yet? And if so dose it allow you to input your cost to buy on Coinbase so that your average costs dose not get messed up on Robinhood?
At this time we don’t support coin withdrawals, however, we plan to do so in the near future.
We currently don’t allow transfers of your existing cryptocurrency assets into your Robinhood Crypto account. Our primary concern is to prevent money from illegal activity being used for transactions on Robinhood Crypto.
As a cryptocurrency investor on Coinbase, I’m used to being hosed with fees.
So when I got early access to Robinhood Crypto, I was ecstatic.
What’s Robinhood Crypto, you ask? It’s a new-for-2018 service being offered by Robinhood, the hottest stock brokerage app for Millennials, that allows you to buy and sell bitcoin without paying fees. It’s only been rolled out in a small handful of states so far, my home state of California included.
Buying bitcoin without fees sounds too good to be true, right? Well, in a sense, it is — Robinhood Crypto has some big issues. But overall, being able to buy and sell without fees is a game changer.
Pardon me if this reads like a love letter to Robinhood.
It’s everything I want a crypto buying experience to be.
The Robinhood app itself is pretty slick.
When comparing Coinbase vs Robinhood, the Slant community recommends Coinbase for most people. In the question“What are the best ways to buy/sell bitcoin?” Coinbase is ranked 1st while Robinhood is ranked 6th. The most important reason people chose Coinbase is:
The entire process of using Coinbase is seamless. All you need to do to start buying/selling Bitcoin is link your bank account to Coinbase, and if you provide a credit card as a backup payment method you can start buying Bitcoin instantly.
The entire process of using Coinbase is seamless.
All you need to do to start buying/selling Bitcoin is link your bank account to Coinbase, and if you provide a credit card as a backup payment method you can start buying Bitcoin instantly.
Wallets (and private keys) are stored using AES-256 encryption and the site runs entirely over SSL.
Buying bitcoin or other cryptocurrencies can be a fun way to explore an experimental new investment. But it’s also true that any investment in cryptocurrency should carry a warning label like cigarettes: “This product may be harmful to the health of your finances. Never buy more than you can afford to lose.”
The value of bitcoin — the world’s first and most popular cryptocurrency — has risen from recent lows but is still trading far below 2017 highs. Like all cryptocurrencies, bitcoin is experimental and subject to much more volatility than many tried-and-true investments, such as stocks, bonds and mutual funds.
NerdWallet advises investing no more than 10% of your portfolio in individual stocks or risky assets like bitcoin.