is robinhood or coinbase better

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In search of the best platforms to buy cryptocurrency, members of the cryptocurrency community often come across popular cryptocurrency exchange Coinbase and online broker Robinhood. BeInCrypto’s editorial team decided to find out which site is more convenient to buy digital assets from.

Coinbase review

Coinbase is a digital asset exchange founded in 2012. On February 14, 2021, the trading platform was the first cryptocurrency company in the U.S. to directly list its shares.

The crypto-exchange is translated into Russian. At the same time, the basic tools of Coinbase are not available to Russian citizens. For example, Russians cannot buy cryptocurrency through the cryptocurrency exchange.

The Coinbase trading platform is notorious for frequent going offline. History shows that the developers are in no hurry to fix the problem. As a result, the crypto exchange continues to go offline periodically, just like years before.

Many members of the cryptocurrency community believe that Coinbase does not really have technical problems. According to market representatives, offline withdrawals are necessary for the trading platform to suspend users’ access to instruments to protect its interests. For example, the failure of systems against the backdrop of sales in the crypto market, in theory, allows the crypto-exchange to limit the withdrawal of client money. This viewpoint, among others, is held by well-known in the cryptocurrency community analyst Peter Brandt:

“This is what usually happens when a cryptocurrency exchange wants to gain an advantage over its users,” is how the analyst commented on one of Coinbase’s offline withdrawals.

Crypto-community members point out that Coinbase is close to the government. In July 2020, the U.S. Secret Service posted on its website that the cryptocurrency exchange was a supplier of cryptotransaction tracking software to the government. The deal cost U.S. regulators $46,000 a year, which is extremely small given the scale of the cooperation.

Members of the cryptocurrency community speculated that working with regulators may have been necessary for Coinbase to build relationships with agencies ahead of the IPO.

If the deal with the U.S. Secret Service was part of the crypto exchange’s plan, it worked. This is indicated by the successful listing of the trading platform. Unfortunately for Coinbase, the company’s stock hit a new all-time low in early 2022.

Other scandals in the center of which the crypto-exchange found itself include accusations of selling scam tokens and suspicions that the company is fraudulent in connection with investing in new projects.

Robinhood Review

Robinhood is a popular online broker. The company was founded in 2013. In the mobile application of the project you can buy cryptocurrencies and conduct other operations with digital assets.

At the end of July 2021, Robinhood held an IPO at the lower end of the range. Traders on Reddit urged members of the cryptocommunity to ignore the company’s listing. The reason was the scandal associated with the suspension of trading in hype stocks and a number of cryptocurrencies on Robinhood in early 2021. Many traders suffered losses because of the actions of the online broker. Read more in our material.

As of this writing, the online broker accepts applications for registration exclusively from U.S. citizens.

In early 2022, Robinhood stock plummeted to historic lows in defiance of the cryptocurrency beta test.

Robinhood has been involved in many scandals. For example, in the fall of 2021, unknown people stole the data of 7 million users of the online broker. Fraudsters gained access to the records by hacking into Robinhood’s admin panel.

Coinbase vs Robinhood

Platform

Availability in Russia

Translation into Russian

Security

Coinbase

Partial

Partial

6/10

Robinhood

No

No

5/10

Conclusions

Unfortunately, the Coinbase vs Robinhood platforms are not suitable for the full-fledged work of Russians in the cryptocurrency market. Both platforms are focused on users from other regions. The reputation of Coinbase and Robinhood also makes it impossible to recommend them.