Voyager vs Robinhood: Which is a Better Crypto-Trading Platform

Cryptocurrency has become increasingly popular in the last few years, and many platforms have emerged to cater to this growing demand. Two of the most prominent are Voyager and Robinhood, and both platforms feature unique benefits and disadvantages that may suit different types of traders. Here is a closer look at Voyager vs. Robinhood and which is the better platform for trading cryptocurrency.

Which Platform is Better for Crypto-Trading?

Although millions of traders use both platforms to trade crypto, most experts agree that Voyager is the better platform. Voyager focuses on the cryptocurrency niche, whereas Robinhood is a more general investing platform.

Robinhood offers a more diverse array of investments that users can choose from – including stocks, options, and ETFs. But Voyager allows users to trade a more significant number of altcoins and generally offers lower fees and better trade executions.

While Robinhood may be better for casual investors who are just getting into crypto – Voyager is the better platform for those looking for more variety and better prices. So let’s take a close look at the Voyager vs. Robinhood debate.

What is Voyager?

Voyager is a crypto-currency brokerage founded in 2017 that offers commission-free trading on over 100 different coins. For as little as $10, users can start trading all of the top coins, from the standard Bitcoin and Ethereum to the meme coins like Dogecoin.

Voyager also allows users to earn interest by maintaining certain minimum balances. For instance, users can earn 4.05% for holding at least 0.01 of Bitcoin in their wallet. This feature gives users of the platform an additional income stream beyond what they make on normal trades.

It also offers attractive features for institutional investors, including better execution, a network of liquidity providers, and security and storage options to keep your assets safe.

Pros and Cons

Voyager offers many attractive benefits, but it features several disadvantages as well. Here are some of the pros and cons.

PROS	CONS
Low minimum to start trading	Not available in New York State or outside the US
Access to a large number of cryptocurrencies	No coin to coin trades
No commissions on trades	Mobile-only, no desktop platform
Higher APY than many similar platforms	Long verification process
Easy to navigate mobile app
Faster trade executions
Cash holdings insured by the FDIC

What Kind of Traders should Use Voyager?

Voyager is perfect for those serious cryptocurrency investors who want a fast, reliable mobile app with access to a variety of popular coins. It’s also suitable for institutional investors who need a cutting-edge platform with advanced security features and cash holdings. So, Voyager offers attractive features for beginners and advanced traders alike.

What is Robinhood?

Robinhood is an online investment brokerage that advertises commission-free trading on various commodities and securities, including stocks, ETFs, and cryptocurrency. The platform was founded in 2013 and is headquartered in Menlo Park, California.

It has branded itself as a mobile-first brokerage that caters to beginners and those who want a simple platform with commission-free trades. It’s one of the most popular financial services apps, with over 31 million users and 9.5 million using it for trading crypto.

Pros and Cons

Although Robinhood is one of the leading platforms for mobile trading and offers many attractive benefits for investors, it also has several drawbacks. Here are some of the pros and cons of Robinhood.

PROS	CONS
A straightforward app that is great for beginners	The platform only supports seven different coins; Bitcoin, Bitcoin Cash, Bitcoin SV, Compound, Dogecoin, Ethereum, Ethereum Classic, and Litecoin.
No commissions on trades	Controversies over how the app makes money, including selling user data to high-frequency traders
$0 account minimums	Not available outside of the US or Hawaii and Nevada
Security features such as 2-step verification, FDIC insurance, and offline storage	Users can't withdraw the funds as cryptocurrency; they must first sell the crypto back to the brokerage to cash out
Ability to trade stocks and other securities, in addition to cryptocurrency

What Kind of Traders Should Use Robinhood?

Robinhood is best for more novice investors looking for a platform to trade various investment vehicles, not just cryptocurrency. It’s suitable for those who want to learn the basics of investing in crypto while also being able to purchase other securities such as stocks and options.

But those looking to go a bit deeper into the world of crypto may find the platform’s features somewhat limiting. Plus, the app has had a few controversies regarding security and business practices. While Robinhood is still relatively secure and safe to use, most experts agree it’s marketed toward a younger demographic and isn’t best suited for experienced investors.

Voyager vs Robinhood: Bottom Line

Both platforms feature an intuitive design that is easy for even beginners to understand. In addition, they both offer commission-free trades (although this can be somewhat misleading) and a low minimum to set up an account. Plus, they offer traders robust security features and insurance from the FDIC.

However, Voyager is the better platform for cryptocurrency investing. It offers users access to a broader range of coins and higher yields than Robinhood. Plus, there haven’t been as many controversies surrounding Voyager and users are free to use their crypto investments more freely.

Robinhood may be slightly better for younger people who are just getting into investing and want a simple platform with access to various financial products. But for those interested in cryptocurrency specifically, Voyager is the clear winner.

FAQ

Which has better fees?

In general, Robinhood charges higher fees per trade. While both platforms claim to offer no commissions on trades, that doesn't mean there aren't costs associated with trades. While it's true that users do not pay a commission, they still have to pay the difference between the bid and the asking price – also known as the spread. So, the price you pay for a coin is often slightly higher than its actual price on the open market. In addition, both platforms mark up their coins slightly to account for volatility in the market. But, Robinhood tends to charge a higher markup than Voyager. So, while it's true that neither charges a straight commission for trades, investors tend to lose more on the spread when trading with Robinhood than with Voyager.

Which has a better signup bonus?

Voyager offers a better signup bonus than Robinhood. Users who deposit more than $100 will receive an additional $25 signup bonus when executing their first trade. They also offer a referral bonus if you refer a friend using a unique code. You and your friend will receive an additional $25 bonus if you deposit more than $100 and make a trade. Robinhood instead offers a free stock promo, where users who sign up with a specific referral link and deposit at least $5 will have a random stock added to their portfolio. Users must hold the stock for at least two days before selling it. The enticing thing about the promo is that there is a slight chance that the stock could be worth up to $200 per share. But, in reality, 98% of users will receive a stock valued at between $5 - $10. So, while Robinhood offers a chance to win a sizeable bonus, most users will get more out of the Voyager signup/referral bonus.

Which is more trustworthy?

While both are considered safe platforms offering insurance on cash holdings by the FDIC, Voyager is the better bet when it comes to cryptocurrency. Robinhood has had a security breach incident in the past. In November 2021, an unauthorized user could access the personal data of more than 7 million people, including names, email addresses, and phone numbers. But the platform claims that no social security numbers, bank account numbers, or debit/credit card numbers were compromised, and there was no financial loss. While Voyager has been subject to cyber-attacks, it's never suffered a data breach on the same scale. So, while both platforms are considered safe, Robinhood has a more checkered past, making users more suspicious.

What are other alternatives besides Voyager vs. Robinhood?

Robinhood and Voyager are certainly not the only cryptocurrency trading platforms on the market, and other competitors include sites like Coinbase, Binance, Gemini, Kraken, and WeBull. Even institutional investors like Charles Schwab and TD Ameritrade offer the ability to buy and sell cryptocurrencies. Plus, common peer-to-peer payment platforms like PayPal, Cashapp, and Venmo allow users to transact cryptocurrency. However, not all of these platforms are brokerages in the traditional sense and offer unique strengths and weaknesses. So, if you are looking for another alternative, you should do some research to find out which makes the most sense for you.

Which offers a better yield?

Voyager offers an additional feature that allows users to loan out their crypto holdings for an annual yield of up to 12% APY, which Robinhood does not provide. In addition, they have a tiered system that allows users to earn monthly interest just for holding a certain amount of a particular coin. Each coin has a different APY, with most being in the range of 2-4%. But for select coins, users can earn between 10-12%. This feature offers users an additional incentive to invest for the long term that Robinhood doesn't have.

About Post Author

Markus

The past 3 years Markus have spent his days studying blogging & finances. He is obsessed with breaking down complex finance questions into blog posts that is easy to read for anyone. He works as a full time blogger and teaches his new found knowledge on this blog.

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