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.
|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.
|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.