Is Robinhood or Gemini best for trading crypto?

Trading crypto is cheaper on Robinhood, but Gemini offers access to far more cryptocurrencies. If you're only interested in trading major cryptos, Robinhood may be best, but if you're interested in less-popular cryptos, check out Gemini.

Is cryptocurrency a good investment?

Cryptocurrency can be a good investment if you believe in the future of digital currency, but it's also highly volatile. You also face security risks that are less of a concern with more mainstream investments, like stocks and bonds. Because of the risks, it's typically best to make stocks the backbone of your investment portfolio and limit your crypto investments to no more than 5% to 10% of your portfolio.

Gemini vs. Robinhood: Which Is Right for You?

For those interested in trading cryptocurrency, Gemini and Robinhood are two of the leading options. While both of them are extremely secure places to buy crypto, that's where their similarities end.

Gemini is a full-service cryptocurrency exchange. It offers a wide selection, an advanced trading platform called Gemini ActiveTrader, and even a crypto rewards credit card. Robinhood, on the other hand, is a stock broker that also lets you buy and sell a small assortment of cryptos with no fees. Keep reading for a head-to-head comparison of Gemini vs. Robinhood.

Gemini vs. Robinhood: At a glance

Offer	Gemini Exchange	Robinhood Limitations Apply
Rating	Rating image, 4.50 out of 5 stars. 4.50/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.	Rating image, 4.50 out of 5 stars. 4.50/5 Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor.
Commissions	$0.99-$2.99 orders under $200, 1.49% for orders over $200 (default), 0% - 0.40% (Gemini ActiveTrader)	$0 for stocks, ETFs, options, and cryptocurrencies
Next Steps	Open Account for Gemini Exchange Read Full Review	Open Account for Robinhood Limitations Apply Read Full Review

Gemini vs. Robinhood: Fees

Robinhood offers commission-free cryptocurrency trading. It makes money on the spread between buy and sell prices, but overall, trading is cheaper on Robinhood than on Gemini.

Gemini has different fee schedules depending on whether you use its standard platform or Gemini ActiveTrader. Of the two, Gemini ActiveTrader has much lower trading fees, and it's available to anyone with a Gemini account. If you decide to sign up for this exchange, stick to Gemini ActiveTrader to save money on fees.

The ActiveTrader interface uses a tiered fee schedule. Fees range from 0% to 0.40% depending on your trading volume. It also has a maker-taker model. If your order takes liquidity, meaning it's filled immediately, it incurs a taker fee. If your order makes liquidity, meaning it's not filled immediately by an existing order, it incurs a maker fee.

Here's the Gemini ActiveTrader fee schedule:

30-DAY TRADING VOLUME IN U.S. DOLLARS	TAKER FEE	MAKER FEE
Under $10,000	0.40%	0.20%
$10,000 to $50,000	0.30%	0.10%
$50,000 to $100,000	0.25%	0.10%
$100,000 to $1,000,000	0.20%	0.08%
$1,000,000 to $5,000,000	0.15%	0.05%
$5,000,000 to $10,000,000	0.10%	0.03%
$10,000,000 to $50,000,000	0.08%	0.02%
$50,000,000 to $100,000,000	0.05%	0.00%
$100,000,000 to $500,000,000	0.04%	0.00%
$500,000,000 or more	0.03%	0.00%

Data source: Gemini

On the standard Gemini Exchange, there's a convenience fee and a transaction fee. The convenience fee of 0.50% is part of the cryptocurrency's quoted price. This means Gemini adds 0.50% onto the prevailing market price for your trade quote.

Orders of up to $200 have a flat transaction fee. Larger orders have a variable fee of 1.49%. Here are the fee amounts based on the order size:

Up to $10: $0.99
Above $10 to $25: $1.49
Above $25 to $50: $1.99
Above $50 up to $200: $2.99
Above $200: 1.49%

This brings us back to the question of which platform gets you more crypto for your dollar. I have accounts with both, so I set up some order previews using the same amount of money on each platform to find out.

In my tests, Robinhood consistently offered the largest amount of cryptocurrency. Gemini ActiveTrader was a close second, but the regular Gemini Exchange lagged well behind both of them.

Gemini vs. Robinhood: Cryptos available

If you want access to a wide variety of cryptocurrencies, then Gemini is the clear choice over Robinhood. Gemini lets you buy and sell over 80 cryptocurrencies, making it one of the better crypto apps when it comes to selection. Robinhood has listed more than 10, so it's far behind in this category.

With its limited selection, Robinhood is missing quite a few major types of cryptocurrency, and it doesn't have any smaller up and comers. Here are a few examples of notable cryptos that are available on Gemini but not on Robinhood:

For those who are only interested in buying Bitcoin (BTC), Ethereum (ETH), and maybe a few other big cryptos, Robinhood is fine. If you're interested in going further with cryptocurrency investing, you'll need an exchange with a deeper roster.

Gemini vs. Robinhood: Wallets

By default, Gemini and Robinhood store your crypto in their custodial wallets. A custodial wallet is one that a third party, in this case the crypto platform, controls. They both give you the option of transferring your cryptocurrency to external wallets, so you're able to move it to your own wallet.

Gemini also provides two other crypto storage options, a digital wallet called Gemini Wallet® and a cold wallet (offline storage) called Gemini Custody®. Gemini Wallet® is free to use, whereas Gemini Custody® has an annual fee of 0.40% and a withdrawal fee of $125. Keep in mind that these are both custodial wallet services in Gemini's control.

RELATED: See Motley Fool Money's list of the Best Crypto Wallets.

Gemini vs. Robinhood: Security

Gemini and Robinhood have high security standards and are safe crypto investing platforms. Both platforms use secure methods to store cryptocurrency, carry insurance policies to protect client funds, and provide effective account protections.

In terms of storage, both platforms keep the majority of their clients' cryptocurrency funds in cold storage. This type of storage is offline, which provides protection from hackers. They also keep some funds in hot wallets (storage connected to the internet) for everyday trading needs. To cover funds in hot storage, Gemini and Robinhood carry crime insurance on digital assets.

Crime insurance protects against theft and cybersecurity breaches. Keep in mind that it covers losses that are the platform's fault, not the user's. For example, it wouldn't cover unauthorized access to your account or sending your cryptocurrency to the wrong wallet address.

Both platforms require two-factor authentication, a security measure that helps prevent unauthorized account access. Gemini also gives you the option of setting up a whitelist of approved crypto withdrawal addresses. If you do, this ensures that withdrawals can only be made to addresses you've authorized.

Cash deposits on Gemini and Robinhood are also safe. They have the same FDIC insurance offered by many banks, which covers up to $250,000 per client.

RELATED: Read The Motley Fool's guide on How to Safely Store Cryptocurrency

Final take

Gemini and Robinhood both excel in different areas. Choosing between them is just a matter of seeing which one works better for your crypto trading and overall investing needs.

Gemini is the way to go for people looking for a feature-packed cryptocurrency exchange. It has a much larger selection and plenty of additional perks, including a great crypto lending option to earn interest on your holdings. It even has a crypto rewards credit card if you want to earn up to 3% back in crypto. Overall, it's a fantastic choice for enthusiasts and anyone planning to seriously explore the world of crypto.

Robinhood is intended more for investors who want to conveniently add crypto to their portfolios. The broker makes it easy to buy Bitcoin, Ethereum, and a few other coins with no trading fees. And since its primary focus is stock trading, Robinhood is also great if people want to do all their investing on one platform.

Motley Fool Money's best cryptocurrency apps

There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. And to find the one that's right for you, you'll need to decide the features that matter most to you.

To help you get started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2022. Check out the list and get started on your crypto journey, today.

Best cryptocurrency apps

FAQs

Trading crypto is cheaper on Robinhood, but Gemini offers access to far more cryptocurrencies. If you're only interested in trading major cryptos, Robinhood may be best, but if you're interested in less-popular cryptos, check out Gemini.
Cryptocurrency can be a good investment if you believe in the future of digital currency, but it's also highly volatile. You also face security risks that are less of a concern with more mainstream investments, like stocks and bonds. Because of the risks, it's typically best to make stocks the backbone of your investment portfolio and limit your crypto investments to no more than 5% to 10% of your portfolio.

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Gemini vs. Robinhood: Which Crypto Exchange Is Right for You?