- >Best Crypto Exchanges 2024
- >Webull vs. Coinbase
Coinbase is one of the oldest exchanges out there featuring support for top cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. What’s more, Coinbase’s long-term success in the crypto space has made it almost synonymous with cryptocurrency trading, especially for its US audience. Over the years, Coinbase has managed to carve out a piece of the market for itself, even growing to become a publicly-traded company as of 2021.
But with the way the crypto market has evolved over the years, its age shows in Coinbase’s limited trading options. It does not allow users to trade stocks, options, and other financial instruments that are also gaining traction just as much as crypto. For this reason, applications such as Webull have emerged to fill up the gap with a combination of services that include stocks, ETFs, options trading, and crypto trading as well.
With this broad array of trading assets to choose from, Webull has managed to attack a large and young share of the US market nearly as much as Coinbase.
In this article, we take a look at these two platforms and review their features as well as how they compare one to another.
Coinbase Quick Overview
Coinbase is one of the oldest crypto exchanges in existence today, having been established in 2012.
Over the years, Coinbase has managed to carve out a large share of the market for itself with its simple user interface and feature-rich trading platform that supports BTC, ETH, LTC, ZRX, BAT, USDC, and other stablecoins. With its large customer base, Coinbase also enjoys a reputation as one of the most reliable exchanges in existence today.
While it may not be as flashy as other crypto trading platforms such as Binance and Kucoin, Coinbase is a platform that has worked out much of the kinks likely to be experienced by first-time crypto investors and traders. This means that there is less work for the user in terms of understanding what to do and in turn, how to use it to get started.
This does not mean however that Coinbase is a barebones trading platform without any features found on other platforms. Coinbase comes with a bunch of features such as support for over 100 cryptocurrencies, a mobile app for iOS and Android, integration with three major US-based banks, multiple payment methods such as PayPal and credit cards, to name a few.
The platform is also supported in 32 countries, which means it is accessible by most people worldwide. For withdrawals and deposits, there are numerous payment options including credit card purchases of major cryptocurrencies such as BTC and ETH.
While Coinbase does not offer its users the ability to issue margin or short orders, there are other trading features such as stop-loss orders that allow traders to protect their investments in case of a sudden market crash.
Coinbase also comes with an extensive library of educational materials for crypto investors and traders looking to dive into the world.
- Beginner-friendly UI make it easy to make quick buys
- One of the oldest and most reliable exchanges
- Earn $200 in free crypto after completing sign-up process. Terms apply.
- Variety of products including exchange, staking, wallet
- Advanced Trading options for experienced traders
Coinbase Pros & Cons
Pros
Top-notch security with insurance cover on lost crypto
High liquidity and strong capitalization
Simple user interface that is easy to pick up on even for first-timers
Supports all major payment methods including PayPal, bank transfers, etc.
Cons
The table does not support margin trading
Its fee structure can be overwhelming for first-time investors
Asset diversification is limited when compared to Webull
Webull Overview
The story of Webull is similar to many other broker and trading platforms such as Robinhood that have emerged over the past couple of years thanks to a new wave of young retail investors. Established in late 2017, Webull aims to provide US investors with a way to trade stocks and crypto while offering extensive research tools for professional traders to analyze the markets.
Thanks to its combination of services, Webull has been able to attract a large number of millennials and Gen Z who have warmed up the crypto space in recent years just as much as they have embraced the trading of stocks and other financial instruments such as ETFs and options.
The China-centric company behind Webull has also taken steps to remain compliant with regulatory requirements for US financial institutions, which means that it is required by law to verify your identity when you sign up for an account. Fortunately, this process takes less than a day to complete and the verification process is quite straightforward, with a lot of personal information already provided by potential users when they sign up for Webull.
Webull combines a strong product lineup with research tools to help investors make informed decisions. The platform also comes with a stock simulator, which allows new users to test out their trading strategies at zero risks.
- Online broker with support for stocks, ETFs, options and cryptocurrencies
- Buy cryptocurrency for as little as $1
- Commission-free trading
- Free stock for signing up
Webull Pros & Cons
Pros
Offers a diversified asset class to invest and trade
Supports most popular cryptocurrencies
Gives users access to various accounts including retirement accounts
Features an active community of traders with no minimum deposit requirement
Cons
Lacks features related to research and tools found on other platforms
Only supports a limited number of cryptocurrencies
Lacks advanced trading tools and features found on other platforms
No ability to withdraw crypto from the site
Beginner Friendliness
One of the most important factors that any investor or trader should consider when choosing an online trading platform is the ease of use. For this reason, both Webull and Coinbase have a beginner-friendly interface.
On Webull, for instance, you can invest in stocks and ETFs along with cryptocurrencies on the same platform, thanks to a simplified and straightforward interface. You can also check out some of the various account types available on the platform. Although Webull has limited educational content, everything on its interface is presented in a simple and easy-to-understand format that beginners will appreciate.
Coinbase is also very intuitive, allowing users to buy BTC, LTC, ETH, among other cryptocurrencies, without too much effort. For a long time, Coinbase has built a reputation for being a user-friendly exchange that requires little input from the user thanks to its simple interface.
Fee Structure
As one of the most popular online platforms for cryptocurrency investors today, Coinbase has a simple fee structure that is broken down into two components: transfer fees and purchase fees.
Coinbase charges a fee of 0.15% for each wire transfer, which is the equivalent of $10 and above. Payment methods such as PayPal and credit cards attract a 3.99% fee on all transactions with a minimum charge of $0.25, which is pretty cheap for an exchange such as Coinbase.
For cryptocurrency purchases, Coinbase charges 0 to 1% fees depending on the country of origin, with minimum charges starting at $0.99 in most cases. Most credit cards attract a 3.99% fee, while PayPal transactions attract a 4% fee. Although this flat fee is very low, it can be quite expensive for large cryptocurrency purchases. For this reason, most users prefer to use the Coinbase Pro alternative, which offers support for more cryptocurrencies and at cheaper transactional costs.
Webull, on the other hand, charges zero commissions on all its crypto, stocks, and ETF trades. There is a minimum account requirement of $2000 for the margin account. However, even though Webull has a zero-commission fee policy, the platform charges interest rates on borrowed funds for margin accounts. Therefore, Webull’s spread fees are slightly higher than what you find on Coinbase Pro. Therefore, the 100 basis points that Webull charges on its spreads are equivalent to a 1% fee you would pay on a regular crypto exchange.
Trust and Security
When it comes to trust and security, Coinbase takes the day as it has had more time to establish its position, especially in the crypto space. It has a high level of accountability and transparency that is backed by a vast array of security features.
One notable feature available on Coinbase is the 2-factor authentication option provided for all accounts. This means that you can add an extra layer of security to your account, which is particularly useful if you plan to hold large volumes of Bitcoin or other cryptocurrencies on the platform. Also, Coinbase has cold storage for 98% of its customer’s funds. This gives most crypto traders peace of mind when using the platform. Adding to the cold storage feature, Coinbase accounts are also insured.
Webull has a similar 2-factor authentication feature, but it doesn’t have as many additional security features as Coinbase does. Most of the security features you find on Webull can be found on other crypto trading platforms such as Poloniex and Bittrex. Webull uses a third-party entity to offer custody of the crypto stored in its platform. This presents a counterparty risk.
Customer Support
When it comes to customer support, neither Coinbase nor Webull stand out. However, the few available options from both companies are fairly responsive and helpful for most customers.
Coinbase has a decent FAQ section on its website, which is regularly updated with useful information such as transaction times and other important issues traders may experience. Users can also contact the company’s customer support team via phone or email. The Coinbase Pro alternatives are also very responsive, especially if you’re having issues with trading fees and limits on your account. On the other hand, Webull is not as helpful when it comes to providing answers to FAQs. You can get in touch with their customer support team via chat or email, where you can expect a response within 24 hours.
Sign-Up Process
When it comes to the sign-up process, Coinbase is easier than Webull. You can simply create an account using your phone number and email address and then start trading immediately without having to provide any additional information. On the other hand, you will need to provide personal documents for whoever is applying for a margin account at Webull.
Available Cryptocurrencies
In terms of supported cryptocurrencies, both platforms offer a wide variety of coins and tokens to trade. Both offer support for top crypto coins such as Bitcoin and Ethereum, not to mention a variety of supported altcoins. However, Coinbase supports more cryptocurrencies than Webull does.
Standout Features
When it comes to standout features, Webull offers a much better experience in terms of trading stocks and ETFs in addition to crypto trading. The platform offers access to over 7000 US-based stocks and ETFs for its clients to trade on. This is particularly useful if you are an American looking for US market data and a diversified investment experience.
Coinbase also has some stand-out features, such as its Coinbase Wallet and the Pro platform ( formerly GDAX ). The wallet on Coinbase offers some useful features, such as instant access to your funds, while the Pro trading platform allows you to trade some cryptocurrencies without having to leave the platform. The 98% cold storage, and insurance cover on Coinbase is also outstanding.
CryptoVantage Verdict: Coinbase is Likely a Better Option for Crypto
The primary reason why most crypto traders prefer Coinbase to other alternatives is the ease of use. The platform has the simplest design, which makes it ideal for beginners who are new to the world of cryptos. The fact that it has been around for so long also makes Coinbase a more stable option than Webull, which is still very young in the trading world.
However, if you are interested in stocks and ETFs just as much as cryptocurrencies, Webull offers better features such as access to over 7000 US-based stocks and ETFs. It may not have the same number of features as Coinbase, but its easy-to-use interface, good customer support, and popular cryptocurrencies offered make Webull a better alternative compared to Coinbase.
In conclusion, neither company is particularly bad when it comes to crypto trading, however both platforms do have their own sets of pros and cons that one should consider before making a choice.
