Before we come to the conclusion of which exchange is better, let’s first understand what is Robinhood cryptocurrency exchange and Cashapp exchange.
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What is Robinhood Crypto?
Robinhood Crypto is a cryptocurrency exchange platform. What is the best thing about this cryptocurrency exchange platform, is that it charges 0% transaction fees. Where other platforms charge up to 4% fees per transaction this is not the case with Robinhood Crypto. This means if you invest 100$ of crypto you will receive 100$ of your crypto.
Robinhood Crypto was founded on 18 April 2013, by Vladimir Tenev and Baiji Bhatt. Robinhood Crypto has its headquarters located in California, USA. Robinhood has many other subsidiaries that together form it including Robinhood Crypto, Robinhood Financial LLC, and Robinhood Security LLC.
Robinhood Crypto is a part of Robinhood enterprise, that works especially for cryptocurrency.
What is Cashapp?
Cashapp is another cryptocurrency payment platform where you can buy bitcoin for as little as 1$. It is the easiest way to spend, send, invest, and bank.
CashApp is a versatile way to directly send or receive money through their app with a just few taps. This payment app is built by Square, Inc in 2013.
You directly send money to another person through their email address, phone number or $CashTag. The payments made through the app balance or debit card are free of transaction fees however, a 3% transaction fees is charged per transaction in the case of credit cards. The cards accepted include Mastercard, VISA, Discover and American Express.
Other than payments and receipts you can also invest in stocks listed on Cashapp this makes the app all in one crypto stop.
Robinhood VS Cashapp
- Fraction Share
Fraction Share is a feature available on Cashapp, on this feature one can invest in a share with as least amount as 1$, which means you need not have lots of money to invest in stock. In such case, many multi-billionaire companies are listed to invest in.
In a fraction share, you don’t own the entire share but you own a part of it. For example, you want to invest in Microsoft whose one share worth is 500$, the least invested amount on Cashapp is 1$ and you invest in 1$, in that case you will own a part of 1 share of MS that equals the price of 1$. The investment earnings will fluctuate according to the market fluctuations.
Such a feature is not on Robinhood.
- Full Share
Full Share can be bought on Robinhood as well as Cashapp. In Robinhood you need to buy the entire authority of the share, there’s no fraction share feature on Robinhood.
- Debit Card
Debit Card is available on Cashapp, all the earnings on your investments and all the money you receive on Cashapp will be transferred to your Cashapp debit card.
The debit card is not available with Robinhood.
- Beginner-Friendly
The fraction share feature makes the cashapp more beginner-friendly as one need not have a lot of cash to invest in stocks, a person having as less as 1$ can also invest in cryptocurrencies and st ks in Cashapp. Accordingly, you will have partial authority on your share and will yield interest.
Whereas in Robinhood Crypto you don’t have the access to a fraction of the share, one needs to buy the entire share which can be costly and will ultimately require more money. And with more money comes greater risks, in such case, it is recommended that a person who has a good experience in trading invest in Robinhood.
A person who is new to trading, can start his trading journey through Cashapp and learn more about tracing by investing less money ana d therefore fewer risks. This makes Cashapp more beginner-friendly and Robinhood Crypto is preferred by experienced traders.
- Listed Shares
The listed shares on Cashapp are comparatively less than Robinhood. It could be because of the feature fraction share, where in such cases only multi-million or multi-billion dollar companies are listed whose one share worth is large.
If you want to invest in startups then it is not possible on Cashapp as such shares are not listed. However, one can easily explore the big garden of listed shares in Robinhood with a lot more varieties to choose from and invest in.
- Trading fees
Robinhood is entirely commission fee whereas a 1% trading fee is charged on every bitcoin transaction on Cashapp.
Conclusion
Cashapp and Robinhood Crypto both are well-recognized cryptocurrency brokers. Both offer various features and benefits. According to what is discussed earlier, Cashapp is the better choice for the one who is new to trading and has well knowledge and experience in the trading field. One can invest for even 1$ which is a minimal account, and therefore even if you suffer any losses such losses will be very bearable. In this way, without losses or with minimum losses one can learn more about the trading market.
Similarly, Robinhood is a very good alternative for experienced traders. There are a lot more options available for you to invest in. Even though, you can invest in Cashapp with a very less amount. One should not forget that investing with less amount will yield fewer profits. Investing a greater amount comes with greater risk but also greater opportunity for profits. Moreover, Robinhood is completely commissioned free and new startups are also listed on Robinhood which is not the case with Cashapp.
If you’re looking forward to investing in cryptocurrencies, Robinhood will be better for you because of its commission-free feature. However, if you are new to trading and want to learn more then Cashapp will be a good alternative.
