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- >Cash App vs Robinhood 2024
Robinhood vs. Cash App: Which is Better for You?
Robinhood and Cash App were created as part of the FinTech revolution. Both exchanges provide a wide range of products to novice investors.
Cash App specializes in mobile payments and cryptocurrency transactions, while Robinhood focuses on stocks and ETFs.
This Cash App vs. Robinhood comparison will determine which platform is best for crypto investors and traders.
Cash App vs Robinhood Compared
Cash App and Robinhood are both apps but quite different when it comes to cryptocurrency. As we start off our detailed review of both, here’s a look at how the two compare on a high level.
- A great one-stop shop for anyone looking to invest in cryptocurrency or stocks
- Easy onboarding procedure requires very little from user
- Fully regulated financial institution in the United States
- Support for BTC, ETH, LTC, BCH, DOGE, ETC, and BSV
My Overview
I personally like Robinhood not just for the crypto options but because you can also invest in traditional stocks as well.
- One of the simplest ways to buy Bitcoin
- Owned by financial stalwart Square
- You can withdraw your Bitcoin to a personal wallet, unlike competing apps
- Really simple sign-up process
- Reliable and trustworthy
My Overview
I love Cash App because they allow you to buy crypto but also send money around to different friends, family and businesses as you need.
Cash App Overview
Financial services company Square launched mobile payments Cash App in 2013. It was originally called Square Cash but rebranded as Cash App in 2018 with support for buying and selling Bitcoin.
Cash App is a relatively simple mobile payments app that lets its tens of millions of users transfer money to each other through the app or email. For example, if you go for dinner with a friend and they pay, you can send them your half of the bill via Cash App (if you’re planning to split the bill). It makes these types of simple transfers very easy. Whenever you need to send someone some money, just Cash App them.
The company has expanded its services over the years with tax software, stocks. While the app remains relatively streamlined it has added a number of features including the aforementioned ability to buy and sell Bitcoin, stock trading and a dedicated Cash App debit card.
Of course Square Inc. is the parent company of Cash App. Square was co-founded by massive crypto advocate Jack Dorsey (who also co-founded Twitter).
Financial services company Square launched mobile payments Cash App in 2013. It was originally called Square Cash but rebranded as Cash App in 2018 with support for buying and selling Bitcoin.
Cash App is a relatively simple mobile payments app that lets its tens of millions of users transfer money to each other through the app or email. For example, if you go for dinner with a friend and they pay, you can send them your half of the bill via Cash App (if you’re planning to split the bill). It makes these types of simple transfers very easy. Whenever you need to send someone some money, just Cash App them.
The company has expanded its services over the years with tax software, stocks. While the app remains relatively streamlined it has added a number of features including the aforementioned ability to buy and sell Bitcoin, stock trading and a dedicated Cash App debit card.
Of course Square Inc. is the parent company of Cash App. Square was co-founded by massive crypto advocate Jack Dorsey (who also co-founded Twitter).
Cash App Pros and Cons
Pros
Simple way to buy Bitcoin
Low fees and streamlined interface make Cash App a great option for crypto beginners
You can withdraw your Bitcoin to your own personal wallet or a different exchange
Cons
Cash App only supports Bitcoin, which means no Ethereum, Cardano or any other cryptocurrency
Only available on mobile devices
Robinhood Overview
Robinhood was launched in 2013 with the idea of making the stock market more accessible to the general public, rather than just the wealthy. Hence the name.
Most notably Robinhood offered an easy sign-up process and dramatically reduced fees on trades compared to traditional brokerages at the time.
In 2018, Robinhood decided to expand its offerings and give customers exposure to a variety of different cryptocurrencies including Bitcoin, Ethereum and many others.
Robinhood does not, however, give customers the ability to withdraw crypto to an individual wallet. Some crypto users have criticized Robinhood as essentially giving users IOUs for crypto rather than actual cryptocurrency.
Robinhood Pros and Cons
Pros
Support for cryptocurrencies and the stock market
Very simple interface for new crypto users
Commission-free trading
You can deposit as little as you want
Cons
You cannot withdraw your cryptocurrency holdings from Robinhood
A decent selection altcoins but you’re going to have to go to proper cryptocurrency exchange if you want more obscure coins
Standout Features: Best of Cash App vs Robinhood
The standout features of Cash App are its low fees and streamlined approach to purchasing Bitcoin.
The biggest way Cash App stands out from Robinhood is that you can actually withdraw your Bitcoin. That’s a huge checkmark for Cash App in this comparison.
Meanwhile Robinhood offers one of the most beginner-friendly stock trading platforms in the world. If you’re looking to primarily invest in the stock market and maybe just get your feet wet with cryptocurrency then Robinhood is a good choice.
Robinhood and Cash App: Available Cryptocurrencies
This is an easy win for Robinhood because Cash App only offers Bitcoin.
On the other hand Robinhood offers a decent little portfolio that includes the following:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Bitcoin SV (BSV)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
Remember, however, that you won’t be able to withdraw any of the aforementioned cryptocurrencies to a personal wallet
Fees
Cash App offers some of the lowest fees for buying Bitcoin in the entire industry and they are extremely easy to understand.
Cash App charges a flat 1.75% fee for purchasing Bitcoin across the board. You’ll find that’s significantly cheaper than even some of the best cryptocurrency exchanges so many crypto users like to buy on Cash App and then withdraw to a different wallet or exchange depending on what they are using the BTC for.
On the other hand Robinhood charges no commission fees but actually gains a small percentage when it purchases your crypto on the open market. Those fees aren’t transparent so it’s very hard to tell what the ultimate cost of buying crypto on Robinhood. Regardless, it doesn’t seem dramatically more expensive gaining crypto exposure on Robinhood.
We’ll give the nod to Cash App in this section.
Beginner Friendliness
Robinhood and Cash App are both aimed at the beginner crypto market so it’s perhaps no surprise that it’s very easy to buy and sell crypto on both platforms.
Cash App is arguably the simplest because it only offers Bitcoin and you just have to click the Bitcoin tab to purchase the cryptocurrency but Robinhood is also extremely simple.
These are both great choices for new crypto users.
Trust & Security
Robinhood and Cash App are both considered very safe.
It’s worth noting that they take slightly different approaches to security, however. Robinhood doesn’t let you withdraw your crypto from the site and put it on a private wallet. While that’s a downside for most crypto enthusiasts — who prefer to use an individual wallet — it means you don’t have to worry about sending it to the wrong address.
Additionally Robinhood keeps the majority of their customer’s cryptocurrency in cold storage and even has insurance against cybercrime.
Finally Robinhood has decent customer support but no phone contact, which can be a deal breaker for some people.
Meanwhile Cash App offers cutting edge security for its Bitcoin but, since it’s possible to withdraw BTC from the site, you’ll probably want to move it to a personal wallet if you have a particularly large amount of BTC.
Furthermore, Cash App does not offer insurance on it’s BTC balances.
Sign-Up Process
The sign-up process is relatively simple with both Robinhood and Cash App but you’ll have to give slightly more information to Robinhood because it’s a registered stock broker.
With Cash App you really only need an email address and a bank account to get started. Once you’ve got Cash App working you might need to provide some geographic information to buy Bitcoin but that depends on where you live.
Meanwhile for Robinhood you’ll need to provide some personal identification including social security and date of birth.
Robinhood Sign-Up
- Download the app
- Register for an account
- Provide all of the necessary information (personal info)
- Verify your account
Cash App Sign-Up
- Download the app
- Register for an account
- Provide all your e-mail
- Link a banking account
Deposit, Withdrawal, and Payment Methods
Both of these are fully regulated apps in the financial services industry, so transferring money in and out is going to be fairly easy. For the most part, linking a bank account is the easiest way to deposit or withdraw. With Robinhood, that’s basically the only way to get your money in or out. You can do some things like direct deposit but it’s mostly just a bank transfer. Another option is Bank Wire (which comes with a $25 fee) but that’s also bank-to-Robinhood.
Cash App is almost the same in all but one regard: you can send payments through the app itself. Whereas Robinhood is solely for investing, Cash App allows you to send money around (and receive). Think of Robinhood as kind of a closed loop: you transfer money from a bank and invest in whatever way you see fit. As for Cash App, you can transfer money in (almost the same ways as Robinhood) but from there, you can send to a friend, receive from a friend and spend that money. They also integrate with debit cards, so you can spend that way too. When you’re done, you can transfer money back to your bank account – if you need to.
Conclusion: Cash App Better for Anyone Serious About Crypto
At the end of the day, if you’re serious about learning about crypto and actually using it, you are probably going to want to start with Cash App since you can actually withdraw Bitcoin to a personal wallet.
It’s not a requirement that you have to store your crypto on a personal wallet but it’s recommended to at least store some crypto on a personal wallet in case the organization holding your crypto is compromised.
One of the major benefits of crypto is that you can store it like gold and no matter what happens, so long as you secure your personal wallet, you’ll still have access to it.
That’s not to say that Robinhood isn’t without it’s appeal. Anyone who is primarily interested in stock trading but wants a little crypto in their portfolio would do well to look at Robinhood.
Frequently Asked Questions
It’s better to buy stocks with Robinhood. They have a much bigger variety and more ways to make the purchases. Cash App is just a basic option for stocks and crypto, as it’s main functionality is payments.
No, you’re not able to send cryptocurrency in Cash App. You can only buy Bitcoin for now.
Robinhood is a more traditional platform for trading and investing, so it is more reliable in that regard. However, both apps are very secure.
Robinhood has lower fees for crypto trades.
Robinhood is easier for investing and trading. Cash App is easier for beginners that are looking to send money to friends or businesses.
Yes, you can buy fractional shares on Cash App but it works slightly differently. You pick a dollar amount you want to invest and it will buy that amount of shares (even if it’s a fraction of a share).
Yes, Robinhood is a much more in-depth platform for investments and investing options than Cash App.
Yes, Robinhood is a much more in-depth platform for investments and investing options than Cash App.
