Best Cryptocurrency Exchange

eToro vs. Coinbase: Which Should You Choose?

eToro vs. Coinbase: Which Should You Choose?
Written by publisher team

Cryptocurrency exchange platforms eToro Queen Piece
Main platform features Easy-to-use social trading and brokerage platform, ability to interact with other traders, money can be purchased with PayPal (outside the US) Easy exchange for beginners with user friendly interface, it can withdraw money to PayPal
Outlay $5 withdrawal fee for clients outside the US, $10 fee after a year of inactivity, and transfer fee for non-US dollar deposits (Learn more at eToro Fees) 0.50% per trade, 3.99% for credit card purchases, 1.49% for Coinbase wallet or bank account purchases, and wire transfers are $10 for deposit and $25 for withdrawal
Number of supported cryptocurrencies 27+ 120+
Safety Features 2FA verification, cold storage, FDIC insured US dollar balances, multi-signature facilities, private keys, KYC 2FA Verification, Biometric Fingerprint Registrations, KYC, FDIC Secured US Dollar Balances, Cold Storage, AES-256 Encryption for Digital Wallets
Supported transaction types Buy, sell, market and limit orders Buying, selling, sending, receiving and exchanging
Maximum trading amount $50,000 per transaction and $200,000 per day sending limits for most currencies, including BTC. Limits vary based on the payment method and region. $25,000 per day for ACH transfers for US customers.


eToro vs Coinbase: Features

Coinbase is available to users in more than 100 countries and 49 US states, while eToro supports more than 140 countries and 45 US states. Coinbase is not supported in Hawaii, while eToro users cannot live in Hawaii, Minnesota, Nevada, New York or Tennessee.

Both offer a digital wallet and a single platform with options for advanced accounts. Coinbase Pro and eToroX allow advanced users to access more tools and types of trading at a potentially low cost.

  • On Coinbase, you can deposit money via credit card, debit card, PayPal, digital wallets, Automated Clearing House (ACH), or wire transfer. In return, eToro supports bank accounts (ACH), wire transfers and debit cards for US customers. However, international users, especially Europeans, have many financing options.

On eToro, only US residents can trade cryptocurrencies, but international traders can invest in exchange-traded funds (ETFs), commodities and stocks. However, soon more assets may be available to users in the US. eToro’s best features include:

  • Crypto CopyPortfolios: The portfolio management product uses a pre-defined investment strategy. Users must invest at least $2000 to $5000, depending on the wallet, to copy the wallet automatically.
  • CopyTrading: Watch real-time trades made by public investors, follow and copy traders with a minimum investment of $500 per trader you want to copy.
  • Demo account: Play with $100,000 fake money to simulate market transactions and see how you do it before investing the real money.

Both platforms offer a digital wallet. eToro provides a hot wallet for authorized eToro platform users. It supports more than 120 cryptocurrencies and allows users to store, receive, buy, transfer or transfer more than 500 currency pairs. Unlike eToro, Coinbase Wallet is a standalone hot wallet, and you don’t need to have a Coinbase account to use it. Coinbase allows you to store digital holdings and all ERC-20, BTC, BCH, ETH, ETC and LTC tokens.

Coinbase is a simple platform, and its features reflect that. Coinbase accounts provide:

  • Ability to earn cryptocurrency by watching short videos
  • Currency watchlist with in-app or mobile notifications
  • Cryptocurrency news feed and industry updates


eToro vs Coinbase: Coins Supported

eToro features many trading pairs due to a larger list of supported fiat currencies while Coinbase has fewer supported fiat currencies. Coinbase accepts fiat currencies such as US dollars, British pounds, and euros. In comparison, you can withdraw eToro funds in USD, EUR, GBP, AUD, RMB, Thai wahts, IDR, MYR, VND, PHP, SEK, DKK, NOK, PLN and CZK.

On the other hand, Coinbase supports the trading of more cryptocurrencies. Both platforms offer popular cryptocurrency, but Coinbase offers more modern cryptocurrencies. eToro supports trading over 27 coins. Coinbase has more than 120 tradable cryptocurrencies. However, you still can’t find NEO, MIOTA, or TRX in their list. eToro’s 19 cryptocurrencies include:

  1. Bitcoin (BTC)
  2. Ethereum (ETH)
  3. Bitcoin Cash (BCH)
  4. Dash (Dash)
  5. Litecoin (LTC)
  6. Ethereum Classic (ETC)
  7. Cardano (ADA)
  8. Iota (Myota)
  9. Excellent (XLM)
  10. EOS (EOS)
  11. NEO (NEO)
  12. TRON (TRX)
  13. ZCASH (ZEC)
  14. Tezos (XTC)
  15. Maker (MKR)
  16. Compound (COMP)
  17. chainlink (link)
  18. Uniswap (UNI)
  19. Yearn.finance (YFI)
  20. Dogecoin (DOGE)
  21. Aave (AAVE)
  22. Algorand (something)
  23. Decentraland (MANA)
  24. ENJ
  25. Basic Attention Token (BAT)
  26. Polygon (Matic)
  27. Shaybah in Millions (SHIBxM)


eToro vs Coinbase: Security

Both platforms have proven that their security levels are up to the task. Exchanges offer US-based customers FDIC insurance on cash balances of up to $250,000. eToro and Coinbase operate under the supervision of the Financial Conduct Authority (FCA). But eToro also complies with the regulations of the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investments Commission (ASIC).

Coinbase offers two-factor authentication (2F) via the Google Authenticator app or SMS, while eToro offers optional 2F authentication through SMS. While Coinbase says 98% of its coins are in air-cooled storage, eToro is splitting. Some crypto funds are stored in hot wallets and some in a cold place.

eToro and Coinbase wallets offer multi-signature security. Coinbase provides biometric access to fingerprints, while eToro says it offers distributed denial-of-service (DDoS) security and standardization protocols.


eToro vs Coinbase: Fees

Coinbase and eToro use different fee schedules. At Coinbase, you will pay the Buy Maker Fee which is usually 0.50% of the transaction. However, if you are trading with large amounts, the fees diminish as the trading volume increases. My financing methods also incur different fees with credit cards being the most expensive.

On eToro, traders do not pay a commission, but they do pay a fee for variable spreads ranging from 0.75% to 5.0%, depending on the currency and market. eToro also charges other fees, such as a conversion fee for converting different fiat currencies into US dollars, a monthly inactivity fee of $10 for accounts that show no activity for 12 months, and international users pay a fee of $5 for withdrawing funds. But, unlike some exchanges, eToro only charges the spread when buying the asset and not again when selling, while Coinbase charges the buy and sell maker.

Which platform is the cheapest for you depends on the financing method and the currency you are buying. Etoro spread fees can be huge on some cryptocurrencies while Coinbase may charge high funding fees.

Outlay eToro Queen Piece
Bank account free 1.49%
wallet free Fees are calculated at the time of the transaction
Debit / Credit Cards free 3.99%
ACH . transfer free free
wire transfer free Deposit $10, withdraw $25
Cryptocurrency exchange 0.1% 0.50%
Purchases 0.75% to 5% 0% to 0.50%
character 0.75% to 5% 0% to 0.50%
Other fees Convert banknotes
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eToro vs Coinbase Pro comparison: Ease of use

Although both platforms are easy to use for beginners, eToro expects traders to have a basic knowledge of investing in cryptocurrencies. Some of the types of transactions and options available may be unfamiliar to new users. In comparison, Coinbase keeps it simple with a straightforward interface that allows you to buy or sell.

As a swap for regular investors, Coinbase offers a comprehensive knowledge base and online support portal. Users can even watch videos to earn encryption. eToro offers fewer educational opportunities with a simple help center. As a social trading platform, it offers a crowded community forum where you can ask (or answer) questions.

Coinbase and eToro’s mobile apps mirror the web browser experience and receive decent online customer reviews from third parties. Coinbase is receiving more positive feedback from eToro.


Frequently Asked Questions

What is eToro and Coinbase?

Coinbase and eToro are two online trading platforms that allow users to buy or sell cryptocurrencies. Coinbase is an exchange focused solely on cryptocurrency investments, while eToro acts as a broker that offers investment options to non-US clients, such as stocks, ETFs, or commodities.

People use cryptocurrency exchanges to buy or sell currencies or to track the activities of different currencies. eToro also offers a demo platform where beginners can participate in the market without actual financial investment.

How do eToro and Coinbase work?

Both trading platforms have similar registration processes, including requirements to verify your identity and address. However, Coinbase focuses on simplicity in trading, meaning that apart from buying and selling cryptocurrencies, reading your news feed, or checking your watchlist, there is nothing else you can do.

In comparison, eToro is a social trading platform. The Social News Feed allows you to follow other traders, set crypto alerts, comment on other people’s posts, and interact as you would on social media platforms. In addition, you can check or copy famous investors or search for traders based on various criteria, such as the degree of risk. On each eToro user profile page, you will find details about the user’s portfolio and statistics showing the degree of risk and past performance. Traders can also opt out of having a profile page if they prefer not to share this or other information.

Is eToro cheaper than Coinbase?

eToro is less expensive than Coinbase and charges a one-time difference on your cryptocurrency purchases. You pay it when your trade is executed, and when you sell, that amount is adjusted accordingly. eToro’s spread on coins ranges from 0.75% to 5%.

In return, Coinbase charges a difference as well as a fee based on your payment method for each transaction. Therefore, if you buy Bitcoin on eToro and sell it a week later, you will pay a one-time spread of 0.75%. At Coinbase, you will pay a buy maker fee of 0.50% (lower for large trades) to buy and again when selling plus a potential financing fee.

Who Should Use eToro or Coinbase?

Coinbase is a platform strictly for beginners for people who are not familiar with the concepts of investing or cryptocurrency. It provides user education, and the app offers minimal transaction types. New users without experience can learn how to buy cryptocurrency.

Unlike Coinbase, eToro does not offer much user education. Instead, the platform provides a rich social trading experience and expects traders to understand industry jargon. The app has more, and beginners may struggle completely to understand terms like “leverage”. Active traders with some experience are best suited to eToro.


methodology

We compared Coinbase and eToro by looking at the overall ease of use and functionality of browser-based sites and mobile apps for beginners and active traders. Next, we broke down specific features and how they affected the trading experience. Finally, we looked at fee structures and security measures for platforms, wallets, supported currencies, deposit methods, and transaction types.


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publisher team