eToro vs Coinbase: Which Is Better?
Last Updated: January 11, 2023
In need of an eToro vs Coinbase comparison to help you decide which platform to use? You’re at the right place!
Both platforms are among the industry’s best. But they appeal to different types of investors. So which one is better, then?
Read further for a side-by-side comparison and in-detail review of everything you need to know before making your choice between eToro and Coinbase.
Side-by-Side Comparison
Before we dive into the details, let’s take a rough look at the basics:
| eToro | Coinbase | |
| Number of cryptocurrencies | 50+ | 100+ |
| Account types | Retail, Professional, and Demo | Individual, Business, and Developer |
| Fiat deposits | Credit/Debit card, Paypal, Neteller, Skrill, Rapid Transfer, iDEAL, Klarna/Sofort, Bank transfer, Trustly, POLi | ACH transfer, Wire transfer, Debit Card, PayPal, Apple Pay, Google Pay |
| Trading fee | Spreads 0.75%-5% | Maker-Taker fee 0.00%-0.50% based on pricing tier + additional fees |
| Withdrawal fee | $5 per withdrawal (+ conversion fees for non-US users) | Miner Fee – crypto $0-$25 – Fiat 2.49% – Coinbase card purchases |
| Deposit fee | Free | Up to $10 on Fiat deposits |
| Limitations | Minimum deposit $10-$10,000 depending on the place of residence
Maximum deposit: between $10,000 per day and $1 million per transaction, depending on the payment method Minimum withdrawal: $30 Daily limit: Pattern Day Trading |
Not explicitly indicated
Vary based on payment methods and place of residence. Can be lessened by verifying some personal information |
| App | Android / iOS | Android / iOS |
| Regulated by | CySEC (Cyprus), FCA (UK), ASIC (Australia), DNB (Netherlands), FinCEN (US) | FinCEN (US) |
Coinbase vs eToro: Account Requirements
Opening a new account on both platforms is available to everyone older than 18 and the process is very similar. You first sign up with your email address and password. eToro will ask you to enter a username, while Coinbase needs your first and last name during the initial sign-up.
After creating an account and verifying your email address, you’ll need to provide some more information on either exchange. Both will request proof of identity in the form of an official government-issued document.
eToro goes a step further and requests proof of address too. This is a statement that shows your full name, place of residence, and issue date (e.g., bank statement, phone bill, etc.). It shouldn’t be older than three months too.
Number of Cryptocurrencies
eToro is focused on a wider array of trading opportunities, not only crypto. So, the number of coins available is more limited than that of some eToro competitors. As of February 2022, there are 51 crypto coins available on the platform. However, a few of those still cannot be obtained in the US.
Coinbase, as the name implies, has a much wider variety of crypto assets. You can buy or sell more than 100 different coins on this crypto exchange, and the list is continuously growing.
Crypto pairs
Crypto pairs are digital assets that can be exchanged for each other (e.g., BTC/LTC). Knowing these pairs enables investors to expand their portfolios, as not all cryptocurrencies can be bought with any crypto out there. Plus, more experienced crypto traders can benefit from the price differences.
eToro offers crypto pairs, but only to international users. US accounts cannot trade cryptocurrency pairs on eToro. Coinbase, on the other hand, supports trading of around 80 crypto pairs.
Features
What both competitive platforms have in common is the Wallet. The eToro wallet supports more than 120 coins and offers exchanges of over 500 crypto pairs. Notably, you need to have a fully verified eToro account to use the Wallet. This is not the case with the Coinbase Wallet.
The Coinbase Wallet is a separate app. Those who want to use it don’t need to be registered users of the platform. Unfortunately, the wallet can’t be connected to your bank to make purchases with fiat. The number of coins supported by this wallet is over 4,000.
As both platforms employ different principles in their approach to trading and crypto, both have features unique to those principles. Let’s take a look at them.
Features unique to eToro
The eToro crypto exchange enables:
- Social Trading: eToro is almost like the social network of trading platforms. The Social Trading features range from News Feed, where you can interact with other users and open discussions, to going outside the platform and posting on social networks such as Facebook and Twitter.
- CopyTrader: This is a trademarked feature of eToro that enables real-time copying of other investors’ moves.
- Smart Portfolios: Formerly known as CopyPortfolios, these are investment options that bundle together different strategically picked assets by the eToro Investment Team. Minimum investment in a ready-made portfolio ranges from $500 to $5,000, depending on its type.
- Demo account: You can practice trading with $100k virtual money in real-time without risking any of your funds.
Features unique to Coinbase
In the eToro vs Coinbase contest, Coinbase is distinctive in:
- Coinbase Earn: Learn about different cryptocurrencies by watching tutorials, then take a quiz, and receive crypto for each completed quiz.
- Credit: Coinbase can lend you cash for urgent matters by using BitCoin as collateral. You can borrow as much as 40% of your BTC worth. Cash can be deposited either to a Paypal account or to a bank account via ACH.
- Learn: A depository of everything one needs to know about crypto. From beginners tutorials to tips and market updates for more seasoned investors.
If these are not enough to appease you, both platforms offer more advanced features on their separate platforms, eToroX and Coinbase Pro.
Fees
Now, eToro fees vs Coinbase fees. What’s there to know?
How much eToro charges you per transaction depends mostly on the cryptocurrency you are trading. Its fees are a spread ranging from 0.75% to 5%.
An additional fee you may encounter on eToro is the $10 per month inactivity fee. If you haven’t used your eToro account for a whole year, you’ll be charged a monthly recurring fee of $10 to access the platform. And that’s on top of the eToro crypto fees.
Coinbase, on the other hand, makes a distinction between a maker and a taker and charges its fees accordingly. Maker-taker fees range from 0.00% to 0.50%, depending on the pricing tier you are in when initiating a transaction. A Miner Fee and a spread are charged as well.
Coinbase isn’t very straightforward beforehand as to what it’ll charge you. Instead, it directs you to the transaction page. All fees will be disclosed on the page at the time of making the transaction.
Mobile App
Next on the list, Coinbase vs eToro mobile apps.
Both eToro and Coinbase have mobile apps for iOS and Android that are highly rated by their users. The apps are user-friendly and include the features available on the web-based platform.
Customer Support
Which one’s better when it comes to customer service, eToro or Coinbase?
Both support teams can be reached either by Live Chat or by opening a ticket. Coinbase has an additional option, and its agents can be reached by phone too.
Unfortunately, the Live Chat option on eToro is available only to Club Members. Your tier in the club also determines the quality and speed of support you receive. And the service is available 24 hours during business days. Coinbase, on the other hand, can be reached 24/7.
Regulation
The eToro crypto trading platform has obtained regulation licenses in five countries. Out of those, in the US eToro is registered with FinSec as a Money Service Business, and is one of the FINRA and SIPC members. Coinbase is also regulated and licensed in all jurisdictions it operates and is a registered Money Service Business with FinCen.
Though most US residents can use the crypto exchange services of eToro, there are some exemptions. Its services are not available to residents in the states of Minnesota, New York, Nevada, Tennessee, some island territories, as well as US residents residing outside of the US.
When it comes to Coinbase and US users, this platform has obtained licenses in all but six US jurisdictions.
Security
eToro employs different types of security protocols for different types of assets. Your eToro cryptocurrency assets are protected by a combination of warm and cold types of storage. Online wallets are considered to be warm storage, while cold storage implies offline wallets. Most of your crypto assets on eToro are stored cold. This is further reinforced with the latest monitoring tools to prevent any fraudulent activities on your account.
Furthermore, accounts on eToro are secured with advanced encryption protocols, as well as the option of 2FA (two-factor authentication). The platform as a whole is being monitored 24/7 through a SOC (security operations center), and data is only transmitted through encrypted TSL (transport security layer).
The eToro alternative Coinbase stores most of its users’ crypto in cold storage. Coinbase stores only 2% of its users’ assets in online wallets for liquidity. On top of that, crypto assets are insured in the case of a security breach of the platform. Furthermore, every feature on the platform is encrypted, and all user identifiable information and data obtained through KYC are held offline. Users of the platform are encouraged to use 2FA for their accounts.
eToro holds fiat in US banks, and funds are insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000. Coinbase uses custodial accounts, money market funds, and US Treasuries to store fiat. Out of those, fiat held in US banks is insured up to $250,000 by the FDIC. But users have no say in where Coinbase will store their assets.
Who Is eToro Best for?
The eToro crypto exchange is more suitable for experienced crypto investors already familiar with the jargon. Plus, the social trading features it offers are more suitable for advanced users. They might have a better grasp of the risk of copying other investors’ moves. As well as more assets to cover losses that may arise from those moves.
International investors can also use it to diversify their portfolios outside of the crypto realm.
eToro Pros & Cons
+ No deposit fees
+ Fixed withdrawal fee, no matter the amount
+ Ample range of deposit methods
– US residents can only use it for crypto trading
– No crypto pairs available to US users
– A limited list of supported coins
Who Is Coinbase Best for?
Despite the somewhat higher fees, Coinbase is best for all those whose crypto investment journey is only starting. The platform offers great learning resources and more limited transaction types. It also allows greater flexibility when it comes to using its wallet.
Coinbase Pros & Cons
+ Beginner-friendly
+ Wider collection of cryptocurrencies
+ Opportunity to learn and earn
– High fees
– Complex fee structure
– Seasoned investors might find it too simple
eToro
eToro is a fully regulated trading platform with over 15+ million users. It comes with a mobile cryptocurrency wallet where you can trade and transfer funds while allowing you to invest long-term in a portfolio of the most popular cryptocurrencies with no fees.
- Award-Winning Social & Copy Trading (15+M user base)
- Best For Beginners: Try Virtual $100K
- 16 Cryptocurrencies & 94 Crypto Crosses Available
eToro is a fully regulated trading platform with over 15+ million users. It comes with a mobile cryptocurrency wallet where you can trade and transfer funds while allowing you to invest long-term in a portfolio of the most popular cryptocurrencies with no fees.
eToro is a multi-asset investment platform with more than 2000 assets, including stocks, ETF’s, indices, commodities and cryptoassets. eToro offers over 14 cryptoassets to invest. By investing in their CryptoPortfolio, investors can benefit from the accumulated growth of Bitcoin, Ethereum, XRP, Litecoin and other leading cryptocurrencies. eToro users can connect with, learn from, copy or get copied by other users. All in all, it is an excellent P2P Bitcoin trading platform.
Credit Card, Debit Card, Wire Transfer, PayPal, Skrill, Neteller, Yandex, WebMoney, MoneyGram
ADA BTC XLM XRP LTC
Coinbase
Coinbase is a leading cryptocurrency exchange in the US. Apart from the large trading volume they also allow you to keep track of your currencies in one place, which are protected by insurance and stored in a digital vault.
- $320B+ volume traded, 100+ countries, 35M users
- Multiple Payment Methods, Transparent Fees
- Secure, Insured, Fast, and Beginner Friendly
Coinbase is a leading cryptocurrency exchange in the US. Apart from the large trading volume they also allow you to keep track of your currencies in one place, which are protected by insurance and stored in a digital vault.
Coinmama is a bitcoin broker based in Israel. They specialize in selling bitcoins for credit card to nearly anyone in the world.
Credit Card
BTC DOGE ADA LIBRA BNB
eToro vs Coinbase: Which Is Better?
The answer to that question depends on what you’re looking for as an investor, and nobody can decide for you. Both of the platforms are reputable and have earned the trust of numerous users. But we’ll say a few more words to sum up our Coinbase vs eToro comparison.
If you are strictly into crypto trading, then Coinbase will probably be a reasonable choice. The beginner-friendly platform offers great options for learning on the go, too. Bear in mind, though, that it has higher fees and a more complex fee structure.
Investors looking to diversify their portfolios will probably be more inclined to eToro. If you’re in the US, you can use it as a crypto exchange only. Nevertheless, the social trading features are something worth dipping your toes in.
Related reads:
FAQ
It costs nothing to sign up or hold assets in Coinbase Pro. Trading on the platform, naturally, incurs fees. Coinbase uses a tiered maker-taker model. The lowest tier pays the highest fees (0.50% maker-taker), while the highest tier pays the lowest (0.20% maker – 0.10% taker).
The difference between Coinbase and Coinbase Pro is they aim at different crypto traders. Coinbase is more appropriate for beginner investors. Coinbase Pro, as the name implies, is a better option for all those who are looking for more advanced features. The benefits of Coinbase Pro include lower fees and more trading options. Yet the abundance of alternatives could be confusing for novice investors.
Though it has a more limited selection of cryptocurrencies, eToro is still a serious contender among the crypto trading platforms. While many competitors offer a wide selection but lack the most popular coins, you will surely find them on eToro.
To sell crypto on eToro you will first need to access your portfolio. Once there, select the cryptocurrency you want to sell and select the red cross symbol you see on the right side of your screen.
Once you are in your eToro account, enter the coin you want to buy in the search box. Access the coin page and select the Trade field. This opens a pop-up window that gives you the option ‘Buy’. Now enter the amount you want to buy and select ‘Open Trade’.
The eToro crypto list as of the beginning of February 2022 is just over 50. Even though more limited than other platforms, it contains the most famous crypto coins that might interest investors. BTC, BCH, ETH, DASH are only a few of those. Follow the link for the complete list of available coins.
That would depend on the cryptocurrency, payment method, and where you are located. Generally speaking, fees might be somewhat higher on Coinbase.
Both platforms are renowned crypto exchanges. Both of them have their strengths and weaknesses, and both speak to different types of investors. Read our in-detail Coinbase vs eToro comparison to decide for yourself.
ABOUT AUTHOR
A problem-solver by day and content writer by night. In between, you’ll probably find me somewhere outside, reaching my daily step goal or admiring sunsets. My interests span multiple fields and creative pursuits. Having a background in linguistics, I’m now exploring the social aspects of information technology and I’m glad to be a part of the journey to hitting your financial targets.
