Crypto trading is easier than ever with user-friendly platforms like eToro and Coinbase. Although both work well for beginners, eToro is a multi-asset brokerage and a social trading platform based in the U.K., whereas Coinbase is a crypto-only exchange based in the U.S. Moreover, Coinbase doesn’t offer the social aspect of trading, while eToro lets people watch other traders and copy their actions.
However, both are reputable companies. In 2021, eToro plans to make an initial public offering (IPO) on the U.S. market, and Coinbase went public with a direct listing on April 14, 2021. We compared eToro and Coinbase based on available currencies and transaction types while looking at the features of each platform. Our comparison considered overall fees, ease of use, and platform security.
eToro is currently offering a $50 bonus for customers that purchase $1,000 worth of cryptocurrency through their platform. This promotion is in select U.S. states.
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. This is not investment advice.
No commissions on transactions
Many ways to deposit funds
Can buy crypto using PayPal (outside the U.S.)
Unclear, fluctuating fees via a variable spread
Minimum deposit of $50 for U.S. users and much higher for international residents
Customer support isn’t responsive
At a Glance
|Crypto Exchange Platforms||eToro||Coinbase|
|Main platform features||User-friendly brokerage and social trading platform, ability to interact with other traders, can buy funds using PayPal (outside the U.S.)||Beginner-friendly exchange with an intuitive interface, can withdraw funds to PayPal|
|Fees||$5 withdrawal fee for non-U.S. customers, $10 fee after a year of inactivity, conversion fees for non-USD deposits||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 cryptocurrencies supported||18||51|
|Security features||2FA verification, cold storage, FDIC-insured USD balances, multi-signature facilities, and private keys, KYC||2FA verification, biometric fingerprint logins, KYC, FDIC-insured USD balances, biometric fingerprint logins, cold storage, AES-256 encryption for digital wallets|
|Types of transactions supported||Buy, sell, market orders and limit orders||Buy, sell, send, receive, and exchange|
|Maximum trading amount||$500,000||Limits vary based on your payment method and region|
eToro vs. Coinbase: Features
Coinbase is accessible to users in over 100 countries and 49 U.S. states, whereas eToro supports more than 140 countries and 43 U.S. states. Coinbase isn’t supported in Hawaii, while eToro users can’t live in Delaware, Minnesota, New Hampshire, New York, Nevada, Hawaii, or Tennessee.
Both offer a digital wallet and one platform with options for advanced accounts. Coinbase Pro and eToroX allow advanced users to access more tools and trade types for a potentially lower cost.
On Coinbase, you can deposit funds via a credit card, debit card, Automated Clearing House (ACH), or wire transfer. In contrast, eToro supports the following globally:
- Credit and debit: USD, GBP, EUR, and AUD
- PayPal: GBP, EUR, and AUD
- Neteller: USD, GBP, and EUR
- Skrill: USD, GBP, and EUR
- Rapid Transfer: USD, GBP, and EUR
- iDeal: EUR
- Klarna/Sofort Banking: EUR
- Bank transfer: USD, GBP, and EUR
- Local online banking: MYR, IDR, THB, PHP, and VND
- Online banking—Trustly (EU region): EUR, GBP, SEK, DKK, NOK, PLN, and CZK
On eToro, U.S.-based residents can only trade crypto, but international traders can invest in exchange-traded funds (ETFs), commodities, and stocks. The top eToro features include:
- Crypto CopyPortfolios: The portfolio management product uses a predetermined investment strategy. Users must invest a minimum of $2,000 to $5,000, depending on the portfolio, to automatically copy the portfolio.
- CopyTrading: See 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 around with $100,000 in mock money to mimic market transactions and see how you do before investing real funds.
Both platforms offer a digital wallet. eToro provides a hot wallet for verified eToro platform users. It supports over 120 cryptocurrencies and allows users to store, receive, buy, transfer, or convert more than 500 currency pairs. Unlike eToro, the Coinbase wallet is a standalone hot wallet, and you don’t need to have a Coinbase account to use it. Coinbase lets you store digital collectibles, all ERC-20 tokens, BTC, BCH, ETH, ETC, and LTC.
Coinbase is a simple platform, and its features reflect that. Coinbase accounts provide:
- The ability to earn crypto by watching short videos
- A coin watchlist with in-app or mobile phone notifications
- A newsfeed of cryptocurrency and industry updates
eToro vs. Coinbase: Supported Currencies
eToro features over 100 crypto trading pairs, whereas Coinbase offers about 54, depending on your location, and you can buy coin fractions on both platforms. Coinbase accepts fiat currencies like USD, GBP, and EUR. By comparison, you can withdraw eToro funds in USD, EUR, GBP, CAD, AUD, JPY, RMB, and RUB.
Both platforms offer popular crypto, but Coinbase provides more up-and-coming altcoins. eToro supports the trading of 16 coins, and you won’t find NEO, MIOTA, or TRX on Coinbase’s list of 51 coins. The 18 eToro cryptocurrencies include:
- Bitcoin (BTC)
- XRP by Ripple Labs (XRP) (outside the U.S.)
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
- Dash (DASH)
- Stellar Lumens (XLM)
- NEO (NEO)
- EOS (EOS)
- Cardano (ADA)
- IOTA (MIOTA)
- Zcash (ZEC)
- TRON (TRX)
- Tezos (XTZ)
- Binance Coin (BNB)
- Chainlink (LINK)
- Uniswap (UNI)
eToro vs. Coinbase: Security
Both platforms have proved their security levels are up to task. The exchanges offer U.S.-based customers Federal Deposit Insurance Corporation (FDIC) insurance on cash balances up to $250,000. eToro and Coinbase operate under the Financial Conduct Authority (FCA). But eToro also complies with Cyprus Securities and Exchange Commission (CySEC) and Australian Securities and Investments Commission (ASIC) regulations.
Coinbase offers two-factor (2F) authentication via the Google Authenticator app or short message service (SMS), whereas eToro provides an optional 2F authentication through SMS. While Coinbase says 98% of its coins are stored in air-gapped cold storage, eToro is split. It stores coins in wallets in hot storage, and “coins on the platform are held mostly in cold storage.”
eToro and Coinbase wallets provide multi-signature security. Coinbase offers fingerprint biometric access, while eToro says it provides distributed denial-of-service (DDoS) protection and standardization protocols.
eToro vs. Coinbase: Fees
Coinbase and eToro use different fee schedules. On Coinbase, users pay a spread of roughly 0.50% for cryptocurrency purchases and cryptocurrency sales, but the actual amount varies due to market fluctuations. On top of the spread, the platform charges a Coinbase Fee, a flat fee, or a percentage, based on the payment method. For instance, a $100 purchase incurs the spread fee plus a payment-based charge. If you pay via ACH, your Coinbase Fee is $2.99. But if you make that transaction via credit card, you’ll pay 3.99% of the purchase amount.
On eToro, traders don’t pay a commission, but they pay fees for a variable spread, 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 to USD, a $10 inactivity fee on accounts that show no activity for 12 months, and international users pay a $5 fee to withdraw funds. But, unlike some exchanges, eToro only charges the spread one time when you buy the asset, whereas Coinbase charges a spread on each transaction.
Overall, you’ll pay fewer fees on the eToro platform. For example, if you use a credit card to buy $100 of Bitcoin on eToro, you’ll pay a spread of 0.75% versus a spread of 0.50% plus 3.99% on Coinbase.
|Wire transfer||Free||$10 deposit, $25 withdrawal|
|Crypto conversion||From 0.005 units of crypto||0.50% to 2%|
|Purchases||0.75% to 5%||0% to 0.50%|
|Trades||0.75% to 5%||0.50%|
|Other fees||None||$0.99 to $2.99 based on the amount|
eToro vs. Coinbase Pro: Ease of Use
Although both platforms are easy for beginners to use, eToro expects traders to have basic knowledge of investing in crypto. Some of the transaction types and available options can be unfamiliar to new users. In comparison, Coinbase keeps it simple with a straightforward interface that allows you to buy or sell.
As an exchange for casual investors, Coinbase offers a comprehensive knowledge base and an online support portal. Users can even watch video snippets to earn crypto. eToro provides fewer educational opportunities with a simple help center. As a social trading platform, it offers a busy community forum where you can ask (or answer) questions.
The mobile apps for Coinbase and eToro reflect the web browser experience and receive decent ratings on the app stores. Coinbase gets 4.7 out of five stars on Apple and 4.4 on Google, whereas eToro receives 4.1 out of five stars on Apple and 3.0 on Google.
Frequently Asked Questions
What Are eToro and Coinbase?
Coinbase and eToro are online trading platforms that allow users to buy or sell cryptocurrencies. Coinbase is an exchange focusing solely on cryptocurrency investments, whereas eToro functions as a brokerage offering non-U.S. customers investing options, such as stocks, ETFs, or commodities.
People use cryptocurrency exchanges to buy or sell coins or track various coin activities. eToro also offers a demo platform where beginners can mock-participate in the market without an actual financial investment.
How Do eToro and Coinbase Work?
Both trading platforms have similar sign-up processes, including requirements for verifying your identity and address. However, Coinbase focuses on simplicity in trading, meaning outside of buying and selling crypto, reading the news feed, or checking your watchlist, there’s not much else you can do.
In comparison, eToro is a social trading platform. A social news feed lets you follow other traders, set crypto alerts, comment on other people’s posts, and interact like you would on a social media platform. Plus, you can check out or copy popular investors or search for traders based on various parameters, such as a risk score. On your eToro profile, you’ll find details about your portfolio and stats showing your risk score and fail/success ratio.
Is eToro Cheaper Than Coinbase?
eToro is less expensive than Coinbase and charges a one-time spread on your crypto purchase. You pay it upon execution of your trade, and when you sell, this amount is adjusted accordingly. The eToro spread on coins ranges from 0.75% to 5%.
In contrast, Coinbase charges a spread plus a fee based on your payment method for each transaction. So, if you buy Bitcoin on eToro then sell it a week later, you’ll pay a one-time spread of 0.75%. On Coinbase, you’ll pay a spread of 0.50% plus a fee based on your payment method twice (once for buying and once for selling).
Who Should Use eToro or Coinbase?
Coinbase is strictly a beginner's platform for people unfamiliar with investing or cryptocurrency concepts. It supplies user education, and the application offers minimal transaction types. New users with zero experience can figure out how to buy crypto.
Unlike Coinbase, eToro doesn’t offer much user education. Instead, the platform provides a rich, social trading experience and expects traders to understand industry terms. The application has a bit more going on, and complete beginners may struggle to understand terms like “leverage.” Active traders with some experience are a better fit for eToro.
We compared Coinbase and eToro by looking at the overall ease of use and functionality of their browser-based sites and mobile applications for beginners and active traders. Next, we broke down specific features and how those impacted the trading experience. Lastly, we looked at fee structures, security measures for the platforms and wallets, and supported currencies, deposit methods, and transaction types.