eToro vs. Coinbase

eToro delivers a unique and inexpensive trading experience

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Investing in crypto 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, 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.

Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors.

Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.

eToro


eToro

 eToro

For a limited time, you can earn a bonus of up to $240 when you deposit at least $50 in your eToro account. This promotion is in select U.S. states. Terms & conditions apply.

  • 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.)
  • Fees: $5 withdrawal fee, $10 monthly fee after a year of inactivity, conversion fees for non-USD deposits and withdrawals
  • Number of cryptocurrencies supported: 27+
  • Security features: 2FA verification, cold storage, FDIC-insured USD balances, multi-signature facilities, and private keys, KYC
  • Types of transactions supported: Buy, sell, market orders and limit orders
  • Maximum trading amount: $50,000 per transaction and $200,000 a day send limits for most coins, including BTC.

This review promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd.), UK (eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in some EU countries and the UK, no EU or UK consumer protections & not supervised by the EU or UK regulatory framework. Investments are subject to market risk, including the loss of principal.

Pros
  • No commissions on unleveraged purchases but a spread fee is charged

  • Many ways to deposit funds and no fees for depositing U.S. Dollars

  • Can buy crypto using PayPal (outside the U.S.)

Cons
  • Unclear, fluctuating fees via a variable spread

  • Minimum deposit of $50 for most countries including the U.S.

  • Customer support isn’t responsive

Coinbase


Coinbase

Coinbase

  • Main platform features: Beginner-friendly exchange with an intuitive interface, can withdraw funds to PayPal
  • 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 cryptocurrencies supported: 120+
  • Security features: 2FA verification, biometric fingerprint logins, KYC, FDIC-insured USD balances, cold storage, AES-256 encryption for digital wallets
  • Types of transactions supported: Buy, sell, send, receive, and exchange
  • Maximum trading amount: Limits vary based on your payment method and region. $25,000 a day ACH transfers for U.S. customers.
Pros
  • Designed for beginners

  • Can withdraw funds to PayPal

  • Great selection of cryptocurrencies

Cons
  • Higher and more complicated fee structure

  • Limit orders only available on Coinbase Pro

  • No telephone customer support except to report fraud and lock your account

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 (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 cryptocurrencies supported 27+ 120+
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, 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 $50,000 per transaction and $200,000 a day send limits for most coins, including BTC. Limits vary based on your payment method and region. $25,000 a day ACH transfers for U.S. customers.

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 45 U.S. states. Coinbase isn’t supported in Hawaii, while eToro users can’t live in Hawaii, Minnesota, Nevada, New York, 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, PayPal, digital wallets, Automated Clearing House (ACH), or wire transfer. In contrast, eToro supports bank accounts (ACH), wire transfers, and debit cards for U.S. customers. However, international users, particularly Europeans, have many funding options.

On eToro, U.S.-based residents can only trade crypto, but international traders can invest in exchange-traded funds (ETFs), commodities, and stocks. However, more assets may soon be available for U.S. users. 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 many trading pairs due to its larger list of fiat currencies supported whereas Coinbase has fewer fiat currencies supported. Coinbase accepts fiat currencies like USD, GBP, and EUR. By comparison, you can withdraw eToro funds in USD, EUR, GBP, AUD, RMB, THB, IDR, MYR, VND, PHP, SEK, DKK, NOK, PLN, CZK.

On the other hand, Coinbase supports trading of more cryptocurrencies. Both platforms offer popular crypto, but Coinbase provides more up-and-coming altcoins. eToro supports the trading of over 27 coins. Coinbase has over 120 tradable crypto currencies. However, you still won't find NEO, MIOTA, or TRX on their list. The 19 eToro 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 (MIOTA)
  9. Stellar (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 (ALGO)
  23. Decentraland (MANA)
  24. Enjin (ENJ)
  25. Basic Attention Token (BAT)
  26. Polygon (MATIC)
  27. Shiba in millions (SHIBxM)

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 some crypto funds in hot wallets and some in cold.

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, you'll pay a maker-taker fee that is normally 0.50% of the trade. However, if you are trading large amounts, the fees shrink as trade size increases. Funding methods my also incur various fees with credit cards being the most costly.

On eToro, traders don’t pay a commission, but they pay a flat 1% fee to buy or sell crypto. eToro also charges other fees, such as a conversion fee for converting different fiat currencies to USD, a $10 monthly 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 when you buy the asset and not again when selling, whereas Coinbase charges a maker-taker fee on buying and selling.

Which platform is cheaper for you will depend on your funding method and which coin you purchase. Etoro's spread fees can be enormous on some cryptocurrencies while Coinbase may charge high funding fees.

Fees eToro Coinbase
Bank account Free 1.49%
Wallet Free  Fees calculated at transaction time
Debit/credit cards Free  3.99%
ACH transfer Free  Free 
Wire transfer Free  $10 deposit, $25 withdrawal
Crypto conversion 0.1% 0.50%
Purchases 1% 0% to 0.50%
Trades 1%  0% to 0.50%
Other fees Fiat currency conversion Inactivity None

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 third-party online customer reviews. Coinbase receives slightly more favorable comments than eToro.

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 every eToro user profile page, you’ll find details about the user’s portfolio and stats showing their risk score 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 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 maker-taker fee of 0.50% (lower for large trades) for buying and again when selling plus a possible funding fee.

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. 

Methodology

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. 

Article Sources
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