eToro vs Coinbase

eToro vs Coinbase

Robert McDougall 

January 9, 2024

Cryptocurrency

Ever since the advent of Bitcoin, the world of cryptocurrency trading has been evolving at a rapid pace. Cryptocurrency exchanges have been popping up everywhere to be part of this new and exciting industry. While this is a good thing for traders in general, it can be quite overwhelming for newbies who don't know where to start. In this article, we will compare two of the most popular cryptocurrency exchanges for beginners - eToro and Coinbase.

eToro is a social trading and investment platform that was founded way back in 2007. The company is headquartered in Cyprus and has over 28 million registered users in 140 countries. In addition to cryptocurrencies, eToro allows users to trade stocks, commodities, ETFs, and more. Its social trading approach sets it apart from other exchanges, allowing users to interact, copy trade, and learn from each other. While eToro is not alone in this regard, the company has been a pioneer in making social trading mainstream.

Coinbase is one of the largest and most popular cryptocurrency exchanges in operation today. The company was founded in 2012 and is based in San Francisco, USA. Coinbase allows users to buy and sell cryptocurrencies with a user-friendly interface, making it a popular choice for new crypto investors. Since Coinbase is located in the USA, it needs to meet stringent regulations, and therefore has built up a lot of trust with US investors.

eToro is the better option for the majority of users, but read on to find out whether it is the more suitable exchange for your personal needs.

Cell

Fiat Currencies

USD, GBP, EUR, AUD

AUD, USD, EUR, GBP, CAD, MXN, HRK, CZK & 10+ more

Number of Coins

110

160+

Trading Fees

1%

0.5% + a varying Coinbase fee depending on amount traded

Deposit Methods

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Cell

Bank Transfer

Google Pay

Fedwire

PayPal

Credit Card

Debit Card

Apple Pay

SWIFT

Skrill

SOFORT/iDEAL

Cryptocurrency

Features

Cell
Cell

User-friendly

Mobile app

Live Chat

Security

Cell
Cell

2FA

Biometric security

ISO 27001 certified

Offline cold storage

Website

Cell

Fiat Currencies

USD, GBP, EUR, AUD

AUD, USD, GBP, EUR & 11 more

Number of Coins

 110

160+

Trading Fees

1% 

Base fee of 0.5% + varying Coinbase fee

Deposit Methods

Cell
Cell

Bank Transfer

Google Pay

Fedwire

PayPal

Credit Card

Debit Card

Apple Pay

SWIFT

Skrill

SOFORT/iDEAL

Cryptocurrency

Features

Cell
Cell

User-friendly

Mobile app

Live Chat

Security

Cell
Cell

2FA

Biometric security

ISO 27001 certified

Offline cold storage

Website

Pros
  • Offers stocks, indices, ETFs, commodities, and Forex in addition to cryptocurrency investing
  • Copy trading is available so you can profit from the experience of other investors
  • A demo account is available so you can practise trading with $100,000 virtual money
  • Simple interface with more than 110 cryptocurrencies on offer
  • Users can stake ADA, TRX, and ETH to earn interest on their coins
Cons
  • Some countries have a high minimum deposit amount for the first deposit, eg: $1,000 in NZ, and $10,000 in Israel
  • USA users can only trade cryptocurrencies, and cannot access stocks, forex or indices
  • Fewer cryptocurrencies available compared to Coinbase
Pros
  • Supports 160+ cryptocurrencies on an easy-to-navigate platform
  • Users can stake their crypto assets and earn up to 5.75% interest.
  • Coinbase has another platform Coinbase Pro for experienced traders
  • Supports NFT trading with an NFT marketplace
  • Provides phone, live chat, and email customer support 24/7
Cons
  • The fee structure can be confusing, as the amounts vary depending on trading amount and payment method
  • Higher trading fees compared to eToro

eToro vs Coinbase Fees

On eToro, deposits are free for US residents, while non-US residents are subject to currency conversion fees. Withdrawals are also free for US residents, while non-US residents have to pay a $5 fee.

Trading fees are typically 1%, but members who have reached Diamond, Platinum, or Platinum+ status may be eligible for up to 50% in discounts. There is also a monthly inactivity fee of $10 that is charged after 12 months of no trading activity. 

Unlike eToro, Coinbase does not have a fixed fee schedule. Instead, they charge variable fees depending on the payment method used and the amount being traded. For example, buying $100 worth of Bitcoin via ACH will incur a fee of about $3.49 ($0 deposit fees + 0.5% spread fee + $2.99 trading fee), while via debit card, it could go up to $7.48. Here's a more detailed breakdown of Coinbase's fees.

Winner - eToro

Coinbase's fees are generally higher than eToro's, and its fee structure is much more complicated. For an easy-to-understand, cheaper, and transparent fee structure, we recommend eToro.

eToro vs Coinbase Deposit Methods

eToro and Coinbase differ somewhat in terms of deposit methods. eToro accepts credit and debit cards, as well as a variety of digital wallets, including Neteller, Skrill, and PayPal. Bank transfers are also an option, as are more localized methods such as POLi and iDEAL.

Coinbase allows users to deposit via plenty of methods, including ACH transfer (US residents), SEPA (EU residents), PayPal, Fedwire, Apple Pay, Debit/Credit cards. Cryptocurrency deposits are also accepted.

Winner - Draw

Both eToro and Coinbase offer a wide range of deposit and payment methods. This ultimately comes down to which method you prefer to use, and check whether each exchange supports it. 

eToro vs Coinbase Features

eToro and Coinbase are quite different when it comes to features. eToro is a social trading platform, while the latter offers a more traditional crypto investing experience. Let's do a side-by-side comparison of their features:

Trading Markets

eToro is a trading platform with a wide array of markets to trade. In terms of cryptocurrencies, there are 110 different coins available. For those interested in traditional assets, there are 15 stock indices from around the world, including the SPX 500, and NASDAQ 100. eToro also offers access to 264 different ETFs and 49 currency pairs for forex trading. In addition, there are 24 commodities available to trade, such as gold, silver, and oil. Finally, stocks from some of the world's biggest companies are also available to trade, including Apple, Google, and Facebook.

Coinbase has two trading platforms: a simple buy/sell platform and an advanced spot and derivatives trading platform (Coinbase Pro). The simple buy/sell platform is designed for new investors who want to buy cryptocurrencies without trading on the exchange. The advanced platform is designed for more experienced traders and offers a broader range of features and trading tools. 

On the spot trading side, Coinbase offers over 200 pairs, including all major cryptocurrencies such as BT, ETH, LTC, and more. For those looking to trade derivatives, Coinbase also offers futures contracts for both Ether and Bitcoin, as well as Bloomberg and SuperTech indexes. The exchange also offers crude oil commodity contracts.

Trading Tools

eToro is a social trading platform that allows users to connect with other investors and share ideas and insights. The platform provides access to charts, analysis, stats, and news for each asset. Users can also set price alerts to stay up-to-date on market movements. CopyTrader is one of the the most popular tools on eToro, allowing users to copy the trades of other successful traders. This makes it easy for new traders to get started with trading and for experienced traders to diversify their portfolios.

Unlike most exchanges, Coinbase has a simple buy/sell function on the simple interface, which allows crypto beginners to purchase cryptocurrencies easily. While this may not sound like a big deal for advanced traders, it's helpful for those just getting started, and want to own some crypto. There's also a conversion tool that allows you to swap one coin for another without having to go trade on the market. On Coinbase Pro, you will find plenty of features like an order book, charting tools, limit, stop and stop limit orders which are well suited for more experienced traders.

Crypto Wallets

eToro has a built-in wallet that allows you to store your cryptocurrencies on the site. Coinbase also offers a cryptocurrency wallet; however, this requires you to download a separate app called Coinbase Wallet. Both eToro and Coinbase wallets are secure and offer similar features, such as sending and receiving crypto, storing private keys offline, backing up your data, and more.

Decentralized Marketplaces

Decentralized marketplaces are becoming increasingly popular for buying and selling digital assets without the need for a central authority. When it comes to eToro and Coinbase, neither platforms offer P2P (peer-to-peer) trading. This means that users can only trade cryptocurrencies using the platform itself, and not directly with other users.

Regarding NFTs, Coinbase has an NFT marketplace where users can buy and sell digital collectibles. eToro does not currently offer this service. 

Passive Income Opportunities

When it comes to investing, there are a lot of options out there: stocks, bonds, mutual funds, ETFs, the list goes on. But in recent years, one option that has been gaining popularity is investing in portfolios on eToro.

eToro offers a unique twist on the traditional portfolio. Rather than investing in individual stocks or mutual funds, eToro allows users to invest in other investors' portfolios. An investment portfolio is a collection of assets.

The eToro Investment Team creates and manages most portfolios, with factors such as balance, exposure, potential yield, and risk in mind. eToro also offers Partner Portfolios, which are created and maintained by eToro's partners, including some of the world's most cutting-edge financial organizations in FinTech.

This revolutionary approach has made eToro one of the fastest-growing investment platforms in the world. And it's not just for experienced investors—eToro's user-friendly interface makes it easy for anyone to get started. When you create an account on eToro, you'll be able to see the portfolios of other users and copy their strategies.

Besides the investment portfolio, users can also invest in stocks or fractional shares. For example, let's say you want to buy Apple stock but don't have $200 to buy an entire share. With eToro, you can buy a fraction of that share for as little as $25.

Crypto investors can also make passive income from staking and earn interest on their crypto holdings.

On the other hand, Coinbase has a platform called Coinbase Earn that offers users a great opportunity to earn some extra income by simply holding onto their cryptocurrency. With rates as high as 14.25% APY, you can make some decent interest on your coins. There are currently nine different coins to choose from and their interest rates are as follows:

  • ETH - 3.83% APY
  • ADA - 2% APY
  • SOL - 2.4% APY
  • ATOM - 6.12% APY
  • XTZ - 3.19% APY
  • DOT - 14.25% APY
  • AVAX - 7.93% APY
  • TRON - 3.8% APY
  • ICP - 8.54% APY

User Experience

eToro is known for its simple and easy-to-navigate interface. Even if you're a beginner, you can easily determine how to buy and sell cryptocurrencies. One of the best things about eToro is that it's highly customizable. You can change the font size and alignment to suit your needs, which is great for the visually impaired. When it comes to customer support, eToro is available on a ticket system. So if you have any questions or concerns, you can submit a ticket and someone will get back to you.

Coinbase also has a simple and easy-to-navigate interface. However, one of the best things about Coinbase is that it offers 24/7 phone, live chat, and email support. So no matter what time of day it is, you'll always be able to get in touch with someone if you need help. In addition, Coinbase also offers a very user-friendly mobile app. So if you're on the go, you can still trade cryptocurrencies with ease.

Winner - eToro

While Coinbase focuses on cryptocurrencies, eToro offers other investment instruments, as well as a greater variety of features and tools. For example, eToro offers a social trading platform where you can interact with others, and CopyTrader allowing you to copy the trades of other successful traders.

eToro vs Coinbase Security

Exchanges between different countries can be a complicated process. There are many different regulations that need to be taken into account, and it is often difficult to keep track of all the different requirements. However, it is essential to ensure that all exchanges are properly regulated to protect the integrity of the market and prevent abuse. 

eToro is one of the safest exchanges regulated by some of the most respected financial authorities in the world, including The Financial Industry Regulatory Authority (FINRA) and The Financial Crimes Enforcement Network (FinCEN) in the United States, The Financial Conduct Authority (FCA) in the United Kingdom, The Cyprus Securities and Exchange Commission (CySEC) in the European Union and The Australian Securities and Investments Commission (ASIC) in Australia.

This means that eToro is subject to a rigorous set of standards and regulations, ensuring that it provides a safe and secure platform for its users. In addition, eToro is also registered with a number of other financial authorities around the world, providing traders with peace of mind that their funds are protected.

Coinbase is also heavily regulated, holding licenses with a number of financial authorities, including The Financial Crimes Enforcement Network (FinCEN) in the United States, The Money Laundering Reporting Officer (MLRO) in the United Kingdom and Ireland, The Australian Transaction Reports and Analysis Center (AUSTRAC) in Australia.

In terms of security, eToro and Coinbase take different approaches, but both are aimed at protecting user funds.

eToro uses a combination of physical and electronic security measures to protect user funds, as well as insurance protection. First and most important, all client funds are held in FDIC-insured banks. In the event of a hack, the FDIC will reimburse clients up to $250,000. In addition, eToro keeps all client funds in segregated accounts, meaning that they are kept separate from the company's own funds. This ensures that even if eToro were to become insolvent, clients would still be able to access their funds.

To ensure the safety of its clients' funds, eToro employs a strict verification process for all new users. They also require two-factor authentication for all accounts, and all communications between the servers and user devices are encrypted using SSL. 

To further protect clients' funds, eToro uses both hot and cold wallet storage. Hot wallets are used for active trading, while cold wallets are used for long-term storage. Finally, eToro has a dedicated team of security experts who monitor the platform 24/7 to detect and prevent potential threats. Thanks to these measures, eToro has become one of the most secure trading platforms available today.

Coinbase also has insurance protection for user funds, as well as a number of other security measures in place. They store 98% of their cryptocurrency offline in cold storage, which makes it much more difficult for hackers to access the coins. They have an extensive insurance policy to protect assets held online that covers both customer funds and company losses, up to $255 million. Multi-factor authentication is required for all account activity, and there are extra account security tools like Coinbase Vault and Address Book.

Winner - eToro

eToro's security measures have stood the test of time, with no major hacks or security breaches reported in their 15-year history. Coinbase, on the other hand, reported a breach in 2021 that saw at least 6,000 user accounts hacked and funds stolen. While this is a small fraction of the total number of Coinbase users (estimated at 103 million), it's still a major security concern.

eToro vs Coinbase Cryptocurrencies

eToro supports 110 cryptocurrencies on its platform.

Coinbase has more than 160+ coins available to buy, sell, or trade. 

Winner -Coinbase

Coinbase wins as it offers 160+ coins, which is a wider selection of coins than eToro, with 110 different cryptocurrencies available for trade. 

The Verdict: eToro vs Coinbase

eToro is the winner in our comparison here, for several reasons. First, it is a long-established investing company that supports crypto as well as forex, stocks, ETFs, and commodities. The trading fees are lower than Coinbase, and it has many additional features such as copy trading, and a demo trading account.

Overall Winner -eToro

eToro offers a much more diverse range of assets to trade than Coinbase. You can trade stocks, commodities, Forex, indices, and of course, cryptocurrencies. With lower fees and more features, eToro is our recommendation.

Still Researching? 

If you want to learn more about eToro or Coinbase before you register, you can read our eToro review or Coinbase review. If you want to look at alternatives to these exchanges, see our article on the top crypto exchanges in the US. We have also included a quick comparison table below with some of the key information.

Comparison Table of the Best Crypto Exchanges in the USA

MEXC
eToro
Uphold
Coinmama
Crypto.com
Crypto Exchange
Crypto Exchange
MEXC
eToro
Uphold
Coinmama
Crypto.com
Fiat Currencies
Fiat Currencies
USD, TWD, AED, PHP, AUD, JPY, CAD, EUR & more
USD
USD, GBP, EUR, CHF, AUD, JPY & 21 more
USD, EUR, AUD, CAD, GBP, JPY
USD, AUD, CAD, CHF, EUR, GBP, NZD, SGD, JPY & 10+ more
Cryptocurrencies
Cryptocurrencies
MEXC, BTC, ETH, EOS, BCH, LTC & 2,300+ more
BTC, ETH, BCH, DASH, LTC, ETC & 110 more
BTC, ETH, ADA, DOGE, COMP, DOT & 125+ more
BTC, ETH, ETC, UNI, LINK, LTC, BCH, DOGE, MATIC, EOS, AAVE, COMP, OMG, YFI, WBTC
BTC, ETH, LTC, XRP, CRO, ADA, DOT, SOL, DOGE & 250+ more
Deposit Methods
Deposit Methods
Visa/Mastercard, Bank Cards, Bank Transfer, Apple Pay, Google Pay, Cryptocurrency
PayPal, Debit card, Wire transfer
Bank Transfer (ACH), Bank Transfer (SEPA), Debit/Credit Card, Wire Transfer, Faster Payments Service, SWIFT, Cryptocurrency
Credit card, Debit card, Fedwire, Apple Pay, Google Pay
Bank Transfer (ACH), BPAY, SEPA, Credit/Debit card, PayPal, TransferWise, Fedwire, SWIFT, Cryptocurrency
Trading Fees
Trading Fees
0% for spot, 0.0%/0.01% for futures
1%
Fees included in the spread
2.93% - 3.90% (depending on loyalty level)
Included in spread

Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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