Coinbase vs eToro: Which is Better?

Last Updated August 19th 2021
8 Min Read

Thanks to eToro and Coinbase, crypto enthusiasts can now enjoy a simplified trading experience. The two platforms work extraordinarily well for new market entrants. While the two platforms have both made themselves reliable and reputable, they do not operate on the same principle.

The UK-based eToro is a social trading platform and serves as a brokerage avenue for different asset categories. The US-based Coinbase, on the other hand, does not feature any social trading provisions to allow individual users to watch each other trade and learn from each other. 

The following is a comparison between eToro and Coinbase to help new and existing users better understand the features of both platforms. The comparison considers two axes - available currencies and the types of transactions they support. The evaluation parameters include general transaction fees, simplicity in terms of use, and the level of security each platform contains. 

eToro vs Coinbase: The Right Way To Go

eToro

eToro USA LLC serves as an online currency trading platform, providing users with trading tools, charts, feeds, and software to help them trade currencies over the foreign exchange market. The investments available on the eToro platform are exposed to risks in the market, and investors can very easily lose their principal investment. 

Advantages of eToro

✅ There are no commissions given for any purchase that is not leveraged

✅ Zero deposit fees for USD

✅ Multiple options for depositing funds in your account

✅ For users outside the United States, you can purchase cryptocurrency through your PayPal account. 

Disadvantages

❌ The fees are very unstable

❌ Not straightforward 

❌ Unreliable customer support

❌ There is a minimum deposit of $50 for U.S.-based users

❌ International users face higher minimum deposit limits.

Coinbase

Coinbase is a US-based company operating a cryptocurrency exchange platform. The platform has made a name for itself as a secure and convenient trading platform with simplified buying, selling, and storing provisions. 

Advantages of Coinbase

✅ The ideal choice for beginners in the crypto environment 

✅ Simple to understand and operate 

✅ Users can withdraw funds directly to their PayPal accounts

✅ Features an amazing choice of cryptocurrencies

Disadvantages

❌ Extremely high fees for individual transactions

❌ Complex structures for transaction fees

❌ There is no provision to reach customer support on the phone

❌ Limit orders only available for premium accounts (Coinbase Pro)

eToro vs Coinbase: 

Features

Both provide a digital wallet 

Both offer advanced options (eToro X and Coinbase Pro) that allow users to access more tools and trade types for a potentially low cost.

eToro

Coinbase

Supports more than 140 countries and 43 U.S States

Accessible to users in 100+ countries and 49 U.S. States

Not supported in Delaware, Minnesota, New Hampshire, New York, Nevada, Hawaii, or Tennessee

Not supported in Hawaii

Top features include:

  • Crypto CopyPortfolios - Depending on the portfolio, users invest $2,000-$5,000 to copy the portfolio automatically.
  • Copy trading - Access to live trades performed by public investors, monitor, and copy traders with at least $500 per trader
  • Demo account - Try out with $100,000 in mock money to copy market transactions

Top features include:

  • Earn crypto by watching short videos
  • A coin wishlist featuring in-app or device notifications
  • Newsfeed of crypto and industry updates

Globally supports: 

  • Credit/debit (USD, GBP, EUR, AUD)
  • PayPal (GBP, EUR, AUD)
  • Neteller (USD, GBP, EUR)
  • Skrill (USD, GBP, EUR)
  • Rapid Transfer (USD, GBP, EUR)
  • iDeal (EUR)
  • Klarna/Sofort Banking (EUR) 
  • Bank transfer (USD, GBP, EUR)
  • Local online banking (MYR, IDR, THB, PHP, VND)
  • Online banking-Trustly for EU region (EUR, GBP, SEK, DKK, NOK, PLN, CZK)

Globally supports:

  • Credit/debit card
  • Automated Clearing House (ACH)
  • Wire transfer 

 

Supported currencies

While Coinbase features nascent altcoins, both exchange platforms provide popular cryptocurrencies.
Both platforms allow the purchase of fractional coin units 

eToro

Coinbase

Features 100+ cryptocurrency trading pairs

Offers roughly 54 crypto trading pairs

Supports USD, EUR, GBP, CAD, AUD, JPY, RMB and RUB

Supports fiat currencies like USD, GBP, EUR

Supports trading of 19 coins (BTC, XRP, ETH, BCH, ETC, LTC, DASH, XLM, NEO, EOS, ADA, MIOTA, ZEC, TRX, XTZ, BNB, LINK, UNI, DOGE)

Supports 51 coins except for NEO, MIOTA and TRX

 

Security 

The security levels of both platforms are reliable

Both exchange platforms provide FDIC insurance on cash balances up to $250,000 for customers within the U.S. 

eToro is compliant with Cyprus Securities and Exchange Commission (CySEC) and Australian Securities and Investment Commission (ASIC) regulations.

Both platforms provide multi-signature security 

Fees

The fee structures of the two platforms are different. 

  • eToro

While traders are not required to pay a commission, this platform requires paying fees for the spread between 0.75% and 5.0%. This is dependent on currency as well as the market of operation and is only chargeable once.

Among the other fees chargeable on this platform include conversion fee (different fiat currencies to USD), inactivity fee ($10) for all accounts showing no activity for periods accruing to one year, and $5 withdrawal fees for international users. 

  • Coinbase

This platform requires that users pay a spread of about 0.50% for crypto purchases and sales. Nonetheless, the exact amount changes depending on market rates. 

Other than the spread, the exchange charges a Coinbase Fee, either a flat fee or a percentage that varies based on the payment method. 

Fees

eToro

Coinbase

Bank account

Free

1.49%

Wallet

Free

1.49%

Debit or credit cards

Free

3.99%

ACH transfer

Free

Free

Wire transfer

Free

$10 deposit and $25 withdrawal

Cryptocurrency conversion

From 0.005 units of cryptocurrency

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 depending on the amount

 

Ease of use

Coinbase and eToro exchange platforms are both easy for new market entrants. However, they have some differences that make them functional and effective.

For instance, for one to use eToro, one must have some little knowledge about crypto investment. Nonetheless, there are certain types of transactions available in this platform and their associated options, which may be new to the beginners

Coinbase, on the other hand, presents users with a simple and easy to understand platform. The exchange features a straightforward interface, and beginners can buy or sell crypto easily. 

Both exchanges have mobile apps. The apps provide a reflection of the experiences web browsers have. 

eToro – Best Trading Platform For Traders and Investors

etoro broker

eToro have proven themselves trustworthy within the industry over many years – we recommend you try them out.

67% of retail investor accounts lose money when trading CFDs with this provider.

Read More:

Cryptocurrency Investing vs Trading: What's the Difference?

Key Benefits of Investing In Cryptocurrencies

5 Best Places to Buy and Sell Cryptocurrency

Cryptocurrencies To Invest In This Year

Can Cryptocurrencies Make Me Rich?

Top 7 Cryptocurrencies To Day Trade

FAQs

What are crypto exchanges used for?

Crypto exchanges help users buy, sell, or monitor the activities of different coins. There are certain exchange platforms like eToro, which provide demos to help users learn. 

What are eToro and Coinbase?

These online trading platforms enable cryptocurrency investors to engage in crypto transactions, including buying and selling. 

What is the main difference between eToro and Coinbase?

eToro and Coinbase are almost the same, given that they both offer crypto trading services. The difference between these exchanges lies in fees and currencies supported. 

Who are the ideal users for eToro and Coinbase?

Coinbase is ideal for new entrants in the crypto market. Beginners are better off using the Coinbase exchange as it provides the education required to understand how the industry works. 

eToro, on the other hand, is a platform best used by people, both experts and new traders. It provides an amazing social trading experience that makes it possible for users to improve their skills. 

Which is cheaper, eToro or Coinbase?

eToro is cheaper compared to Coinbase. Coinbase bears many spread charges, alongside other fees that vary depending on the mode of payment a user employs. On the other hand, eToro has a spread fee paid only once upon execution of a transaction. 

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.