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.
What Are eToro And Coinbase?
eToro is a cryptocurrency exchange and multi-asset broker founded in 2007 with the intent to become the "go-to" platform for all financial assets. The eToro platform lets you buy cryptocurrency, stocks, CFDs (contracts for difference) for commodities, Forex, and ETFs. eToro USA LLC does not offer CFDs, only real Crypto and Stocks assets available.
Firstly, eToro is a "true" cryptocurrency exchange because you can buy and sell crypto tokens outright. In most crypto exchanges, you can only trade cryptocurrency through derivatives. Secondly, eToro is also the leading social trading platform and offers users the opportunity for copy trading, mirroring an eToro verified investor or trader.
eToro is a highly regulated platform with top tier licences, including the United States, United Kingdom and Australia:
- The Financial Conduct Authority (FCA)
- The Australian Securities and Investments Commission (ASIC)
- Financial Industry Regulatory Authority (FINRA)
- Cyprus Securities and Exchange Commission (CySEC)
Coinbase is different to eToro because it only provides cryptocurrency assets. It does not offer stocks or other financial assets. The platform began in 2012 and is a United States-based company. It provides services to more than 42 states of America and is the largest cryptocurrency exchange by trading volume in the US. Coinbase is on the NASDAQ stock exchange (Coinbase Global Inc) after holding an IPO In 2021.
For relevant coins, you can earn a yield on Coinbase and lend and borrow crypto for interest.
"Pick a coin to lend, pick a smart contract, and enter the amount you wish to lend. Your crypto is then deployed directly to the smart contract to start earning interest. Once you've loaned out your crypto through the DeFi app(s), you can watch your interest grow right from your Wallet app." - Coinbase website.
Many cryptocurrency exchanges are unauthorised in the United States. As a reputable cryptocurrency exchange, Coinbase established collaboration with US regulators to gain licences for New York and 41 other US states.
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
✅ 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
❌ International users face higher minimum deposit limits.
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
Crypto assets are a highly volatile unregulated investment product.
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 Comparison Table
| Fees & Features | eToro | Coinbase |
|---|---|---|
| Licensing | FCA, ASIC CySEC | FCA, BaFIN & 42 U.S States |
| Number of cryptocurrencies | 60+ | 170+ |
| Number of trading markets | 60 | 500+ |
| Payment methods | Debit/Credit card, bank transfer, PayPal, Skrill, Neteller | Debit card, bank transfer, PayPal, Apple Pay, Google Pay |
| Pricing structure | Fixed fee | Flat fee + transaction fee |
| Minimum deposit | $10 | $2 |
| Fee for buying Bitcoin | 1% of the purchase | $0.99-$2.99 + 1.49%-3.99% |
| Trading tools & features | Copytrading, social network, technical charts | Customisable tools, crypto order book |
| Mobile app rating | 4/5 | 4/5 |
| Demo account | Yes ($100,000) | No |
eToro vs Coinbase 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 60+ coins | Supports 170+ coins |
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
Crypto assets are a highly volatile unregulated investment product.
eToro vs Coinbase Account Types
When starting as a cryptocurrency trader or investor, choosing a beginner-friendly exchange is the best option. eToro has only one type of account, with only a $10 minimum deposit and zero account fees. You can access eToro's trading tools using a single account and instantly purchase or sell cryptocurrency on the platform.
Coinbase has three types of cryptocurrency accounts:
- Coinbase Standard - this account is suitable for beginners. You can instantly buy and sell cryptocurrency with a debit card or supported cryptocurrency. The standard account does not permit access to the advanced trading platform.
- Coinbase Pro - the pro account provides access to the Coinbase trading platform, and you can get fee reductions of 0.60% or less per trade.
- Coinbase Prime - the prime account caters for institutional traders who can access further fee reductions.
eToro vs Coinbase Demo Accounts
It's a good idea to start trading cryptocurrencies with a demo account. Sometimes, even intermediate and experienced traders will practice on their demo account if they want to backtest a new strategy or if trading hasn't been going too well.
A demo account replicates the environment of a live trading account. You can access the same charts, indicators, and tools, and the prices are real-time. It's a simulated trading experience that can help shape your skills as a cryptocurrency trader.
eToro provides a free $100,000 demo account, which you can reset anytime. The demo account gives you access to all of the features associated with a real eToro trading account. You can also use the demo account for copy trading.
Coinbase does not provide a demo trading account. You can download the MetaTrader 4 app from another exchange, but it won't replicate the Coinbase Pro trading environment.
eToro vs Coinbase Payments & Minimum Deposit
eToro and Coinbase each have a broad range of payment methods. eToro accepts Mastercard or Visa debit and credit cards. You can also fund your eToro account with Neteller, Skrill, or a bank transfer. The minimum deposit is $10 unless you fund your account through a bank transfer. The minimum deposit for bank transfers is $500, which can take 3-4 days before arriving in your account.
eToro charges a $5 withdrawal fee, but deposits are free.
Buying cryptocurrencies on the Coinbase platform is straightforward. You can fund your account with a bank transfer or debit card, Google Pay or Apple Pay. The minimum deposit is $2, regardless of payment method and Coinbase processes instant purchase payments immediately.
Coinbase doesn't charge withdrawal fees, but deposit fees are between 1.49% and 3.99% for instant crypto purchases depending on the payment method.
A quick Comparison chart for eToro payments vs Coinbase
| Brokers | eToro | Coinbase |
|---|---|---|
| Payment methods | Debit & credit card, PayPal, Skrill, bank transfer, Neteller | Debit card, bank transfer, PayPal, Google Pay, Apple Pay |
| Minimum deposit | $10 ($500 for bank transfers) | $2 |
| Processing time | Instant (bank transfers: 3-5 days) | Instant |
eToro vs Coinbase Regulation & Security
Trading with a regulated cryptocurrency exchange is advisable for all traders. eToro and Coinbase have licences with several governing financial authorities, which means that your funds are secure on the platform.
Is eToro Safe?
eToro has high levels of regulation, holding licences with the United Kingdom's FCA (Financial Conduct Authority), Australia's ASIC (Australian Securities and Investments Commission), and the CySEC (Cyprus Securities and Exchange Commission) and the SEC (US Securities and Exchanges Commission).
eToro holds client funds in tier 1 banks. The FDIC (Federal Deposit Insurance Corporation) insures cash deposits up to $250,000. Online data is encrypted, and 2FA (2-factor authentication) adds another level of security to your eToro account.
Is Coinbase Safe?
Coinbase cash deposits are insured with the FDIC for up to $250,000, and client funds are held in United States banks. Coinbase has licences for 42 US states and an e-money licence from the FCA (Financial Conduct Authority UK).
Coinbase uses 2FA (2-factor authentication) for extra security. For instance, 2FA is required for withdrawals to ensure nobody has accessed your account fraudulently. Coinbase states that clients' cryptocurrencies held on the exchange are protected by insurance.
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
Crypto assets are a highly volatile unregulated investment product.
eToro vs Coinbase Fees
eToro is the preferred cryptocurrency exchange if you wish to access low transaction fees of 1%. These are the lowest fees offered by any cryptocurrency exchange in the United States, and you aren't penalised with extra costs for different payment methods. Still, you will pay a commission on the market spreads if you trade cryptocurrencies with eToro.
eToro charges a $5 fee for withdrawals, but there are no fees for withdrawing from Coinbase, and bank transfers are instant.
Coinbase's fee structure is more complex than eToro's:
- Standard account holders buying and selling cryptocurrencies pay a flat fee ranging from $0.99 to $2.99 (depending on transaction value)
- Depending on the payment method you use for funding your crypto purchase, Coinbase charges a transaction fee between 1.49% to 3.99%
Coinbase Pro is a division of Coinbase Exchange. It's a platform more suited to advanced traders. If you have an account with Coinbase, log in to Coinbase Pro using the same login details.
The fee structure for traders on Coinbase Pro is 0.00% to 0.60%, calculated on whether your trade adds or removes liquidity from the platform (called maker/taker fees) and is also representative of your previous month's total transactions.
It is quick and easy to transfer funds from Coinbase Exchange to Coinbase Pro by clicking on "Portfolio" and then "Deposit." You must be logged into both exchanges to do so.
A quick Comparison chart for eToro fees vs Coinbase
| Fees | eToro | Coinbase |
|---|---|---|
| Instant buy fee | 1% | $0.99-$2.99 + 1.49%- 3.99% |
| Trading fee | 1% | 0% - 0.60% |
| Withdrawal fees | $5 | 0 |
| Account fees | None | None |
eToro vs Coinbase User Experience
eToro and Coinbase both have the reputation of providing an excellent user experience and beginner-friendliness.
When you register with eToro, you have a personalised dashboard where you can monitor the cryptocurrency market with colour coded charts showing 7-day price movement. You can view the most significant market gains and losses and see the popularity of tokens with eToro users.
The eToro platform aggregates eight technical indicators that highlight potential crypto trades. It can help you decide what cryptocurrencies to hold, buy or sell.
Coinbase has a user-friendly, colour-coded interface, with price charts showing the most volatile cryptocurrencies and those with notable gains or losses. Though the technology on the Coinbase platform doesn't provide ratings for buying or selling, you can browse the performance of any crypto token from the last hour or day, a week or a month and up to a year.
The ease and simplicity of investing in cryptocurrency are similar for both platforms. It's a straightforward process of clicking on the "Trade" tab and choosing the cryptocurrency you wish to buy. Decide on the number of tokens you want to purchase and complete the trade.
eToro vs Coinbase Mobile Apps
Mobile apps are helpful for on the go trading and investing, and eToro and Coinbase both provide a free, downloadable crypto app for iOS and Android. You can monitor the crypto market, deposit funds, and buy and sell cryptocurrencies from the app.
The design of the apps aims to provide the same user experience as on the web platform.
eToro mobile trading app
On the eToro app, you can access everything as you would on the online eToro platform, like crypto charts and individual crypto tokens you might want to buy or sell.
eToro also has a mobile app specifically for the stock market where you can access the leading stock exchanges from your mobile device.
Coinbase mobile trading app
You might decide between the Coinbase exchange or the Coinbase Pro mobile app. The latter is for charting cryptocurrency, and the former is for executing instant cryptocurrency purchases. Switching between the two apps can be frustrating, but Coinbase Exchange and Coinbase Pro operate as two separate entities, so it's not unsurprising that two apps exist.
Trading Tools & Features on eToro & Coinbase
There are significant differences between what eToro and Coinbase offer for cryptocurrency trading.
Technical Charting
eToro's technical charting platform is primarily aimed at beginners, making it simple to use. Coinbase's trading platform is more geared to experienced traders as it is more complex than eToro's.
eToro's charting tools
- Japanese candlesticks
- Line or bar charts
- Heiken-Ashi candlesticks
- Moving averages
- Bollinger bands
- RSI (relative strength indicator)
- MACD (moving average convergence divergence)
- And much more
You can also customise the timeframe for each indicator and compare two cryptocurrencies from one chart.
In summary, the overall experience of trading on eToro is positive. However, there are limitations to the proprietary eToro trading platform. You cannot trade directly from the trading interface, nor can you set alerts, both of which are helpful for instant trading at market prices.
Coinbase charting tools
To use Coinbase's technical charts, you must log in to Coinbase Pro, which is a unique, dedicated charting platform used by all levels of cryptocurrency traders. Coinbase Pro has over one hundred customisable, built-in technical studies.
A bonus of the Coinbase Pro charting platform is that you don't have to switch from one interface to another to access your orders. You can see your open orders in the same window as the charts, similar to what you would expect from the MetaTrader 4 platform, making the Coinbase Pro user experience more intuitive and enjoyable.
In summary, Coinbase Pro has more helpful features than eToro. You can access in-depth-of-market crypto charts to see if there's a shift in momentum between buyers and sellers. The platform provides real-time trade history, and you can view the total order book.
For more experienced traders, the Coinbase Pro is ideal, but it could be a bit overwhelming for beginners. Though eToro has fewer features, as a beginner to cryptocurrency trading, fewer complex features could be more helpful.
A quick Comparison chart for eToro technical features vs Coinbase
| Features | eToro | Coinbase |
|---|---|---|
| Japanese candlestick charts | Yes | Yes |
| Trading directly from charts | Yes | Yes |
| Depth-of-market | No | Yes |
| Customisable indicators | 75+ | 100+ |
| Price alerts on charts | No | Yes |
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
Crypto assets are a highly volatile unregulated investment product.
eToro vs Coinbase Crypto Analysis
When planning to invest in or trade cryptocurrencies, good research is an essential factor contributing to the potential outcome of your decisions.
eToro has a proprietary search option for every cryptocurrency listed on the platform. You can discover your chosen cryptocurrency's history, market cap, past and current trading activity, and more. eToro data also helps you decide when to buy, sell or hold a coin because it has analysed multiple standard technical indicators, such as MACD or RSI, for instance.
eToro vs Coinbase Social And Copy Trading
eToro has established itself as the leading social trading platform globally. Trading can be a lonely activity, but eToro's built-in social network connects all levels of traders who can discuss ideas and trades. You can share your thoughts and comment on other traders' posts, gather information or assess market sentiment for any cryptocurrencies you may be watching. Indeed, eToro has a helpful process that collates all trading and investment activities on the platform. The sentiment indicator identifies the percentages of buyers and sellers on the eToro platform for each cryptocurrency token.
eToro offers a copy trading service where you can select an eToro verified trader or investor and automatically mirror their activities. eToro copy traders must submit to stringent tests from eToro before becoming a verified trader or investor on the platform. eToro has thousands of investors and traders that you can copy. By simply clicking on their profile, you can view past results, assess their level of risk and decide which trader is best for you.
You can choose to mirror cryptocurrency traders, or because eToro is a multi-asset platform, you can select an investor or trader in stocks or Forex, for instance. For crypto beginners, copy trading can be helpful. By choosing to follow an experienced investor, you could get access to learning about emerging tokens with potential.
The minimum investment required for copy trading is $200, but you can choose the exact amount to allocate to the copier portfolio. If you aren't happy with your results, you can move on to another trader or investor as it's a non-contractual agreement.
eToro vs Coinbase Customer Service
Good customer service is essential when you have an account with a cryptocurrency exchange. eToro and Coinbase both have a reputation for excellent customer support.
eToro has a ticketing service for customer support, and you'll receive an email response. You'll find an in-depth knowledge base on the eToro website that covers the basics of opening an account, platform fees and trading features, and much more. eToro also has an academy with video tutorials, especially helpful for beginners in crypto trading and investing.
Coinbase offers customers 24/7 support via live chat, email or phone. Coinbase has an in-depth support centre for troubleshooting your account.
eToro vs Coinbase – Which Is The Best Option For Beginners?
eToro and Coinbase are two of the most popular cryptocurrency exchanges for beginners, especially in the United States. Deciding which platform is the best is primarily a question of personal preference.
Coinbase has a broader selection of altcoins than eToro, but eToro offers copy trading, a favourite service for beginners new to the platform. Both platforms list the top listed coins like Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE) and Cardano (ADA), but if you want to trade or invest in less common coins, Coinbase may be the best option.
eToro has lower fees than Coinbase, and the pricing structure is easier to understand. For instance, eToro transaction fees are only 1%, and Coinbase fees can be up to 3.99%, a significant difference if you try to minimise transaction costs.
eToro's trading tools are more beginner-friendly than Coinbase's, which can be more complex if you have limited trading experience working with technical charting tools. The complete range of eToro's features are on the mobile app, and the research, buy, hold and sell rating service help identify the right coins.
Finally, the built-in social network offered by eToro is an excellent platform for all levels of traders and investors. In addition, eToro provides a copy trading service, which Coinbase does not. Learning from crypto professionals can significantly help you to acquire new skills. Plus, if you want to branch out into Forex or stocks, eToro's multi-asset platform is a one-stop shop, and you can follow verified copy traders to build a diversified portfolio. eToro USA LLC does not offer CFDs, only real Crypto and Stocks assets available.
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
Crypto assets are a highly volatile unregulated investment product.
eToro vs Coinbase – The Conclusion
Overall, both cryptocurrency exchanges provide an excellent user experience. Both have high levels of regulation and customer service. Although Coinbase has a user-friendly interface and lists more coins and trading markets, it is more suitable for traders with experience in crypto trading.
eToro appeals to beginners because of the beginner-friendly trading environment and lower fees. The only anomaly is if you fund your eToro account by bank transfer, the minimum deposit is $500 instead of $10 for all other payment methods. Coinbase's minimum deposit is only $2, whatever payment method you use to fund your Coinbase account.
The most significant difference between eToro and Coinbase is the Copy trading service and the eToro social network. Also, Coinbase does not provide a demo account.
In summary, you can't go far wrong with opening an account with eToro or Coinbase, depending on your essential factors for choosing a reputable cryptocurrency exchange.
Trading or investing in financial instruments such as cryptos may not be suitable for all investors. It does involve risk and the possibility of a loss of capital. There are no guarantees for profiting from cryptocurrencies, and it's advisable only to risk what you can comfortably afford to lose.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Trading Education.
eToro – Best Trading Platform For Traders and Investors
eToro have proven themselves trustworthy within the industry over many years – we recommend you try them out.
This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.
67% of retail investor accounts lose money when trading CFDs with this provider.
FAQs
Is eToro better than Coinbase?
Both platforms have excellent reputations in the crypto space. eToro provides a social network and a copy trading service, so if that's important to you, Coinbase does not offer these services. Coinbase transaction fees are higher than eToro's, and the platform is more suited to intermediate or experienced cryptocurrency traders.
Which is cheaper, Coinbase or eToro?
eToro charges 1% per transaction, and Coinbase fees are between 1.49% - 3.99% but eToro charges a commission fee on the spread for each trade.
Is there a better platform than Coinbase?
It depends on how you define "better." Coinbase is among the top leading cryptocurrency exchanges online. Each cryptocurrency platform is unique. Some provide a demo account and have a more extensive range of coins and markets than Coinbase but may not be suitable for beginners.
Additionally, many cryptocurrency exchanges are not authorised to offer services to the United States. Coinbase has licences for 42 US states.
Is eToro good for cryptocurrency?
Yes, eToro is a popular cryptocurrency platform that lists 59+ different cryptocurrencies.
What fees does eToro charge for crypto?
Every cryptocurrency coin has a different market price. If you are buying or selling cryptocurrency, eToro charges only 1% per transaction.
Read More:
Cryptocurrency Investing vs Trading: What's the Difference?
Key Benefits of Investing In Cryptocurrencies
5 Best Places to Buy and Sell Cryptocurrency
15 Most Promising Cryptocurrencies To Invest In
Top 10 Cryptocurrencies To Turn $1000 To $10000 Long-Term
How To Make Money With Cryptocurrency - Top 10 Proven Methods