Cryptocurrency trading is more popular than ever. Many investors are heavily invested in crypto and they love to chat about the latest news about Bitcoin or Ethereum.
One common comparison involves looking at eToro vs Coinbase as the best crypto exchange. Both platforms are popular with investors, but there are some important differences. For example, Coinbase is only for crypto trading while investors may also trade stocks and ETFs on eToro.
In this Coinbase vs eToro review, we’ll compare each exchange’s features, rates, security, and usability to help you decide which option is best suited to your experience level and personal preferences.
Overview of eToro and Coinbase
Before we get into the details about eToro and Coinbase, here’s our overview of each platform and what they have to offer.
What Is eToro?
eToro is a financial services company based in Tel-Aviv. It was founded in 2007, and what sets it apart from other trading platforms is that it has a social aspect. By that we mean that users can follow the investing strategies of other users, and even copy them if they wish.
eToro users can buy and trade stocks, ETFs and cryptocurrencies. The company was one of the early adopters of cryptocurrency brokering.
As of November of 2024, eToro is now available in all 50 states in the US, plus more than 150 countries around the world. The platform has more than 35.5 million users and over three million funded accounts.
In addition to trading, eToro offers a crypto wallet to help traders keep their digital assets safe. There have been some recent changes to crypto trading on eToro, and we’ll talk more about those later.
What Is Coinbase?
Like eToro, Coinbase is a financial services company. It was founded in 2012 and it trades publicly on the Nasdaq exchange. The company started in San Francisco but is now decentralized.
Coinbase is strictly for trading digital assets, including cryptocurrencies and NFTs. Their primary focus is to make cryptocurrency trading simple.
With that in mind, they’ve streamlined the trading process. They also provide some charting and cryptocurrency news.
By volume, Coinbase is one of the largest crypto brokers in the US. It is now available in all 50 states after necessary regulatory changes in Hawaii went into effect in 2024. The company offers state-of-the-art security and a digital wallet for users.
Pro Tip:
When you sign up for Coinbase, you can get $50 of FREE BITCOIN after making your first transaction!
Key Differences Between eToro and Coinbase
Here are the key differences between eToro and Coinbase
| eToro | Coinbase | |
| # of cryptocurrencies | 3* | 360+; 400 trading pairs |
| Tradable assets | Stocks, ETFs, options, select cryptocurrencies | Cryptocurrencies and crypto trading pairs; NFTs |
| Community | Yes; copy trading allows investors to follow others’ strategies and communicate about them. | No |
| Paper investing | Yes | No |
| Crypto wallet | Yes | Yes |
In September of 2024, eToro reached an arrangement with the SEC to reduce the number of cryptocurrencies they offer to three: Bitcoin, Bitcoin Cash, and Ethereum. The agreement came after eToro acknowledged it had violated applicable security laws.
eToro vs Coinbase Fees: Breaking Down the Costs
In this world, to make money, you have to spend money. Fees can easily add up and can be hard to keep track of. Here’s our overview of eToro vs Coinbase fees.
Trading fees are handled differently by eToro and Coinbase. eToro charges a spread fee starting at 1% of the trade amount and it’s calculated at both the open and close of the market. It may be higher than 1% and is based on the volatility of the crypto asset being traded.
Coinbase fees vary based on a variety of factors, but they’re reduced as the amount of your trade increases. The platform operates on a maker/taker basis and also charges a spread. Total fees are between 0.05% and 0.60% for most trades.
Both platforms are obligated to pay regulatory fees, which are mostly quite low (under a penny per trade) and are disclosed at the time of the trade.
Deposit and withdrawal fees are also something that you’ll need to think about. eToro has a minimum wire amount of $500. Outgoing wire transfers cost $25. The price for wires is the same on Coinbase. Transferring money out of eToro to another wallet will cost you 0.50% of the transfer amount.
eToro charges users a $2/month inactivity fee, while Coinbase doesn’t. You should also be aware that eToro requires a minimum account balance of $50, while you can start trading with as little as $2 on Coinbase.
Security and Trust: Which Platform Is Safer?
Security is crucial for any online trading platform. Here’s what you need to know about how eToro and Coinbase protect users.
How eToro Ensures Security
eToro is regulated by the United Kingdom’s Financial Conduct Authority (FCA). It is also a member of the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Securities Investor Protection Corporation (SIPC). This means that eToro is regulated by the government, like many other trusted financial services.
All user funds are kept in tier 1 banks and cash deposits are insured by the FDIC for up to $250,000. Other security measures include:
- Password protection
- Two-factor authentication (2FA)
- SSL encryption
eToro complies with the Cyprus Securities and Exchange Commission (CySEC) and the Australian Securities and Investment Commission (ASIC).
How Coinbase Protects Users
Coinbase is regulated in the United States as well by the United Kingdom’s FCA. All client funds are kept in United States banks and cash deposits are FDIC insured for up to $250,000.
Cryptocurrencies that are stored online on Coinbase’s brokerage are insured. Coinbase stores over 98% of deposits offline in cold storage facilities that are monitored 24/7. Other security measures include:
- Password protection
- 2FA
- SSL end-to-end encryption
- Multi-approval withdrawals
- Crime insurance
Coinbase has gone the extra mile by taking out crime insurance that protects users’ assets in the event that Coinbase’s security is breached.
You can protect yourself by choosing a strong password that you don’t share with anyone else, keeping your cryptocurrency and other digital assets in a cold wallet, and learning how to avoid cryptocurrency scams.
To learn more about Coinbase’s security measures, read: HOW SAFE IS COINBASE?
Pro Tip:
When you sign up for Coinbase, you can get $50 of FREE BITCOIN after making your first transaction!
Usability: Comparing User Experiences on eToro and Coinbase
Ultimately, you want to choose the crypto platform that’s best for your specific needs and experience level.
Ease of Use
Coinbase has a clean layout that is easy for beginners to understand while still offering enough tools to be appealing to intermediate and advanced investors.
eToro has a customizable dashboard that may be very appealing to those who are already knowledgeable about investing and want to be able to choose their layout.
Mobile Experience
Both Coinbase and eToro have mobile apps. eToro has an overall rating of 4.4 out of 5 stars on the Google Play store. Many of the recent reviews have focused on the decrease in the number of cryptocurrencies available. There appear to be a lot of glitches that impair the user experience on the app.
By contrast, Coinbase has 4.6 out of 5 stars. Many users praise the intuitive user interface. Some have pointed out the high cost of day trading (2% of transaction). Coinbase gets a lot of praise for its educational resources.
Customer Support
In terms of customer support, eToro offers limited live chat and a ticketing system. Reading the reviews, there were several complaints about slow response times. Some users also had issues with what they felt were unhelpful responses when they needed to withdraw funds.
Coinbase offers 24/7 phone support and email assistance, as well as live chat support if you’re logged into the platform. While some reviewers have complained about their experiences, Coinbase support is responsive to reviews and comments and appears to make every effort to resolve issues as they arise.
Who Should Use eToro vs Coinbase?
Our take is that eToro is best for beginners, stock/ETF traders, and social traders who want to take advantage of the social aspect of eToro including copy trading. It’s worth noting that eToro offers paper trading, which is useful for those who are just getting started on their investment journey.
Coinbase is ideal for US-based cryptocurrency enthusiasts. It’s a crypto-only platform, which means if you want to balance your portfolio by investing in stocks, ETFs, bonds, and mutual funds, you’ll need to look elsewhere to do that. The large number of cryptocurrencies offered by Coinbase make it appealing for anybody who’s serious about crypto trading.
Final Comparison: eToro vs Coinbase – What’s the Best Choice for You?
Choosing between eToro and Coinbase means taking into account your experience level and trading preferences.
Overall, our pick for crypto trading is Coinbase. They offer more than 360 coins compared to eToro’s 3. They also have state-of-the-art security, a user-friendly interface, and many useful features to help investors compare coins and make informed investment decisions.
There are two areas where we think eToro is better. First, we really like its customizable user interface, which is wonderful for advanced traders. We also like that there are some portfolio diversification options because users can also buy stocks and ETFs.
Pro Tip:
When you sign up for Coinbase, you can get $50 of FREE BITCOIN after making your first transaction!
FAQs
What is the main difference between eToro and Coinbase?
The primary difference between eToro and Coinbase is in the number and type of assets offered. eToro offers stocks, ETFs, and options, and Coinbase doesn’t. However, Coinbase offers 360+ cryptocurrencies while eToro has been penalized by the SEC and offers only 3.
Which platform has lower fees?
It’s difficult to make an apples-to-apples comparison when the fee structures are different, but overall, Coinbase’s fees appear to be a bit lower than eToro’s.
Is Coinbase safer than eToro?
Yes, it is. Not only has the company purchased crime insurance to protect users if their security is breached, they also have multi-level withdrawals that protect users, in addition to the usual security measures like encryption and 2FA.
If you’re looking for a full breakdown of Coinbase and its features, read our COINBASE REVIEW!
eToro Disclosure
Stocktrak is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success.
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