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Coinbase vs. eToro | Which Broker to Choose? [2024]

Coinbase vs. eToro | Which to Choose? [2023]
Diana Paluteder

Summary: In the rapidly evolving world of cryptocurrency trading, two platforms have emerged as dominant players: eToro and Coinbase. Both are renowned for offering a diverse range of cryptocurrencies and unique features to millions of users across the globe. But how do they stack up against each other? This guide will provide an in-depth comparison of the two, exploring their fees, user interfaces, supported assets, security measures, and more to help you decide which platform best fits your trading needs.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Overview: eToro vs. Coinbase

eToro

Founded in 2007, eToro has opened up the world of investing to a broader audience by providing a wide range of assets, from traditional stocks and commodities to cryptocurrencies, which can be invested in both with and without leverage, giving almost anyone access to long as well as short- term investment opportunities.

The multi-asset investment platform emphasizes transparency and community engagement, allowing users to learn from and interact with each other through its Copy trading feature. It offers both a website interface and a mobile app, making trading and investing accessible to individuals worldwide. At the end of 2023, eToro was home to over 30 million registered users.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Coinbase

Coinbase is a digital currency wallet and platform founded in 2012 that allows users to buy, sell, and store a variety of popular as well as more niche cryptocurrencies. Coinbase offers a user-friendly interface suitable for both beginners and experienced traders, providing secure and convenient access to the growing world of digital assets. 

As of Q4 2022, the platform hosted 108 million verified users. Coinbase went public in April 2021 at the height of a crypto market bull run, and its stock is available under COIN on the NASDAQ exchange. For an in-depth review of the exchange, check out our Coinbase review


eToro vs. Coinbase: Product offering

eToro

With over 80 supported cryptocurrencies, eToro’s selection is broad but more focused. Its offerings include major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and XRP (XRP), but it doesn’t go as deep into altcoins.

However, as mentioned above, eToro also offers other assets, such as stocks, exchange-traded funds (ETFs), and commodities, expanding its portfolio beyond just cryptocurrencies add. This diverse range of assets is a game-changer for investors, allowing them to construct a more balanced and varied portfolio within a single platform. It accommodates those looking for crypto exposure while also enabling investments in traditional markets, providing flexibility and opportunities to hedge against cryptocurrency market volatility.

Coinbase

Coinbase’s range is far more extensive, with over 262 cryptocurrencies available. While this might appeal to crypto enthusiasts seeking diverse digital asset options, Coinbase’s sole focus on crypto may render its offerings too specialized for the majority of investors looking for a broader range of investment opportunities.

eToro vs. Coinbase: Fees

eToroCoinbase
Crypto trading fee1% plus spreadBasic: Up to $2.99 plus spread; Advanced: 0%-0.6%
Minimum trade$10; $200 to use eToro CopyTrader$2
Deposit feesNone, regardless of deposit methodDifferent fees depending on the payment method
Crypto withdrawal to walletA 2% fee applies to transfers to the eToro Money wallet, with a minimum of $1 and a maximum of $100. Additional blockchain fees may be incurred for moving money from the eToro Money walletBlockchain fees apply for wallet transactions and crypto withdrawals
Fiat withdrawal$5; an additional conversion fee for non-USD transactions1% fee to convert and withdraw your crypto coins to cash, plus standard network fees;
Inactivity fee$10 per month after one year of inactivityNone

Due to these differing fee structures, it’s difficult to definitively state which platform is cheaper, as the total fees paid will vary based on factors like trading volume, account type, and funding method. Before proceeding with your chosen broker, be sure to review the latest fee information on the official website. 

eToro vs. Coinbase: Regulation

Both eToro and Coinbase prioritize security and strictly follow national and local regulations. Both exchanges provide US-based customers with Federal Deposit Insurance Corporation (FDIC) coverage on cash balances up to $250,000. Note that this insurance does not extend to crypto assets.

eToro vs. Coinbase: Security

Both eToro and Coinbase have implemented strong security measures to keep their investors safe, including:

  • Two-factor authentication: Both trading platforms offer two-factor authentication (2FA) via SMS, while Coinbase adds an additional layer of 2FA security via the Google Authenticator app;
  • Cold storage: While Coinbase says 98% of its coins are stored in air-gapped cold storage, eToro holds some digital assets in cold wallets and some in hot wallets
  • Biometric access: eToro and Coinbase wallets also provide multi-signature security, both offering face and touch ID recognition. 

eToro vs. Coinbase: Controversies

In 2020, eToro fell victim to a breach where hackers accessed and leaked the personal information of 62,00 accounts, including emails, passwords, and home addresses. This data was subsequently offered for sale on a hacking forum.

In 2021, Coinbase experienced a significant security failure when hackers exploited a flaw in the exchange’s two-factor SMS system, stealing cryptocurrency from over 6,000 accounts. Coinbase took responsibility and reimbursed the affected users for their losses.

More recently, in May 2023, Coinbase found itself in legal trouble when a lawsuit was filed in a District Court in California. The suit accused the company of unauthorized collection and improper utilization of customers’ biometric data, such as fingerprints and facial scans, in violation of Illinois’ Biometric Information Privacy Act. The allegations include claims that Coinbase’s Know Your Customer (KYC) practices led to unlawful obtaining, using, storing, and distributing biometric information.

eToro vs. Coinbase: Wallets

Both Coinbase and eToro offer standalone wallets, but they function differently. Here’s how they compare:

  • Accessibility: The Coinbase wallet is open to anyone, including those who are not customers of Coinbase. In contrast, eToro’s wallet is exclusive to eToro customers.
  • Transfer limitations: Coinbase permits users to transfer money between the wallet and the exchange, subject to certain restrictions. With eToro, the transfer is one-way; once coins are moved to the wallet, they cannot be returned to the exchange;
  • Supported cryptocurrencies: eToro’s wallet supports only a limited selection of cryptos, while the Coinbase Wallet is more versatile. It accommodates any ERC-20 token (those built on the Ethereum network) as well as several other major cryptocurrencies, including Bitcoin, Bitcoin Cash (BCH), Litecoin (LTC), and Ripple (XRP).

eToro vs. Coinbase: Unique features

eToro and Coinbase allow the buying and selling of crypto assets, but each platform goes about it in its own way. Here are a few of the unique features offered by each platform:

eToro 

  • Copy trading: This feature enables users to view real-time trades made by successful traders on the platform, follow, and automatically replicate them. A minimum investment of $200 per trader is required for copying;
  • Curated portfolios: eToro’s Smart Portfolios are investment portfolios designed and managed by eToro’s investment team. They combine various assets and strategies to create diversified investment opportunities for users. An investment of at least $500 is required;
  • Derivatives trading: eToro offers contracts for differences (CFDs) trading, allowing users to speculate (go long or short) on a cryptocurrency without owning the underlying asset itself. Margin trading is also available when buying and selling CFDs to give you more leverage in your trades. Note that margin trading is not accessible to US residents, and neither are CFDs which are universally banned in the US; 
  • Staking rewards: Eligible eToro users are credited with their earned staking rewards automatically every month, with no necessary action on their part. Users receive a personalized monthly email detailing the amount of staking rewards received for that month, as well as a breakdown of the calculation for each of the supported staked crypto assets. eToro currently supports staking for Cardano (ADA), Tron (TRX), and Ethereum with the following rewards: 
eToro staking rewards. Source: eToro.com/crypto/staking

Coinbase

  • Wallet: eToro allows users to withdraw crypto through its proprietary wallet, but it cannot be utilized on blockchain applications and exchanges. In contrast, Coinbase’s wallet, which is compatible with ERC-20 tokens, can be used on any application built on Ethereum or any decentralized exchange;
  • Directly exchanging crypto: You can exchange one cryptocurrency for another on Coinbase, enabling you to save on fees when selling one crypto to purchase another;
  • Staking rewards: Earn up to 10% APY on crypto holdings paid out in crypto;
  • Derivatives trading: Users can trade derivatives using leverage on Coinbase’s futures trading platform, allowing them to potentially magnify their gains (as well as losses) by borrowing funds to increase the size of their trading positions;
  • Borrow: Coinbase offers loans of up to $1,000,0001 using your Bitcoin as collateral with 8.7% APR (no credit check necessary). 

eToro vs. Coinbase: Availability by Country

eToro operates in 76 countries worldwide. In the US, it’s accessible to residents of 46 states, excluding Hawaii, Nevada, New York, and Minnesota (as well as these territories: American Samoa, Guam, Puerto Rico, and the US Virgin Islands). For a list of blocked countries and territories, please click here

Coinbase is available to customers in the following regions:

  • US;
  • Canada;
  • United Kingdom;
  • Europe;
  • Australia.

Pros and cons of Etoro

Pros

Pros

  • Social and copy trading: Enables users to follow and replicate the trades of successful investors;
  • User-friendly interface: Designed to be accessible for beginners and experienced traders alike;
  • Diverse investment options: Offers trading in cryptocurrencies, stocks, commodities, indices, and more;
  • Regulated platform: Operates under the oversight of various regulatory bodies, enhancing trust;
  • Educational resources: Provides materials to help users learn about trading and investing;
  • Global availability: Available in 76 countries, making it accessible to a broad audience;
  • Smart portfolios: Managed portfolios for diversified investment opportunities; 
  • Staking: Earn rewards for holding crypto;
  • Massive user base: Loved by over 30 million customers; 
  • Impressive partnerships: Twitter partnered with eToro to bring stock and crypto trading to over 350 million of its users, bolstering eToros credibility and reach. 
Cons

Cons

  • Fees: eToro’s fee structure might be higher for certain transactions than other platforms. The spread fees on crypto can be relatively high;
  • Limited wallet functionality: eToro’s proprietary wallet doesn’t allow interaction with blockchain applications and exchanges;
  • One-way wallet transfers: Once crypto is moved to the eToro wallet, it cannot be transferred back to the platform.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Pros and cons of Coinbase 

Pros

Pros

  • User-friendly interface: Coinbase is known for its intuitive design, making it accessible for both beginners and experienced traders;
  • Wide range of cryptocurrencies: Coinbase offers a substantial variety of cryptocurrencies for trading;
  • Strong security measures: Implements robust security protocols, including two-factor authentication;
  • Educational content: Provides educational videos and resources to help users understand various cryptocurrencies:
  • Regulated and insured: Complies with legal regulations and offers FDIC insurance for US residents;
  • Crypto swap: Allows direct exchanges between cryptocurrencies, potentially saving on fees;
  • Global accessibility: Available in over 100 countries, including all US states except Hawaii.
Cons

Cons

  • Fees: Some users may find Coinbase’s fee structure to be higher compared to other platforms, especially for small trades or credit/debit card purchases;
  • Privacy Concerns: Concerns regarding the collection and usage of biometric data have been raised; 
  • Lack of other assets: Unlike eToro, Coinbase focuses solely on cryptocurrencies and does not offer trading in other asset classes like stocks, commodities, or indices.

Bottom line

While Coinbase is undoubtedly a strong player in the digital asset exchange realm, offering a wide range of cryptocurrencies and a user-friendly interface, eToro sets itself apart with its multi-dimensional approach. Not only does eToro provide access to a vast array of crypto assets, but it also integrates traditional financial trading and an innovative social trading feature, allowing users to follow and copy successful traders. This holistic approach to investment marks eToro as a potentially more versatile option for those looking to diversify their portfolio. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

FAQs 

Is eToro good for crypto?

For those seeking a diverse investment portfolio that includes crypto, among other assets, eToro might be a fitting choice as it provides a comprehensive range of both crypto and traditional assets. Additionally, eToro’s standard trading platform balances accessibility for newcomers and sophisticated functionalities for seasoned traders, all while providing ample investment research resources.

Why should I use Coinbase?

Coinbase excels in various aspects, offering a vast array of cryptocurrencies, a user-friendly exchange, an advanced trading platform, and an NFT marketplace. Whether you’re just starting in crypto or are an experienced investor, Coinbase likely has the features to meet your needs. However, if you want to diversify your investments beyond crypto, you would require a separate account. This is where eToro has an advantage, as it allows you to combine various investments, including traditional assets, into a single portfolio.

Is eToro cheaper than Coinbase?

eToro and Coinbase have different fee structures, and the costs hinge on your trading preferences, trading volume, account type, and funding method.

What is the difference between eToro and Coinbase?

eToro and Coinbase are digital trading platforms that allow users to purchase and trade various digital assets. While Coinbase primarily focuses on cryptocurrencies, eToro expands its offerings to include assets such as stocks, commodities, and currencies. Additionally, eToro is renowned for its distinctive social trading capability, which lets users mirror the trades of proficient traders on the platform.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

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