Coinbase vs eToro, which cryptocurrency exchange is better?
Both eToro and Coinbase are great crypto exchanges for beginners.
However, both have some pros and cons that make them wildly different in some aspects.
If you want to find out whether you should use eToro or Coinbase, then this guide is for you.
eToro vs Coinbase Compared
|Ease of use||Great for beginners||Best for experienced investors|
|Fees||1.49% trading fee||1.5% spread (average)|
|Security||Extremely secure||Extremely secure|
|Regulation||Regulated in the US||Regulated in Cyprus|
|Customer Support||Fast response via email and Twitter/Reddit||Fast response via email. Very complete Help Center available|
eToro vs Coinbase Review
Since being founded in 2006, eToro has grown to become a multinational sensation, and now has operations in over 140 countries.
As a multi-asset brokerage, eToro allows users to trade thousands of financial instruments, including over a dozen cryptocurrencies. Based on the concept of social trading, eToro is designed to be accessible to new and seasoned traders alike.
On the other hand, frequently described as the biggest on-ramp for mainstream investors, Coinbase has garnered an impressive reputation since its launch in 2012.
With over 20 million users and $150 billion traded, Coinbase is also one of the largest exchanges currently in operation, with impressive liquidity available across all available digital assets.
Comparing Coinbase vs eToro we find several drawbacks and benefits to each platform, which we’ll dive into now as part of our Coinbase and eToro review.
Ease of use and user experience
Like most modern cryptocurrency exchanges, both Coinbase and eToro require KYC verification to purchase or sell cryptocurrencies.
This means that you will be required to provide proof of identity and proof of address, along with some other information before your account is verified.
Coinbase has two main platforms, Coinbase for casual traders, and Coinbase Pro for more advanced traders.
On Coinbase, users are able to purchase a wide variety of cryptocurrencies in just minutes using their credit and debit card, while Coinbase Pro provides a simple to use P2P exchange platform rather than brokerage services.
Comparatively, eToro is a single platform allowing users to trade several cryptocurrencies and also hundreds of stocks and other financial products.
Although this makes eToro a powerful tool for traders, the sheer number of trade options and available assets inevitably make it more challenging to use.
Both platforms are easy to use, yet Coinbase offers better user experience and is difficult to beat in this respect.
In terms of absolute variety, eToro completely blows Coinbase out of the water, considering it allows users to trade stocks, ETFs, commodities, and cryptocurrencies among other financial instruments.
Coinbase, on the other hand, is a purely cryptocurrency and fiat exchange.
However, comparing eToro vs Coinbase simply in terms of cryptocurrency selection, it becomes a closer contest. In total, Coinbase currently supports 22 cryptocurrencies, whereas eToro supports just 15.
Looking at the variety and type of supported digital assets, we find that both Coinbase and eToro feature the most stable and popular cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and EOS.
However, Coinbase also features several popular, but less established cryptocurrencies, including Basic Attention Token (BAT) and Zilliqa (ZIL), giving investors a range of options to choose from.
When it comes to selecting cryptocurrencies for listing on the platform, both platforms use strict criteria to ensure that only relatively stable, proven cryptocurrencies are available to trade. However, since Coinbase offers a larger selection, it wins this one.
Trading options and features
Commonly regarded as one of the most complete exchange platforms around, eToro has a huge number of available trade options.
However, unlike Coinbase, eToro does not offer cryptocurrency withdrawals, and instead requires users to first convert their cryptocurrency to fiat before it can be withdrawn.
Currently, only eToro offers margin trading, letting its users trade cryptocurrencies with up to 2x leverage.
In addition, eToro also features a unique social feature known as CopyTrading, which allows users to automatically copy the trades of other successful traders based on certain conditions.
In comparison, Coinbase is a much simpler platform, restricting users to simple market, limit and stop orders.
Again, eToro one-ups Coinbase even when discussing basic trading features, since it also offers the ability to use a trailing stop loss to better minimize losses.
When comparing eToro vs Coinbase in terms of charting features, the gap is reduced, since both platforms offer powerful charting features and options to help users make informed trade decisions.
When it comes to cryptocurrency exchanges, customer support is usually one of the biggest complaints, with many exchanges offering slow, or inadequate customer support.
At Coinbase, the first line of customer support is its support portal, which features dozens of answers to commonly asked questions, as well as an automated chat bot for basic queries.
Coinbase reviews their customer queries on a regular basis to keep this support portal up-to-date.
Beyond this, Coinbase is one of the few platforms to offer telephone support for both UK and international customers, and also offers e-mail support.
On the flip side, eToro has a thorough help-center which includes basic information about trading, as well as answers to the most common user issues.
Beyond this, eToro only offers a simple ticket system for the majority of its user complaints and responses are often slow.
Beyond the traditional lines of support, Coinbase also offers support for via Reddit and Twitter, while eToro scarcely provides customer support through social media.
Although neither platform will likely win any rewards for customer service, Coinbase offers easily the more comprehensive customer support options.
Though eToro doesn’t charge fees for opening or closing trades, it does charge a spread which varies by instrument, e.g. 0.75% for Bitcoin (BTC), and up to 3.45% for certain trade pairs, such as ZEC/ZHF.
In addition to this, eToro charges a flat $25 withdrawal fee, while deposits are free.
Coinbase, however, charge both trading fees and withdrawal fees.
On Coinbase, purchasing cryptocurrency with a credit or debit card will incur a fee of between 1.49% and 3.99% depending on the country.
Trading cryptocurrency though Coinbase Pro comes with a base fee of 0.25% for market takers and 0.15% for market makers, which is reduced for high volume traders.
On top of this, Coinbase charges a small withdrawal fee for SEPA withdrawals and a $25 fee for wire transfers. Coinbase Pro does not charge a fee for cryptocurrency withdrawals.
Overall, when comparing eToro vs Coinbase in terms of fees, there is no standout winner, with eToro only offering a slightly more attractive model by charging a fixed withdrawal fee.
What makes eToro unique?
Among cryptocurrency exchanges, eToro stands out as one of the very few platforms that offer users the chance to buy cryptocurrencies using PayPal, in combination with several other payment options.
Beyond this, eToro also allows users to trade cryptocurrencies on margin, providing up to 2x leverage for the 15 supported digital currencies. Combining this with the fact that eToro charge zero trading fees it becomes clear that eToro is a rarity among cryptocurrency exchanges.
eToro’s next-generation investment product CopyPortfolios is also a feature not found on any other cryptocurrency exchange.
CopyPortfolios basically allows eToro users to easily invest in Top Trader Portfolios, allowing them to copy the trades of the best performing traders on the site. eToro users investing in a CopyPortfolio will have their capital professionally managed by eToro, taking the guesswork out of trading.
Similarly, users can also invest in a Market Portfolio, which is a bundle of CFDs, stocks, and commodities that eToro review regularly to maximize profits.
What makes Coinbase unique?
As a regulated platform, Coinbase is one of the few exchange platforms that is a licensed money transmitter in the U.S. and is one of just a handful of crypto companies to be awarded a BitLicense — allowing it to do business in the state of New York.
Designed to be as safe as possible, Coinbase only lists assets that meet its strict criteria, ensuring only high-quality cryptocurrencies are available to buy or sell. Not only this, but Coinbase also provides insurance for customer USD and crypto balances, which is practically unheard of in the industry.
One of the best features of Coinbase is its recurring payment feature, which allows users to automatically buy or sell cryptocurrencies on a regular basis. By using this feature, investors are able to scale in or out of a cryptocurrency easily and can take advantage of dollar cost averaging to reduce their risks.
Besides its uniqueness as an easy on-ramp for cryptocurrency investments, Coinbase is also a pioneer in the crypto education space, with its Coinbase Earn platform helping users earn small amounts of cryptocurrency for learning how they work.
Combine this with the fact that it offers its own Cryptocurrency debit card — which allows owners to spend their cryptocurrency anywhere that accepts Visa — it becomes clear that the company is a pioneer in the space.
What exactly is a cryptocurrency exchange for beginners?
Typically, when many users think of a cryptocurrency exchange platform, they think hardcore technical analysis, automated trading bots, and charts. However, this isn’t necessarily the case with some cryptocurrency exchanges that are built to cater to beginners.
These exchanges are built with a simple user interface that allows users to quickly navigate the platform and easily invest in cryptocurrencies using payment methods they are familiar with, such as using a debit or credit card, or wire transfer.
By using a cryptocurrency exchange built for beginners, traders can avoid much of the technical mumbo jumbo associated with cryptocurrency trading, streamlining the process and saving time.
Not only this but since these platforms are designed for beginners, they typically only support the highest quality cryptocurrencies which have been thoroughly vetted, ensuring newer traders are only exposed to the safest cryptocurrencies.
Why use a crypto exchange like eToro or Coinbase?
As beginner friendly cryptocurrency exchanges, both Coinbase and eToro review their features and services regularly, to ensure that traders have access to the tools they need to quickly and easily invest in cryptocurrencies.
Besides this, there are several reasons to consider Coinbase and eToro:
Simple to use
Although there are some significant differences when comparing Coinbase vs eToro, they do have one major feature in common — simplicity.
Being designed to allow new and inexperienced traders to get to grips with cryptocurrency trading and investments, both eToro and Coinbase have an easy to navigate user interface and trading menu.
In addition to this, both Coinbase and eToro have dedicated mobile apps, allowing you to easily trade cryptocurrencies while on the move. This is particularly important for those looking to cash in on minute to minute price fluctuations.
As beginner friendly exchanges, Coinbase and eToro also offer a variety of educational materials and customer support for users, ensuring help is at hand if need be.
Lots of available coins
As with most investment strategies, spreading your capital over a variety of investment options is usually the way to go.
Unlike basic platforms like CashApp which only allow users to buy and sell a single cryptocurrency, both eToro and Coinbase offer a large variety of well-known, highly liquid cryptocurrencies, giving cryptocurrency investors the opportunity to build a balanced portfolio.
This is achieved without sacrificing usability, ensuring that even inexperienced investors are able to easily purchase Bitcoin (BTC) or any other supported cryptocurrency with ease.
Beyond this, eToro and Coinbase review market demand for popular cryptocurrencies on a regular basis and frequently add in-demand assets to their respective trading platforms.
Fully regulated and trustworthy
Regulations ensure that cryptocurrency exchanges are held accountable for their actions, and meet certain criteria with regards to the safety and security of user information and funds.
As regulated exchange platforms, both eToro and Coinbase are held to the highest standards of accountability and transparency and are licensed to offer their services in much of the world. Currently, eToro is regulated by the Cyprus Securities & Exchange Commission (CySEC), while Coinbase is a regulated money transmitter in the US.
Being two of just a small selection of regulated cryptocurrency exchange platforms automatically makes eToro and Coinbase stand head and shoulders above their unregulated competition, providing a safe way to invest in cryptocurrencies.
Should you use Coinbase or eToro?
- Coinbase: An investor that is just getting started in the cryptocurrency space and that wants to buy Bitcoin and other major cryptocurrencies as easily as possible to hold them for the long-term.
- eToro: Cryptocurrency trader that wants to trade cryptocurrencies with leverage and is comfortable with a slightly more complex user interface in exchange for more advanced trading functionalities.
Are there Coinbase and eToro alternatives?
If based on this guide you are still not sure if Coinbase or eToro would be a good fit for you, then you should have a look at the following alternatives:
All of the above 3 exchanges are very simple to use and hence a good fit for beginners in the cryptocurrency space.
CoinDiligent Staff Writer