Coinbase vs eToro: which is best?

Hello, investor! Are you trying to decide between Coinbase and eToro for your cryptocurrency needs?

In this article, we will guide you through a detailed, side-by-side comparison to help you make the best choice. We will also break down the pros and cons of each platform, highlighting the key differences.

We’ll also explore key areas such as fees, cryptocurrency offerings, wallet features, staking options, trading platforms, and security measures. By the end, you’ll have a clear understanding of which platform aligns better with your crypto trading strategy. Let’s dive in!

Coinbase vs eToro in a nutshell

1. Coinbase: Suitable for beginners and advanced traders, offering a wide selection of cryptocurrencies with advanced tools for those with more experience.
2. eToro: Best for beginners, social trading, and those interested in more asset classes like stocks, ETFs, and forex.

Want to see more in-depth comparisons? Check the full comparisons between other brokers in our broker comparison tool.

Coinbase overview

Coinbase is one of the largest cryptocurrency exchanges, giving you access to 250+ coins, including Bitcoin (BTC) and Solana (SOL).

Whether you’re a beginner or an advanced trader, Coinbase Advanced Trade provides useful tools like order books and margin trading, allowing you to manage your trades with precision.

As a publicly traded company on the NASDAQ under the ticker $COIN, Coinbase brings added transparency and credibility to your trading experience. You can also take advantage of staking for multiple cryptocurrencies, earning passive rewards on assets like Ethereum (ETH) and Solana (SOL). Plus, Coinbase stores 98% of assets in cold storage, ensuring most of your funds are protected offline from potential hacks.

In addition to its exchange services, Coinbase provides the Coinbase Wallet, a separate mobile app that allows users to fully manage their digital assets, interact with decentralized apps, and securely store their crypto. This wallet gives users full control over their private keys and supports external wallet transfers, making it highly flexible for crypto management.

However, keep in mind that fees are variable and can be relatively high, which might not be ideal if you’re an active trader making frequent transactions.

Furthermore, Coinbase is not available in many countries, mainly due to regulations. The company works primarily in Europe, the US, Canada, and Australia, among a few other countries.

Coinbase pros and cons

eToro overview

eToro is a global platform known for its social trading feature and support for 100+ cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH).

Users benefit from CopyTrader, which allows them to replicate trades from other investors – a great feature for beginners.

The platform also offers staking for cryptocurrencies like Ethereum (ETH) and Cardano (ADA), as well as Crypto Smart Portfolios for those looking for diversified investments in the crypto market.

Additionally, eToro provides the eToro Money Wallet, which allows you to store, send, and receive cryptocurrencies. The wallet supports external transfers, giving you more control over your crypto assets and flexibility in how you manage them.

On the downside, eToro’s 1% trading fee, 2% transfer fee to the crypto wallet, and $5 withdrawal fee are factors to consider, especially for frequent traders.

Despite these fees, eToro remains a strong option for those interested in both social trading and cryptocurrency investments, as well as those who also want to invest in other asset classes like stocks or ETFs.

Within eToro, cryptocurrencies are still unregulated services which are not governed by any specific European regulatory framework (including MiFID).

Therefore, you will not benefit from the protections available to clients receiving MiFID regulated investment services, such as access to the Cyprus Investor Compensation Fund (ICF) and the Financial Services Compensation Scheme (FSCS). Nonetheless, there is some oversight on eToro, contrary to what happens on some other exchanges.

On the downside, cryptocurrencies are offered as CFDs in some countries like Germany – so it might not be the right choice for you if you’re a German citizen. Make sure that you double-check if you’re buying the real product and not a CFD!

Interested in learning more about eToro? Read our eToro review.

eToro pros and cons

Fees & Commissions

Coinbase charges based on transaction size and payment method, which can make it more expensive for smaller trades.

eToro maintains a more straightforward fee structure with its flat 1% fee for crypto trading.

However, Coinbase’s withdrawal fees can be free depending on the method, whereas eToro has a fixed $5 fee.

Investment Products

Coinbase offers more crypto assets and trading pairs.

In contrast, eToro provides cryptocurrencies as part of a multi-asset platform, which includes stocks and ETFs.

Both platforms offer staking, but Coinbase also offers crypto-backed loans, adding another layer of financial services for advanced users.

Wallet

Both Coinbase and eToro provide their own built-in wallets, allowing users to store, send, and receive cryptocurrencies. These wallets also support external wallet transfers, offering flexibility for managing crypto assets.

• Coinbase provides the Coinbase Wallet, a separate app where users can fully control their digital assets and private keys. The Coinbase Wallet also allows users to interact with decentralized apps (dApps) and transfer funds to external wallets.
• eToro offers the eToro Money Wallet, which allows users to easily manage a variety of cryptocurrencies. It supports external transfers, meaning you can move your crypto to other wallets as needed, making it convenient for crypto traders who want flexibility in managing their digital assets.

Both wallets offer robust features, but Coinbase Wallet stands out for its additional capabilities, such as interacting with dApps, which adds more versatility for crypto enthusiasts.

Staking

Both Coinbase and eToro support staking for multiple cryptocurrencies, though Coinbase offers a wider range of supported coins and generally higher potential rewards.

• Coinbase supports staking for: Avalanche (AVAX), Solana (SOL), Tezos (XTZ), Polkadot (DOT), Cosmos (ATOM), Ethereum (ETH), Cardano (ADA), and many others. This makes it more suitable for users seeking a wider range of staking options.
• eToro supports staking for: Cardano (ADA), Solana (SOL), Ethereum (ETH), and Tron (TRX). However, staking in some regions, like the UAE, is only available for ADA, SOL, and ETH. eToro plans to expand its staking options to more cryptocurrencies in the future.

While both platforms offer staking, Coinbase has the edge in terms of the number of supported assets and potentially higher staking rewards.

Safety

Both platforms provide built-in wallets that allow users to store and manage their cryptocurrency, but their approaches to security differ. Coinbase takes additional security steps by keeping 98% of user crypto assets in cold storage, significantly reducing the risk of hacks by storing these assets offline. You can find more details in Coinbase’s official policy.

On the other hand, eToro uses cold storage as a safety measure for clients, ensuring that most assets are stored offline, though it does not disclose the specific percentage of assets held in this manner. You can find more information on eToro’s asset storage in their support article.

Both Coinbase and eToro offer FDIC insurance for fiat deposits up to $250,000, ensuring protection for your cash balances. While Coinbase is publicly traded on the NASDAQ, adding an extra layer of transparency, eToro is regulated by multiple authorities, including FCA, CySEC, and ASIC, offering similar oversight.

Trading platforms

Coinbase provides more advanced tools, such as order books and margin trading, making it ideal for more experienced cryptocurrency traders.

On the other hand, eToro offers a social trading experience through its CopyTrader feature, allowing users to copy the trades of successful investors, which is a great option for those new to crypto trading.

Customer support

Coinbase

Coinbase offers 24/7 live chat and email support, with the additional option of phone support for urgent issues. It’s important to ensure that you use the official contact information from Coinbase to avoid scams involving fake phone numbers.

eToro

eToro provides multiple customer support options, including a 24/7 AI-powered chatbot for quick responses to common inquiries and Live Chat support available 24/5 for real-time assistance. Users can also submit tickets via the Customer Service Center, with responses typically within 48 business hours. eToro Club members enjoy the added benefit of direct communication with an Account Manager via WhatsApp.

How to choose the right crypto platform?

A great exchange is more than just low fees – it’s about security, ease of use, and the variety of coins available.

And trust me, you don’t want to get stuck with one that doesn’t fit your needs. So, pay close attention!

• First things first: prioritize safety: safe beats cheap! Remember that investing is a long-term game, so it’s best to choose a provider that you can trust as years go by. Make sure that it is authorized to operate in your country and owned by serious people.
• Assets under administration: Check which exchanges have the highest trading volume and how they compare to other providers. High net worth investors tend to choose platforms that they can trust and provide good services.
  • Binance, Coinbase, and OKX are the biggest exchanges according to CoinMarketCap, and Kraken comes in sixth place.
• Range of cryptocurrencies: Make sure that it offers the cryptos you want to trade. Not all cryptos allow you to trade altcoins. As such, you need to make sure that you’re choosing a provider that is best for the cryptos that you want to trade. If you just want Bitcoin, USDT, Tether, or Ethereum, you should be fine with most exchanges. But if you want to venture into the deeper world of cryptocurrencies, then you need to find an exchange that allows you to do so.
• Fees: When it comes to fees, it is important to analyze what you’ll be charged (transparency is key). Fees can eat your returns, and make a big difference in the long run.
• Research Regulatory Compliance: Verify if the crypto exchange complies with relevant European regulations. Look for exchanges registered with regulatory bodies like the UK’s Financial Conduct Authority (FCA) or BaFin in Germany.

Now let’s get into our top picks. All of them allow you to transfer your crypto into a hard wallet if that’s a concern.

Coinbase vs eToro: final verdict

Choosing between Coinbase and eToro ultimately depends on your trading style and what you’re looking for in a platform. Here’s a breakdown to help you decide:

If you’re an experienced crypto trader looking for advanced tools like order books and margin trading, and access to over 250+ cryptocurrencies, Coinbase might be more suited for your needs. Coinbase also offers staking for more coins and crypto-backed loans, adding another layer of financial services. However, its variable fees can be high, which might not be ideal for frequent traders.

On the other hand, if you’re a beginner looking for an easy-to-use platform with the ability to copy the strategies of experienced traders, eToro is the better choice. It excels at social trading, offering the CopyTrader feature, and provides access to 100+ cryptocurrencies, as well as other assets like stocks and ETFs. Just keep in mind the 1% trading fee, $5 withdrawal fee, and limited advanced crypto features.

In summary, if you’re looking for a platform that caters to both beginners and advanced traders, with advanced trading features, a wide selection of cryptocurrencies, and options like staking and crypto-backed loans, Coinbase may be the better fit.

However, if you are a beginner and prioritize a user-friendly platform with social and copy trading, go for eToro.

Want to learn more about other brokers? Check out our in-depth broker reviews, comparison table, and BrokerMatch tool to find the best option for you!

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