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Coinbase and eToro are two of the biggest names in the universe of crypto exchanges. Coinbase is one of the largest players in crypto, while eToro combines the features of an online brokerage and a crypto exchange.
Both eToro and Coinbase offer plenty of advantages and disadvantages. To help you choose between these two leading crypto trading platforms, here’s an in-depth look at how they compare.
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eToro vs. Coinbase: Key Similarities
Coinbase and eToro both provide web-based and mobile app trading platforms. They offer clear, simple interfaces that make it easy to research and trade cryptocurrencies.
Besides ease of use, eToro and Coinbase share the following similarities:
If you’re an experienced crypto investor, both eToro and Coinbase offer advanced trading capabilities.
With eToro, advanced features are included right on the main platform. You can follow trends using charts, research investments with expert analysis tools and plan your trading strategy.
The regular Coinbase exchange doesn’t offer advanced capabilities, but you can access them through the Coinbase Advanced Trade platform.
Coinbase and eToro both offer crypto wallets. Coinbase provides three separate wallet options:
- Coinbase Wallet. This wallet supports “hundreds of thousands” of crypto assets. It’s a separate wallet app that does not require you to open an account on Coinbase. Your private keys are stored on your device.
- Coinbase Exchange. This is Coinbase’s default wallet option. It’s easy to make trades on Coinbase, but your private keys are stored on the exchange, leaving them potentially exposed to hacks.
- Coinbase dApp Wallet. This wallet stores all ERC-20 tokens that run on the Ethereum network.
Like the Coinbase Wallet, the eToro Money crypto wallet is a separate wallet app, although you’ll need your eToro credentials to use it. Users can transfer crypto from their eToro account to the eToro Money wallet, giving them greater protection against hacks.
Staking is when you temporarily agree to lock up your cryptocurrencies to help run their underlying blockchains. In exchange, you receive additional crypto. The amount you receive depends on what crypto you stake and the amount you put up, with larger amounts earning more.
eToro and Coinbase both offer staking. But Coinbase offers slightly more coins that can be staked. Both platforms allow Ethereum (ETH) staking.
eToro and Coinbase have implemented strong security measures to keep their investors safe. Some of their protocols include using two-factor authentication, encryption and monitoring tools for fraudulent activity.
With that being said, eToro and Coinbase have each run into security troubles over the years.
In 2020, hackers gained access to and shared the personal information of 62,000 eToro accounts, such as emails, passwords, and home addresses. The hackers also claimed access to the trading accounts.
Coinbase suffered a major breach in 2021. Hackers stole cryptocurrency from over 6,000 accounts because of an exposed flaw in the exchange’s two factor SMS system. Coinbase reimbursed users for their stolen investments.
eToro vs. Coinbase: Key Differences
With more than 200 cryptocurrencies to choose from, Coinbase offers a wider selection of tradable crypto assets.
eToro’s lineup is decent, with more than 30 cryptos available, including popular coins like Bitcoin, Ethereum, and Cardano. However, eToro is missing many less common cryptocurrencies that you can probably find on Coinbase.
Crypto Trading Fees
When it comes to fees, Coinbase is much more competitive.
On their basic exchange, they charge a spread fee of approximately 0.5% to 1% for each transaction. If you use Coinbase’s Advanced Trader product, the fee you pay depends on your 30-day trading volume. Someone trading less than $10,000 in a 30-day period would owe taker and maker fees of 0.6% and 0.4%, respectively.
With eToro, you are charged a spread fee of 1% of your total transaction to buy and sell cryptocurrencies—this is a very high fee. The fee is charged upfront when you purchase crypto. The platform displays the value of your cryptocurrency balance, accounting for payment of the eventual 1% sales fee.
If you’d like to invest in assets beyond crypto, eToro provides a range of other options like stocks, commodities and currencies. They also allow you to invest in exchange-traded funds (ETFs).
Coinbase only focuses on cryptocurrencies, and it does not provide access to any other investment assets.
Coinbase has better customer service. They offer 24/7 phone support as well as email and live chat.
eToro only provides live chat and an option to submit a service ticket for a reply in the future.
Coinbase and eToro are not available to residents of certain states. Coinbase isn’t available if you live in Hawaii, while eToro isn’t available to users who reside in New York, Hawaii, Minnesota and Nevada.
Who Should Pick eToro?
If you are looking to invest in crypto as part of a diverse portfolio of other assets, eToro could be worth considering.
eToro offers a decent selection of crypto and non-crypto assets. Their standard trading platform is both user-friendly for beginners yet also offers advanced trading capabilities and plenty of investment research.
High fees are the main drawback at eToro. That’s a problem if you plan on trading crypto frequently. It’s especially expensive if you transfer coins off the platform without selling, since eToro charges an upfront fee, which you pay even if you don’t end up reselling the coins on their platform.
- Advanced trading capabilities
- Availability of non-crypto investments
- High trading fees on crypto transactions
- Upfront crypto trading fees
- No phone support
Who Should Pick Coinbase?
Coinbase does well across the board. They have a huge selection of cryptocurrencies, an easy-to-use basic exchange and an advanced trading platform. On top of that, they also provide an NFT marketplace.
Whether you’re a beginner or an advanced crypto investor, chances are you will find what you need on Coinbase. If you want to purchase investments besides crypto, you will need a separate account beyond Coinbase. This is a benefit of using eToro, because you can combine all your investments in one portfolio.
In addition, Coinbase isn’t the best at everything. For example, Binance.US has lower fees, while Kraken has better security. Still, in terms of the overall crypto investment experience, Coinbase is a fine choice.
- Excellent cryptocurrency selection
- User-friendly with quality educational materials
- 24/7 phone customer support
- Fee structure can be complicated
- Only offers crypto investments