eToro vs. Coinbase

Coinbase is the leading platform for investors focused on cryptocurrency. eToro is a comprehensive social trading for community-focused investors.

Coinbase and eToro serve distinct purposes in the cryptocurrency space, catering to different types of users and investment strategies. eToro is primarily a social trading platform that allows users to trade a variety of assets, including stocks, commodities and cryptocurrencies, while also offering features like copy trading, where users can mimic the trades of successful investors. This makes it appealing for beginners or those who prefer a more community-driven approach to investing. On the other hand, Coinbase is a dedicated cryptocurrency exchange that focuses on buying, selling and storing a wide array of digital currencies. It provides a user-friendly interface and a robust security framework, making it ideal for those who want direct access to a broad selection of cryptocurrencies. While both platforms offer unique benefits, the choice between eToro and Coinbase ultimately depends on an individual's trading preferences and investment goals. Take a look at some of the similarities and differences between the two platforms in this eToro vs. Coinbase comparison guide.

eToro vs Coinbase: At a Glance

*eToro USA LCC does not offer Contract for Difference (CFD), only real Crypto assets available. Info is not for U.S. users.

***Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.

***Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.

eToro vs. Coinbase: An Overview

Take a look at both companies from a high-level perspective to start.

eToro

Founded in 2007, eToro has continuously expanded over the years, allowing investors to access a wider range of assets to invest in. However, its biggest business as of late has been with crypto trading and its copy trading feature. This allows users to communicate with and copy the trades of other users on the platform. 

Coinbase

Coinbase was founded in 2012 by ex-Airbnb Inc. and Goldman Sachs employees. The platform quickly grew and became a place for users to access a variety of cryptocurrencies with ease. It also has a cryptocurrency wallet, called Coinbase Wallet, which allows users to access decentralized applications (dApps) and other Web3 protocols. It went public via an initial public offering (IPO) in April 2021. 

eToro vs. Coinbase: Features and Tools

Both sites offer a huge variety of features for their users. Take a look at some of the most-used features for the exchanges. As you will see, there is some overlap between the platforms, with both offering features such as staking, education and advanced charts. However, there are also a handful of major differences between the two. 

What eToro Offers

• Crypto and stock trading
• Social trading
• Copy trading
• eToro’s Crypto Wallet
• Smart portfolios to choose from
• Low fees
• Education via eToro Academy
• Offline trading
• Advanced charting

What Coinbase Offers

• Coinbase Wallet
• Non-fungible tokens (NFTs)
• Staking
• Debit card
• Education (can earn free crypto)
• Easy to use
• Strong mobile app
• Huge crypto selection
• Advanced charting

eToro vs. Coinbase: Supported Currencies

A huge factor to consider when choosing between eToro and Coinbase is the supported tokens. The last thing you want to do is to open an account with a platform, only to find that it does not offer your favorite cryptocurrencies. It is unlikely that this will be an issue for either platform, as both offer a huge selection of tokens. 

Coinbase supports over 400 tokens on the cryptocurrency exchange. This includes the top tokens, such as Bitcoin (BTC) and Ethereum (ETH), as well as a variety of smaller altcoins. If you are hoping to trade it, Coinbase likely offers it. However, there are some exceptions, such as tokens that are only available through Coinbase Prime for institutions or unavailable in New York. Additionally, Coinbase Wallet allows users to access an even larger pool of tokens. It offers every token on the top blockchains, such as Ethereum, Solana, Avalanche and BNB Chain. 

eToro offers slightly fewer tokens but still has the top cryptocurrencies that most gravitate toward. It offers 21 tokens in the US, but this number could grow in the future. The list includes all of the top tokens by market capitalization and should be suitable for most beginner investors.

eToro vs. Coinbase: Fees

Both sites use different fee structures that may be better or worse depending on several factors, such as trading volume. 

eToro charges a flat rate of 1% fee on all transactions. It simply adds 1% to the market price that you bought the asset for and keeps the spread. The fee is the same regardless of the order size, and there is no way to get lower fees.

Coinbase fees are much more complex. It looks at your total trading volume over the past 30 days to place investors into different “tiers.” Each tier has a different fee structure. Additionally, there are different fees for liquidity “makers” and “takers.” The makers pay a smaller fee than the takers. Here is the full table showing the different fees by tier. Note that “bps” stands for “basis points” and represents 0.01%. There are also different fees for stablecoins and withdrawals. 

eToro vs. Coinbase: Security

A major issue with crypto exchanges is hacking. Because the exchanges are subject to less regulation and it is more difficult to track down hackers, there have been several instances of large-scale hacks over the years. Enhanced security is something that should be considered when choosing a platform to trade with.

eToro uses a combination of simple and advanced security measures to keep its clients' funds safe. It follows the guidelines of the Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) and Australian Securities & Investments Commission (ASIC) regulations, which are a series of global regulations meant to protect investors. In addition, it allows users to activate two-factor authentication (2FA) to add an extra layer of security to their accounts.

Coinbase is a much larger company than eToro, so it can put more resources into security. This results in a variety of enhanced security measures. It uses cryptography to store all passwords, uses machine learning to monitor data breaches and has two-factor authentication on all accounts.

eToro vs. Coinbase: User Experience

Another important factor to look at is how easy the platform is to use. This can make a huge difference in the overall experience. 

Signing up with eToro is as simple as entering some personal information and verifying your identity in compliance with Know Your Customer (KYC) regulations. Most traders will be able to create their accounts in as little as 10 minutes. The platform is a bit more difficult to figure out than Coinbase as it is directed toward more experienced traders, but eToro is still easy to use. It is also quite easy to trade a larger position than you intended if you don't know what you are doing. eToro’s platform is easy for beginners to navigate, with simple order placement and up-to-the-minute pricing information. 

The Coinbase user interface is straightforward and intuitive. You can tell that Coinbase is meant for casual traders through its simplistic and minimalist design. However, it also offers advanced trading features for more experienced traders. It is easy to set up an account and begin trading. 

eToro vs. Coinbase: Customer Support

Coinbase has a multilayered customer service experience that begins with its online support portal. The FAQ is thorough, and though its automated chatbot is adequate, it faces some challenges when answering more complex questions. However, its support team is available for contact when the bot is unsuccessful.

eToro expects users to come on the platform with a basic understanding of how a cryptocurrency exchange works. The eToro help center answers basic questions, but it can be a bit confusing if it is your first experience with crypto. If you can’t get your question answered there, you can start a ticket, though it may take some time to hear back. You may find a more efficient route to an answer is to ask the community, another benefit of its social trading platform.

Coinbase and eToro: Different Offerings for Different Customers

Coinbase and eToro are both strong crypto exchanges that are likely suitable for most investors, both beginners and advanced. However, the platforms try to tailor their offerings to different users. For example, eToro looks to attract advanced traders who want to communicate with others about their trading ideas and copy the trades of others. On the other hand, Coinbase looks to appease beginners through a simple signup process and minimalist platform. Once you consider your own investment goals, you should be able to come to a conclusion on which platform is right for you. 

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Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

This communication is intended for information and educational purposes only and should not be considered investment advice or investment recommendation. Past performance is not an indication of future results.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply. 

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.