When you set out to invest your money into cryptocurrency, you need to choose your broker carefully, to avoid unnecessary fees and complicated setups. We have two of the biggest names in the cryptocurrency market today to compare eToro vs Coinbase, but which of the two is the better option? We have had a close look at both of these cryptocurrency brokers.
Keep in mind that you may disagree with our final verdict. Both Coinbase and eToro are reputable trading platforms, and ultimately it is up to you to decide which of the two will best fulfill your trading needs.
Here's the main differences between eToro vs Coinbase:
Coinbase is strictly offering cryptocurrency while eToro has a lot of different assets to invest in. Although, eToro has all the assets that Coinbase offer plus its copy-trading platform which has become immensely popular. eToro has no fewer fees and compared to Coinbase's withdrawal fee of 1.49% – 3.99%, eToro has no withdrawal fee at all.
|eToro vs Coinbase||The Better Option|
|Phone App Availability||eToro|
|Trustworthiness||Tie – Both are very secure|
|? Winner||? eToro|
78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
eToro USA LLC does not offer CFDs, only real Crypto assets available.
The brokerage company eToro opened its doors in 2007, and they offer a variety of financial services, social trading, copy trading, and cryptocurrency exchange options. The multi-asset platform makes purchasing, selling, and trading cryptocurrency easy, and both beginners and those with experience use it.
Founded by: Yoni Assia, Ronen Assia and David Ring
Offices: United States, United Kingdom, Israel, Cyprus and Australia.
Company Value: $800 million (2018)
Registered Users: 13 million
While eToro is only one of many reliable cryptocurrency platforms, traders from all over the world are drawn to this broker thanks to their competitive fees and user-friendly layouts.
This platform offers both CFD and non-CFD products, and there are plenty of guides and help available to those who need help getting started. Trading with cryptocurrencies is always a risk, and eToro does its part to aid the user in making smart and educated financial decisions.
With eToro, you get more than just your average trading company. They have taken things a step further by incorporating certain social elements, allowing you to browse through a list of other users. This feature will enable you to see what financial gains or losses other individuals have experienced during a specific period. The feature is known as CopyTrader and takes investment right into the era of social media. When you trade with eToro, you also get instant access to their reward program Popular Investors.
This content is not intended for US users. eToro USA LLC does not offer CFDs, only real Crypto assets available.
- Very easy to open an account
- Free ETF and stock trading
- Low minimum deposit/investment
- Transparent social trading option
- Reward program för popular traders
- Phone app available for all operating systems
- Strictly regulated by third party organizations
- Client funds kept in separate accounts
To make this a fair comparison, we will look at another similar trading platform, to see which can be considered the best, and why. Coinbase. Coinbase has its headquarters in San Francisco, California, and they have been operational in their current form since June 2012. In October that same year, a Bitcoin trading service was launched.
Their business idea was to make Bitcoin and other cryptocurrencies available to everyone, regardless of experience. Coinbase wanted to offer a practical and straightforward trading platform where the client could either jump straight in or receive the necessary help and support to learn how to properly buy, sell and trade cryptocurrencies like Bitcoin, Ethereum and more.
Coinbase is classified as a GDAX, which stands for Global Digital Asset Exchange Company. It is a trading platform and a digital crypto wallet where buyers can store their acquired cryptocurrency. As an investor, you can deposit money into your Coinbase account by using one of the available payment methods. This money is then generally held in cold storage (eliminating the risk of hacking) until you choose to invest.
Differences Between eToro vs Coinbase
Coinbase and eToro share many similarities, so it is no wonder people get confused when trying to choose which trading platform to use. But, what are the differences, then? Let’s compare:
Fees & Minimum Deposit
One thing that stands out is that eToro has fewer fees than Coinbase, with no trading fees. Coinbase does have a withdrawal fee and trading fees (between 1.49% and 3.99% for card transactions and $25 USD for wire transfers). Direct deposits and withdrawals for digital assets are, however, free.
eToro charges a fixed withdrawal fee of $5 USD, Additionally, a conversion fee may be applied as withdrawals and deposits are conducted in USD. Any other currency will have to be converted.
The Coinbase fees are low compared to other similar companies, but those small fees will start to build up if you are a frequent user. With eToro, this isn’t something you will have to worry about, which will save you money in the long run.
It is essential to know that this does not mean eToro is entirely free from fees, as Blockchain fees and conversion fees (0.1%) are applicable. Coinbase, however, has both these fees and trade fees, which indicates that you will be paying more fees when using Coinbase as opposed to eToro.
However, Coinbase does have a smaller Minimum Deposit at $2 compared to eToro at $50 ($500 for wire transfers).
Let’s talk about payment methods, where there are noticeable differences. For example, eToro offers additional options that are currently unavailable when trading with Coinbase. One example is PayPal. When using Coinbase, you can withdraw money, and cash in on sales using Paypal, but you can’t make purchases and investments with PayPal. With eToro, on the other hand, PayPal is available for all types of transactions.
Coinbase offers the following payment methods:
- Bank transfers
- Debit card
- Wire transfer
- PayPal (Withdrawals only)
Compare to eToro where additional payment methods are available:
- Debit/Credit cards
- Wire transfer
- Bank transfers
- Rapid transfer
While Coinbase offers the essential payment methods you would expect to find, such as wire transfers and card payments – they do not provide the same selection of e-wallets and alternative payment methods available at eToro.
Phone App Availability
It is becoming increasingly important to have access to all the essentials directly on your smartphone, both to educate yourself in trading and also to keep track of your trades and both Coinbase and eToro have mobile phone apps available. These apps are downloadable to iOS phones and Android devices. The difference is in what you can do with each app. Coinbase has designed an easy-to-use phone application that works as a crypto wallet, where you can store your purchased cryptocurrency, buy and sell your assets, but that's it.
The eToro app, on the other hand, is aimed more at providing its users with the opportunity to make purchases, trades, and everything else you would do with a desktop computer. With the eToro app, you don’t need anything other than a phone, as most features are available with the app.
In this category, Coinbase beats eToro, as they offer around 15 language options compared to only five at eToro. With eToro, you can choose between English, Spanish, German, French, and Italian – five of the most widely spoken languages. Coinbase offers additional languages such as Polish, Chinese, Hebrew, Hindi, and Portuguese.
The option to choose account type tends to be relevant mainly for someone experienced with cryptocurrency trading. Still, even if you are a beginner, you might eventually find yourself wanting (or even needing) the opportunity to make a conscious decision for how you want to use your trading platform account.
Coinbase has something they refer to as account levels, where you can unlock certain features by complying with simple requests and procedures. Examples are verifying your identity, phone number, and home address. It will automatically grant you access to additional features. However, there is only one real account type available. In the case of eToro, you can start using the platform with a demo setting, and they also offer other useful account types like VIP accounts, Micro accounts, Standard accounts, and Islamic accounts.
There are many other platforms such as CashApp, which only offer trading with one cryptocurrency. This shows why multi-use platforms like eToro and Coinbase have gained such impressive popularity. Both offer all the best-known cryptocurrencies, with no significant difference between the two, and they are known for frequently updating their catalogs as they see fit.
Cryptocurrency platforms like eToro and Coinbase are, without doubts, excellent options for the inexperienced investor or trader, but let’s not forget that platforms like these are also excellent tools for someone with more experience!
There are specific indicators that eToro has more to offer for an advanced trader, due to the many different features. The eToro user interface is slightly more complicated than the Coinbase interface, but it has its benefits for more experienced traders thanks to the additional features, and it is still simplistic enough for a beginner to catch on fast.
With so many scams found all over the internet, it is no surprise that users worry about their online safety and the trustworthiness of a trading platform. Coinbase and eToro are both considered highly reliable, each regulated by the Financial Conduct Authority (FCA), and eToro also being monitored by the Cyprus Securities and Exchange Commission (CySEC). As a user, you won’t have to worry about deposited funds’ safety, as these are stored in cold storage accounts separate from the company assets.
Safety should always be the number one priority when wanting to invest in stocks and cryptocurrencies. The impressive peak in popularity for these two trading platforms is likely due to this. They offer transparency and consistency in their safety routines, which keeps you, your personal information, and your money secure when trading online.
Ready to trade?
Are you ready to start making money? Copy Trading is an excellent opportunity for new users to see and learn how you can successfully trade stocks and cryptocurrency on the internet. Seeing what someone else has done, and what results have come out of it, can be an invaluable feature for those who are inexperienced.
Get started now by copying successful traders with an average profit of 29.1%, for your chance to make money! You get the opportunity to copy someone else’s financial decisions, which betters market understanding based on the actions taken by another trader. A feature like this undoubtedly sets eToro apart from its competitors.
There is no simple- or short answer to communicate which trading platform is best, as this depends on your individual needs and requirements. However, by comparing Coinbase vs eToro side by side, we have concluded that eToro provides a somewhat more complete service – a service suitable for beginners and advanced users.
Buying, selling, and trading stocks and cryptocurrency is risky enough as it is, due to an unpredictable market. However, by choosing a reliable broker such as eToro and Coinbase, you will be giving yourself a push in the right direction.