eToro vs. Coinbase – Forbes Advisor

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Coinbase and eToro are two of the biggest names in the crypto exchange space. Coinbase is one of the biggest crypto players, while eToro combines the functionality of an online brokerage and a crypto exchange.

Both eToro and Coinbase offer many pros and cons. To help you decide between these two leading crypto trading platforms, here is a detailed overview of their comparison.

eToro vs. Coinbase: key similarities

Coinbase and eToro both provide web and mobile application trading platforms. They offer clean and simple interfaces that make it easy to find and trade cryptocurrencies.

Besides ease of use, eToro and Coinbase share the following similarities:

Advanced Trade

If you are an experienced crypto investor, eToro and Coinbase offer advanced trading capabilities.

With eToro, advanced features are included directly on the main platform. You can follow trends with charts, research investments with expert analysis tools, and plan your trading strategy.

The standard Coinbase exchange does not offer advanced features, but you can access it through the Coinbase Advanced Trade platform.

Crypto Wallets

Coinbase and eToro both offer crypto wallets. Coinbase offers three distinct wallet options:

  • Coinbase Wallet. This wallet supports “hundreds of thousands” of crypto assets. This is a separate wallet application 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 transact on Coinbase, but your private keys are stored on the exchange, potentially exposing them to hacks.
  • Coinbase Wallet dApp. This wallet stores all ERC-20 tokens that operate on the Ethereum network.

Like the Coinbase wallet, the eToro Money crypto wallet is a separate wallet app, although you will need your eToro credentials to use it. Users can transfer crypto from their eToro account to the eToro Money wallet, giving them better protection against hacks.

Crypto staking

Staking is the process of temporarily agreeing to lock up your cryptocurrencies to help run their underlying blockchains. In exchange, you receive additional crypto. The amount you receive depends on the crypto you bet and how much you stake, with larger amounts earning more.

eToro and Coinbase both offer staking. But Coinbase offers a few more coins that can be staked. Both platforms allow Ethereum (ETH) staking.

Security

eToro and Coinbase have strong security measures in place to keep their investors safe. Some of their protocols include the use of two-factor authentication, encryption, and monitoring tools for fraudulent activity.

That being said, eToro and Coinbase have each had security issues over the years.

In 2020, hackers accessed and shared personal information from 62,000 eToro accounts, such as emails, passwords and home addresses. The hackers also claimed access to trading accounts.

Coinbase suffered a major breach in 2021. Hackers stole cryptocurrency from over 6,000 accounts due to an exposed flaw in the exchange’s two-factor SMS system. Coinbase reimbursed users for their stolen investments.

eToro vs Coinbase: Key Differences

Selection of cryptocurrency

With over 200 cryptocurrencies to choose from, Coinbase offers a wider selection of tradable crypto assets.

eToro’s lineup is decent, with over 30 cryptos available, including popular coins like Bitcoin, Ethereum, and Cardano. However, eToro lacks 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 base exchange, they charge a spread fee of around 0.5% to 1% for each trade. If you use Coinbase’s Advanced Trader product, the fees you pay depend on your 30-day trading volume. Someone who trades less than $10,000 in a 30-day period should pay 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. These are very high fees. Fees are charged up front when you buy crypto. The platform displays the value of your cryptocurrency balance, taking into account the payment of any 1% sales fee.

Investment characteristics

If you want to invest in assets other than crypto, eToro offers a range of other options such as stocks, commodities and currencies. They also allow you to invest in exchange-traded funds (ETFs).

Coinbase only focuses on cryptocurrencies and does not provide access to any other investment assets.

Customer service

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 future response.

Geographic Availability

Coinbase and eToro are not available to residents of certain states. Coinbase is not available if you live in Hawaii, while eToro is not available for users who reside in New York, Hawaii, Minnesota, and Nevada.

Who should choose eToro?

If you are looking to invest in crypto as part of a diversified portfolio of other assets, eToro might be worth considering.

eToro offers a decent selection of crypto and non-crypto assets. Their standard trading platform is both beginner-friendly but also offers advanced trading capabilities and extensive investment research.

High fees are the main disadvantage of eToro. This is a problem if you plan to trade crypto frequently. It’s especially expensive if you transfer coins off the platform without selling them, because eToro charges an upfront fee, which you pay even if you don’t resell the coins on their platform.

eToro Benefits

  • Advanced trading skills
  • Availability of non-crypto investments

The disadvantages of eToro

  • High trading fees on crypto trades
  • Initial crypto trading fees
  • No phone support

Who should choose Coinbase?

Coinbase is doing well in all areas. They have a huge selection of cryptocurrencies, an easy-to-use basic exchange, and an advanced trading platform. In addition to that, they also provide an NFT market.

Whether you are a beginner or an advanced crypto investor, chances are you will find what you need on Coinbase. If you want to buy investments in addition to crypto, you will need a separate account beyond Coinbase. It is an advantage of using eToro, because you can combine all your investments in one portfolio.

Also, Coinbase is not the best at everything. For example, Binance.US has lower fees, while Kraken has better security. Still, in terms of the overall crypto investing experience, Coinbase is a good choice.

Advantages of Coinbase

  • Excellent selection of cryptocurrency
  • Friendly with quality teaching materials
  • 24/7 telephone customer support

Disadvantages of Coinbase

  • The fee structure can be complicated
  • Only offers crypto investments

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