Etoro vs Coinbase: Which Crypto Exchange Is Better

Etoro is a social media platform that allows users to trade currencies, stocks, and commodities online. The company was founded in 2007 by two brothers, Yoni and Ronen Assia, and is headquartered in London, England.

On the other hand, Coinbase is an American company operating a digital currency exchange where consumers can buy, sell, or store digital currency. The company was founded in 2012 by Brian Armstrong and Fred Ehrsam, and is based out of San Francisco, California.

In this article, we will compare and contrast Etoro and Coinbase. We will look at the features of each platform, as well as its pros and cons.

About eToro

Since its launch, eToro has been one of the most popular social media platforms for trading currencies, stocks, and commodities. It has more than 17 million users in over 170 countries trading cryptocurrencies.

It began gaining popularity amongst novice and veteran traders when they first introduced their CopyTrader feature in 2013, which we will discuss further. However, the platform is best for investors who have fundamental trading knowledge and want to invest in a more social sphere.

About Coinbase

One of the most popular digital currency exchanges in operation today, Coinbase provides a platform that allows consumers to buy, sell, or store their digital currencies on the site.

In addition to this, Coinbase offers an API for developers and merchants who wish to integrate bitcoin payments into their businesses. They are available in over 100 countries worldwide and experience over $400 billion in consumer transactions every quarter.

eToro vs Coinbase: Fees

There is a big difference between the two platforms when it comes to fees. eToro charges a spread on each trade, ranging from 0.75% to 5%. Coinbase, on the other hand, charges around a 0.50% fee for all transactions. 

In addition to spreads, Coinbase charges what they call a "Coinbase Cost," a flat fee or percentage charged depending on your form of payment. 

• Bank Deposit (ACH) and Wire Transfer - 1.49% fee 

• Credit/Debit Card - 3.99% fee 

• PayPal - 4.49% fee 

When you place an order in Coinbase and get cleared immediately, you will also pay a takers fee. The remainder of your order will be filled, and when matched, is then considered a maker order. Please see the pricing tier here.

On the other hand, eToro charges no fees on crypto trading, only on spreads.

Both platforms charge withdrawal fees. For instance, Coinbase charges $25 for SEPA withdrawals, and eToro charges $5 for all other withdrawal methods.

eToro vs Coinbase: Available Coins

For cryptocurrency coins, they boast almost the same number of available coins. Specifically, Coinbase offers more than 120 coins at the time of writing, while eToro provides 110. 

It's also worth stating that if you want to explore new and upcoming coins, Coinbase would be the better option as eToro typically doesn't add new coins until they have gained some level of stability and trust from the community.

Wallet

Coinbase is one of the few exchanges that offer a built-in wallet for you to store your coins. This is convenient because it prevents you from worrying about transferring your coins off of the exchange and into a more secure location. Here are the main differences between eToro and Coinbase wallets:

1. The Coinbase wallet is accessible and can be opened by anyone (even non-Coinbase users), whereas the eToro wallet is only available for eToro account holders.

2. With a Coinbase wallet, you are allowed to transfer coins in and out of the wallet and to the exchange, while with eToro, you aren't able to transfer coins from the wallet back to the exchange.

3. Coinbase doesn't charge users when moving coins from one wallet to another, while eToro charges 0.5% fees for every transaction.

4. Lastly, Coinbase allows you to store BTC, BTC Cash, Litecoin, ETH, Ethereum Classic, XRP, Stellar Lumens, DOGE, and all ERC20 tokens (including USDC and DAI). While eToro only supports Bitcoin, Bitcoin Cash, Ethereum, Litecoin, and Stellar.

Security

When it comes to trading dollars, you are protected by the US government. However, when it comes to trading cryptocurrencies, no governing body offers the same kind of protection.

Because of this, Coinbase has been known for being one of the most reliable and secure exchanges in operation today. In addition, they offer 2-factor authentication and a host of other security features to protect your account.

Etoro also offers security features such as two-factor authentication and password encryption.

Additionally, Coinbase carries hot-wallet insurance, and both use cold storage for their coins.

Ease Of Use

The user interface for both platforms is relatively easy. However, eToro does have a slight edge when it comes to usability.

Their platform has been designed with social media in mind and makes it more straightforward for you to follow other traders, copy their trades, and chat with them directly on the platform.

Coinbase also has a clean and easy-to-use design but can be a little more confusing for those not as familiar with trading cryptocurrencies.

Other Features

What eToro offers that Coinbase and other platforms do not is its famous CopyTrader. This feature enables you to automatically copy the trades of additional traders on the platform.

This is an excellent way for novice investors to learn from more experienced traders and grow their portfolios. It also allows you to follow other traders, see their performance, read their trade journals, and chat with them directly on the platform.

On the other hand, Coinbase offers advanced signaling tools that alert you when specific events happen in the cryptocurrency markets.

It's hard to beat eToro's complete trading toolset and social features, as it simultaneously accommodates veteran and casual traders.

Conclusion

When comparing eToro and Coinbase, consider that they offer different features and benefits. While Coinbase can be an excellent option for those new to cryptocurrency trading with its built-in wallet and advanced security, the eToro social trading platform is a complete trading solution that accommodates both novice and experienced traders alike.

Choosing the right platform for you still depends on what you are looking for. If you want to know more about eToro vs Coinbase and other financial services platforms, visit our crypto exchange comparison page. Just answer a few simple questions and find the best crypto exchange for your needs.

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