If you’re only interested in investing in crypto, Coinbase is clearly a superior platform to eToro. However, if you also want to invest in stocks and other assets, eToro is certainly worth considering.
eToro and Coinbase both provide a user-friendly way of investing in cryptocurrency, while still offering features that advanced users will appreciate. Therefore, it’s not too surprising that many users who want to get started with investing in crypto are deciding between these two very platforms.
In this article, we’ll compare eToro vs. Coinbase to help you decide which platform is right for you. Please keep in mind that while eToro also offers stocks, forex and other markets, this comparison is from a cryptocurrency investor’s perspective.
eToro vs. Coinbase — Side-by-side comparison
There’s quite a few key differences between Coinbase and eToro that you should know if you’re deciding between the two platforms. Here’s how the two platforms stack up against each other in key categories:
eToro | Coinbase | |
---|---|---|
Number of supported cryptocurrencies | 58 | 200+ |
Crypto trading fee | 1% | 0.60% and under |
Staking support | Yes | Yes |
Account funding options | Bank transfer Credit/debit card PayPal Various online payment services in supported countries | Bank transfer Credit/debit card PayPal Crypto |
Leveraged crypto trading | Yes, up to 5x (only for CFDs) | No |
Minimum deposit | $50 | $50 |
Mobile app | Yes (iOS, Android) | Yes (iOS, Android) |
Crypto card | No | Yes |
Copy trading | Yes | No |
*Data as of June 19, 2023
At the time of writing, there’s 58 different cryptocurrencies available for trading on eToro. Meanwhile, Coinbase offers more than 200 different coins and tokens for trading.
If you’re only interested in trading major coins like Bitcoin and Ethereum, this might not make a difference for you, but if you also want to trade altcoins with a smaller market cap, Coinbase is the better option.
Before we dive deeper into the comparison of Coinbase vs. eToro, let’s quickly learn the basics of both platforms.
About eToro
eToro is an online trading platform that was established in 2007. eToro was initially specialized in traditional markets, giving users an accessible way of trading stocks, forex markets, indices and more. In 2014, eToro also began offering cryptocurrency trading products.
eToro has built out an impressive platform for what it calls “social trading”. This is because eToro users can share trading and investing strategies with each other, and users can also automatically follow the moves made by more experienced traders through copy trading.
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About Coinbase
Coinbase is one of the oldest cryptocurrency exchanges in the industry, having launched in 2012. Over its first decade of operations, Coinbase has established itself as one of the most trustworthy crypto trading platforms and even achieved a public listing on the NASDAQ stock exchange.
Coinbase has a reputation for rock-solid security, as the exchange has never had its wallets compromised even though plenty of other cryptocurrency exchanges have suffered major security breaches that amounted to losses of tens or even hundreds of millions of dollars.
In addition, Coinbase lists a large number of different cryptocurrencies, which makes it a viable exchange for any type of cryptocurrency trader and investor.
Create Coinbase Account
Supported cryptocurrencies
At the time of writing, eToro supports about 58 different cryptocurrencies for trading. The platform offers a solid selection of crypto assets. As long as you’re fine with not having access to low market cap coins, eToro’s range of listed coins should be sufficient for most traders.
Here, we can see Coinbase’s strength as a crypto-focused platform, as it lists more than 200 different cryptocurrencies. So, if you value being able to trade as many different cryptocurrencies as possible, Coinbase is the clear winner in this category.
Account funding options
eToro offers quite a few account funding options. It supports bank transfers, credit/debit card payments, PayPal, Neteller, Skrill, as well as a variety of online payment services that are only available in certain jurisdictions (for example Klarna and Trustly).
You can fund your Coinbase account with a bank transfer, credit/debit card payment or PayPal. However, the key difference here is that you can deposit cryptocurrency to your Coinbase account, while you can’t fund your eToro account with crypto.
Overall, eToro offers a bit more flexibility when it comes to account funding options, although the fact that they don’t accept crypto deposits will be a deal breaker for some.
You can get started with either eToro or Coinbase even if you’re planning to trade very small amounts. The minimum deposit to both platforms is $50, which is quite a reasonable level.
Fees
eToro charges a 1% fee on buying and selling cryptocurrency. If you eToro account has been inactive for more than 12 months, eToro will also charge you with a $10 monthly inactivity fee.
The trading fees on Coinbase start at 0.60% and get progressively lower for users that generate a lot of trading volume. Even though Coinbase is certainly not among the cheapest crypto trading platforms in terms of fees, it is still well ahead of eToro.
If you’re planning to trade cryptocurrency actively, you’ll save on fees on Coinbase compared to using eToro.
Leveraged trading
eToro users can access leverage when trading cryptocurrencies. However, users need to be aware that when they’re trading cryptocurrencies with leverage on eToro, they are actually trading a derivative instrument called a contract for differences (CFD). In the same way, if you go short on a cryptocurrency on eToro, you’re actually trading a CFD.
On eToro, the maximum amount of leverage you’ll be able to access on crypto trading will depend on where you live. However, the maximum crypto trading leverage offered by eToro is 5x.
Meanwhile, Coinbase doesn’t offer leveraged cryptocurrency trading. Leverage was available on the Coinbase Pro platform in the past, but the exchange removed the feature, perhaps due to regulatory concerns.
Crypto wallet apps
Both eToro and Coinbase have mobile apps that can be used as cryptocurrency wallets.
eToro offers its crypto wallet within the scope of their eToro Money app. Users can log into this wallet with the same username and password that they use on the main eToro platform. While this is convenient, it means that the user’s wallet is ultimately controlled by eToro and not the user.
Meanwhile, Coinbase offers the Coinbase Wallet, which is a non-custodial cryptocurrency wallet. This means that the user has full control over their private keys. Even though it’s non-custodial, Coinbase Wallet offers several helpful integrations with the Coinbase exchange, such as the ability to purchase cryptocurrency on Coinbase and have it transferred directly to Coinbase Wallet.
Special features
One of the most unique features of eToro is copy trading, which allows users to automatically follow the moves made by more experienced traders and investors.
For each investor offering copy trading services, you can see their strategy, risk level and track record. You can follow up to 100 investors simultaneously. To limit risk, you can choose how much of your portfolio you want to allocate to copying any particular investor.
When it comes to Coinbase, one of their best features is the Coinbase Card, which is a Visa card that allows you to spend the cryptocurrency balances you have on Coinbase at any merchant that accepts Visa. Your cryptocurrencies will be automatically converted to fiat at the time of purchase, and you’ll also receive a percentage of your purchase back in the form of cryptocurrency.
The bottom line
If you’re only interested in investing in crypto, Coinbase is the obvious choice over eToro as it offers a much larger selection of cryptocurrencies as well as a more impressive suite of products tailored for crypto investors.
However, if you’d also like to access other markets and value the ability to make all your trades under one roof, eToro is certainly a solid option. Another reason why a crypto investor or trader would want to choose eToro is the platform’s copy trading feature, which Coinbase doesn’t offer at the moment.
eToro’s main advantages over Coinbase from a cryptocurrency trader’s perspective are copy trading and the ability to use leverage. Meanwhile, Coinbase provides a crypto card with crypto cashback rewards, a much bigger selection of listed cryptocurrencies, and a superior crypto wallet app.
Of course, eToro and Coinbase are just two players in the highly competitive crypto exchange sector. If you’re interested in exploring more options, make sure to check out our picks for the best cryptocurrency exchanges on the market today.
Source: https://coincodex.com/article/28768/etoro-vs-coinbase/