By now, you have made up your mind and decided to venture into cryptocurrency. The next step is choosing the right platform that suits your trading needs. eToro and Coinbase are platforms you can trade at that are beginner-friendly.
Both trading platforms work similarly, but they do have some differences. For example, Coinbase is based in the US and a crypto-only exchange, while eToro is situated in the UK and is a multi-asset brokerage.
In addition, eToro allows its traders to watch other traders work and mimic their trading moves. However, Coinbase lacks the social aspect.
When choosing the best of the two, you need to consider your trading needs. eToro offers a trade of $100 to get 10, rates at four stars out of five, has 0.75-5% commissions, and it is a full-featured trading platform.
Coinbase, on the other hand, you earn $5 in bitcoin for getting started. Therefore, it is best for a well-rounded platform for cryptocurrency exchange and selection. Commissions are at 0.5-4.5% and rates at 4.5 stars out of five.
At a Glance
| Crypto Exchange platforms | eToro | Coinbase |
| Fees | $5 withdrawal fee and $10 monthly fee after a year of inactivity. Conversion fee for non-USD deposits and withdrawals. | Wire transfers are $10 depositing and $25 withdrawing. A fee of 0.56% per trade, 1.49% for the Coinbase wallets. Credit card purchase fee is 3.99%. |
| Number of cryptocurrencies | 27 | 100+ |
| Security | FDIC AND SIDC insured, private keys, 2FA verification and cold storage. | Insured assets and currencies, cold storage, 2FA verification, biometric fingerprint logins and encrypted digital wallets. |
| Transactions supported | $50,000 per transaction and $200,000 limit per day. | Limitation based on mode of payment and location. $25,000 a day ACH transfers for U.S traders. |
| Commissions | 0.75%-5% spread depending on the cryptocurrency | 0.5%-4.5% spread |
| Offer | Trade $100 get $10 | Get credited $5 for getting started |
eToro
eToro is a trading platform allowing you to invest in the global financial market with various assets like stocks, crypto, commodities, currencies, indices, and ETFs. eToro stocks are owned by the company; hence there is no commission when you invest in stocks, and there is no set limit on the trading volume either.
In addition, the platform allows traders to watch other traders in action with no restrictions.
eToro introduces you to a market with limitless trading options as a trader. For instance, CFDs allow you to invest in the world’s prestigious resources such as gold, barrels of oil, silver, natural gas, copper, and other valuable metals.
eToro enables you to use indices as a means to invest in stocks with the freedom of managing your exposure. Moreover, the stock exchange fluctuation’s profit is either up or down depending on the world’s financial market.
Exchange-traded funds (ETFs) are a flexible option for traders to cheaply trade in the financial markets and invest in them as an underlying asset. All this trade is made at zero commission, meaning that no broker fee is charged, but other fees may apply.
As a beginner, you can open an account and practice your trading skills with a demo.
Then, when you feel ready to trade in real-time, you switch your demo to actual trading as you please. Every new account gets credited with $100,000 in the virtual portfolio; that way, you can assess your trading skills.
| Pros | Cons |
| Zero charges on unleveraged purchases. Zero charges on depositing US dollars. You can trade outside of US using PayPal. There is a demo account with $100,000 virtual currency for beginners to train with. Simple user interface. Allows social interaction of traders for beginners to mimic the top-performing traders. | Minimum deposit fee is $50. Struggling customer support. |
Next: Read our complete eToro review
Coinbase
Coinbase has no physical address, but this large trading wallet and platform is located in the United States. The company deals with approximately 100 different cryptocurrencies. However, the company charges a higher fee compared to its competitors.
While Coinbase security features are lucrative, bitcoin trading is highly volatile, so always be aware of the risks, especially as a beginner.
Coinbase charges a fee of 0.5-4.5%, and your account needs to have a minimum of $2. When you open an account with Coinbase, you are automatically awarded $5 in bitcoin.
Coinbase doesn’t accept the social aspect of trading. However, they provide learning videos, tutorials, and exams for beginner traders. By enrolling in some of their classes, you can earn yourself specific cryptocurrencies.
Using Coinbase is more straightforward as all you need to do is download the app, which is available to iOS and Android users. Coinbase also ensures its digital currencies in case of hacking or security breach.
The company is not FDIC or SIPC protected but not to worry, in case there is a breach, the insurance policy will cover any customer funds lost.
This online platform offers trading currencies such as digital currency, software, payment processing, bitcoin, technology, API, cryptography, a bitcoin exchange, digital currency exchange, virtual currency, FinTech, ethereum, ether, and blockchain.
| Pros | Cons |
| Offers traders about 100 trading cryptocurrencies. Requires a minimum of $2 in your account. Provides learning videos and exams for beginners. The company is insured, which ensures the safety of its clients’ accounts. Awarding $5 in bitcoin to every new trader after opening an account. Has an app for easier trading. Allows crypto-to-crypto currency trading. | Offers a higher trading fee compared to other cryptocurrency exchange platforms. Poor customer support. Lack of a physical office. |
Coinbase vs eToro – An In-Depth Comparison
Let’s get into a more detailed breakdown of the comparison between the two platforms.
Trading Fees
Both trading platforms are not crystal clear on how much they charge. For instance, eToro doesn’t charge traders to deposit money. However, they do have the highest charges when it comes to spreading. The rate ranges from 0.75-5% depending on the crypto used.
In addition, they charge a withdrawal fee which varies for other counties. The non-United States users incur a $5 withdrawal fee, a $10 cost after a year of inactivity, and conversion fees for non-USD deposits.
eToro supports bank accounts, debit cards from US traders, and wire transfers when depositing funds. However, international users, especially Europeans, have more depositing options.
Coinbase isn’t transparent about its spread. The platform charges a fee when you make deposits, but you incur no charges when you move funds to its wallet. It will cost you 1.49% when you deposit directly from your bank to your account.
In addition, Coinbase will charge you depending on how much you transact.
Coinbase allows you to deposit funds via debit cards, credit cards, wire transfers, PayPal, digital wallets, and Automated Clearing House (ACH).
eToro has an overall lower fee compared to Coinbase despite the minimum deposit of $50. However, it would be best to consider how you intend to utilize the trading platform and what expenses will be involved. Unexpected fees may eat into your revenues if you don’t plan.
Main Platform Features
Coinbase is a beginner-friendly trading platform that provides learning videos and exams. Their exchange system has an intuitive interface. In addition, the platform allows you to deposit and withdraw via PayPal for non-United States countries.
eToro, on the other hand, is a friendly trading site that makes the consideration on beginners. It allows them to view how other traders are working and mimic their moves.
The account comes with a demo that has $100,000 virtual currencies to learn and perfect your trading skills before trying the real deal. The funds can also be transacted via PayPal for traders outside the US.
Both accounts have great platform features, but eToro has a lucrative deal that makes it easier for beginners to trade.
Security Features
When it comes to choosing a cryptocurrency exchange, security is crucial. You want assurance that the individuals you entrust with your money actively safeguard your assets. eToro argues that FDIC and SIPC cover their platform to ensure the security of your funds.
However, the FDIC doesn’t insure all forms of cryptocurrencies.
Coinbase is not FDIC, and SIPC insured; however, they have their customers’ funds insured. Additionally, in case of a security breach or hacking, Coinbase promises to refund its customers and funds lost.
When it comes to security, the winner is Coinbase because it has criminal insurance in place in case of hacking or theft. Although both exchanges keep the majority of their assets in cold storage, making them more challenging to hack.
They utilize multi-factor authentication at the user level and participate in bug bounty programs to encourage ethical hackers to find any system problems.
Crypto Available
eToro supports a more extensive list of fiat currencies compared to Coinbase. In addition, the platform allows you to trade with over 30 cryptocurrencies, stocks, commodities, indices, and ETFs.
When working with eToro, you can conveniently sell luxurious items as gold, barrels of oil, silver, natural gas, copper, and other valuable metals.
Coinbase gives its clients over 90 supported cryptocurrencies to trade. In addition, the platform allows crypto-crypto transactions.
So even though Coinbase accepts a shorter list of fiat currencies, they support a long list of cryptocurrencies. Both platforms trade cryptocurrencies, but you can count on Coinbase to access the upcoming altcoins.
Coinbase is the definite winner with access to about 100 cryptocurrencies in terms of cryptos available. eToro offers to trade with only 30 common and old cryptos without access to the newer alternatives.
Maximum Trading Amount
eToro has a restriction of $50,000 per transaction and $200,000 per day, and the range depends on the coins you are transacting or trading.
The amount you can spend with Coinbase is dependent on your method of payment and location. For example, AHC allows transfers of up to $25,000 per day in the United States.
eToro takes the lead on the maximum trading amount by allowing a maximum transaction of $200,000 daily.
Ease of Use
eToro is beginner-friendly; however, it is easier for traders with basic knowledge of trading cryptocurrency. The demo account is helpful, but transacting in real-time is complicated and even confusing first-timers. In addition, for beginners, some transaction types and accessible options may be unfamiliar.
Coinbase, on the other hand, tries to keep things straight and simple. The site has a primary interface where customers buy and sell. In addition, Coinbase offers learning videos and exams to beginners where you can learn how to trade. You even earn cryptocurrency by watching video clips. How cool is that!
Both trading platforms have apps for mobile use similar to the web browser. Coinbase has a 4.7-star rating on Apple and a 4.4-star rating on Google, whereas eToro has a 3.7-star rating on Apple and a 4.2-star rating on Google. So it looks like Coinbase takes the lead this round.
Customer Care
There is a difference in priorities between the trading platforms when it comes to customer support. Coinbase offers customer services in different forms, such as the FAQ to help with difficult questions and an automatic chatbot to answer straightforward questions. If the pressure is too much for the bot, Coinbase offers assistance via calls and email support.
eToro has a struggling customer support network. Customers are expected to know how things work without needing assistance now and then.
The support center can answer easy questions. However, if you have technical queries, you can submit a ticket but don’t expect assistance right away. It may be easier for the trader to consult fellow traders as it is a social platform.
Coinbase is the best option in terms of customer care as they understand that most of their traders are beginners who may need guidance.
Wallets
Wallets or cryptocurrency wallets are physical devices or programs that store both private and public keys for cryptocurrency transactions. Some investors prefer saving their funds in a wallet to leaving it on the trading platform. Therefore, both trading platforms have wallets, but they operate very differently.
For eToro, only customers can access the wallet, whereas in Coinbase, anybody, including non-Coinbase customers, can access the Coinbase wallet.
In Coinbase, you can move your coins back and forth from the wallet to the trading platform and vice versa as you please, but in eToro, once you put your cash in the wallet, you can’t put them back in the trading platform.
eToro charges a fee of 0.5% when moving your crypto to the wallet, while in Coinbase, the transaction is free.
eToro wallet only supports common currency like ethereum, Ripple, Litecoin, Stellar Lumens, Bitcoin Cash, and Bitcoin. Coinbase, on the other hand, supports the above and any ERC-20 built on the Ethereum network.
Overall winner
Both trading platforms shine in their different features, making it difficult to point out a winner or a loser. However, eToro is the overall winner of the two based on their features. Either way, the best option depends on you, the investor.
If you’re a beginner Coinbase is a better option, and it provides wider market access.
Which is the best overall?
eToro is suitable for traders who appreciate its low fees. Traders can also learn from the actions of others and mirror their trade moves. Copying may be risky because even top-performing traders are capable of making mistakes.
The platform offers a limited number of cryptocurrencies, which may limit some traders. The good part is that they give customers demo accounts with virtual currencies to learn how to trade.
As a beginner, then Coinbase is the trading platform you need. The downside to opening an account is the high fees. Besides that, they offer educational resources for beginners to learn the basics of trading before getting to the actual trading market.
Coinbase also supports a lot of cryptocurrencies which gives you a variety of options to choose from.
When choosing the platform to trade at, pick one that best suits your skill and knowledge level. Don’t be afraid to test waters with the crypto exchange because you can open more than one account. Just make sure you have done enough research before spending your hard-earned cash.
Which is best for beginner buyers?
All factors considered Coinbase is the best beginner-friendly platform of the two. Coinbase stands out because it offers tutorials and a learning platform for those who know nothing about trading cryptocurrencies.
eToro is excellent for trading gurus because the only thing they offer beginners is the ability to watch other traders in action, and they can choose who to mimic. However, complete newcomers will have a tough time understanding the basics and the lingo.
Final Word
If you feel ready to trade in cryptocurrencies and other forms of trade in the online financial market, then get yourself an account already. However, for beginners, take your time and learn the terms to avoid confusion once you start trading or lose all your money.
Online trading is the modern way of making money in the financial market using digital currencies. Online trading platforms such as eToro and Coinbase enable you to trade with crypto, stocks, oil, gold, silver, natural gas, and other luxurious commodities. So open your account today and kick start your journey to being a trading guru!
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