Everyday, crypto traders and investors are faced with the dilemma of deciding which exchange to use. While both eToro and Coinbase are top exchanges, we bring you a comparison of the two to help you choose the one that best suits your purpose.
Before we go into the eToro vs Coinbase comparison, you should know that the choice of which exchange to use lies in your purpose for using the exchange. You may be looking for the exchange that charges the lowest transaction fees for example. On the contrary, the other person may be looking for an exchange that supports a particular payment method that is more convenient for them.
Whatever your aim is, we hope this review helps you to make the right choice. There are several factors to compare, but this review covers fees, number of supported cryptocurrencies, Ease of use and Deposit methods.
The table below is a quick overview of the key aspects and features of each exchange.
eToro is a social trading cryptocurrency exchange. This means you can use the platform to learn crypto trading from expert traders. Founded in 2007, the Israeli exchange supports users from all over the world except in countries where local regulation forbids the use of crypto. There are currently over 17 million registered etoro users from over 100 countries.
Perhaps the coolest thing about eToro is the fact that it also supports Forex trading. This makes it a one-stop destination for those who wish to trade both crypto and Forex. The copy trading feature also allows newbie traders to easily trade profitably by copying more experienced traders and learning in the process, which is great too.
eToro is a registered and fully regulated exchange. Because of this, it operates under strict regulations put in place to protect its users. The exchange is regulated by FCA, CySEC and ASIC and funds are safely stored in tier 1 banks, while users’ information is secured with SSL encryption.
Coinbase is the largest cryptocurrency exchange in the USA and one of the largest in the world. It was founded in 2012 and fully regulated by the U.S. authorities. The exchange went public earlier this year, making it a publicly traded company. Coinbase boasts of being one of the most liquid exchanges in the world, thanks to its aggressive listing of cryptocurrencies.
Though it was founded much later than eToro, it now has roughly 56 million registered users. Coinbase serves customers from over 100 countries worldwide including the U.S. where it is based. According to the exchange’s website, 98% of its customers’ funds are stored offline to reduce the risk of it getting stolen. Sensitive customer data is also stored offline, while the website runs on SSL encryption. Funds in wallets are protected using AES-256 encryption.
The only charge on eToro is a flat $5 withdrawal fee which was recently cancelled for U.S users. Apart from this, fees are charged on spreads for users who trade cryptocurrencies. There is also a $10 per month inactivity fee charged on the account after 12 months without logging in.
Coinbase charges fees for buying, selling and converting cryptocurrencies. These are not fixed and can be influenced by the payment method, the volume of the trade and volatility or liquidity at the time of placing the order. The exchange also charges a flat 2.49% fee on all transactions using the Coinbase card, except for USDC whose transaction has 0 fees. There are charges for spreads as well.
eToro have a lot of hidden fees like the $10 per month inactivity fee, whereas Coinbase has a clearer and more transparent fee structure.
eToro currently supports 29 cryptocurrencies, including top coins such as BTC, BCH, ETH, LTC and LTC among others. The others are DeFi tokens such as LINK, UNI, YFI and AAVE.
Coinbase currently supports close to 80 cryptocurrencies and is likely to list many more in the future. These include the top cryptocurrencies like BTC ETH, XRP and of course, a lot of ERC-20 tokens and stablecoins.
Coinbase support 80 assets and eToro only supports 29.
eToro was specifically designed with new users in mind. This makes the user interface very simple and easy to use for about just anyone. Coinbase UI is also quite simple, but not as simple as eToro’s which is meant to help new traders learn trading from experienced ones.
Both platforms are very intuitive and easy to use, it would not be fair to say one is objectively better than the other from a user interface standpoint.
eToro offers 9 deposit methods including Credit/Debit cards, Rapid Transfer, Skrill, iDEAL, Klarna/Sofort Banking, Bank Transfer and Online Banking-Trustly (EU Region).
Coinbase has 5 deposit methods, including Deposit, PayPal, 3D Secure Credit Card, Debit Card and Credit Card.
For users outside of the United States, eToro has a wider variety of Deposit Methods. If you are a user in the USA - Coinbase has better deposit methods.
As earlier stated, both eToro and Coinbase are top exchanges. However, considering the above factors in eToro vs Coinbase comparison, eToro is much more user friendly with less fees, an easier interface to use and many more payment options for international users.
However, this is not definitive as U.S customers may find Coinbase easier to use because it is locally regulated, so think before making a choice.
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