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eToro vs Coinbase • Selection, Security & Features • Benzinga


eToro and Coinbase are both huge hubs for cryptocurrency traders. Coinbase is the largest holder of bitcoin exchange and bitcoin exchange with 35 million users in 100 countries. eToro is the world’s largest “social trading” platform with millions of users in around 170 countries. They are meant to offer different experiences – eToro focuses on creating a social experience around trading while Coinbase focuses on providing a full suite of convenient investing services.

Despite their distinct functionality, there is an overlap between the platforms in terms of providing an exchange for crypto trading. Both platforms are good for beginners, but there are some basic differences you should be aware of before committing to one.

eToro vs Coinbase • Selection, Security & Features • Benzinga

Commissions

Depends on security and leverage

Best for
  • United States Based Cryptocurrency Traders
  • Social traders and copiers
  • Simple user interface
  • Community engagement and follow-up of other traders
Best for
  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform

eToro vs. Coinbase: fees

Coinbase and eToro operate under very different fee schedules. eToro uses a variable spread which amounts to paying a practical maximum of around 3.5% for less popular alt coins. You will pay between 0.70% and 2% to buy the best coins like bitcoin or ether. You also pay a flat fee of $ 25 to withdraw money from eToro.

Coinbase’s 1.49% fixed rate seems like an easy win for Coinbase. But this rate of 1.49% depends on the placement in certain countries – the rate can reach 3.99%. You also pay a nominal fee for withdrawals in the Single Euro Payment Area (SEPA) and a bank transfer fee of $ 25. The lowest trading fees are on Coinbase Pro. These fees are 0.25% for market takers (traders who want immediate orders) and 0.15% for market makers (traders who wait for takers to hit a specific price). If you trade at high volume, you can get these reduced fees.

Best platform: eToro. When you compare all the fees you incur for trading crypto on both platforms, eToro comes out on top. You may feel like you are paying more on eToro as the variable spread means paying an immediate premium to enter a market. However, Coinbase’s slowness ultimately leaves you paying more.

eToro vs. Coinbase: coin selection

If you are looking for a variety of commodities to trade, eToro is the obvious winner. Coinbase wants to focus on trading crypto and fiat currencies, so it doesn’t even try to touch the commodities, stocks, and exchange-traded funds (ETFs) that eToro offers for your wallet. For cryptocurrencies in particular, the race is a bit tighter. Coinbase partially or fully supports 32 cryptocurrencies. eToro supports 16.

You will find the most popular crypto – Bitcoin (BTC), Ether (ETH), Ripple (XRP) – on both platforms. If you want to get started with emerging alternative coins like Zilliqa (ZIL) or Basic Attention Token (BAT), Coinbase is where you need to be. Both platforms are relatively conservative in their selection of supported cryptos.

Best platform: Coinbase. It’s in the name – this platform is a base for investing in coins. These coins may only include the most popular selection of crypto, but they beat eToro so far. If you are more familiar with the forex currency pair trading format, eToro offers you this functionality with BTC / EUR and other pair trades.

eToro vs. Coinbase: Customer support

The divergent priorities of eToro and Coinbase are most evident in the way each platform deploys its customer service offering. Coinbase offers a tiered customer service experience that begins with its online support portal. The FAQ is comprehensive and its automated chatbot is adequate, but not state-of-the-art, to answer more difficult questions. If the bot can’t handle the heat, Coinbase has old-fashioned phone and email support.

As a streamlined social trading platform, eToro just doesn’t prioritize this type of service. eToro expects users to come to the platform with a basic understanding of how an exchange works. The eToro Help Center answers basic questions, but it’s not here to hold your hand. If you can’t get your question answered here, you can create a ticket. Don’t expect an immediate response. You can find a more efficient way to get a response by asking the community. It is a social trading platform, after all.

Best platform: Coinbase. Customer support is one of the main reasons the centralized crypto exchange like Coinbase continues to derive liquidity from more anonymous but less well-served decentralized exchanges. If you’re a crypto newbie, you probably want the exchange to hold your hand a bit. This is what the Coinbase platform is built around: mass adoption through accessibility. As a result, Coinbase is investing in a full-service customer support platform while eToro leaves this functionality less populated.

eToro vs Coinbase: Ease of use

Coinbase’s user interface is simple and intuitive. If you are from Yahoo! Finance or any other popular financial interface, you will feel right at home. You can tell that Coinbase is for casual traders, and it becomes even more obvious after exploring the tiered structure of Coinbase and Coinbase Pro. Pro is obviously aimed at experienced traders, and its p2p platform appeals to early crypto users who are used to trading in these type of rooms.

Registering with eToro is as easy as entering some personal information and verifying your identity. Most traders will be able to set up their account in as little as 10 minutes. However, it sacrifices a bit of accessibility to offer more educated traders a wider variety of trading products. eToro is still easy to use, but you need to have some basic training in how forex works and how to leverage for best results. It is also quite easy to trade a larger position than expected if you don’t know what you are doing. EToro’s platform is easy to navigate for newbies, with straightforward order placement and up-to-the-minute pricing information.

Best platform: eToro. eToro is aimed at active traders while Coinbase targets casual investors.

eToro vs Coinbase: accounts and features

To attract educated traders, eToro combines a wide variety of trading options with sophisticated integration of external crypto wallets. eToro also allows leveraged trading outside of the United States. Of course, the famous CopyTrading feature is what separates this platform from any other competition. CopyTrading allows any user to copy any other trader, participating in the leader’s wins and losses – except in the US

Coinbase offers a signaling tool that gives anonymized data on top performers, but it’s hardly the transparent and open platform that eToro offers. EToro users access the platform seeking to be copied. Coinbase is currently under intense scrutiny as it would release data without the consent of top traders.

Coinbase is limiting its trading options to keep it simple, but it is growing. As of February 2020, Coinbase Pro customers can trade leveraged on USD-listed books.

Best platform: eToro. If you are looking for a complete set of trading tools, it is difficult for Coinbase to beat eToro and remain accessible to the casual trader. However, Coinbase Pro’s feature set continues to grow to model more sophisticated platforms.

Overall winner: eToro

The platform you choose depends on the type of investor you are. Coinbase may be better for the complete beginner on board, but eToro’s CopyTrade feature is hard to beat with any traditional feature set. If you don’t copy, however, you’ll certainly find Coinbase’s features easier to access.

If you trade in securities, eToro is your only choice for entering the market. If you are trading crypto, Coinbase offers broader market access. With the addition of margin trading in Coinbase Pro, you have the same basic functionality in this marketplace that eToro provides.

All other things being equal, Coinbase is best for beginners. eToro is best for copiers or educated traders who want a more powerful experience.

Frequently Asked Questions

Can I transfer between eToro and Coinbase?

1

Can I transfer between eToro and Coinbase?

demand

Chris Davis

1

You can transfer between the 2 and use one to sell your digital currency, transfer them, and buy the other.

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answered

Benzinga

Are eToro and Coinbase good places to buy digital currencies?

1

Are eToro and Coinbase good places to buy digital currencies?

demand

Chris Davis

1

Both are digital currency exchanges and allow you to buy them with less aggravation.

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answered

Benzinga

Benzinga has developed a specific methodology for classifying cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.

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