eToro and Coinbase are two of the largest cryptocurrency exchange platforms out today. Both offer trading on an extensive list of cryptocurrencies that provide no-hassle payments and come with a mobile app, trading tools, and much more. Today, we pit the two raging bulls together and see who comes out on top – eToro or Coinbase.
What’s With the Horns?
eToro is an Israeli cryptocurrency exchange founded in 2007. The platform allows you to buy stocks, cryptocurrency, and CFDs (contracts for difference) for Forex. The company is gearing up to be a one-stop shop for traders and, as such, is regulated by many financial authorities, including the UK’s FCA and Australia’s ASIC.
eToro is currently the world’s largest ‘social trading platform’, with over 25 million registered users. It allows its users to participate in copy trading by copying the portfolios of other, more successful investors. In January 2014, eToro added cryptocurrencies to its investment instruments, allowing users to trade in Bitcoin and other currencies.
A Base for What?
Coinbase, on the other hand, is a cryptocurrency-exclusive platform founded in 2012 in the US. It is currently one of the largest cryptocurrency exchanges in the US by trading volume.
What sets it apart from eToro is that it only deals in cryptocurrency and crypto-related assets. You can borrow money or even earn interest by borrowing or lending your crypto. While not as heavily regulated as eToro, it still tries to cooperate with regulatory authorities. It holds licenses in 42 US states, an e-license from the UK’s FCA, and In principal approval in Singapore.
What Cryptocurrencies are Available?
When pitting two crypto exchanges against each other, the first order of business is to compare the variety of cryptocurrencies available in the outlets. Coincidentally, this is also one of the most defined differences between the two outlets.
eToro currently hosts about 78 cryptocurrencies. While that’s nothing to scoff at, Coinbase supports more than 150 cryptocurrencies and even has its own NFT marketplace.
One thing to note is that both platforms house the most popular cryptocurrencies available. You can trade Bitcoin, Ethereum, Dogecoin, Shiba Inu, Avalanche, Litecoin, Solana, and many more.
Another thing to remember is that while eToro’s cryptocurrency count is low, it makes up for it through its deals with multiple assets – from crypto to stocks and ETFs. A few other intricacies also exist between the two.Â
Coinbase negates that advantage by offering stablecoins like Tether or USD Coin. It also handles DeFi coins much better. When talking about cryptocurrency alone, Coinbase has eToro pretty much beat.
Also Read:Â eToro Adds Chainlink (LINK) and Uniswap (UNI) for Trading
Let’s Talk About Cash: Fees Comparison
Comparing fees in crypto is inherently difficult due to each exchange structuring them differently. Further complications arise because Coinbase has two different platforms with separate fee structures.
eToro is a cut above the rest when it comes to fees. It has some of the lowest rates in any US exchange. Investors will be set back 1% of transaction value when buying. An additional 1% is charged when selling crypto. There’s a 2% withdrawal fee, where $1 is the minimum and $100 is the maximum charge. A $10 monthly fee after a year of inactivity and conversion fees for non-USD deposits and withdrawals. There are no additional fees for different payment methods.
Coinbase is a bit harder to unravel, as it charges fees depending on the network congestion. The amount depends on the value of the transaction. The fiat conversion fee depends on the payment method. These figures change if you’re a Coinbase Pro account user. There are no withdrawal fees in Coinbase.
UX (User Experience): How Does it Measure Up?
Both companies offer impeccable user experiences, so much so that it’s one of the biggest reasons for their success.
eToro graciously provides you with a personalized dashboard. From it, you can see the most popular currencies of the day, along with the biggest gainers and losers. While it’s not the hardest nut to crack, it’s also not the most user-friendly for beginners. The exclusive copy trading feature integrated into the platform somewhat compensates for this lack of beginner-friendliness, but it is overall still harder to use.
On the other hand, Coinbase is a bit easier to navigate. Harboring a similar dashboard with gainers, losers, and the most volatile and popular currencies, Coinbase has a similar user experience. Both offer trading on several cryptocurrencies, but Coinbase is the go-to for altcoins or stablecoins. However, the ease of use with Coinbase is much higher than eToro, making it much more user-friendly.
Regulation and Security
Both exchanges are regulated, with excellent track records. Both store the majority of clients’ assets in cold storage offline – this makes hacking a much more arduous task, amplified by their two-factor authentication. US citizens get an even better deal with FDIC insured cash deposits for up to $250,000.
eToro is heavily regulated by many heavy hitters in the financial regulation sector. They include the UK’s Financial Conduct Authority (FCA), the Cyprus Securities and Exchange Commission (CySEC), and the Australian Securities and Investments Commission (ASIC). All funds are safely stored in tier-1 banks.
Coinbase is also regulated, holding licenses from 42 US States and Puerto Rico and an e-license from the FCA. All client funds are held in banks situated in the US. The platform also boasts having all client-held currencies be insured and lets users transfer assets into a personal ERC-20 compatible wallet.
The Final Verdict
While both are titans in their own right, a jungle can only ever have one KING.
Both are solid exchanges and have their areas of expertise – shining in those areas. The big difference between them is that eToro is mainly a crypto broker. Users can invest in crypto alongside stocks, ETFs, and more. Coinbase is a purely dedicated crypto medium tailored towards that circle of customers. eToro is geared more towards traders with at least some measure of experience, while Coinbase drifts toward newer customers.
Differences aside, eToro comes out on top of the two platforms. Coinbase is tailored more towards newbies and is the better medium for trading altcoins. For everything else, though – low fees, better trading tools, uncomplicated payments, and copy trading won’t make eToro our winner for traders.
Also Read:Â Why Americans Choose Coinbase Over Other Crypto Exchanges
