eToro vs Coinbase – Which is Best in 2023?

We compared two crypto trading platforms, eToro vs Coinbase – both aimed at beginner and intermediate traders – to find out which one is the best in 2023. As you might expect, each platform had its pros and cons and areas in which it was a better option compared to the other.

But with beginners and intermediate traders in mind, one crypto trading platform still came out on top.

eToro vs Coinbase Compared

What are eToro and Coinbase?

Both eToro and Coinbase are platforms where you can trade and invest in cryptocurrencies. However, each platform approaches the task differently, and eToro offers several other asset types for trading, including stocks and exchange-traded funds (ETFs).

eToro Overview

eToro’s history dates back to 2007 when the company was founded in Israel under the name RetailFX. Over the years, the beginner-friendly platform added new features and trading markets, eventually growing to over 33 million users worldwide. Today, eToro offers trading in stocks and ETFs, as well as cryptocurrencies, commodities, and even foreign currencies.

Although eToro offers trading in a wide range of asset classes, eToro’s social trading features are the biggest appeal for many traders. You can follow other traders’ posts or even copy their trades using eToro’s copy trading.

In this guide, we’ll explore eToro vs Coinbase from a crypto-trading perspective, although we’ll also consider the additional trading opportunities eToro offers that may make it a better choice for some investors.

Coinbase Overview

Coinbase began operating as a crypto exchange in 2012, and does not offer trading in any other asset classes. Since its founding, Coinbase has grown to become the largest publicly traded crypto exchange in the world and now offers over 250 cryptocurrencies.

Like eToro, Coinbase aims to make its platform easy to use for new traders. However, Coinbase offers both a simple buying interface and Coinbase Advanced, its lower-cost trading platform.

Tradable Cryptocurrencies

Coinbase offers a much wider selection of cryptocurrencies, now over 250, with nearly 600 trading pairs, meaning you can trade crypto for crypto without first converting to cash.

By contrast, eToro offers 80 cryptocurrencies for trading across all markets, with certain cryptos not available in some markets. For example, in the US, you can trade 23 cryptocurrencies.

Both platforms, however, offer access to the top cryptocurrencies by market capitalization. Bitcoin (BTC) and Ethereum (ETH) combined make up nearly 70 percent of the crypto market value. Institutional investment interest in BTC and ETH continues to grow.

The table below shows which top 10 cryptos are available for trading on each platform. We did not include stablecoins, which act like crypto equivalents of traditional currencies like the US dollar.

The total number of cryptos available for trading doesn’t tell the whole story, though. eToro offers nine of the current top 10 cryptos, whereas Coinbase (with more than three times the number of tradable cryptos compared to eToro), offers just seven of the top 10 cryptocurrencies.

You can build a more diversified “top ten” portfolio on eToro.

Where you are in the world also makes a difference regarding trading availability on eToro. BNB and SOL, for example, are tradeable cryptocurrencies on the platform. But if you’re in the US, you can’t trade these two assets on eToro. This isn’t uncommon in the industry. Until recently, Coinbase didn’t offer trading for XRP, a crypto it once offered — and now offers again.

Account Types

Most traders will use a personal account, which both eToro and Coinbase offer with easy onboarding. However, both platforms also offer additional account types for business or institutional investors.

eToro Account Types

If you need to trade in a business account or are an experienced trading professional, eToro offers additional account types for these situations.

Here are eToro’s four account types:

• Personal: eToro’s personal account provides an easy way to get started trading cryptos or other assets, such as stocks or ETFs. Personal accounts can access popular features, including copy trading, which lets you follow the moves of other traders, and smart portfolios, a feature that provides a curated selection of assets hand-picked by eToro analysts.
• Professional: eToro’s professional account targets investment professionals with a balance of €500,000 or more. Professional accounts can take on larger risks, which is why this account type requires prior experience and a substantial balance.
• Corporate: eToro also supports business accounts in major markets like the UK. You’ll need to provide documentation on your qualified business and deposit at least $10,000. Certain markets may require minimum deposits of $20,000 or $50,000.
• Islamic account: To comply with Sharia law, eToro offers Islamic accounts which do not charge (or credit) overnight fees for trading products such as CFDs (Contract-for-difference).

eToro Demo Account (Virtual Portfolios)

Although not a distinct account type, eToro’s demo account, also known as a virtual portfolio, deserves a mention here. We’ll explore virtual portfolios in more detail in a bit, but each account type listed above qualifies for a virtual account as well where you can practice trading or test trading strategies.

Coinbase Account Types

You’ll find three account types for trading on Coinbase:

• Personal: Coinbase’s personal account offers easy onboarding for new traders as well as those with experience trading cryptocurrencies. You can also choose between simple trades and advanced trading, but both trading platforms are accessible from the same trading account.
• Business: If you need to invest in crypto through your business, Coinbase has a solution. There’s also an option to use Coinbase as a merchant services provider (and accept crypto payments). However, this is a separate service available to businesses called Coinbase Commerce.
• Institutional/Prime: Qualified institutional investors can use Coinbase Prime, which offers both trading and custodial services.

Coinbase One

Coinbase users can also consider Coinbase One, a $30 monthly subscription that eliminates trading fees while delivering a few additional benefits including priority support.

eToro Fees vs Coinbase Fees

Trading fees can create an invisible headwind when investing in crypto, although getting the lowest fees often requires using an advanced trading platform that comes with a steep learning curve. As a result, the platform with the lowest fees may not be the best choice for all investors because advanced trading can be more difficult to use and therefore bring more risk of costly mistakes.

When comparing Coinbase vs. eToro in regard to fees, it’s important to compare both of Coinbase’s trading platforms (simple and advanced) against eToro’s one-size-fits-all trading fee structure.

Interestingly, Coinbase can have either the lowest fees of the group – or the highest – depending on whether you use Coinbase simple trades or the advanced trading platform.

Lowest Fees: Coinbase Advanced

With Coinbase Advanced, you’re interacting directly with the order book, so you don’t pay a spread on limit orders. We’ll cover spreads in more detail in a bit. Typical accounts will pay 0.6% for limit orders or 0.8% for market orders. Advanced trading fees changed recently, increasing from 0.4% for limit orders and 0.6% for market orders.

Lower trading fees are available based on trailing 30-day trading volume, as shown below.

Average Fees: eToro

To its credit, eToro keeps crypto trading fees simple to understand. You’ll pay 1% on buy orders and 1% on sell orders. The 1% fee is added to what eToro calls the “market price,” which reflects a spread between the bid and ask price. The result is a price difference of higher than 1%, but typically still lower than Coinbase’s simple trades (up next).

With eToro, you’ll see the price you’re paying, including fees on the order screen.

Highest Fees: Coinbase Simple Trades

You’ll find a simple trade box throughout the Coinbase website and prominently in the mobile app. Like eToro’s platform, Coinbase simple trades use a spread, quoted as 1% for BTC. In addition, you’ll pay a variable fee based on the order amount. Smaller orders pay the highest percentage in fees. For example, on a $10 BTC order, you’ll pay a $0.99 fee plus a 1% spread on the BTC cost, about 11% in total.

The lowest fee you’ll pay for Coinbase simple trades is 3.84%.

eToro Fees vs Coinbase Fees Compared

Coinbase vs. eToro Non-Trading Fees

Other fees, such as deposit or withdrawal fees can affect overall trading costs as well. These can be just as tricky to understand as trading fees. For example, Coinbase charges a 2.5% deposit fee for PayPal. However, you won’t see this fee when using simple trades. Instead, the fee applies to deposits (in general), which you can use for simple or advanced trades.

eToro and Coinbase each have pros and cons related to non-trading fees.

• On Coinbase, you’ll want to watch for deposit fees — or deposit via ACH bank transfer to avoid paying deposit fees.
• On eToro, budget for conversion fees (variable) if you’re not depositing in USD and withdrawal fees ($5). You’ll also want to log in at least once per year to avoid the inactivity fee. At $10 per month, it’s costly.

User Experience

Both Coinbase and eToro target beginners, although there are opportunities for advanced traders on both platforms.

Account Setup

eToro and Coinbase make onboarding an easy process. KYC (Know Your Customer) rules make the process a bit longer, however. Expect to upload proof of identity, much like you’d need to do when opening a bank account. Both platforms offer a similar onboarding experience and are among the most streamlined in the industry.

Design

Finding your way around on each platform is key to ease of use.

eToro wins this one, offering a mirror-image experience with both desktop and mobile. Most of what you’ll need to find is within a click or two from the main menu on the left.

By comparison, Coinbase isn’t more difficult to navigate – but it often feels more difficult by adding features that can be confusing even for experienced traders. Click on “web 3” in the menu, for example, and you’re whisked away to another corner of the crypto universe, a place where beginners and those with a few trades under their belts can get lost easily.

Funding

Both eToro and Coinbase offer multiple funding methods, including bank transfers, debit cards, and PayPal. eToro gets the edge here, however, because there’s no fee for deposits. Coinbase charges 2.5% to deposit via PayPal.

Crypto Trades

For new users, trading is the most intimidating aspect of investing in crypto. Both Coinbase and eToro are well-suited to beginners, but eToro does a better job of making crypto easy to buy.

Let’s look at the process on both platforms.

eToro Crypto Trading

eToro’s crypto trading is more intuitive for newer traders. Just find a crypto you want to purchase and click on buy to start an order. Orders default to the “trade” order type, which helps prevent unfilled orders and support requests from confused traders.

Your purchase price is clearly displayed, including spreads and fees.

Click on “portfolio” in the menu to see your profit or loss (including fees) at a glance.

Coinbase Crypto Trading

By contrast, Coinbase’s simple trades show a price in the order preview (which includes a 1% spread), but trading fees are separate. This structure makes it more difficult to know your real cost.

In the example below, trading fees of $3.84 add about $1.86 to each COMP token in this order.

Advanced trading on Coinbase offers trading with no spreads, but comes with its own challenges for newer traders. To trade on Coinbase advanced, you need to invest some time learning about limit orders versus market orders because the cost of trading depends on which you choose. Fees for limit orders are lower on Coinbase Advanced.

• Limit orders let you choose the price for your trade.
• Market orders fill the order from existing limit orders in the order book. Other traders set the price for the trade.

Coinbase Advanced defaults to allow market orders even when you choose a limit order, causing higher-than-expected fees in some cases if you don’t change the setting. 

Note the “allow taker” setting on the advanced platform, shown below. That means the order might be filled as a market order. To get the lowest rates, you’ll want to change this to “post only,” which is a true limit order.,” which is a true limit order.

There’s also room for confusion regarding funding methods on Coinbase. Simple trades on Coinbase support debit card deposits to pay for your order. Once you switch to the advanced trading platform, this option disappears.

Experienced traders might be willing to navigate these platform-specific Coinbase oddities to save on fees. But the structure isn’t as inviting for beginners.

If you’re buying in smaller amounts or only buying occasionally, the cost savings available through Coinbase Advanced might not be worth the extra effort.

Differences Between eToro and Coinbase

When comparing eToro vs. Coinbase, it’s important to illustrate the user experience for trades you can make on either platform. But it’s also useful to know about features available on each platform that aren’t available on the competing platform.

eToro offers several features not available on Coinbase, including a demo account, copy trading, and smart portfolios. We’ll explore these in more detail later in the eToro vs. Coinbase comparison. Of course, eToro offers stock and ETF trading as well, possibly eliminating the need for a second brokerage account.

Coinbase, however, offers interest on USDC holdings. USDC is a popular stablecoin pegged to the value of the US dollar. Coinbase also offers its debit card in more locations, including the US and UK — and allows users to choose a new crypto reward each month for purchases made with the card. Typically, rewards fall into the 1% range with occasional opportunities to earn 3% or more in crypto rewards.

Mobile Apps

The eToro and Coinbase mobile apps offer the same functionality you’ll find on the respective web apps, although in a condensed form. Overall, eToro does a better job of matching the web experience on mobile devices.

eToro’s app, available for Android and iOS, looks great and feels snappy.

Search for an asset or choose an asset in your portfolio to start trading. Fees and spreads for the mobile app mirror those on the web app. You’ll also find all of eToro’s trading tools like copy trading and smart portfolios. More on those in a bit.

The Coinbase mobile app offers both simple trades and advanced trades, although the lower-cost advanced trades take a bit of searching to find.

You’ll find advanced trades by clicking the square menu icon next to the search bar.

Also, keep an eye on fees for your trades on Coinbase. The trade below showed a $2.99 fee. When we checked again later, the fee was $1.99.

The same trade on the Coinbase web app shows a fee of $1.99.

However, you’ll save money by using Coinbase Advanced, which is available on the mobile app as well.

Similar to the earlier example, the fees don’t always look quite right. We should get the lower “maker” trading fee, but the order is quoted with a higher “taker” fee.

Like Coinbase Advanced, eToro also offers limit orders on both the mobile app and the web app.

On eToro, limit orders give you more control over the price of your trade but choosing a limit order won’t change the trading fee. You also face the risk that your trade may not execute right away — or perhaps not at all — if your limit order is outside the current trading range.

eToro vs. Coinbase Crypto Wallet App

When you buy crypto, you’re using a crypto wallet, even if the platform takes care of the technical details and just shows an account balance. A crypto wallet offers a secure way to store your crypto on the blockchain.

Wallets secured by your login on crypto exchanges are called custodial wallets. The exchange or trading platform provides custody for your crypto, meaning they hold it for you.

But what if you want to hold your crypto yourself – or do something with it, like putting your crypto to work in decentralized finance applications (DeFi)? Well, that’s where a crypto wallet app comes into the picture.

eToro and Coinbase both offer wallet apps, but their approaches are quite different.

• eToro Money: You can’t transfer crypto directly from your eToro trading account to a third-party crypto wallet like MetaMask, a popular self-custody crypto wallet for ETH. Instead, you can transfer certain crypto assets, including ETH, to the eToro Money mobile app. From eToro Money, you can send your crypto to another wallet that offers more features. The eToro Money app doesn’t offer true self custody; eToro still has the private keys to the wallet.
• Coinbase Wallet: The Coinbase wallet supports a handful of cryptocurrencies, including BTC and ETH, and supports many of today’s most popular DeFi applications such as Aave, Compound, and more. With Coinbase, you can send supported cryptocurrencies directly to the self-custody Coinbase Wallet or another self-custody wallet like MetaMask.

The takeaway: eToro’s solution makes crypto custody easier for beginners, but eToro Money comes with some caveats. Depending on which cryptocurrencies you decide to trade, there might not be a way to get your crypto off the eToro platform. The eToro Money app supports eight cryptocurrencies.

• BTC
• ETH
• XRP
• LTC
• BCH
• XLM
• TRX
• ADA

If the crypto you’re trading on eToro isn’t in the list above, you can hold your position on eToro’s trading platform or you can sell to exit the position.

For those who just want to invest in crypto for potential price appreciation, eToro’s solution could work. Newer crypto traders may not even want to move their crypto.

But if you want to do something more with your crypto, you might want to manage at least some of your investment on Coinbase or a similar exchange that allows you to move your crypto to your own cryptocurrency wallet with fewer restrictions.

eToro Money vs Coinbase Wallet

In the table below, you can see eToro Money takes a simpler approach. You won’t be able to do as much with your crypto as you can with Coinbase Wallet. On the other hand, Coinbase Wallet comes with a much steeper learning curve.

eToro Money Mobile App

The eToro Money app lets you take cryptocurrencies off the eToro platform. Only eight cryptos are supported, however, and you may have to wait 1 to 5 days before the funds reach eToro Money.

Once the crypto funds are in your eToro Money account, you can send your crypto to another wallet if needed. Others can also send crypto to your eToro Money account from an external wallet or another eToro Money wallet.

eToro Money doesn’t allow transfers back to your eToro trading account, though. It’s a one-way street.

Coinbase Wallet

Available as both a mobile app and a Chrome extension, Coinbase Wallet is a very busy place in comparison to eToro Money.

Coinbase Wallet supports bridging, which refers to transferring tokens between blockchains. The wallet also supports swaps, in which you can “swap” one type of crypto for another directly from your wallet and without using your trading account.

These two mobile crypto wallets serve different use cases. eToro Money is simple to use, but doesn’t offer as much functionality. Coinbase Wallet offers many more features, but may be much more than beginning traders need.

Coinbase vs eToro Trading Tools & Features

Trading tools and unique features can make a platform feel more like home than others. Although both Coinbase and eToro have built their businesses on people-friendly features, Coinbase’s unique features appeal to a more advanced trader.

Coinbase Advanced Trading

As shown previously, using the simple trade box on Coinbase can lead to much higher trading costs. As an alternative, you can use Coinbase Advanced.

Advanced trading also offers chart indicators. We added Bollinger bands and MACD to the default candlestick chart.

Coinbase Earn

With Coinbase Earn, you can earn more crypto in various ways.

• APY offers: Currently, Coinbase pays 5% APY for holding USDC, so you can earn a yield in between trades.
• Staking: By using cryptocurrencies like ETH to help validate network transactions, you can earn a yield. The process is called staking, and Coinbase supports staking for ETH, ADA, SOL, DOT, and more. Earn up to 10% staking cryptos like ATOM, all with a few clicks on the Coinbase platform.

Coinbase Web3

If you want to dabble in Web3, a moniker given to decentralized finance applications like lending platforms, Coinbase now links to popular Web3 apps from your Coinbase account homescreen. You’ll need a self-custody crypto wallet like Coinbase Wallet to connect to the apps, however. Think of Coinbase Web3 as a tour guide in the world of dApps.

eToro Copy Trading

If you’ve got $200 or more to put to work but you’re not sure where to invest, you can consider eToro copy trading. Follow the moves of successful traders on the platform with nearly real-time trades. Just choose an amount to allocate to the copy trade and eToro takes care of all the details automatically.

In some markets, like the UK, you can choose to copy traders who invest in stocks, ETFs, or crypto. In other markets, you may be limited to crypto copy trades only due to regulatory restrictions.

Either way, eToro makes it easy to find traders with above-average returns. Read the profiles to get a feel for investment strategies or use eToro’s virtual portfolio to copy trades without any risk.

We’ll discuss virtual portfolios, sometimes called demo trading, in more detail shortly.

eToro Smart Portfolios

eToro’s analysts put together targeted portfolios for nearly any investment goal. Formerly called CopyPortfolios, eToro’s smart portfolios let you buy a basket of assets targeting an investment niche. These work much like mini-ETFs, but without the management fee.

You’ll just pay trading fees and spreads where applicable, but you’ll need at least $500 to buy into a smart portfolio. Opportunities abound. Twelve-month returns for the “Crypto-currency” smart portfolio reached nearly 40%, providing similar performance to standout smart portfolios in traditional assets, like eToro’s “InTheGame” portfolio that topped 40% returns.

eToro Staking

Like Coinbase, eToro offers staking for select cryptos. Currently, the selection is limited to Tron (TRX) and Cardano (ADA).

Demo Accounts

Many traders think of copy trading as eToro’s leading feature. And, yes, it’s top notch. But eToro’s virtual accounts might make a close second for some. Every account gets a $100,000 demo account to use as well — and this balance is available before you add any real funds to your eToro account.

After you make your first deposit, you can continue using your demo account to test trading strategies or just to learn your way around the platform.

Demo accounts make eToro an outstanding choice for those new to investing. You can make trades just like you would with real money but without the risk of losing real money.

To access your virtual portfolio, select “Switch to Virtual” on the left-hand menu. When you’re ready to make real trades, “Switch to Real.”

Virtual trades are available for stocks, ETFs, and cryptocurrencies. You can also use your demo account to test out features like copy trading.

In some cases, minimum transaction amounts differ for virtual portfolios compared to real trading. For example, copy trading minimums jump from $200 for real trades to $6,310 using the virtual portfolio. Smart portfolio minimums increased to $6,310 as well. Adjust these values, as needed.

eToro’s virtual portfolios give you access to all basic trade types. However, you won’t be able to trade options in a demo account (options use a mobile app), nor can you make Contract for Difference (CFD) trades such as forex or indices trades.

Payments & Minimum Deposit

Most new investors won’t need to make time-sensitive trades, but it’s helpful to know how long it takes to fund your account and which funding methods are available for each platform.

Payment options and fund availability may vary by region.

Note: Coinbase debit card deposits can only be used with simple trades. This includes Google Pay and Apple Pay debit-card based deposits. Coinbase Advanced does not support debit cards.

eToro vs Coinbase Customer Service

Both eToro and Coinbase offer multiple ways to reach out if you need support.

Coinbase offers phone support at the following phone numbers:

• US/International: 1(888) 908-7930
• UK: +44 808 168 4635
• Ireland: 1800 200 355
• Germany: +49 800 0010726

However, you might get faster service with chat.

You’ll find chat support for Coinbase on the Coinbase help page. eToro’s chat support is available in the help center, or you can find the link in the left menu when you’re logged into your account.

Chat is usually the fastest way to get a response. If you need to open a ticket, you can use eToro’s customer service page.

We’ve used chat support for both platforms in the past and found both eToro and Coinbase to be responsive. However, your results may vary. The Trustpilot scores and reviews for each platform suggest many users experienced difficulty using Coinbase or getting support for the exchange.

Regulation & Security

Government regulation isn’t synonymous with security in the crypto space, but having a watchdog keep an eye on trading platforms can be beneficial.

Both eToro and Coinbase are regulated by regulatory agencies in their respective trading markets.

Regulatory oversight is part of the security solution. Exchanges and trading platforms can also take steps to provide a more secure trading environment.

• Cold storage: Crypto wallets that generate and store the private keys offline are called cold wallets. Both eToro and Coinbase offer cold wallet storage, although it’s not clear what percentage of crypto assets are held in cold storage on each platform nor is there a way for users to select cold storage.
• Two-factor authentication (2FA): Two-factor authentication helps ensure account safety by restricting access based on access to a secondary device. eToro uses SMS (text messaging) for its 2FA. Coinbase requires SMS authentication at a minimum but also allows you to set up 2FA with a more secure authenticator app, like Google Authenticator.
• Federal Deposit Insurance Corporation (FDIC) pass-through insurance: Both eToro and Coinbase provide pass-through insurance on cash deposits for US customers. This coverage is offered through partner banks and follows standard FDIC limits ($250,000 per account). Crypto assets are not FDIC insured.
• Insurance: Both eToro and Coinbase have insurance policies. However, this coverage may only offer limited protection (or none at all) for crypto assets. eToro carries a policy that protects against employee theft as well as insolvency. Coinbase carries a policy that offers limited crime protection, protecting against risks like platform breaches.

While both platforms are generally considered safe for trading, crypto platforms are prime targets for hackers. As your balances grow, consider moving some of your crypto assets from your trading account to a self-custody crypto wallet.

eToro vs Coinbase – Our Verdict

Although both eToro and Coinbase market their platforms as beginner-friendly ways to trade crypto, eToro does a better job of guiding new traders through their first trades. eToro’s crypto trading fees are simpler and don’t require using an advanced platform to get the lowest fees. While you don’t have the massive selection of cryptocurrencies you’ll find on larger exchanges, you can trade the assets that drive most of the crypto market, including BTC and ETH.

So where does Coinbase fit? If you need more advanced features, like staking, or you trade more frequently and want lower trading fees, Coinbase Advanced may be a fit for you.

For many traders, and particularly those newer to trading crypto, however, eToro offers a more welcoming experience without the high fees you’ll find with Coinbase simple trades.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two minutes to learn more.

References

• https://www.finra.org/rules-guidance/rulebooks/finra-rules/2090
• https://www.nasdaq.com/articles/breaking-barriers-how-bitcoin-is-creating-opportunities-for-institutional-investors
• https://www.sec.gov/Archives/edgar/data/1493318/000121390021045777/ff42021_etorogroup.htm
• https://www.fdic.gov/resources/deposit-insurance/brochures/deposits-at-a-glance/
• https://www.sec.gov/answers/spread.htm

FAQs

Eric Huffman

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Eric Huffman

Eric Huffman has a diverse background ranging from business management to insurance and personal finance. In recent years, Eric's interest in finance topics and in making personal finance accessible led to a focus on cryptocurrency topics. Eric specializes in crypto, blockchain, and finance guides that make these important topics easier to understand. Publications include Milk Road, Benzinga, CryptoNews.com, Motor Trend, CoverWallet, and others. Always learning, Eric holds several certifications related to crypto and finance, including certificates from the Blockchain Council, Duke University, and SUNY. When he's not writing, you might find Eric teaching karate or exploring the woods.

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