Coinbase vs. eToro: Which Crypto Exchange Is Right for You | 2022 Bear Market

Coinbase and eToro are two respected trading platforms

Are you curious about Coinbase vs. eToro? Wondering which exchange is right for you? In this blog post, we'll compare the two exchanges and help you decide which one is best for your needs. They both offer different user experiences and benefits. We'll cover everything from fees to security to user experience, so you can make an informed decision to move forward.

Intro to eToro and Coinbase

Being a leading online brokerage, eToro offers multiple trading platforms, including cryptocurrency and stock trading. eToro was one of the few online trading platforms, which supported cryptocurrency trading back in 2014. At present, this platform supports over 40 different digital currencies.

On the other side, Coinbase is the largest cryptocurrency exchange in the U.S., which supports over 170 digital currencies. Apart from attractive features and advanced trading platforms, Coinbase has also gained the reputation of a beginner-friendly trading platform for seniors and millennials alike.

Below, we have drawn a comparison between Coinbase and eToro, which are both well-liked and trusted, even during this uncertain market. This will help you choose the best possible exchange among the top competition. So let’s break it down!

Crypto Platform Coinbase

Coinbase

Coinbase is a popular cryptocurrency exchange for new Bitcoin investors.

Coinbase allows its users to buy, sell, or swap digital currency. Apart from this, they also offer crypto lending services. By lending your cryptos, you can earn crypto interest.

Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. They are headquartered in San Francisco, California.

This platform offers two major types of trading accounts, i.e. Coinbase Standard and Coinbase Pro.

The Coinbase Standard platform comes with a user-friendly interface. However, Coinbase Pro is a more advanced platform, built specifically for experienced crypto investors.

Once users of the Coinbase regular platform have gained experience in trading, it's a natural progression to upgrade to Coinbase Pro for more in-depth tools and functionality.

Coinbase also offers a crypto wallet, which can hold over 4,000 cryptocurrencies, NFTs, and crypto tokens. Through this wallet, it is also possible to access various decentralized apps (dApps).

In addition, Coinbase has a native stablecoin named USDC.

Main Features

  • Advanced trading platforms
  • Multiple trading accounts
  • Coinbase Wallet

Key Features

  • Recurring Buys
  • Mobile apps
  • Debit card access
  • Vault Protections

Pros

Easy-to-use platform

  • Multiple trading accounts
  • Supports over 170 cryptocurrencies
  • Accepts fiat currencies
  • No setup fee

Cons

  • Available in limited countries
  • Doesn’t support a few smaller cryptocurrencies
  • Higher fees
  • Doesn’t offer Demo account

Crypto Investment Platform eToro

eToro

eToro isn’t just a cryptocurrency exchange, it also serves as a multi-asset broker. This platform allows you to buy and sell stocks, cryptocurrency, CFDs, and ETFs. eToro distinguishes itself from other brokers as it works as a functional crypto exchange.

Etoro was founded in 2007 by brothers Yoni and Ronen Assia and David Ring.

It also comes with a social trading network, which supports the ‘Copy Trading’ technique. This is the most distinguishing feature of this platform. It allows copying the trading patterns of experienced investors. You can choose among the thousands of experienced traders and copy their trading strategies.

Its social trading network also allows traders to chat. Through this feature, users can comment on news and share their perceptions regarding different crypto coins.This makes it easy to learn what other traders are thinking about the prospects of a particular crypto asset or investment strategy.

eToro is a suitable platform for beginners, as the platform has an active community to share thoughts.

Users can learn crypto trading through social features such as chatting and news feeds. In the U.S., eToro only offers crypto trading. With over 40 supported digital coins, it has become a well-established digital exchange.

Main Features

  • Multi-asset Platform
  • Highly Regulated
  • Virtual Trading Account

Key Features

  • Crypto Wallet
  • Mobile trading app
  • Smart Portfolios
  • Demo account

Pros

  • Availability of ‘Copy Trading’ feature
  • Supports 40+ crypto assets
  • Allows free stock and ETF trading
  • Easy-to-use mobile app

Cons

  • Slow withdrawals
  • Inactivity fee
  • Higher withdrawal fee

eToro and Coinbase Comparison

This section provides you with an overview of these two investing exchanges. We have selected a couple of features to help with determining what is the better fit for your needs.

Fees

When comparing the fees of both these exchanges, eToro clearly takes an edge. This is due to eToro’s lower fees. The crypto traders and investors only pay 1% of the transaction amount when buying or selling crypto.

Irrespective of the payment method, eToro doesn’t charge any additional charges.

On the contrary, the fee structure of Coinbase is relatively complex. There are two types of fees charged by Coinbase if you own a retail standard account. The first one is the flat fee ($0.99 to $2.99), which depends on the value or amount of a transaction.

The second type of fee is percentage-based. Depending on the payment method used for funding, such a fee could range from 1.49% to 3.99%.

User Experience

Talking about the user experience, both Coinbase and eToro stand close to each other. Each of these platforms offers the best possible experience. The ease of use is the key element, which makes these crypto exchanges stand out among the rest.

eToro offers a personalized dashboard for its users. Here, you can easily explore the crypto market. Apart from showing the prices of popular coins, it also shows the sell, buy, and hold ratings for crypto offerings. And it provides extra convenience for the user to identify the potential trades.

Coming back to Coinbase, this platform also offers a similar dashboard. It gives you an insight into the losers, gainers, and top volatile cryptocurrencies. Nevertheless, Coinbase lacks buy and sell ratings.

Mobile Apps

Both Coinbase and eToro offer mobile apps for Android and iOS. These apps offer similar features, as one can find on the web-based versions. Through these crypto trading apps, you can buy/sell cryptocurrencies and monitor the market easily.

Technical Charting

Technical analysis is available with both Coinbase and eToro. However, the charts displayed on eToro are easy to understand. On the contrary, charts on Coinbase are complex and designed for experienced active traders.

Final Verdict

To conclude, both Coinbase and eToro offer straightforward and easy-to-use crypto trading platforms. You just need to click ‘Trade’ on the cryptocurrency of your choice.

However, there are certain distinguishing aspects associated with each platform. For instance, Coinbase charges a higher fee than eToro. Besides, the fee structure of Coinbase is complex too.

On the contrary, Coinbase allows you to trade a wide range of crypto products. Not only this, but Coinbase also helps you earn interest through crypto lending. This is among the most lucrative features that draw the attention of both beginners and seasoned investors.

In fact, these features divert our verdict in favor of Coinbase as the best crypto exchange. However, you might have a different opinion based on preferences. Please do your own due diligence in deciding what fits your investing goals.

It's no secret we are in a crypto winter! Wealth is often achieved for disciplined investors who weather the storm! There will be another bull market to turn the tide.

Risk Disclosure: Any investments come with an inherent risk, where you could end up making less money than what you put in. Before investing your hard-earned cash, be sure to speak with licensed professional financial advisor first. Always remember that past performance is not an indication of future returns.

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