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Bottom line: eToro USA and Coinbase are both great for beginner crypto traders, but eToro is the best option for those who value social trading features, hands-off investment options, and flexible asset choices (cryptocurrencies, stocks, and ETFs). Coinbase better serves crypto-only traders. It offers a much larger investment selection, and it provides a vast suit of products and trading platforms both for individuals and institutions.
eToro vs. Coinbase: The biggest differences
eToro USA and Coinbase are both well-known platforms that individuals and institutions can utilize to access cryptocurrencies like bitcoin, ethereum, dogecoin, and others. The two platforms also offer crypto storage options, but they differ when it comes to fees, account options and features, and available investment types.
eToro is the best choice for those in search of social trading features and hands-off investing strategies. The exchange lets you copy the portfolios of top-performing traders, and it also offers pre-built portfolios that it rebalances on your behalf. Unlike Coinbase, eToro additionally provides stock and ETF trading. This makes it a better option if you’re looking to build wealth with investments beyond cryptocurrencies.
Coinbase, on the other hand, is a better option for crypto-focused traders. The exchange not only offers 170+ cryptocurrencies (eToro USA only offers more than 25), but it also provides a vast range of products and services for individuals and institutions. Plus, the platform recently launched the beta version of its NFT marketplace.
eToro and Coinbase’s features and account options also vary.
eToro
Coinbase
Account types
Retail
Professional
Account types
Personal investmentInstitutional
Investment choices
Cryptocurrencies, stocks, and ETFs
Investment choices
Cryptocurrencies
Account perks
More than 25 cryptocurrencies
CopyPortfolios and CopyTrader system cater to hands-off investors
100,000 virtual demo account that lets you practice trading without losing any capital
Commission-free stock and ETF trading
eToro Academy
Account perks
170+ cryptocurrenciesCoinbase learning rewards pays you in crypto for watching educational videos about different assetsStaking rewards of up to 5%Digital wallet servicesCoinbase Pro offers advanced tools like trading bots and easily accessible real-time market data; interest rewards, charting tools, and additional security features with Coinbase Advanced TradeBeta version of NFT platform offers charges 0%Coinbase Card offers crypto spending perks; separate platform and services dedicated to institutional clients
Human advisors available?
No
Human advisors available?
No
Robo-advice?
Yes — eToro’s pre-built CopyPortfolios take away the legwork of diversifying and rebalancing your portfolio on your own.
Robo-advice?
No
Is eToro right for you?
Pros
Users can trade more than 25 cryptocurrenciesOffers accounts both for individuals and institutionsHands-off investors can mirror the portfolios of experts and invest in pre-built portfoliosStock and ETF trading also availableVirtual demo account lets you trade up to $100,000 without taking on any real risk
Cons
Limited selection of cryptocurrenciesNot as many services/products for institutional traders, compared to CoinbaseNot available to residents of New York, Minnesota, Nevada, Puerto Rico, Tennessee, Hawaii, Guam, American Samoa, Northern Marianas, and the US Virgin Islands (see a full list of its geographic restrictions here)No margin trading
eToro USA is best for both beginners and community-oriented traders who want to take advantage of social features, and it additionally suits hands-off investors, thanks to its CopyPortfolios and automated investing tools. The exchange currently offers more than 25 cryptocurrencies, including bitcoin, dogecoin, ethereum, and cardano.
Plus, the platform recently launched stock and ETF trading. US users can trade full or fractional shares of both types of investments without commissions, but you’ll need at least $10 to begin. This gives eToro USA a leg up on many crypto exchanges, since most only offer cryptocurrencies.
When it comes to its social trading features and automated tools, eToro offers two options: its CopyTrader™ system and its CopyPortfolios. With the CopyTrader™ system, you can sift through the portfolios of experts and successful traders and have eToro duplicate the same asset allocation in your portfolio.
Its CopyPortfolios, on the other hand, are prebuilt and regularly rebalanced by eToro. The platform currently offers four: CryptoEqual, CryptoPortfolio, Crypto-currency, and TheTie-LongOnly SmartPortfolio. Minimums for these portfolios range from $2,000 to $5,000.
eToro USA also eases the transition into crypto trading for beginners by offering both eToro Academy, a collection of guides and videos on all things crypto and investing, and a demo account that lets you trade up to $100,000 without taking on any real risk.
The eToro mobile app is available on iOS and Android devices.
Read Personal Finance Insider’s complete review of eToro here »
Is Coinbase right for you?
Pros
More than 170 cryptocurrencies; low minimum to tradeTwo separate platforms for advanced traders: Coinbase Pro and Coinbase Advanced TradeCoinbase learning rewards offers interest-earning perks for each course you complete on different crypto assetsAccount options include staking (with interest up to 5%), crypto-backed loans, card perks, digital storage for both individuals and institutions, and much moreNFT trading platform charges 0% in transaction fees (for a limited time only)
Cons
No margin tradingLower balances result in higher feesLimited staking selection
Coinbase caters to individual and institutional traders in more than 100 countries, offering access to 170+ cryptocurrencies and account options like staking, NFT trading, crypto-backed loans, crypto payment perks, and more.
The crypto exchange is particularly suitable for beginners, thanks to both its simple web and mobile platforms and investment products like Coinbase learning rewards. Coinbase learning rewards pays users for watching educational videos about different cryptocurrencies. For instance, after you watch a tutorial on one of its listed crypto assets (such as amp), you’ll have to complete a quiz. You’ll receive the crypto in your account upon completing the quiz.
The Coinbase One subscription service also allows users to sign up for a 30-day free trial, gaining access to fee-free trades, market research, and 24/7 customer support in return. It’s unclear about the fees it charges following the free trial.
Coinbase additionally offers digital wallet storage services, NFT trading (the exchange recently released a transaction fee-free beta version of its NFT platform), institutional services, and a Coinbase Card that lets you spend crypto and earn rewards in return.
Individuals will have the choice between three main account types: the standard Coinbase account, Coinbase Pro, and Coinbase Advanced Trade. While you can take advantage of all of the non-institutional products Coinbase offers with the standard account, the Coinbase Pro subscription additionally includes a trading API that lets you build trading bots, a Websocket feed that gives you access to real-time market data, and charting tools. Coinbase custodial accounts have also been established in a manner to make pass-through FDIC insurance available up to $250,000 per individual.
The Coinbase Advanced Trade account has the same fee schedule as Coinbase Pro, and both offer many of the same features and account perks. But Coinbase Advanced Trade is best for more experienced users who want perks like interest rewards and additional charting tools and security features.
Institutional clients can utilize the Coinbase Prime trading platform, institutional-grade offline storage, ventures fundraising services for crypto startups, commerce services, and more (see more about Coinbase’s institutional offerings here).
The Coinbase mobile app is available on iOS and Android (you can also use the Coinbase Pro iOS and Android mobile apps).
Read Personal Finance Insider’s complete review of Coinbase here »
eToro vs. Coinbase — Frequently asked questions (FAQ)
Is eToro legit?
Yes. eToro USA is a regulated cryptocurrency exchange. It also has money transmitter liceneses in several states.
Can Coinbase be trusted?
Coinbase offers several security features, including two-factor authentication, multi-approval withdrawals for Coinbase Vault, 24/7 customer support, security prompts, password protection, and more.
However, an August 2022 class action lawsuit claims that Coinbase failed to secure customers’ accounts, but the suit is still ongoing. In addition, a Coinbase disclosure revealed that hackers stole from at least 6,000 users in 2021. The crypto exchange also has an F rating with the Better Business Bureau, and that mainly stems from its failure to respond to customer complaints.
However, you’ll ultimately have to decide whether Coinbase is right for you.
How do you make money on Coinbase?
Retail traders will have several options for building wealth on Coinbase. These include staking (this account option pays you in crypto rewards for holding a certain cryptocurrency for a set period of time), trading, and Coinbase learning rewards. Plus, you’ll also be able to earn up to 4% back in crypto rewards.