eToro vs. Coinbase: How the Crypto Exchanges Compare

Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.

Note: The prominent crypto exchange FTX filed for bankruptcy, setting off a chain reaction impacting other exchanges and leading various cryptocurrency values to plummet. Until the dust settles, proceed with extreme caution; it may be wiser to park your funds in one of the best high-yield savings account until the crypto market stabilizes.

*Coinbase is currently facing charges by the US Securities and Exchange Commission (SEC), which claims Coinbase broke securities rules. Coinbase denies these allegations and has filed a motion to dismiss the charges.

eToro vs. Coinbase: The Biggest Differences

eToro USA - Product Name Only and Coinbase - Product Name Only are both well-known investing platforms that individuals and institutions can use to access cryptocurrencies like bitcoin, ether, dogecoin, and others. The two platforms also offer crypto storage options. But eToro and Coinbase 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 digital currency like cryptocurrencies.

Coinbase, on the other hand, is a better option for crypto-focused traders. The exchange not only offers 250+ cryptocurrencies (eToro USA only offers 25 cryptos in the US), but it also provides a vast range of products and services for individuals and institutions. Coinbase now offers the beta version of its NFT marketplace.

Is eToro Right for You?

Who eToro is Best For

eToro USA - Editorial Name Only is best for both beginners and community-oriented traders who want to take advantage of social features. It additionally suits hands-off investors, thanks to its CopyPortfolios and automated investing tools. eToro is also the better option for investors wanting to invest in stocks and ETFs as well as crypto. 

Read our guide for the best robo-advisors>>

Ways to Invest With eToro

eToro offers over 25 cryptocurrencies, including bitcoin, dogecoin, ether, and cardano. 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:

• CopyTrader^™ system: Allows users to sift through the portfolios of experts and successful traders and have eToro duplicate the same asset allocation in your portfolio. 
• CopyPortfolios: Prebuilt and regularly rebalanced by eToro. The four portfolio options are CryptoEqual, CryptoPortfolio, Crypto-currency, and TheTie-LongOnly SmartPortfolio. Minimums for these portfolios range from $2,000 to $5,000.

eToro USA - Editorial Name Only 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.

Can You Trust eToro?

eToro currently has an F rating with the Better Business Bureau. The BBB awards businesses with ratings from A+ to F, which means eToro has the lowest possible grade. 

The BBB states that the reason that eToro has such a low rating is multiple unresolved complaints filed against the business. Regardless, the BBB says its rating system doesn't necessarily guarantee that a company will or won't be reliable or perform well. Make sure to do your due diligence by performing your own research, or talking with friends or family that have used the business. 

On August 3, 2023, the Australian Securities and Investments Commission (ASIC) sued eToro over supposedly volatile trading of CFDs and inappropriate screen tests. eToro responded by stating it will consider the allegations and respond accordingly. 

Is Coinbase Right for You?

Who Coinbase is Best For

Coinbase - Editorial Name Only caters to individual and institutional traders in more than 100 countries, offering access to 250+ 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.

Ways to Invest With Coinbase

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 for 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.

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. 

Institutional clients can utilize the Coinbase Prime trading platform, institutional-grade offline storage, venture 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).

Insider guide to the best investment apps>>

Can You Trust Coinbase?

The Better Business Bureau has given Coinbase an F rating due to over 2,000 complaints filed against the business. There are also several lawsuits filed against Coinbase. 

In 2022, Coinbase paid a $100 million penalty to settle a lawsuit with the New York State Department of Financial Services after the department claimed Coinbase failed to comply with the NY banking law and DFS regulations. 

On June 6, 2023, the SEC began investigating Coinbase after a lawsuit was filed against the business for supposedly offering crypto trading on its unregistered national securities exchange, broker, and clearing broker. The SEC also claimed Coinbase allowed sales on its crypto asset staking-as-a-service program. After denying these claims, Coinbase is currently filing motions to dismiss the SEC's charges. 

eToro vs. Coinbase — Frequently Asked Questions (FAQs)

Which is better: eToro or Coinbase? 

Coinbase is a better platform for investors wanting to trade a huge selection of different coins and tokens (250+ cryptocurrencies available) while earning up to 6% in staking rewards. eToro, on the other hand, is a better option for investors wanting to trade crypto, stocks, and ETFs. 

Is eToro cheaper than Coinbase?

Coinbase requires a Coinbase - Account Minimum minimum to start investing, whereas eToro requires a eToro USA - Account Minimum minimum. Neither minimum is high, but Coinbase is technically cheaper. eToro charges a 1% fee on crypto assets when you buy or sell (0% for stocks and ETFs). Coinbase charges a 0.50% spread when you trade, plus a transaction fee from $0.99 to $2.99. You may pay slightly more for Coinbase Pro and Coinbase Advanced Trade transactions. 

Why You Should Trust Us: How We Reviewed eToro and Coinbase

We compared eToro USA - Editorial Name Only and Coinbase - Editorial Name Only crypto exchanges using Personal Finance Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 0 to 5. 

Crypto exchanges are investing platforms that generally offer multiple coins and tokens, staking rewards, trading tools, and other educational resources. Some investing platforms are better for more advanced investors or active investors, while others may better suit beginner investors and passive investors. eToro and Coinbase were evaluated with a focus on how they performed in each category.