Cryptocurrency trading on Coinbase vs eToro. Biggest differences

BlogJanuary 6, 2022

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There are hundreds of crypto brokers currently operating in the world. However, not all brokers bring peace of mind to investors. In previous articles, we have pointed out the most reliable and safe brokers. Two of them are the participation of Coinbase and eToro. In this article, we help you see the biggest differences between Coinbase vs eToro

Cryptocurrency trading on Coinbase vs eToro. Biggest differences

Types of Fees

In terms of costs, eToro is significantly more cost-effective than Coinbase. This is because eToro is a 100% commission-free broker.

At Coinbase, you will pay 1.49% when you buy crypto and again when you sell. Furthermore, while Coinbase charges 3.99% to purchase crypto with your debit card, eToro only charges 0.5%. In general, the difference here is huge.

To highlight this in more detail, let’s see an example of how much you would pay for a 1,000 GBP purchase of Bitocin at both Coinbase and eToro.

Let’s start with Coinbase. So you decide to buy 1,000 GBP worth of Bitcoins with your debit card
You are charged 3.99% – that is 39.99 GBP
A few months later, you decide to sell your Bitcoin when it’s worth 2,000 GBP
You need to pay a 1.49% trading commission i.e. 29.80 GBP
Then you decide to withdraw the money to your debit card. After setting aside the 29.80 GBP commission, this leaves you with 1,970.20 GBP
However, you’ll need to pay a 2% withdrawal fee when transferring cash to your debit card – so that’s another £39.40
According to the example above, you paid a total of 109.19 GBP by buying and selling Bitcoin at Coinbase.

Now, let’s repeat the same contrived example, but this time, at eToro.

You deposit 1,000 GBP at eToro – pay an FX fee of 0.5%. That’s 5 GBP
You buy 1,000 GBP worth of Bitcoins with no commission – so you pay 0 GBP transaction fees
You sell your Bitcoin when it’s worth £2,000 – no commission again
You withdraw the proceeds to your card, again paying an FX fee of 0.5%. It’s 10 GBP
All in all, the same process at eToro costs you just 15 GBP in fees, while at Coinbase it’s 109.19 GBP. Thus, you have saved a total of 94.19 GBP.

Deposit method

At Coinbase, you can top up with a debit card or bank account. These payment methods are also supported at eToro. However, eToro also allows you to deposit with credit cards, as well as Paypal, Skrill, and Neteller e-wallets.

Cryptocurrency trading on Coinbase vs eToro. Biggest differences
Deposit methods on eToro

Passive Investment

Coinbase is a 100% self-made cryptocurrency broker. This means that you are 100% responsible for choosing which cryptocurrency to buy and sell and when the occasion arises.

However, if you want a form of passive income. eToro offers you 2 innovative options of Copy Trading and Copy Portfolio.

The Copy Trade feature allows you to choose from thousands of profitable eToro users, which you can then copy as you like.

For example, you decide to invest 500 GBP in a crypto trader who has made a steady profit since joining the platform
Then if the trader in question allocates 10% of their portfolio to Bitcoin, you will do the same
This means 50 GBP worth of Bitcoins will be added to your own portfolio
The Copy Portfolio feature at eToro also allows for passive investing but works a little differently. This is because these portfolios are managed by the staff of eToro. This means that the supplier determines which assets to add to the portfolio, when to buy when to rebalance, and when to sell. There are two types of Portfolio Copy at eToro that focus exclusively on cryptocurrencies, while the other Portfolio Copy types focus on stocks and ETFs.

At Coinbase, no Copy Trades or Copy Portfolio features exist, which means the platform is not suitable if you want to benefit from a form of passive income.

In conclusion, there is no doubt that Coinbase and eToro are both the best crypto brokers in the field. This is verified by over 35 million account holders for the verified Coinbase it achieves. And eToro has nearly 30 million users.

The main attractions here are the super user-friendly experience, as well as a safe and secure way to access so many popular cryptocurrencies.

However, if you are looking for the best way to buy crypto, we suggest that eToro is by far the better choice.

This is because the FCA-regulated broker allows you to buy crypto without commission. Furthermore, eToro offers additional payment methods – such as credit cards and e-wallets, as well as fully automated cryptocurrency trading services.

* See more: The complete guide eToro from a to z

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