Since the creation of Bitcoin, hundreds of more cryptocurrencies have been launched. Some are quite valuable, while others are not, but maybe in the future. Every day, millions of people use cryptocurrency exchanges to buy and trade bitcoin. I’m guessing that if you’re reading this article, you’d like to be one of them. Am I correct?
There are over 350 crypto exchanges listed on CoinMarketCap. That’s a lot of exchanges to choose from! Choosing the best exchange for you can be extremely confusing, but have no fear – I’m here to assist you. I’ll inform you about two of the most popular cryptocurrency exchanges in this article: eToro and Coinbase.
A brief overview of eToro
eToro is a social trading platform that provides users with access to a variety of assets such as cryptocurrencies, stocks, and commodities.
Since its inception in 2007, eToro has shown to be a disruptor in the world of trading by making trading accessible to everyone and reducing dependency on established financial institutions.
The platform is a multi-asset trading platform that administers a copy-trading network. This network enables traders to view and copy the strategies of other traders, whether they trade stocks, indices, or digital currencies.
eToro’s describes itself as follows:
“a social trading network in which all traders can see what other traders are trading, whether it’s stocks, indices, or digital currencies.”
According to its co-founder, this is eToro’s primary business. “The majority of our customers now trade stocks, not cryptocurrencies, and the global stock market has continued to break new milestones in recent years.”
A brief overview of coinbase
Coinbase was created by Brian Armstrong and Fred Ehrsam in 2012. Its headquarters are located in San Francisco, California.
Coinbase was founded at a time when other exchanges were struggling and failing. Mt. Gox declared bankruptcy in 2014, three years after it was hacked for the first time. Coinbase, like Bitstamp, aspired to be a different kind of cryptocurrency exchange.
To begin, Coinbase insured all digital assets housed on its platform. Then, when Bitstamp obtained a Luxembourg license, Coinbase obtained a New York BitLicense.
By the end of 2016, Coinbase had achieved the same level of legitimacy in the United States as Bitstamp had in Europe. Additionally, it organized for the acceptance of Bitcoin payments at Dell, Expedia, Time Inc., and other well-known brands.
Coinbase is the first exchange to achieve unicorn status in August 2017! Regrettably, this is not as cool as it sounds. Unfortunately, a financial unicorn is not a legendary horse with a horn. It’s a corporation with a market capitalization of more than one billion United States Dollars (USD), which is still quite remarkable, isn’t it? Brian Armstrong was also ranked tenth on Forbes’ list of the world’s most powerful young people.
eToro vs. Coinbase: Fees
Coinbase and eToro have significantly different charge structures. eToro’s fluctuating spread results in a realistic maximum of 3.5 percent for lesser-known altcoins. You’ll pay between 0.70 percent and 2% to purchase popular coins such as bitcoin or ether. Additionally, eToro charges a fixed fee of $25 for withdrawals.
Coinbase’s 1.49 percent fixed-rate appears to be an easy win. However, that 1.49 percent rate is country-specific and can range as high as 3.99 percent. Additionally, you pay a modest cost for SEPA withdrawals and a $25 wire transfer fee. Coinbase Pro has the lowest trading fees. These charges total 0.25 percent for market takers (traders seeking immediate order fulfillment) and 0.15 percent for market makers (traders who wait on takers to meet a specific price). If you trade in a high volume, you may qualify for a reduction in these fees.
eToro is a superior platform. When you add up all of the fees associated with trading cryptocurrency on both platforms, eToro comes out on top. You may feel as though you are paying more on eToro due to the variable spread, which requires an instant premium to enter a market. However, Coinbase’s gradual drip eventually results in you paying more.
eToro vs. Coinbase: Coin Selection
If you’re wanting to trade a wide variety of products, eToro is the clear winner. Coinbase’s primary objective is to facilitate the exchange of crypto and fiat currencies and hence makes no attempt to compete with eToro’s commodities, equities, and exchange-traded funds (ETFs). In the case of cryptocurrencies, the race is a little tighter. Coinbase now supports 32 coins in some form or another. eToro supports sixteen currencies.
Both platforms support the most popular cryptocurrencies — Bitcoin (BTC), Ether (ETH), and Ripple (XRP). If you’re looking to invest in emerging altcoins such as Zilliqa (ZIL) or Basic Attention Token (BAT), Coinbase is the place to go. Both systems have a somewhat limited list of supported cryptocurrencies.
Coinbase is a superior platform. As implied by the platform’s name, this is a platform for investing in cryptocurrencies. While these coins represent only a portion of the more popular cryptocurrency, they outperform eToro thus far. If you are more accustomed to trading FX currency pairs, eToro offers this feature with BTC/EUR and other pair trades.
eToro vs. Coinbase: Customer Support
The disparate priorities of eToro and Coinbase are most evident in the manner in which each platform distributes its customer support product. Coinbase’s customer service experience is tiered, beginning with its online help center. The FAQ is exhaustive, and the automated chatbot is adequate, if not cutting-edge when it comes to answering more difficult questions. If the bot becomes too hot to handle, Coinbase offers traditional phone and email support.
eToro is not prioritizing this type of service as a simplified social trading platform. eToro anticipates that users will come to the platform with a working knowledge of how an exchange operates. The eToro support center can address simple problems, but it is not a one-stop-shop. If your question is not answered here, you can open a ticket. Expect a delayed answer. You may discover that contacting the community is a more effective way to obtain an answer. After all, it is a social trading platform.
Coinbase is a superior platform. Customer care is a significant reason why centralized cryptocurrency exchanges such as Coinbase continue to siphon liquidity away from more anonymous but less well-serviced decentralized exchanges. If you’re new to cryptocurrency, you’ll probably want the exchange to hold your hand a little bit. This is the premise around which the Coinbase platform is founded – widespread adoption via accessibility. As a result, Coinbase spends heavily in a full-service customer support facility, whereas eToro’s customer care platform is less developed.
eToro vs. Coinbase: Which Is Easier to Use?
Coinbase’s user interface is simple and intuitive. You’ll feel right at home if you’ve arrived here via Yahoo! Finance or another popular financial interface. You can immediately tell that Coinbase is geared toward casual traders, which becomes further clearer when you look at the tiered structure of Coinbase and Coinbase Pro.
Pro is clearly aimed at experienced traders, and its peer-to-peer network appeals to early adopters of cryptocurrency who are accustomed to trading in these types of rooms.
eToro registration is as simple as submitting some basic personal information and verifying your identity. The majority of traders will be able to open an account in under ten minutes. It does, however, make a slight concession to accessibility in order to provide more informed traders with a broader selection of trading items.
eToro is relatively simple to use, but for optimal results, you need to have a fundamental understanding of how FX and leverage function. Additionally, it is fairly easy to trade a larger position than intended if you are inexperienced. eToro’s interface is straightforward to use for beginners, with quick order placement and up-to-date pricing information.
eToro is a superior platform. eToro is geared toward active traders, whereas Coinbase is geared toward casual investors.
eToro vs. Coinbase: Accounts and Features
To attract knowledgeable traders, eToro combines a broad range of trading choices with intelligent integration of third-party cryptocurrency wallets. Outside of the United States, eToro also offers leveraged trading. Naturally, the renowned CopyTrading function is what sets this platform apart from the competitors. copy trading enables any user to emulate another trader, sharing in the leader’s profits and losses – except in the United States.
While Coinbase does offer a signaling tool that provides anonymized statistics on top performers, this is far from the transparent, open platform offered by eToro. Users of eToro enter the platform with the intent of being copied. Coinbase is currently under fire for allegedly disclosing data without the approval of top traders.
Coinbase’s trading options are limited to make things simple, but the company is growing. Coinbase Pro customers have been able to trade leveraged on USD quoted books since February 2020.
eToro is a superior platform. If you’re seeking for a comprehensive trading platform, it’s difficult for Coinbase to compete with eToro while remaining accessible to the average trader. Coinbase Pro’s feature set, on the other hand, continues to expand in order to mirror more sophisticated systems.
The platform you choose is determined by your investor profile. While Coinbase may be superior for onboarding total beginners, eToro’s CopyTrade feature is difficult to top in terms of a typical feature set. If you’re not copying, though, you’ll find Coinbase features significantly easier to access.
If you trade securities, eToro is your only market access option. As a cryptocurrency trader, Coinbase gives you greater market access. With the advent of margin trading in Coinbase Pro, you now have access to the same fundamental capabilities as eToro in this market.
With all other factors being equal, Coinbase is the superior option for newbies. eToro is a great option for copycats or educated traders looking for a more robust experience.