Coinbase vs eToro: How They Work and the Differences

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

Types of fees

In terms of cost, eToro is significantly cheaper than Coinbase.

This is because eToro is a 100% commission-free broker.

On Coinbase, you will pay 1.49% when you buy cryptocurrencies and again when you sell. Also, while Coinbase charges 3.99% to buy cryptocurrencies 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 Bitocin purchase on both Coinbase and eToro.

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

Now, let’s repeat the same artificial example, but this time, on eToro.

Deposit 1,000 GBP on eToro – pay an FX fee of 0.5%. It’s 5 GBP
You buy 1,000 GBP of Bitcoin without commissions, then pay 0 GBP transaction fees
Sell your Bitcoin when it’s worth £2,000 – no commission again
Withdraw the proceeds to your card, paying an FX fee of 0.5% again. It’s 10 GBP
All in all, the same process on eToro only costs you 15 GBP in fees, while on Coinbase it is 109.19 GBP. Thus, you saved a total of 94.19 GBP.

Deposit method

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

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 opportunity arises.

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

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 cryptocurrency trader who has made a steady profit since joining the platform

So if the trader in question assigns 10% of their wallet to Bitcoin, you will do the same
This means that 50 GBP of Bitcoin will be added to your wallet

eToro’s Copy Portfolio feature also allows passive investing, but it works a little differently. This is because these wallets are managed by eToro staff. This means that the provider 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 on eToro that focus exclusively on cryptocurrencies, while the other types of Portfolio Copy focus on stocks and ETFs.

On Coinbase, there are no Copy Trades or Copy Portfolio features, which means that 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 industry. This is verified by over 35 million account holders for the verified Coinbase it reaches. 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 cryptocurrencies, we suggest that eToro is by far the best choice.

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

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