Coinbase vs. eToro: Better CEXs for crypto trading
Sep 23, 2025・6 min read
Choosing where to buy crypto is as critical as deciding which tokens to trade. Not all crypto exchanges offer the same user experience, and traders who don't research their brokerage beforehand may find they can't access everything they want (or, worst case scenario, run into security concerns).
Of the many platforms now offering crypto services, Coinbase and eToro are well-regarded, beginner-friendly centralized exchanges (CEXs). Both companies have reputations for transparent operations with hundreds of cryptocurrencies and millions of global users. However, pitting Coinbase versus eToro reveals several differences that make each platform better for some situations than others.
In this guide, learn what separates Coinbase and eToro so you can make a well-informed decision for your cryptocurrency trading needs.
What is Coinbase?
Coinbase is a CEX specializing in digital assets and a major player in the North American market. Founded in 2012, this San Francisco-based company has steadily risen to become America's leading CEX, with millions of global users and $425 billion worth of assets under management.
Coinbase is primarily used for buying and selling cryptocurrencies on desktop and mobile, but it’s expanded these services for individual, commercial, and institutional clients. In recent years, a few of those new offerings have become signature features. These include:
- Crypto debit cards: Coinbase launched its Coinbase Card in 2019 to make it easier to spend crypto. This card works like any other Visa debit card, but users pull crypto from their Coinbase account to make daily purchases, then earn rewards in their preferred cryptocurrency.
- Coinbase Wallet: If crypto traders want to take ownership over their digital assets, Coinbase offers a self-custodial wallet as a mobile app and desktop browser extension. Although the Coinbase Wallet makes it easy to link with an exchange account, the wallet is separate from the Coinbase app, so users don't need a Coinbase profile to download and use this self-custodial wallet (nor do they have to send their crypto to the Coinbase Wallet if they prefer others). Note that the Coinbase Wallet reveals a user's private keys, so there are no counterparties between them and their cryptocurrencies.
- Staking rewards: Investors who hold proof-of-stake (PoS) cryptocurrencies like Ethereum (ETH) or Solana (SOL) can earn passive rewards on their coins with a Coinbase account. Users can deposit these PoS coins in the Coinbase Earn portal, and Coinbase will find a validator and distribute rewards.
- Coinbase One: For a VIP Coinbase experience, Coinbase One memberships come with a wide range of perks for a monthly fee. Members can choose from three Coinbase One tiers, each with different exclusive offers like trading fee discounts, enhanced staking rewards, and 24/7 priority support.
- Advanced trading suite: For crypto traders who find Coinbase's standard account too simple, Coinbase offers an advanced platform with technical charting tools and APIs for hundreds of crypto pairs. Coinbase Advanced also has a distinct maker/taker fee schedule that varies depending on monthly trading volume.
- Tokenized stocks: To branch out from Bitcoin (BTC) and altcoins, Coinbase announced in 2025 that it would be adding tokenized stock trading for publicly-listed United States companies.
What is eToro?
eToro began as a traditional asset trading app in 2007 in Tel Aviv. Unlike Coinbase, it didn’t begin offering cryptocurrencies until 2014, several years into its existence. Since then, it’s expanded its crypto suite to include over 100 coins and tokens. eToro hasn’t abandoned traditional asset trading, though, and still offers categories like ETFs, forex, and commodities, depending on a user’s jurisdiction.
However, the scope of eToro’s trading isn’t the only thing that sets it apart. Many of the company’s signature features revolve around its social media-influenced design and commitment to investor education:
- Social trading: After opening an eToro account, users can scroll through a feed that resembles popular social media apps. But instead of selfies and cute cats, these posts focus on topics related to finance and investing. eToro users can react, discuss, or post their thoughts to gauge the majority opinion.
- CopyTrader: If eToro users want to follow another trader's playbook, eToro offers a "CopyTrader" function to mirror moves in someone else's account for a fee. On the other hand, if traders feel confident in their abilities, they can apply for eToro's Popular Investor Program to potentially earn extra money from trading.
- Smart portfolios: Traders who feel more comfortable offloading responsibility to a team might want to look into Smart Portfolios (unless they’re located in Hawaii, Nevada, New York, Puerto Rico, or the U.S. Virgin Islands). eToro's investment team manages these accounts filled with different digital assets for clients.
- Paper trading: Giving users a safe space to practice trading strategies, eToro offers a demo account to enter positions with real assets without real money. In this simulated environment, traders have the opportunity to test new techniques and refine their skills before jumping into the market.
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Key differences between Coinbase and eToro
Coinbase and eToro are both highly regulated, beginner-friendly platforms with plenty of cryptocurrencies to swap. However, when it comes to Coinbase versus eToro, fees, user experiences, and other features set them apart.
Essentially, Coinbase offers a wider range of cryptocurrencies and more flexible options with these digital assets thanks to its focus on Web3. eToro's social trading and CopyTrader functions add a unique community dimension to trading. It only offers custodial support for digital assets, but users can also trade traditional assets. This final difference may not last forever, though, as Coinbase has spoken on expansion efforts beyond tokenized stocks.
How to choose between Coinbase and eToro
Before signing up for a CEX, ask yourself how involved you want to get with cryptocurrency. As a crypto-focused platform, Coinbase supports more ways to jump into Web3, including sending crypto to self-custodial wallets or staking directly on the exchange. There are also over 250 digital assets on Coinbase – more than double the number of altcoins currently available on eToro.
Although eToro doesn't offer self-custody or as many crypto-specific features as Coinbase, it may appeal to traders who only want cryptocurrency alongside other assets like ETFs and stocks. eToro is also a better option for people who value a sense of community through the innovative social trading layout, or who want to take a more passive approach to investing with choices like CopyTrader or Smart Portfolios.
Connect every crypto account to CoinTracker
Whatever exchanges or wallets you use, CoinTracker has the tools to track your transactions. With CoinTracker's Portfolio Tracker, it's easy to link all exchange APIs and wallet addresses to get a comprehensive picture of your crypto activity that updates in real time. CoinTracker also automatically generates IRS forms like Form 8949 and Schedule D for stress-free tax filing.
Ready to take your crypto portfolio to the next level? Start making informed decisions with our expert guides.
Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.
FAQ
Is eToro good for crypto?
eToro is a highly-regulated and safe exchange for trading over 100 cryptocurrencies, but it doesn't offer self-custody. If investors are OK with buying, selling, and swapping digital assets on one platform, then they have all they need with an eToro account. However, those who want to transfer cryptocurrency to external wallets or use it for activities like yield farming, staking, or buying non-fungible tokens (NFTs) will need a CEX that allows external wallet transfers like Coinbase.
Can I transfer crypto to eToro or Coinbase?
Both Coinbase and eToro welcome transfers for accepted cryptocurrencies, but eToro only allows these deposits through its custodial eToro Money crypto wallet. With Coinbase, it’s possible to deposit accepted cryptocurrencies directly into a Coinbase exchange account or the self-custodial Coinbase Wallet.
Is eToro safe?
eToro is a well-regarded global exchange with multiple accreditations and over 15 years of successful operations. Plus, as a publicly-traded company, eToro has to meet high standards for transparency and compliance.
Can you use Coinbase Wallet with eToro?
No, it’s not possible to send crypto between eToro and other wallet applications like the Coinbase Wallet. eToro only allows transfers between the eToro exchange and custodial eToro Money crypto wallet.