What Should You Use to Buy Crypto?

Over the previous few years, the growing reputation of cryptocurrency has paved the best way to a multi-trillion-dollar trade. Because of this, there’s now a variety of platforms you should utilize to purchase, promote, and retailer your cryptocurrency. Two top-rated cryptocurrency exchanges are Coinbase and eToro. But which of those do you have to select when buying crypto?

Here, we’ll be going over the professionals and cons of each platforms so that you could resolve which is greatest for you. Let’s begin with the crypto change that got here first: Coinbase.

What Is Coinbase?

coinbase website behind magnifying glass
Image Credit: marcoverch/Flickr

Coinbase was initially based in June 2012 by Brian Armstrong, a former Airbnb engineer. Armstrong teamed up with Fred Ehrsam, a former Goldman Sachs dealer, in his enterprise to make Coinbase a hit. The platform started as a service that allowed Bitcoin purchases to happen through financial institution switch however has since grown and developed into the most well-liked decentralized change within the United States.

Coinbase is out there in a number of totally different nations, together with the US, UK, Australia, Canada, Singapore, and a spread of European nations.

Coinbase helps numerous totally different cryptocurrencies, from the market’s greatest names like Bitcoin and Ethereum, to stablecoins like Tether and USD Coin, and a few much less well-known cryptos like NuCypher and Pawtocol. With over 160 supported cash in whole, you will not be wanting alternative when shopping for or promoting crypto on Coinbase.


The platform can also be a superb alternative for individuals who prioritize safety above all else, and here is why.

Coinbase’s Security Features

Coinbase gives a spread of options that guarantee your funds will stay secure and untouched by any unauthorized events. You can use two-factor authentication to up the safety of your login course of and use Coinbase’s Vault function to make your crypto transactions safer utilizing further verification steps.

On prime of this, Coinbase works with the FDC to guarantee all US wallets on the platform are insured for up to $250,000 value of losses within the occasion that funds are stolen through a hack (although this insurance coverage would not cowl the unauthorized entry of your account due to shedding your login particulars).

Coinbase additionally shops over 98% of the cryptocurrency on its platform in chilly storage. This means virtually all of its keys are saved utilizing bodily gadgets that are not linked to the web. Without an web connection, it is a lot more durable for cybercriminals to steal non-public keys.

With all these nice safety features, you possibly can relaxation straightforward realizing your treasured crypto funds are as secure as doable.

There are additionally two variations of Coinbase that you should utilize relying in your expertise stage and necessities. You’ve obtained normal Coinbase, which most customers stick to, or Coinbase Pro, a special type of Coinbase account for individuals who commerce very usually and have extra expertise within the trade.

Coinbase Pro additionally gives a function that whitelists the crypto pockets addresses in your tackle ebook to forestall your funds from going anyplace else.

Coinbase Pro gives extra in-depth charting and a few extra superior buying and selling options, although you are able to do quite a bit with simply a normal Coinbase account. Check out our piece on Coinbase and Coinbase Pro to decide whether or not you require a Pro account.

Coinbase and Coinbase Pro have totally different price buildings, so let’s focus on how every account kind will cost you.

Coinbase’s Fees

An ordinary Coinbase account doesn’t cost any maker charges, which is sensible, as makers are favored over takers on crypto exchanges as a result of they provide the platform with liquidity. But a taker price of 1.49%, together with a selection price of 0.5% for fiat transactions and 1% for crypto transactions, nonetheless apply.

On the opposite hand, Coinbase Pro makes use of the maker-taker price system to cost customers. But there is not one maker and one taker price set throughout the board. Instead, these charges change relying on the amount of cash moved in a transaction. For any transaction beneath $10,000, Coinbase Pro prices a 0.4% maker and 0.6% taker price.

After this, the charges lower with every quantity bracket. Unfortunately, you may have to conduct a transaction value over $300 million to keep away from maker charges, and taker charges are utilized whatever the quantity.

Coinbase and Coinbase Pro don’t cost a price for withdrawals and deposits.

All in all, Coinbase is a safe and various platform fitted to each crypto novices and professionals. While its charges is usually a bit steep at instances (particularly on a normal account), the safety features and enormous vary of cash and tokens on provide make it a superb possibility for all of your crypto wants.

Now, let’s dive into eToro and see what it could actually give you.

What Is eToro?

green etoro poster
Image Credit: Web Summit/Flickr

Unlike Coinbase, eToro started as a social buying and selling and multi-asset brokerage firm for conventional currencies just like the British Pound or US Dollar. The firm was based in 2007, and it wasn’t till seven years later, in 2014, that eToro launched the cryptocurrency part of its change. But eToro’s crypto change is simply out there in 45 US states, so it is significantly much less accessible than Coinbase when it comes to location.

If you reside in New York, Nevada, Minnesota, Hawaii, or Tennessee, you will be unable to entry eToro’s crypto change.

On prime of this, eToro would not assist as many cryptocurrencies as Coinbase. Of course, Coinbase is an change dealing solely in cryptocurrency, whereas eToro made its identify utilizing conventional currencies, and its crypto change solely got here later. So, it is no shock that eToro solely helps 59 cash as an alternative of the 160 supported by Coinbase. But eToro nonetheless helps lots of the market’s hottest cash.

eToroX, like Coinbase Pro, additionally gives a whitelisting function to shield your crypto. So, what safety features does eToro provide, and do they match up to Coinbase? Let’s discover out.

eToro Security Features

Like Coinbase, eToro gives two-factor authentication for the login course of to reduce the prospect of anybody accessing your account with out your permission. Additionally, eToro holds the funds on its buying and selling platform in chilly storage, although all funds held utilizing the eToro Money crypto pockets are held in sizzling storage, so hold this in thoughts.

Like Coinbase, eToro has two change variations for customers relying on their expertise stage: eToro and eToroX. The latter helps stablecoins in its buying and selling pairs extra so than fiat currencies, and comes with a pockets supporting deposits in a complete of 11 cryptos, together with Bitcoin, Ethereum, Ripple, and Litecoin. The platform additionally helps twelve stablecoins.

Now, let’s get to eToro’s price construction.

eToro’s Fees

eToro’s charges do not function utilizing a maker-taker construction. Rather, eToro prices a selection price, which primarily makes up for the dearth of maker and taker charges. Currently, eToro prices a 0.75% unfold price for cryptocurrency transactions. While that is dearer than Coinbase Pro’s charges, it is really cheaper than the unfold price charged when utilizing a normal Coinbase account. Additionally, eToro would not cost any charges for withdrawals and deposits.

Of course, should you stay outdoors the US, eToro’s cryptocurrency change is not an possibility for you, however you can provide Coinbase a attempt as an alternative. However, it is actually a stable possibility should you stay inside one of many 45 states the place eToro’s crypto change is out there, and the platform helps all of the cash you want to commerce in.

Below is a extra concise overview of each platforms, together with their charges, safety features, and availability.

Coinbase eToro
No. Supported Cryptos 160+ 59
Availability US, UK, Australia, Canada, Singapore, all European nations (excl. Bosnia and Herzegovina, Albania, Serbia, Ukraine, Montenegro, Russia, Germany, Moldova) 45 US states (excl. Tennessee, Hawaii, New York, Nevada, Minnesota)
Security Features Two-factor authentication, vaults, chilly storage, insurance coverage of US wallets up to $250,000, whitelisting (on Coinbase Pro) Two-factor authentication, chilly storage of commerce funds (not pockets funds), whitelisting (on eToroX)
Fees Coinbase: 1.49% taker price 0.5% taker price for fiat transactions, 1% for crypto transactions Coinbase Pro: 0.5% maker price, 0.5% taker price 0.75% unfold price (no maker/taker)

Clear Winner Between the Two Crypto Exchanges

While each Coinbase and eToro have their professionals and cons, Coinbase is our clear winner for getting cryptocurrency. The platform helps an enormous vary of cryptos, prioritizes safety, and is out there in lots of nations throughout the globe. In brief, it’s extra accessible and has a richer cryptocurrency ecosystem for all of your shopping for, promoting, staking, and storing wants.

coinbase website behind magnifying glass

Is Coinbase a Safe Place to Buy, Sell, and Store Your Crypto?

Read Next

About The Author


Recommended For You

About the Author: Daniel