The eToro vs Coinbase comparison compares both cryptocurrency exchanges that cater to different traders. We consider everything from security to transaction fees and available cryptocurrencies. The best platform for you can be found by reading on.
Etoro Versus Coinbase: Cryptos Available
Coinbase has supported many cryptocurrencies as part of its recent expansion. It now offers 90 coins backed by the exchange, including almost all the top 30 cryptocurrencies by market capitalization. VeChain and Binance Coin (BNB) are exceptions to this rule.
Comparing Etoro And Coinbase: Wallets
Here are the main differences:
The Coinbase wallet is accessible to both Coinbase and eToro customers, but the eToro wallet is restricted to Coinbase customers.
Coinbase allows users to transfer money between their wallets and exchange, but restrictions exist. eToro is a one-way exchange, which means that once you take money out of business and deposit it into a wallet, it cannot be returned to the exchange.
The security of eToro vs. Coinbase
You are looking for an exchange that will actively protect your investments. In addition, your assets should be handled by people you can trust.
The FDIC and SIPC probably cover U.S. banks and stockbrokers. However, FDIC insurance does not cover cryptocurrency exchanges eToro and Coinbase based in the U.S.
To this end, you should check if the exchange has a third-party insurance policy. Unfortunately, eToro only provides additional insurance for cash, CFD trades, and stocks – not crypto assets.
We are having funds segregated would protect crypto investors from a bankrupt exchange. However, being segregated would not protect them against crime, including hacking.
Hot wallet insurance policies protect cryptocurrency assets against theft, including hacking, and have been in existence since the insurance policy was made public in 2019. However, the amount of the insurance policy may have changed since it was made public in a 2019 blog post.
There are multiple authentication factors enabled at the user level for both exchanges and bug bounties to encourage ethical hackers to find weaknesses. In addition, most assets are stored in cold storage, making them less vulnerable to hackers.
eToro does not mention the measures it takes to protect sensitive data. In contrast, Coinbase describes how it separates the sensitive data and stores it in different geolocations, saying it takes data security seriously. As well as organizational security, such as security checks for employees, the document mentions personnel security.
Coinbase is an excellent choice for first-time cryptocurrency traders despite its slightly higher fees. It offers a variety of educational resources and an easy-to-use interface. In addition, Coinbase is offering a Visa debit card that rewards cryptocurrency holders. More cryptocurrencies are available on the exchange, and the wallet interacts more fluidly with the exchange.
Find more cryptocurrency apps and exchanges on our top crypto apps and exchanges list. There is no need to be afraid of setting up multiple accounts with cryptocurrency exchanges. However, it can be a good idea to test out a few of them to determine suitability for you. Carefully consider the fees involved before sending your money.