Crypto is unregulated in the UK; there's no consumer protection; value can rise or fall; tax on profits may apply*.
eToro vs Coinbase: Which crypto exchange is better?
eToro and Coinbase are both popular for crypto in the UK but they offer different coins and features. Find out which one could suit you better.
Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
- The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
- The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
2. You should not expect to be protected if something goes wrong
- The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment because it's not a 'specified investment' under the UK regulatory regime – in other words, this type of investment isn't recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker.
- The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You may not be able to sell your investment when you want to
- There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
- Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
4. Cryptoasset investments can be complex
- Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
- You should do your own research before investing. If something sounds too good to be true, it probably is.
5. Don't put all your eggs in one basket
- Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
Round 1: Vital statistics
 |  | |
| Overall rating | ★★★★★ | ★★★★★ |
| Costs rating | ★★★★★ | ★★★★★ |
| FCA-registered | ||
| Exchange location | UK | US |
| Offers a debit card | ||
| Go to site More Info | More Info |
eToro has a UK base among its global offices, and eToro UK is registered with the UK watchdog, the Financial Conduct Authority. Crypto isn’t regulated, but firms that operate in the UK must be registered with the watchdog for anti-money laundering and counter-terrorism checks. Both eToro and Coinbase have a version for professional traders: eToroX and Coinbase Pro. This guide compares the standard versions.
eToro also offers the eToro Money wallet, which is a separate mobile app where you can deposit and withdraw money and crypto. Coinbase also has a wallet; Coinbase Wallet is separate from Coinbase.com and you don’t need a Coinbase account to use Coinbase Wallet.
Round 2: Supported coins
| | |
| Number of tradeable crypto assets | 76 | 256 |
| Go to site More Info | More Info |
On eToro, there isn’t the huge range of crypto coins that you might see on other popular exchanges. However, eToro compensates for this to some extent with a suite of advanced features, the most famous being its Copy Trader function. Coinbase offers far more coins, but that doesn’t mean it’s for advanced traders only – the platform’s interface is well suited to beginners. For the sheer number of cryptocurrencies offered, Coinbase wins this round hands down.
Round 3: Supported fiat currencies
| | |
| Number of supported fiat currencies | 21 | 23 |
| Go to site More Info | More Info |
Round 4: Costs
| | |
| Minimum deposits | $50 | £50 |
| Deposit Fees | None | ACH: Free Wire transfer: $10 SEPA: €0.15 SWIFT: Free |
| Trading Fee | 1% plus spread | Maker fee: 0.00-0.4% Taker fee: 0.05-0.6% |
| Withdrawal Fees | $5 (min. withdrawal $30) | ACH: Free Wire transfer: $25 SEPA: €0.15 SWIFT: £1 |
| Deposit methods | Bank transfer, Debit card, eToro Money | Bank transfer, Credit card, Cryptocurrency, Debit card, PayPal |
| Go to site More Info | More Info |
Winner: eToro
Both Coinbase and eToro have created platforms that appeal to beginners and more experienced users. Both have found a good balance between advanced features and an intuitive UI. And Coinbase has promised more features are coming.
The exchange fees make eToro a less optimal choice for non-US users, but the platform is clearer upfront what its trading fees are.
It’s worth knowing that in October 2021, the accounts of about 6,000 Coinbase customers were hacked and their funds stolen. Coinbase reimbursed users their stolen funds.
The main standout feature that edges eToro ahead – even though it offers fewer cryptocurrencies on the platform – is its Copy Trader social trading function.
*Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
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