Contributor, Benzinga
November 17, 2021

Want to jump straight to the answer? eToro is better for altcoin offerings, and Robinhood is better for novice traders.

Between the cryptocurrency brokerages offered to investors, it can be frustrating to discern the different features they provide. Here is a breakdown of eToro and Robinhood Markets Inc. (NASDAQ: HOOD) to help with that process. 

eToro is a social trading, multi-asset brokerage company that focuses on providing financial and copy trading services for its users. Robinhood is an online discount brokerage that offers a commission-free investing and trading platform.

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts.

What Is a Cryptocurrency Brokerage?

Cryptocurrencies brokerages function as an intermediary that allows the buying and selling of cryptocurrency. A major difference between a stock brokerage and a crypto brokerage is that traders are able to purchase crypto at any time of the day whereas a stock brokerage is only open during market hours. 

Both eToro and Robinhood are brokerages, making it easy to buy and sell cryptocurrency on these platforms. Connect and fund your account, and you’re ready to start buying cryptocurrencies.

Important Cryptocurrency Brokerage Features

When considering what brokerage works best for you, it is important to understand the security of the platform, supported coins and trading features. Overall, security should be the most important aspect to ensure your assets are protected. Make sure to take a look at what coins are available so that you choose a brokerage that offers the crypto you want to invest in. It is also important to look at the different trading features, as some platforms offer different screeners and chart intervals. 

These small variables can make a huge difference when it comes to the trading experience. Most brokerages like to focus on a specific feature to bring in traders, so consider all the options out there when deciding what brokerage works best for you. 

Best For
  • Demo Accounts
securely through eToro's website

Features on eToro

eToro offers a virtual trading feature where users can practice their trading strategy before they open a position. It also provides a CopyTrader feature that allows users to “copy” the buy orders placed by professional investors. eToro also provides a mobile trading app that is great for investors wishing to trade on the go.

Traders are also able to switch between the desktop and mobile platform, depending on which experience is preferred. eToro offers a dynamic mobile app with the ability to customize a watchlist, track investment portfolio and check supported crypto prices. Users are also able to execute market orders on the desktop platform as well as on the mobile app. 

***Disclaimer: This ad promotes virtual cryptocurrency investing within the EU (by eToro Europe Ltd. and eToro UK Ltd.) & USA (by eToro USA LLC); which is highly volatile, unregulated in most EU countries, no EU protections & not supervised by the EU regulatory framework. Investments are subject to market risk, including the loss of principal.

Robinhood Crypto
Best For
  • Buying & selling Dogecoin
securely through Robinhood Crypto's website

Features on Robinhood

Robinhood allows users to start with as little as $1 to kick-off their investment journey. This feature makes a great opportunity for novice traders to get familiar with the market. Robinhood offers an instant deposit option up to $1,000, making a great opportunity to start earning profits. 

Robinhood offers a dynamic mobile app making it much easier for users to trade crypto on-the-go. It also displays a news section for each of their supported cryptos, where users are able to keep track of recent news. This access to live news along with the easy to use charts offer a great trading experience for users. 

eToro Fees vs. Robinhood Fees

eToro does not have a fee for sending and receiving transactions, although it charges a spread when buying or selling crypto, which varies depending on what coin you want to buy. A spread is the difference between the bid and offer and sits at 1% on eToro. 

Robinhood offers commission-free trading on crypto, allowing users to buy and sell any supported crypto with 0 hidden fees or spread. It primarily makes its money from market makers and frequency trading firms who pay for order flow from its retail traders.

Security Features on eToro vs. Robinhood

eToro protects user information with firewalls and data encryption. It also provides the option to activate 2-factor authentication, where your device can be remembered for up to 30 days. 

Robinhood also uses 2-factor authentication as well as biometric facial recognition. Robinhood monitors trusted devices to make sure it is a device you have previously used.

Altcoins Supported on eToro vs. Robinhood

When determining which brokerage works best for you, it is important to consider which cryptos are supported on the platform. Each brokerage offers a different variety of altcoins, and you will want to make sure that the crypto you want to purchase is available.

Altcoins on eToro (Not on Robinhood)

  • Dash (DASH)
  • Iota (MIOTA)
  • Stellar (XLM)
  • EOS (EOS)
  • NEO (NEO)
  • TRON (TRX)
  • Tezos (XTZ)
  • Polkadot (DOT)
  • Maker (MKR)
  • Compound (COMP)
  • Chainlink (LINK)
  • Uniswap (UNI)
  • (YFI)
  • Aave (AAVE)
  • Filecoin (FIL)
  • Algorand (ALGO)
  • Cosmos (ATOM)
  • Decentraland (MANA)
  • Enjin (ENJ)
  • Basic Attention Token (BAT)
  • Polygon (MATIC)
  • Spark (FLR)
  • Chiliz (CHZ)
  • Solana (SOL)
  • The Graph (GRT)
  • 1inch (1INCH)
  • Curve (CRV)
  • SushiSwap (SUSHI)
  • Quant (QNT)
  • Axie Infinity (AXS)

Altcoins on Robinhood (Not on eToro)

  • Bitcoin SV (BSV)

So, eToro or Robinhood?

If you are looking for a wide variety of cryptocurrencies, then eToro may be a great brokerage for you. If you are a novice trader looking to start buying blue-chip cryptos like Bitcoin and Ethereum, then Robinhood may be a great choice to avoid transaction fees.

Both platforms offer great services and security, so you really can’t go wrong. Take the time to assess your personal needs and do your research to understand what each brokerage offers.

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