The complete review of the pros and cons of eToro vs. Binance

ReviewsMarch 9, 2022

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Binance is known as a cryptocurrency exchange with the most significant daily trading volume globally with meager transaction fees. Meanwhile, eToro is a CFD exchange with a wide range of assets and is known for its friendly platform, copy trading, and investment social network. When comparing eToro and Binance, users want to determine which exchange is more suitable for trading and investing in cryptocurrencies. The following article provides a comprehensive and in-depth review of eToro vs Binance and compares these two exchanges’ differences, advantages, and disadvantages.

Overview of eToro vs Binance

eToro is considered a senior compared to Binance when launched in 2007, while Binance didn’t appear until 2017. However, soon after its launch, Binance quickly took over the crypto market. Meanwhile, it took until 2018 for eToro to add a crypto product to the platform. Binance occupies the number one market position as a cryptocurrency exchange with a record high daily trading volume. Meanwhile, eToro makes it easy for many inexperienced crypto investors to access this market through copy trading and a simple, friendly platform.

What is eToro?

eToro is a multinational broker founded in 2007, with headquarters in Israel. Currently, eToro is operating in more than 140 different countries. eToro is a CFD broker that offers multiple markets, including CFDs on stocks, cryptocurrencies, ETFs, indices, and forex. Investors on eToro love this trading platform because it features copy trading and investment social network. The eToro platform supports a variety of cryptocurrencies with varying degrees of leverage with a variety of strict user asset protection regimes. eToro’s clients are regulated by renowned financial regulators: FCA, CySEC, and ASIC.

Overview of eToro and Binance. Compare the pros and cons of eToro vs Binance. Which exchange is suitable for trading and investing in crypto

The advantage of eToro is that it is straightforward and convenient. It is especially suitable for new crypto traders. With a relatively simple and intuitive interface, and the ability to copy trades from other traders, eToro is the first choice for inexperienced investors. In addition, eToro offers a 100,000USD demo account that makes it easy for new users to learn to invest right on the platform. However, the downside of eToro is that there are only about 30 coins available, which are the top cryptocurrencies and significant altcoins. Cryptocurrency investment on eToro in CFD, investors, do not own the base cryptocurrency, so they can only trade and hold on eToro without sending to other crypto wallets. In addition, eToro account verification and withdrawals are often slow and challenging for many newbies.

* See more: The complete guide eToro from a to z

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

What is Binance?

Binance is a centralized cryptocurrency exchange launched in 2017 and headquartered in Malta. Binance is a professional cryptocurrency exchange with many different features in the crypto market, such as trading, savings, staking, NFT trading… With crypto trading features, Binance is famous for more than 250. There are different cryptocurrencies, and there are low transaction fees, especially with the higher the VIP level, the lower the transaction fee. Any world financial regulator did not previously regulate Binance. From 2021, Binance is officially regulated by the FCA, but the level of regulation of the FCA for crypto exchanges is less binding.

Overview of eToro and Binance. Compare the pros and cons of eToro vs Binance. Which exchange is suitable for trading and investing in crypto

Binance is best suited for active traders who are day traders and want to own crypto. Binance has a lot of advantages, such as low transaction fees, a multi-functional platform, fast transactions, high liquidity, and hundreds of different tokens.

However, Binance also has some disadvantages, such as Binance’s customer support service is only limited through opening a support request on the homepage. They do not have a live chat or customer support hotline. Besides, since Binance is a multi-functional cryptocurrency exchange, newcomers often find it difficult to access. In particular, Binance does not have a trial account, so it is even more difficult for inexperienced people. In addition, Binance restricts users of some US states. If used, they can only trade via Binance.US. It makes it difficult for many American customers who want to trade on Binance.

* See more: The complete guide Binance from a to z

Trading fees of eToro vs Binance

Binance is famous for its relatively low cryptocurrency transaction fees, from only 0.1% and 25% off if BNB to pay for transaction fees. In particular, the larger the volume of transactions, the lower the transaction fee on Binance, from only 0.01%. However, if using a credit card to buy crypto, users need to pay a $10/transaction fee or 3.5%.

Meanwhile, eToro applies a separate transaction fee for each asset or trading pair. With cryptocurrencies with low liquidity, transaction fees increase. eToro profit from the spread obtained between the bid and asks prices. If users trade popular tokens like BTC or ETH, the fee is only 0.75-2%. Meanwhile, the transaction fee can go up to 3.5% if trading other cryptocurrencies. In addition, to withdraw money from eToro, users have to pay a fee of 5$/withdrawal. For inactive users for 12 months, eToro applies a $10/month account maintenance fee.

Comparing the transaction fees between Binance and eToro, Binance has a more competitive advantage, especially for those who trade cryptocurrencies with large volumes.

Features and assets of Binance vs eToro

Once again, Binance has the upper hand over eToro regarding the volume of cryptocurrencies traded on the platform. Binance offers over 250 cryptocurrencies, while eToro provides just over 50 of the most popular cryptocurrencies.

However, for users who do not need to trade too many different cryptocurrencies, eToro still meets the majority of customers’ needs. In particular, eToro also has many other markets such as stocks, forex, indices, ETFs, so it is convenient for users not specialized in cryptocurrency investment. Besides, eToro also has a copy trade feature that helps inexperienced investors easily copy the trades of other investors. The investment social network feature makes it easy for eToro investors to share and learn investment knowledge with the global community.

In return, Binance is a platform for professional crypto investors. Besides offering more cryptocurrencies, Binance also offers an entire investment, trading, saving, crypto staking, and NFT features. If users want to find a centralized, professional exchange for cryptocurrency, then Binance is the more suitable choice.

The reputation of eToro vs Binance

Although new, Binance has built an excellent reputation with more than 13.5 million users globally. Currently, Binance is the world’s largest cryptocurrency exchange by daily trading volume. Although Binance is only regulated by the FCA and the FCA’s binding level on Binance is also limited, Binance is still highly appreciated by users for its credibility. Binance also has an insurance policy for customers, giving users more peace of mind and trust.

eToro is a famous broker trusted by users in the financial market in general and cryptocurrency in particular. This broker is regulated by many major regulators worldwide, such as FCA (or Financial Conduct Authority), ASIC (Australian Securities and Exchange Commission), and CySEC. The eToro platform also has asset insurance for its clients that keeps clients protected if the broker goes bankrupt or gets hacked.

Binance vs eToro Security Comparison

In 2019, Binance had 7000 BTC stolen, causing $40 million in damage. However, Binance later compensated the customer for the total loss. And a short time later, Binance upgraded its security system to ISO (International Organization for Standardization) standards. With these changes, Binance is highly appreciated and known for its security level with many additional security features to the platform, including 2-layer security (2FA), withdrawal address management, management equipment…

* See more: The complete guide Binance from a to z

eToro is one of the brokers that has never had a problem with security. They apply high-security principles and make sure their clients’ funds are safe. eToro users can only withdraw funds to the correct username with the same KYC as the eToro account. And accounts cannot send money to each other on eToro. EToro’s clients have never lost money trading on the platform with these principles in mind.

The interface of eToro and Binance

Both eToro and Binance offer both web and mobile platforms. The user interface of both platforms is very professional and complete.

eToro is well known for its intuitive interface that is easy to use for new traders. eToro focuses a lot on customers who are just learning to invest, not having much experience. So their platform is built to make it easy for newbies to use right from the first login.

* See more: The complete guide eToro from a to z

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Binance has a more sophisticated user interface with advanced features and a professional charting system. The Binance platform is suitable for experienced traders. Although placing orders is quite simple with just a few buttons, it will take time for a novice to learn to distinguish the features on the platform.

Binance Customer Service vs eToro

eToro supports customers through live chat or opening customer support tickets. Meanwhile, Binance customer support is only through ticket opening. In addition, both platforms support customers through an FAQ system, and there is no customer support hotline.

However, Binance’s question system is more complete and thorough than eToro. The eToro customer support questions that are available do not usually cover the entire issue in need of support. Besides, Binance’s customer support speed is faster than that of eToro.

However, eToro has an advantage in the user community right on the platform. If you have difficulty or want to exchange investment information, users can post content to the news feed for support from the global community.

Conclusion

Overall, eToro and Binance are both reputable platforms with a high level of security. Depending on your trading needs, invest in cryptocurrencies to choose eToro or Binance. An inexperienced crypto investor with no frequent trading needs can choose eToro. In contrast, a professional trader, day trading high volume and experienced, with a need to trade a variety of uncommon cryptocurrencies, can choose Binance.

Investiki.com

Read more: Binance, etoro

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