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Binance Vs eToro
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Binance Vs eToro

When choosing a cryptocurrency exchange provider, there are many factors to consider, such as security, price, ease of use, and more. Binance and eToro are two of the most popular cryptocurrency exchanges in operation today. Both offer a wide range of cryptocurrencies to trade and various features and tools to benefit from. However, there are some critical differences between the two exchanges that you should know before deciding which one is right for you. So let's go over the fundamental differences between Binance vs eToro, and you can decide which platform is best suited to your needs.

About Binance

A global cryptocurrency exchange platform with over 500 available cryptocurrencies, Binance is one of the world's largest exchanges by volume. They offer a wide range of cryptocurrencies to trade, including popular currencies such as Bitcoin (BTC), Ethereum (ETH), XRP, ADA, VET, and AVA.

In 2019, Binance discontinued accepting US-based customers. The company announced that it would collaborate with a U.S.-based version of its platform called Binance.US instead.

About eToro

eToro is a social trading platform and investment firm that includes many investment products, including stocks, commodities, ETFs, currencies, and cryptocurrencies. It also supports margin trading for all supported cryptocurrencies. Additionally, eToro allows users to invest in CopyTrading— baskets of assets managed by professional traders to help simplify the investing process.

As we compare eToro and Binance US, we should remember that eToro is a social trading platform while Binance US is a regulated cryptocurrency exchange.

Binance vs eToro: Fees

Both Binance and eToro have different fee ranges, but the right one for you will depend on the services they offer.

Binance charges a volume-based fee, and it gives you additional savings if you use its own coin (BNB) to trade. In a nutshell, Binance trades incur a 0.1% commission, regardless of the amount traded or the cryptocurrency involved. So, if you're used to the straightforward approach of most brokerage pricing, Binance's structure can be preferable.

Another upside is that there are no additional fees for withdrawals or deposits, except for the network fee. However, direct bank transfers and P2P transactions allow you to circumvent these fees. This model makes Binance one of the cheapest exchanges available today.

eToro has a more complex fee structure than Binance, and trading involves two types of fees: spreads and commissions. The spread is the difference between the buy and sell prices offered. Commissions are charged on each trade as a percentage of its value.

Binance vs eToro: Available Coins

Both eToro and Binance provide a wide variety of cryptocurrencies. But, with more than 500 cryptocurrencies in their portfolio, Binance has the largest collection of digital assets. Amongst these, you can even find those up-and-coming coins such as ATOM, DUSK, and LUNA.

Etoro, on the other hand, was initially established as a brokerage service for stocks, commodities and currencies. Over time, they have added cryptocurrencies to their platform with 42 current coins, including the popular Etherium (ETH), Bitcoin(BTC), and Sandbox(SAND).

Crypto Wallet

If you're going to trade on a crypto exchange, it's a good idea to learn about wallets. This will help you manage your funds and store them securely. Binance provides an online wallet called Trust Wallet. It's a safe wallet solution for the Binance blockchain that offers secure storage of funds.

You can also download Trust Wallet to your phone, allowing you to store funds offline.

On eToro, it has EtoroMoney. This is a digital wallet for storing, sending, and receiving funds on the eToro platform. However, only BTC, Bitcoin Cash, ETH, Litecoin, XRP, and Stellar are available to transfer, send, receive, buy and convert.

Security

Both Binance and eToro are committed to protecting their users. Binance employs security protocols that require two-factor authentication, such as hardware authentication, app-based authentication, SMS authentication, and email authentication.

In addition, advanced access control features enable users to opt-in to security features such as IP and wallet address whitelisting, API access, and device management.

eToro operates within both CySEC and ASIC frameworks, making it a secure investment platform. However, despite both platforms being FDIC insured, it only covers assets in USD. It means that your digital assets are not insured.

Ease of Use

First, let's look at how easy it is to sign up for each exchange. Both platforms have straightforward registration processes, and all you need is a valid email address and password. However, Binance requires you to complete a verification process before starting trading.

This process involves uploading your ID card or passport and proof of residence. eToro does not have any such verification requirement.

Binance accepts a variety of currencies and makes it convenient to buy crypto using USD, EUR, AUD, CNY, INR, RUB, and other fiat currencies. You can also use a variety of accepted stablecoins to buy cryptos, such as Binance USD (BUSD), Coinbase USD Coin (USDC), and Tether (USDT).

Now, let us examine the features offered by each exchange.

Binance is a relatively simple exchange that incorporates useful features such as margin trading and a built-in decentralized exchange. In contrast, eToro provides numerous other features, such as social trading, copy trading, and CryptoPortfolios.

Both exchanges are easy to use and have simple registration processes. However, Binance has a verification requirement that may put some users off, while eToro offers a broader range of features. Compared to eToro, Binance charges lower fees, while eToro offers a variety of free products.

Other Features

With both offering similar and unique services, let's move on to examine the differences in Binance and eToro's features. 

Binance

  • Futures Battle function - Battles allow traders to earn points by competing with each other.
  • Asset Conversion - Converts assets directly from the spot market to your coin-margined wallet.
  • Cross Collateral - Enables users to leverage their crypto assets as collateral against another crypto asset.
  • Price Protection - In extreme market conditions, this feature protects users. 
  • Binance Defi Staking - Helps users participate in DeFi products, affords realized earnings, and assists users in participating in DeFi products with just one click.

eToro

  • CopyTrading - Innovative investment strategy which allows you to copy the portfolios of successful traders.  
  • Popular Investors' Program - A reward program for the top traders.
  • Social Trading - A real-time tool to interact, copy, and get copied by fellow traders.
  • Buy stocks, or trade stocks via CFDs - Diverse stocks to invest in.
  • eToro Staking - Owners and holders of supported crypto assets can earn more crypto just for holding them. Staking is carried out by eToro on behalf of its users.

Conclusion

Both Binance and eToro are excellent, reputable services for traders looking for a variety of assets while keeping safety as their top priority. While Binance has lower fees and a more extensive selection of cryptocurrencies, eToro offers a beginner-friendly feature through their CopyTrading.

They have their pros and cons, and the best choice will ultimately be based on your needs and preferences. Both services allow demo accounts for you to check out, so you can get a feel of each platform more personally.

To investigate this more thoroughly, we highly recommend using our all-inclusive comparison tool for an in-depth look at the best trading apps out there. By simply answering a few questions about your trading needs, our tool can recommend the best crypto exchange for you.

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