Crypto investments are growing rapidly these days. Investing in Bitcoin or other cryptocurrencies is now a hot topic for everyone, not just the rich or geeks. In this case, it is now necessary to search and find the best crypto exchange, just like searching for the safest or most profitable bank. In this article, we compared two popular crypto exchanges and analyzed them in detail: Binance vs eToro. If you are unsure about which one, be sure to read this and our other crypto exchange comparisons.
Summary of the Comparison: Binance vs eToro
In just three years of existence, Binance has established itself as a major player in the cryptocurrency market. The platform is equipped with a complete offer and advanced trading options while remaining relatively accessible to neophytes. With over a hundred cryptocurrencies, numerous exchange pairs, and more than a billion daily trading volumes, Binance ranks among the platforms offering the widest variety of assets. Binance was originally a cryptocurrency-only exchange but now offers to buy or sell for fiat currencies. The service has a modern interface and intuitive tools that make it an exchange suitable for any type of user.
Binance is a Hong Kong-based exchange platform created by Changpeng Zhao in 2017. The project was launched following a takeover bid (ICO for Initial Coin Offering) of a cryptocurrency, Binance Coin (BNB ). Since that date, it has grown exponentially to become one of the market leaders. Its success is mainly explained by the diversity of its offer, its reduced costs, and its reliability.
eToro is an innovative exchange platform that sets itself apart by offering social features, including tracking or copying other members’ investments. Given its fees, it is more suitable for those who want to invest in the medium or long term in the most popular cryptocurrencies.
In business since 2007, eToro is a regulated and secure exchange platform that brings together more than 8 million customers around the world. The company started its activity in the equity, commodity, currency, and ETF markets (a fund that replicates the performance of an index), before expanding to Bitcoin in 2013, and other cryptocurrencies in 2017.
Detailed Analyse for eToro
Variety of Assets
The most important cryptocurrencies in terms of capitalization are available, including Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, EOS, Stellar, and Binance Coin. The offer is limited to 16 assets that can be exchanged between them, or against fiat currencies (USD, EUR, GBP, JPY, CHF, etc.).
Simple and Complete Interface
The web platform has good ergonomics which is suitable for both beginners and more experienced users. The quotation charts are clear and comprehensive, including numerous indicators and drawing tools to analyze the price of a cryptocurrency. The service is also available on mobile with free applications for Android and iOS smartphones. They also show good ergonomics and offer the same functionalities as the web version. To familiarize you with the platform and introduce you to trading, eToro provides a virtual portfolio with 100,000 dollars.
eToro: A Social Investment Platform
eToro sets itself apart from its competitors by offering features similar to that of a social network. You have the possibility to follow and consult the positions taken by other members as well as their performance. But above all, the platform offers to copy their trades automatically. It suffices to define an amount to invest so that it is distributed in the same proportions as those of the model.
To minimize risk over the long term, the exchange offers a second automated investment option: the CryptoPortfolio. It allows an amount to be spread over several cryptocurrencies according to their capitalization. Each month, the composition of the portfolio is reassessed according to the movements of the previous month.
Variety of Payment Methods But Relatively High Fees
eToro is first and foremost a speculative platform, its clients can buy, sell or trade cryptocurrencies, but they don’t really own them. For each of the currencies, neither the private key nor the public key is provided. It is therefore not possible to make a transfer from or to your personal cryptocurrency wallet.
The exchange only accepts deposits and withdrawals in fiat currency (USD, EUR, GBP, JPY, CHF, etc.). It accepts a variety of payment methods: credit card, bank transfer, Giropay as well as PayPal, Skrill, Neteller and WebMoney e-wallets. The minimum deposit is $ 200 per card, but climbs to $ 500 per transfer. In fact, it will even be necessary to transfer a little more if your bank account is in a currency other than the dollar. The platform automatically converts the amount into dollars at the market rate with a commission of 2.5% for the euro.
When it comes to withdrawals, eToro charges a minimum of $ 30 with $ 5 in fees. The platform supports the same means of payment as for deposits. Again, conversion fees may apply for all currencies except the dollar. While the average time to access funds is relatively quick for most payment methods, a wire transfer can take up to 5 days.
User Review for eToro
The exchange platform has something to appeal to beginners who want to get into the cryptocurrency market. Its social features allow you to learn about trading by observing the positions taken by experienced traders. The ability to copy their orders automatically is an asset to limit risks and avoid errors. eToro also allows you to diversify your portfolio on less volatile assets such as equities or commodities.
The platform offers a wide range of cryptocurrencies that can be easily obtained. The payment methods are numerous, and its intuitive interface allows the transaction to be carried out in a few clicks. The exchange is not for all that without reproach. The fees are among the highest on the market, and the deposit limit set at 500 euros by bank transfer can also be a brake. On the other hand, the cryptocurrencies that we buy are condemned to remain on the platform, it is impossible to make either a deposit or a withdrawal to transfer your cryptocurrencies to your private wallet or to another platform.
Detailed Analyse for Binance
Secure Platform Although Not Very Regulated
Following the restrictions imposed by the Chinese authorities in 2017, Binance moved to Japan and Taiwan to finally settle in Malta, and thus have less restrictive regulation. A strategy that has its limits since faced with the uncertainty of its legality in the United States, Binance has just launched a more limited platform, and specially dedicated to American citizens.
The platform is concerned about the safety of its customers. It offers a full range of tools and options to limit access to their accounts, and validate their transactions. In particular, it has two-factor authentication, validation by email and SMS, and a wallet restriction system in the event of withdrawal. For its part, the platform also offers a high level of security, it is also the first to have been certified ISO / IEC 27001, the international standard for information security.
Despite all these precautions, the exchange was the victim of a theft of 7,074 Bitcoins on May 7, or 2% of its assets. The firm remained fairly discreet on the details of the case, the hackers would have obtained the necessary elements to carry out transactions on part of the customer accounts. The stolen $ 40 million was then quickly re-credited from the company’s reserve fund (SAFU).
Wide Range of Assets Offered in the Market
Binance supports over 200 cryptocurrencies that must meet strict criteria to be listed and stay listed. They can mainly be traded against Bitcoin, Binance Coin, Ethereum as well as stable coins (an asset indexed to a fiat currency) to offer an impressive number of pairs. In addition to the standard buy, sell and exchange operations, Binance also offers the possibility of acquiring cryptocurrency by euro bank card and by wire transfer. Depending on the payment method and the chosen provider, the service is limited to the main cryptocurrencies (Bitcoin, Ethereum, Binance Coin, Ripple, Litecoin and Bitcoin Cash) as well as to a few stable coins (BUSD, TUSD and PAX).
The platform also offers other investment products. Binance Lending allows you to invest your assets to earn interest (from 0.21% to 15%) regardless of market fluctuations. The offer consists of two types of loans which differ only in the length of time your assets are blocked. Demand deposit, which allows you to withdraw your cryptocurrencies from one day to the next, and whose interest is calculated on a daily basis. The term deposit for which the funds are blocked during the term of the contract (currently 14 days), and whose interest is calculated at its close.
The offer is unfortunately available in limited quantities, and works on a first come, first served basis. It is nevertheless a safe investment to generate passive income, especially if you want to invest and hold cryptocurrencies for the medium or long term. Finally, for the more experienced, Binance Futures offers the possibility of entering into futures contracts for which the investor speculates on the future price of a cryptocurrency according to particular rules, and with a leverage effect.
On the fee side, Binance is also very well placed. As for trading, they stand at 0.1% and can decline further if settled with the platform’s native cryptocurrency, Binance Coin. The fees for withdrawing to an external wallet vary depending on the cryptocurrency, but are still very reasonable. They are fixed and billed in the relevant cryptocurrency. The costs associated with the purchase of cryptocurrencies by credit card are within the market average, between 2.5% and 3.5% depending on the operator chosen.
Two Interfaces to Satisfy Different Profiles
The platform benefits from a neat and intuitive interface despite the wealth of features offered. It is accompanied by a comprehensive help section which details the operation of the site and cryptocurrencies in general. The trading interface is available in two modes: a basic mode which already provides a lot of information on a trading pair, in particular the price history, the books of buy and sell orders, a module for selecting another pair, and finally forms to take a new position.
As for the advanced mode, it offers a full screen view which includes all the functionalities of the basic mode, as well as technical analysis tools, in particular for consulting indices and drawing on the price chart. The service also has a mobile application which uses the design and ergonomics of the web platform, and offers the same functionalities.
Despite its youth and a theft of 704 Bitcoins in May 2019, Binance is a leader in the cryptocurrency market. A position reinforced by the variety of investment offers and fees that are among the lowest on the market. The platform supports nearly 200 cryptocurrencies and a large number of exchange pairs. In addition, there is the possibility of subscribing to futures contracts, and of investing funds to earn fixed-rate interest.
Binance is first and foremost a trading platform. Recently, the platform has nevertheless added service for purchasing cryptocurrencies by credit card, but the withdrawal requires the use of the Advanced Cash banking service to make a transfer in euros to your account. Its interface is user-friendly and has many tools, especially for performing technical analyzes. It offers two types of displays for trading to adapt to the level and needs of its clients. However, their richness is likely to leave most neophyte users perplexed.
With all its qualities, Binance ranks among the very best cryptocurrency exchange platforms. Only beginner users who simply want to acquire cryptocurrency to keep them will prefer a less complete and easier to access platform.
How to Choose: Binance vs eToro
We have tried to analyze two popular cryptocurrency exchanges in detail. Both Binance and eToro are reputable in the industry and have their own loyal clients. Before deciding, our recommendation is to learn more about the other popular exchanges as well. Check our reviews and comparisons. Also, we have a ranking system for you prepared in accordance with the experts and user reviews.