Nikolas Sargeant
Many financial trading platforms are now offering cryptocurrencies, which is a sign of the progress that cryptocurrency has made in recent years. The mainstream adoption of cryptocurrency has always been the longterm goal for the industry and with major financial institutions investing heavily into the crypto space, the future is very bright.
For many years now, eToro trading platform has offered trading options on a variety of financial products. But only recently have we seen it add cryptocurrency to it’s list of assets.
At the same time, when you look at crypto exchange giants Binance, it was only a couple of years ago that they launched, changing the crypto trading landscape and making it more accessible to newcomers.
It’s clear that online financial trading isn’t a new concept. For experienced traders, crypto trading is no different from trading other assets, other than the exception of the high volatility of the market. But, even then, that isn’t something that’s unique to crypto. The ubiquity of cryptocurrency has made it irresistible as an asset to trading platforms like eToro and Skilling.
But what are the benefits of trading platforms when compared to crypto-speific exchanges like Binance and Coinbase? We will explore the answer to that question, giving our analysis of two of the industry leaders.
Binance
A quick summary of what to expect from one of the largest crypto to crypto exchange services in the world.
- Easy to Use. Now featuring a Pro and Lite version to adjust to customer preference and experience.
- Excellent trading platform and mobile app.
- Regular updates with the latest coins.
- Low Fees.
- First-rate customer service.
Fees
One of the first things customers want to know about an exchange is the fees, especially for highly active, high volume traders. Binance doesn’t boast the best trading fees out of the top cryptocurrency platforms, however at 0.1% when using Binance’s native token Binance Coin (BNB) the fees are very competitive. Trading coin to coin is detrimental to your funds. But using this method, customers save up to 25% on trades overall.
Payment Methods and Range of Coins
Binance is a crypto only exchange, meaning customers can operate all financial transactions using a range of the 500+ coins listed on the site. While there is an abundance of coins supported on the Binance market, only 150 or so are available for depositing. Equally, when withdrawing you can do so with ease. Simply use the address you want to send it to and make the blockchain transfer.
Customer Support
One of the reasons Binance has risen to the top of the pile within the crypto exchange industry, is the fact they have nurtured a community of dedicated users. Although the company is based in China, Binance supports customers in 7 different languages. Binance was hugely popular in the UK, until a recent ban from the UK government prohibiting the use of the exchange—but, one wonders for how long?
One thing the customer services do lack is a call centre. However, the system in place, which is a request system sent through the app or via the desktop platform, offers a turnaround time of under 24 hours—which is astonishing when you think the exchange has over 13.5 million active users.
Security
Binance is the proud owner of an information security accreditation given by the International Organization for Standizations (ISO). Binance’s security features were scrutinized for security policy and operational management and aced the test.
There were a few hiccups early on for Binance relating to a leak and a loss of funds back in 2019. But, this is something the company gave out reparations for and has since shown a dedication to ensuring nothing of this nature occurs again. When it comes to handling money, it’s imperative that trading platforms treat security as paramount. This is something we’re beginning to see more and more among the top-tier crypto-specific platforms.
eToro
Now we’ll take a look at the eToro exchange. First arriving on the scene, approaching two decades ago back in 2006, eToro is a well-established financial trading platform and here is a summary of its features.
- Highly reputable.
- Intelligent user-interface.
- Trustworthy and reliable.
- A range of trading options beyond cryptocurrency.
Fees
eToro is quite different from Binance, mainly due to the fact they don’t focus trading on the cryptocurrency market. There are no initial fees charged for opening or closing trades, but there are fees attached to each individual asset. Take for example Bitcoin (BTC), which trades at 0.75%, which is lower than the base rate of BNB trades on Binance. However, certain trading pairs can reach as high as 3.45%, which is significant for active traders.
Payment Methods and Range of Coins
Deposits with eToro are entirely free, but there is a flat rate of $25 charged as a payout fee on all deposits. For those that are only paying out in large sums on rare occasions, this is quite favorable. Though, we appreciate this isn’t that common. Something that eToro can boast compared to other multi-asset trading platforms, is that it offers the means to purchase cryptocurrencies using PayPal, Wire Transfers, Giropay, Skrill, Neteller, and a range of credit/debit cards. This isn’t entirely unheard of, but the range of payment methods makes eToro an attract prospect to traders.
Customers Support
With 15 years in the industry, the quality of customer service at eToro is second-to-none. Customers can have their queries answered through the call centre or via social media. eToro is renowned for it’s quick response time and appreciation for the novice trader. As well as that, eToro is supported with some excellent training materials to help new users enter the market.
Another noteworthy feature of the eToro platform is the fact it features active users from around the world. In fact, eToro supports the vast majority of the countries on the globe, with the exception of the follows nations; Canada, Cuba, Japan, North Korea, Iran, Syria, Turkey, Serbia, Albania, and Sudan.
Security
Experience in the industry speaks volumes for the security in of itself. eToro can proudly state that they have had no issues with cyber-security or losses of funds, largely dealing with traditional banks and ensuring client information hasn’t gone public.
It’s worth pointing out at this point, that the fundamental difference with a trading platform and that of crypto-specific exchanges, is that there are no regulatory bodies controlling the way in which the platform operates. Hence, why there have been security slip-ups for Binance and not for eToro.
So, which is the right exchange for you; Binance or eToro?
Fees are fundamental criteria for aspiring crypto traders, and the use of the BNB coin means users get significant reductions in trading fees. With regards to the accessibility to coins, Binance is, of course, the winner as it is a crypto-focused trading platform. For payment systems, eToro is superior as it offers a variety of very safe and highly popular deposit and withdrawal methods. Though, once customers have their funds in crypto, they can move it seamlessly using Binance.
The time in the industry does favor eToro for customers support. However, Binance has no history of malpractice or issues with customers, so it’s fairly even in this regard. Finally, for security we must favor eToro. Why? Because they have had no issues with security over the years, contrary to what we have seen with Binance. We appreciate that crypto is still emerging into the mainstream and has grown at a remarkable pace in a very short period of time. We expect regulation and security will continue to improve in the coming years.
