Binance vs eToro

Binance and eToro are among the largest cryptocurrency trading platforms in the world. Both differ greatly in terms of offer, trading instruments and special features. You can find out which provider of the two is the best crypto exchange for you in this post.

What is Binance

Binance was initially created in China in 2017. Due to regulatory pressure from Chinese authorities, the platform moved first to Taiwan, then to Malta, where it has been based since March 2018.

Binance was founded by Changpen Zhao, a Sino-Canadian developer and entrepreneur. He worked on Blockchain.info and OKCoin, among others. Previously, in 2005, he founded Fusion Systems, a fast transaction speed broker.

Before the platform went online, it was financed through the ICO of its own token, the Binance Coin (BNB). Today this plays an important role in the ecosystem of the stock exchange. The ICO raised $ 15 million.

Binance quickly grew into one of the largest and most popular exchanges in the world. It also helped that the platform started during the ICO boom and the hype phase of 2017. Initially, the exchange focused on the exchange of crypto currencies with other crypto currencies, later on buying using fiat and other features was added.

Hardly any other exchange has as many cryptocurrencies as Binance. In addition to the best-known and best cryptocurrencies, there are also many altcoins here. Developers can offer their new tokens for sale on the launchpad as part of an IEO (Initial Exchange Offering), after which they are immediately listed on the platform.

In addition to a simplified trading view, Binance also offers a professional interface with extended functions. In addition, cryptocurrencies can be traded with a lever, there are connected DeFi platforms, a lending platform and other functions.

Binance was the first exchange to issue its own cryptocurrency. The Binance Coin (BNB) can be used, among other things, to pay trading fees, for which there are discounts, or to exchange them for other crypto currencies.

What is eToro?

EToro is originally a classic broker for CFDs, stocks, ETFs, forex, commodities and currencies. The company was founded in 2007 by the brothers Yoni and Ronen Assia in Tel Aviv. It later moved to Cyprus, where it is monitored and regulated by the local authorities according to EU regulations.

In 2010, eToro introduced copy trading and expanded this function over time. Thanks to copy trading, investors can copy all or part of the strategies and portfolios of experienced traders.

This is how the concept of “social trading” came about, with which eToro has been promoting heavily ever since. The people on the platform can get together, discuss strategies and investments, and learn from the experienced members. At the same time, there are training opportunities and many tutorials.

In 2014, eToro introduced Bitcoin CFD trading. Over time, more contracts for difference followed on various cryptocurrencies. Later trading in real cryptocurrencies was introduced.

Since then, eToro has continued to expand its range of cryptocurrencies. A separate wallet is also offered. According to their own statements, more than 10 million users worldwide trade on the platform with a wide variety of systems.

Which cryptocurrencies do the platforms offer?

Binance can boast of one of the largest offerings in cryptocurrencies. In addition to the well-known coins and tokens, you will also find many rather unknown, but potentially promising Altcoins here.

Initial Exchange Offerings (IEO) are regularly held on Binance. With these, developers offer their token exclusively for sale on the platform and then it is listed on the exchange. This ensures a steady flow of new cryptocurrencies.

There are more than 1000 trading pairs on Binance. In most cases, you can exchange cryptocurrencies that cannot be bought directly with Fiat with Bitcoin or Ethereum, Binance Coin, Tether or BUSD.

There is therefore a large selection on Binance. Almost every cryptocurrency you might want to buy is listed here. Some of the better known include:

• Bitcoin
• Ethereum
• Litecoin
• Bitcoin Cash
• Ethereum Classic
• Ripple
• Cardano
• EOS
• Dogecoin
• Binance Coin
• Polkadot
• Solana
• TRON
• Filecoin
• And many hundreds more.

On eToro, on the other hand, the selection is much clearer. Some of the most famous cryptocurrencies can also be found here:

• Bitcoin
• Ethereum
• Bitcoin Cash
• Ripple
• DASH
• Litecoin
• Ethereum Classic
• Cardano
• IOTA
• Stellar
• EOS
• NEO
• TRON
• Zcash
• Binance Coin
• Tezos
• Compound
• Chainlink
• Uniswap
• YFI
• Dogecoin
• Aave
• MANA

So it’s a good amount. Many of the most important crypto currencies are represented here and new coins and tokens are constantly being added to the range. However, eToro does not come close to Binance’s offer, especially when it comes to unknown and exotic cryptos.

Both crypto trading platforms allow the buying and selling of cryptocurrencies and both offer leverage trading. In leverage trading, leverage can be applied that multiplies potential profits and losses. With a leverage of 1: 2, the profits would double. However, the same applies to the losses.

This type of trading is also called “margin trading”, since the trader has to deposit a security (margin). At eToro, this is done using CFDs (Contracts for Difference) on cryptocurrencies. Apart from
There are many more traditional investments in cryptocurrencies on eToro.

Via Binance, users still have access to staking certain cryptocurrencies, to lending, to participate in IEOs or to switch to DeFi platforms. You have to decide for yourself which of the two providers is the best crypto exchange in this regard.

Payment service provider

Binance does not offer many payment options. Users can make deposits and withdrawals using bank transfers or credit cards. At the same time, cryptocurrencies can also be deposited.

At eToro, the choice of payment options is much larger. In addition to bank transfer, SOFORT and credit card, PayPal, Skrill, Neteller and Rapid Transfer are also offered. eToro is one of the few platforms that allows the purchase of cryptocurrencies via PayPal.

Safety

Binance is a largely unregulated provider. In some places the company works with the authorities, but primarily trade is not monitored or regulated. However, that does not have to mean that Binance is not a serious platform.

Newly registered users must go through a KYC procedure and verify themselves. The user accounts are protected with SSL encryption, two-factor authentication and cyber forensics.

There is also the “Secure Asset Fund for Users” (SAFU), which is fed from the trading fees on the platform. A good 10% of the fees collected by Binance go to this fund. Should the users through hacks
lose their money, they will be compensated from the SAFU.

Binance has been the victim of hacks in the past. Users were partially compensated and the loopholes for the hackers were quickly closed.

EToro is a regulated and monitored provider. The company is based in Cyprus, where it is regulated by the CySEC (Cyprus Securities and Exchange Commission). The platform thus complies with European requirements. The broker is monitored by BaFin within Germany.

According to EU requirements, eToro has to guarantee a statutory deposit insurance of 20,000 euros per customer. These are kept separate from business assets so that customer funds are not affected in the event of bankruptcy.

Both providers are considered serious. Ultimately, it depends on whether you trust the surveillance of the authorities or the security precautions that Binance takes itself.

Fees

The fees on Binance are among the lowest in the crypto sphere. The amount of the fees depends on several factors: whether the trader reacts to the order or opens an order and how high the daily
Trading volume of the best cryptocurrencies is.

Makers pay a 0.1% fee to open trades when trading below 50 BTC. As the trading volume increases, the fees also decrease. At over 50 BTC it is already 0.09% for the makers. Initially, the takers also pay 0.1%, but the fees only decrease when the sums are significantly higher.

Anyone who uses the in-house Binance Coin to pay the fees will receive a discount. At less than 50 BTC, the fee is reduced to 0.075%. Deposits to the account are usually free of charge, while withdrawals require small amounts.

The fees on eToro are expressed in spreads. A “spread” is the difference between the value of the investment at the start of the trade and at the end when the trade is closed. The spreads are different depending on the cryptocurrency. With Bitcoin they are 0.75%, with Ethereum 1.90%.

Deposits are also free at eToro. There is a $ 5 fee for withdrawals. In addition, overnight and weekend fees are due for positions that are kept open for a longer period of time.

Which platform is suitable for whom?

It is not for nothing that Binance is the best crypto exchange in the world for many. The fees are low, the selection of cryptocurrencies is large and the range of trading features is constantly expanding. However, that does not have to mean that everyone feels that they are in the best of hands here.

Perhaps you would prefer a platform that is regulated by the authorities and that offers traditional investments in addition to crypto currencies and the idea of social trading appeals to you. In that case, eToro could be a good alternative.