- >Best Crypto Exchanges 2024
- >eToro vs Binance
While eToro and Binance both offer crypto trading, these are two different trading platforms. For one, eToro goes beyond crypto trading to offer stock trading among other investment instruments. eToro is also a regulated platform and comes with a practice account that you can use to test out your strategies.
Binance is more suited for the advanced crypto-centric trader who is looking for a platform with a plethora of cryptocurrencies to trade and a variety of options for depositing and withdrawing digital assets.
In this article, we will walk you through the various features you will find on eToro and Binance in a detailed guide that will help you make an informed decision on what platform suits you best.
eToro USA LCC does not offer CFDs, only real Crypto assets available
eToro
The eToro trading platform has been around since its founding in 2007. This is a Israel-based trading platform offering a variety of financial instruments for the emerging crypto industry as well as for investors and traders in traditional finance.
Apart from its offer for crypto trading, some of eToro’s outstanding features include forex trading, as well as a stocks and commodities trading platform. However, if you are in the U.S, you can only use the platform to trade cryptocurrencies due to regulatory restrictions.
With more than 17 million users spread across 100 countries, eToro boasts of attractive features such as a social trading platform that enables novice traders to copy the trading strategies of expert traders on eToro. What’s more, there is a chatting feature where traders get to interact, share ideas, and even view the current market sentiment based on various cryptocurrency trends.
eToro is also a fairly well-regulated trading platform with licenses from the Australian Securities and Exchange Commission as well as UK’s Financial Conduct Authority (FCA). In terms of supported cryptocurrencies, crypto traders will be able to access over 20 supported cryptocurrencies on eToro. Furthermore, expect trading and transaction fees on the platform to vary based on a spread that may rise and fall in line with prevailing market conditions.
Disclaimer: eToro USA LCC does not offer CFDs, only real crypto assets are available
- Great for crypto beginners
- Solid crypto/general trading platform
- Reliable company with solid trust in the community
- Fully supports credit cards for deposits and withdrawals
eToro Pros & Cons
Pros
Over 20 cryptocurrencies supported
Comes with an expansive network of social trading features
Intuitive user interface that is convenient for beginners
Offers several tools for learning and practice trading
High trust rating and well regulated
Cons
Crypto trading spreads are wide
High-end eTorX crypto platform only available to professional traders
Relatively high fees on some crypto trades
Limited trading options for American users
Binance Overview
Binance is the golden child of the cryptocurrency space at the moment as the platform boasts of the highest trading volumes in the industry set at an approximate daily value of over $20 billion. Launched in 2017 at the height of the last market bull run, Binance is a fairly new exchange platform when compared to eToro but has managed to amass over 13 million users in the time of its existence.
There are a variety of trading tools to choose from on Binance, not to mention more than 350 supported cryptocurrencies to trade. Due to regulatory restrictions, there is a Binance platform for U.S traders as well as the international Binance exchange platform. The U.S platform comes with several restrictions, such as a support for only 50 cryptocurrencies. eToro vs Binance US plays out a little different because Binance US is more restrictive.
Traders on Binance get to enjoy a mobile app that is available on Android and iOS devices and there is a desktop interface that gives access to sophisticated trading tools and investment instruments such as margin trading, a launchpad, and even a crypto-based derivatives trading market.
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- Easy sign-up process
- Lowest transaction fees of any major exchange
- 175+ different digital assets available
- Free deposits
Binance Pros & Cons
Pros
Supports a wide variety of cryptocurrencies
Offers a crypto-based derivatives market
Features multiple crypto trading pairs
Reliable levels of liquidity
Features secure hot wallets enabled with 2FA
Cons
Binance US is much more limited
Its user interface requires a steeper learning curve
Higher withdrawal limits are only available to verified users
Complaints from users about site crashes
Beginner Friendliness
Right from the start, eToro stands out when it comes to an intuitive user interface especially when compared to Binance. Simply put, eToro goes above and beyond to create a beginner-friendly trading environment. Some of its top features in regards to ease of use include a social trading feature that allows beginners to copy the trades of serious, more experienced traders.
Although accessing this feature requires a minimum deposit of $100, there are other free tools such as a market sentiment calculator as well as a practice trade platform with $100,000 for beginners to play with.
Binance, on the other hand, features a pretty sophisticated user interface with advanced charts and tools that are more inclined to the advanced trader. Granted, placing orders and setting up trading strategies is easy; however, there is somewhat of a steep learning curve involved.
Trust & Security
Over the years of its existence, eToro has earned the trust of traders in the crypto space as well as in traditional finance. The platform is regulated by U.K’s FCA (Financial Conduct Authority) as well as the Australian Securities and Exchange Commission (ASIC). eToro also boasts of segregated storage of all funds on its platforms, meaning that investors’ and traders’ funds are protected even if eToro goes bankrupt.
Binance, on the other hand, is not a regulated platform and has been hit by a raft of regulatory challenges worldwide in the recent past. Regulators in many jurisdictions have declared that Binance is essentially operating without permission.
For its part Binance has ramped up efforts to increase security on its platform and offers an insurance cover for lost assets with its Secure Asset Fund.
Both platforms offer solid customer service.
Fees
Binance charges the lowest fees of the two trading platforms. The platform comes with a spot trading fee of 0.1% and a 0.5% fee for instant buy or sell orders. Debit card transactions will add a 4.5% fee and other fees may apply based on your location. There are discounted fees for traders who pay their transaction fees using the Binance Coin, which is the native cryptocurrency of the Binance platform.
eToro, on the other hand, features a trading fee of 1%. Also, given that eToro is an online brokerage firm, fees for trading stocks and other financial instruments are calculated differently as they are based on a spread and a traded volume-based commission.
Sign-Up Process
The sign-up process on both eToro and Binance is quite straightforward to complete. After you have your account registered on both platforms, you will be required to complete KYC and AML processes. On eToro, this will take a couple of minutes.
Binance features a system that ranks accounts based on the level of verification those users have completed. Users who have completed all levels of account verification get higher withdrawal limits. Top-tier verification is done manually and could take a few days.
Available Cryptocurrencies
Binance takes the win when it comes to diversity in the number of supported crypto assets. With over 350 crypto assets supported, Binance is one of the most diverse crypto exchanges in the crypto universe.
eToro, on the other hand, offers a fairly high number of supported cryptocurrencies but only when compared to other online brokerage firms such as Robinhood and Tradestation. However, when compared to the likes of Binance, eToro’s list of supported crypto assets falls short.
eToro currently supports about 29 cryptocurrencies, including but not limited to the following:
Standout Features
eToro stands out for its ability to offer a variety of trading and investment instruments without letting the sophisticated and complex nature of its offerings get in the way. Simply put, eToro’s social trading platform, as well as trading practice platform, add to the simplicity that beginners can expect to enjoy while using the platform. The copy trading features are particularly useful for new traders.
Binance, on the other hand, stands out for its offering of a variety of crypto assets to trade, as well as its offer of margin trading, derivatives trading, and other sophisticated crypto-based trading tools. Binance offers essentially every popular cryptocurrency.
CryptoVantage Verdict: Binance Better for Hardcore Crypto Traders
In a race to see which trading platform offers the best crypto trading features, eToro and Binance are neck and neck.
Both offer reliable crypto trading platforms with a range of investment instruments that are suitable for most crypto traders. In the end Binance is going to be the far superior option for experienced crypto trader. The fact that eToro does not offer self-custody for crypto will be a non-starter for serious crypto users.
It’s worth mentioning, however, eToro goes further to offer a more secure, user-friendly experience with tools that facilitate easy learning and trading.
What Are Good Alternative Exchanges?
If you’re looking for a US-regulated exchange you might want to check out Coinbase. Meanwhile if you’re looking for beginner-friendly social trading apps with crypto options than SoFi or Robinhood might be of interest.
- Beginner-friendly UI make it easy to make quick buys
- One of the oldest and most reliable exchanges
- Earn $200 in free crypto after completing sign-up process. Terms apply.
- Variety of products including exchange, staking, wallet
- Advanced Trading options for experienced traders
- Receive $10 when you start trading crypto assets
- Only available in the United States
- Completely custodial platform
- Supports BTC, ETH, LTC, BCH & ETC
- A great one-stop shop for anyone looking to invest in cryptocurrency or stocks
- Easy onboarding procedure requires very little from user
- Fully regulated financial institution in the United States
- Support for BTC, ETH, LTC, BCH, DOGE, ETC, and BSV
eToro Disclaimer
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.
