Lately, more people have been showing interest in cryptocurrency. As a result, trading platforms are emerging every other day. When trading, you always want to work with legitimate companies to avoid losing your hard-earned cash.
Among the popular trading platforms, eToro and Binance are at the top.
Binance is a well-known cryptocurrency exchange platform. The company offers the lowest trading fee and has access to over 250 different coins.
eToro, is a renowned company for providing social crypto trading, whereby traders are allowed to interact and watch each other in action.
eToro is best suited for beginners as it offers a demo account with $100,000 virtual currency for you to train. Once you feel ready, then you can trade on the real platform.
Binance, on the other hand, is a better option for skilled traders as it allows you to make large deposits and withdrawals. In addition, Binance exposes you to a vast pool of cryptocurrencies.
At a Glance
| Trading Platforms | eToro | Binance |
| Headquarters | London, United Kingdom | Cayman Islands; Mahé, Seychelles |
| Fees | $5 withdrawal fee and $10 monthly fee after a year of inactivity. Conversion fee for non-USD deposits and withdrawals. | 0.1 maker fees and 0.16 taker fees |
| Number of cryptocurrencies | 27+ | Over 150 cryptocurrencies |
| Supported currencies | Bitcoin, Ethereum, Ripple, Dash, Litecoin, Cardano, Neo, Ethereum | BNB, TetherUS, Bitcoin, VeThor Token, Ethereum, Storj, Harmony, Cardano, VeChain, EOS, Dogecoin, Stellar Lumens, Helium, Litecoin, Zilliqa, Matic Network, Elrond, Enjin Coin, Ontology, Cosmos, Compound, Maker, MIOTA, Ethereum Classic, KyberNetwork, Waves, NANO, Augur v2, DAI, PAX Gold and many others |
| Spread | 0.75% – 5% | 0.01% – 0.92% depending on the type of cryptocurrency |
| Transactions fee | Free | 0.10% – 0.02% |
| Withdrawal limit | Minimum of $30 | 100BTC / day for verified accounts; Wire Transfer: $7,500,000 / day |
Binance
Binance is one of the largest trading platforms and supports many cryptocurrencies. In addition, this company charges the lowest fee in trading cryptocurrencies, making it a competitive site for crypto traders.
Binance offers P2P trading whereby the users can trade with each other on their terms. Those selling and buying post their bids on the P2P platform and wait for possible buyers.
Trading with Binance as a beginner can be overwhelming as the site is made for skilled traders who have a clue about what’s happening.
Depositing money to your account can be done with credit cards, debit cards, SEPA, wire transfers, or the Binance widget. In addition, Binance allows its users to keep their savings in a flexible or locked account to earn a small percent of interest.
| Pros | Cons |
| Low trading fees. Allows trade between its customers. Has a wide support of cryptocurrencies. User-friendly. Support high liquidity hence supports large volumes trade. | Not available to all states in the U.S. Not beginner-friendly. No direct contact to customer care. |
eToro
eToro is a trading company that offers users access to about 30 cryptocurrencies across the globe. This trading platform doesn’t support a wide range of cryptocurrencies like other platforms such as Binance.
However, it does allow its users to make other investments. Customers at eToro can trade with stocks, indices, commodities, and ETFs.
eToro is a beginner-friendly platform as it allows customers to watch other traders in action. This way, learners can mimic the trading moves of top-performers.
In addition, eToro gives a demo account with $100,000 virtual currencies for you to train on how to trade. You can move back and forth from your demo account to trading in real-time.
| Pros | Cons |
| Beginner-friendly. Allows social trading so customers can watch each other in action. Free deposition fee. Has a mobile app. | Poor customer support. U.S traders can only buy cryptocurrencies. |
Next: Our complete, in-depth eToro review
Fees
Binance charges a trading fee of 0.1%-0.5% for instant buy or sell orders. Binance charges the lowest cost of the two platforms as the eToro trading fee ranges between 0.75%-2.9percent depending on the financial market.
Binance adds a fee of 4.5% for debit card transactions, which may vary depending on your location. Binance free deposits and withdrawals via banks and wire transfers. The withdrawal limit is $1,000,000 cryptos daily while eToro supports $50,000 per transaction and $200,000 limit per day.
eToro charges extra for their brokerage services. In terms of fee Binance takes the lead.
Binance vs. eToro – In-Depth Comparison
Let’s go into some of the features of each platform and compare them against each other.
Beginner Friendliness
eToro is considerate of its beginner traders as it allows social trading where the traders can interact, and the learners can mirror the moves that the experts make. In addition, the platform gives virtual currencies to play with.
Binance, on the other hand, has a complex interface that may be overwhelming for beginners. However, the site has advanced charts and tools accessible for skilled traders to use, which makes eToro the winner of this round.
Financial Instruments
While eToro offers access to only 30 cryptocurrencies, Binance supports over 150 cryptos to its traders. However, eToro has more financial instruments for its traders to play with, including stocks, commodities, or indices.
Both platforms support major cryptos like Bitcoin, Ether, and Ripple. Binance launched a separate platform for traders willing to leverage up to 125 times their funds. This form of trading is highly risky and beginners are likely to lose all the cash they’ve got. eToro wins this round.
Security
eToro platform is regulated by U.K’s FCA (Financial Conduct Authority) and the Australian Securities and Exchange Commission (ASIC). Both bodies ensure that the stored fund is secure. In addition, investors and traders have their assets protected if eToro goes bankrupt.
However, Binance is neither regulated or insured. In 2019, the site lost 7,000 bitcoins. Since then, the corporation has worked to improve security. In this round, eToro takes the win.
Ease of Use
The Binance platform is sophisticated and may be confusing for beginners to use. However, advanced traders may find this platform easy to use. eToro, on the other hand, is straightforward.
Beginners can trade using eToro as the features are pretty standard. In addition, the platform has a mobile app similar to the browser for easier usage.
Customer Support
eToro guides its customers through FAQs, and in cases of complex questions, you can consult customer support. Unfortunately, the response of Customer care is relatively slow, and it takes longer to get your issues resolved.
However, if you make a few friends on the platform, you don’t need customer support.
Binance has more robust customer service. It also has a live chat option at specific hours. Unfortunately, neither platform offers call support.
The winner is eToro because its traders can ask each other for guidance which is excellent for beginners, but Binance has better customer support.
Available Cryptocurrencies
eToro supports about 30 cryptocurrencies, including the major ones. It has supported fewer altcoins, whereas Binance supports over 350 cryptocurrencies, including significant cryptos and altcoins. Binance is the winner of this round.
Sign-Up Process
Both trading platforms are simple to sign-up for. All that is required is you complete KYC and AML processes. eToro will take you a couple of minutes to get your account up and running.
Meanwhile, Binance is a bit complicated as accounts are ranked based on the level of verification the user has completed. Traders who have completed all levels of assurance are charged a higher withdrawal fee. The verification process is done manually, which takes a couple of business days. eToro is the definite winner of this round.
Overall Comparison
Now that you have the details about the eToro and Binance, let’s see who is the best overall.
Best Overall
All features considered eToro is the ultimate winner. eToro is hard to beat as it is beginner-friendly, offers demo accounts, making it easy to use.
eToro is the best overall as it offers unmatched features compared to most trading platforms in the industry. It supports a limited number of cryptocurrencies compared to Binance, but it has better offers for beginners, making it a better platform.
Best trading platforms are based on offerings, pricing, security, customer service, mobile apps, promotions, transaction and withdrawal charges.
Best Based on Buyer
For the traders who can liquidate huge funds, then Binance is the best option. However, to trade with Binance, you need to have background knowledge as the platform has advanced features.
eToro, on the other hand, is best for beginners as it is user-friendly. The platform offers a demo account with $100,000 in virtual currencies to train before trading in real-time. In addition, the platform has a social feature where the traders can interact, and beginners can copy or follow the actions of top-performing traders.
Final Word
Cryptocurrencies are the modern way of trading in the online market. As a beginner trader, you need to work with the account that best supports your needs. You can open more than one account and find out which trading platform works best. Don’t be scared of trading in digital currencies because once you find a legit site, then you can start your journey to making some good cash.
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