eToro vs Binance: Which exchange should you use?

eToro vs Binance
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Are you looking for a better crypto exchange but confused about which to use? It is well known that eToro and Binance are two of the most popular exchanges for buying and selling cryptocurrency

Depending on your investment goals and objectives, each has advantages and drawbacks. Also, despite Binance’s record-breaking volume, eToro offers some options that Binance lacks. 

To decide which exchange is better suited to your crypto needs, read our full eToro vs. Binance comparison, which covers what each platform offers and how they differ.

How eToro compares to Binance in terms of fees

There is a bit of a complexity involved with Binance fees. Your fees will depend on how much Binance Coin (BNB) you hold. Fees are reduced depending on your trade volume over the past 30 days. Also, different fees are charged for transactions that bring liquidity to the market or take liquidity away from it.

Considering all these factors, Binance can offer maker fees as low as 0.02% and taker fees as low as 0.04%. Users with low trade volumes on Binance can pay a maximum maker and taker fee of 0.10% on both maker and taker fees.

Trading Bitcoin on Binance has a 0.10% commission when you first start. With Binance Coin, users can save 25% on transaction fees. A new user without existing trading volumes on Binance will remain subject to the same fee if they do not use Binance Coin to pay their fee.

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MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.8

4.9/5

73% of retail investor accounts lose money 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.

MIN. DEPOSIT

$50

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USER RATING

9.7

4.8/5

CFDs are complex instruments and carry a high risk of losing money quickly through leverage. 78% of retail investor accounts lose money when trading CFDs from 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.

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.3

4.5/5

CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 65.3% of retail investor accounts lose money 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.

For example, if a user purchased $100 worth of Bitcoin on Binance, they would be charged 0.10% extra. This would make the total price $100.10. Compared to other crypto exchanges, this is a low fee.

In its fee structure, eToro aims to simplify the pricing process for its users. To avoid surprises, eToro charges a standard fee based on your chosen currency. Although this simplifies the process, eToro charges a higher fee than Binance.

For example, when you buy $100 worth of Bitcoin (BTC) through eToro, you will pay the coin’s price and eToro’s fee of 0.75 percent on all Bitcoin purchases, which equals $100.75. Compared to Binance, this is quite a price difference, but some might appreciate the simplicity of eToro’s pricing.

Comparing eToro and Binance’s crypto offerings

By far, Binance has the most variety of cryptocurrencies. With Binance, users can trade over 370 coins and over 1,000 trading pairs, while with eToro, they can trade a smaller number of coins. Currency selection on Binance can vary based on your location as well.

US residents can only access Binance’s full features through Binance.US, a dedicated platform that replaces the full Binance platform. Hawaii, Idaho, Louisiana, Texas, New York, and Vermont users cannot access this service due to its lack of capabilities and currency support. In addition to just over 60 coins, Binance.US does not offer crypto futures or leveraged trades. The offerings at Binance and Binance.US coins are diverse and include popular coins from around the world.

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Bitcoin, Ethereum, and Chainlink are among the most popular coins offered by eToro. It has a similar selection to Binance.US, but certain key currencies are missing. Tether (USDT) isn’t available on eToro, but Binance.US offers it.

Binance vs. eToro: Wallets

There are many wallets available on Binance Smart Chain that accept tokens, such as:

  • MetaMask
  • Math Wallet
  • TokenPocket
  • Trust Wallet

Furthermore, Binance’s site lists which wallets work with Binance.

eToro recommends transferring funds to an external wallet through its eToro Money crypto wallet. The setup is less flexible than Binance’s when storing coins. Using an existing wallet with eToro means giving up easy access to coins on the exchange. Nevertheless, eToro’s dedicated wallet is a good choice for users comfortable storing their coins in hot storage when using the platform.

eToro vs. Binance: Which is safer?

The security of any cryptocurrency exchange is paramount. There are no immediate concerns over either exchange, but both may present issues in the future.

Binance maintains cold storage for the majority of its funds. This prevents hackers from accessing it. As an added safety measure, Binance stores 10% of its trading fees in an insurance fund in the event of a hack. A two-factor authentication process and address whitelisting are also used to prevent unauthorized access to your coins. 

Security concerns for Binance are not its systems but how it dealt with large changes in the past. Users have criticized Binance for making abrupt changes that hamper their access to their coins without warning.

Compared with other popular platforms, eToro’s security isn’t as advanced. For liquidity purposes, some coins stored with eToro are kept in hot storage rather than cold storage. EToro’s insurance plan would make this less concerning if it had a concrete insurance policy against intrusions and losses of coins. As of now, it is unclear if eToro insures crypto assets. There is, however, a $250K maximum coverage for cash balance losses for US customers. The downside of using eToro is that if your coins are lost, or your account is breached, you will be unable to retrieve them.

The user experience of eToro vs. Binance

User interfaces are excellent on Binance and eToro. The simplicity of these platforms may be the reason for their popularity among crypto traders and investors.

EToro provides a dashboard where users can learn about the crypto market via a customized interface. Users can also see eToro’s most popular cryptocurrencies on the dashboard and the day’s top gainers and losers.

Alongside price fluctuations, each day is color-coded charts showing performance over the previous seven days. Also, to add more functionality, cryptocurrencies are assigned buy, sell, and hold ratings based on eight technical indicators, making finding trade opportunities simple.

The Binance dashboard, on the other hand, is readily available to users. The dashboard provides traders and investors with all the information they need to make an informed purchase decision. You can view the day’s top trends immediately upon launching the website, such as updated listings, the day’s top coins,” and coins exchanged by volume.

Additionally, the dashboard provides essential information concerning each crypto coin; prices, percentage changes, the volume traded, and the market capitalization of each coin.

Users can also sort and filter the information using the application, allowing them to customize it according to their needs.

Some people find Binance’s trading platform complicated. If you still find it challenging, you will probably prefer eToro, which has a classic mode.

The features and tools available on Binance vs. eToro

Technical Charts

Both eToro and Binance offer technical charts. In contrast, eToro’s charts are user-friendly and limited in scope. At eToro, you can choose from candlestick charts, bar charts, and line charts.

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It is highly recommended to use Heikin-Ashi candlesticks. Various sketching techniques and indicators are available, including moving averages, Bollinger Bands, RSI, MACD, and others. It is possible to change the timeline of each indicator, and you can compare two cryptocurrencies simultaneously.

There is no denying that the technical charts at eToro are excellent. Although it’s a purpose-driven exchange, it doesn’t offer specialized charting or a creative user interface.

You can use Binance’s technical charts for trading analysis as they have many features. Popular charting tools include candlestick charts, depth charts, and time interval selections. By combining these features, you can create a technical analysis interface that is uniquely yours.

A user can access more than 100 technical indicators on the platform besides average price, volume, moving averages, daily open/close, and any timeframe selected. Furthermore, a drawing toolbar contains pitchforks, brush, and trend line tools.

Crypto Analysis

eToro can help you with investment decisions by offering comprehensive cryptocurrency market research. This research tells you all you need to understand about a cryptocurrency, such as its history, market value, and trading volume.

 

Additionally, eToro assesses several related technical indicators and presents the findings in easy-to-understand buy, sell, or keep ratings.

Staking

Staking cryptocurrency on eToro is easy, secure, and practical. Users earn staking rewards each month in more coins of the crypto asset they stake, with no further work on their part. Hold, and the yield is computed automatically according to your overall balance.

Presently, eToro allows you to stake three coins: Cardano (ADA), Ethereum (ETH), and Tron (TRX).

The staked crypto-assets remain the property of eToro customers, who trust eToro to carry out the entire staking operation on their behalf securely and properly.

Solana, Cardano, and Polygon are among the 100+ coins supported by Binance with locked staking. Binance is an excellent alternative for bitcoin staking because staking is also free there, and the APY (annual percentage yield) is better.

Social and copy trading

Compared to Binance and other cryptocurrency exchanges, eToro stands out due to its social and copy trading features. A built-in social exchange on eToro enables users to follow one another and strike up conversations. It’s easy to learn what other traders think about a cryptocurrency’s prospects by commenting on articles.

You can also exchange viewpoints about specific cryptocurrencies on the platform.

Additionally, eToro combines the platform’s business transaction activities into a straightforward mood indicator. For any cryptocurrency, you can quickly view the number of eToro users buying and selling it.

Also, eToro offers copy portfolios, also known as Smart Portfolios, which let users mimic the trades and investments of experienced cryptocurrency traders and investors. You can imitate dozens of traders on eToro, and the website compares their positions and assets to help you decide who to copy. Numerous traders focus on cryptocurrencies and long-term portfolios of new promising cryptocurrencies.

When you duplicate a trader on eToro, you may pick how much money to invest into the mirrored portfolio. You can only copy $200 at a time. On eToro, duplicating a portfolio is free, and you can suspend or switch traders anytime.

Binance Academy

Many crypto beginners find it challenging to compile all the necessary learning resources in one place. In this case, Binance Academy comes to the rescue.

The site starts with educational materials on the blockchain, economics, history, decentralized finance (the Binance exchange lists many DeFi currencies), NFTs, and other subjects.

The platform offers a variety of in-depth essays on a variety of crypto-related subjects. Additionally, Binance provides free trading instruction, with weekly awards given to top students. Plus, the smartphone app makes all of these materials available.

Demo Accounts

A demo account teaches a beginner about every facet of trading. Being able to make mistakes without having to lose money makes the function incredibly helpful. By actively trading cryptocurrency, beginners can develop risk management and positioning skills.

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Also available at any moment is a reset request for the demo account. The fact that eToro’s capabilities, including copy trading, are accessible with a demo account is a significant advantage.

Binance, on the other hand, does not provide a demo account. That is not a significant downside, though, as it has a minimal minimum deposit requirement, making it possible for customers to trade cryptocurrencies without taking a significant financial risk.

In conclusion, eToro has three accounts: Professional, Retail, and Demo. Binance, meanwhile, only provides VIP and Individual accounts.

Customer Support: eToro vs. Binance

Customer care on eToro and Binance is quick to respond. Through its ticketing system, you can contact eToro’s customer support, and the customer service staff will then respond through email.

Additionally, the eToro website provides a complete online knowledge base with guides on how to open an account, cost and payment methods, trading capabilities, and much more. 

The eToro Academy offers a selection of brief lectures that explain the basics of the popular cryptocurrency market.

A user must use a chatbot on the Binance website to get their question or issue answered. The chatbot responds to requests by displaying the most relevant FAQs and outlining the subject. The user must click the thumbs-down icon for a customer support person to join the chat if the issue is not handled within 5 minutes.

Additional details are included in the form of comprehensive how-to manuals, FAQs, and other documents.

Summary 

Those looking to trade, store, and trade cryptocurrencies might prefer Binance, although Americans have limited options. If it’s available where you live, Binance offers a wide range of tokens to trade.

eToro may be a better choice if you intend to trade only a few coins. You can also copy the trades of more experienced users using eToro, which handles much of the storage work. Crypto-trading is a lucrative market, and eToro offers a great place to explore it, even with a dedicated wallet connected directly to the exchange.

FAQs

Is eToro preferable to Binance?

Long-term investors should use eToro since it is safer to retain cryptocurrency there for years due to the site’s increased regulation. Thus, a 1 percent spread cost is fair if you buy once and hold. At 0.1 percent, Binance, on the other hand, is unquestionably better for “day trading.” Additionally, eToro provides more deposit options, including eWallets and Paypal, giving it a higher fiat on-ramp. In general, it’s common for people to open an account on both platforms, transfer their trading assets to Binance, and maintain their long-term investments on eToro.

Which is less expensive, eToro or Binance?

Every cryptocurrency trade on eToro is subject to a fixed fee of 1%. However, Binance charges a 4.5 percent fee for debit and credit card transactions and a 0.10 percent fee for buy/sell transactions. However, wire transfers and bank accounts are free to use for transactions outside the US. For aggressive traders, Binance is more affordable in comparison.

Is there a platform that is better than Binance?

We believe that overall, eToro is a better option for long-term investing. You may also enjoy Crypto.com because it offers more chances to earn interest on cryptocurrencies and has leverage.

Does eToro support cryptocurrencies?

With eToro, you can instantly purchase and trade more than 55 cryptocurrencies using a bank transfer, debit card, credit card, PayPal, Neteller, or Skrill. The platform offers several trading tools, such as a variety of technical charts that are customizable and a one percentage point cost for each bitcoin exchange.

What fees apply to cryptocurrency on eToro?

You will pay a set fee of 1% when buying or selling bitcoins on eToro. The transaction quantity or payment method doesn’t affect any additional fees. eToro also levies a market spread for all cryptocurrency trading.

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