eToro, Binance, or Plus500 – choose the right crypto trading platform
The first question we ask when it comes to choosing the right platform for cryptocurrency trading – is it safe? Can I rely on this broker? And why do all the platforms have a bunch of negative reviews?
Where does the negative feedback come from?
When you search for any cryptocurrency trading platform you will come across tons of feedback, most of them will be negative. When you search for any cryptocurrency trading platform you will come across thousands of feedback, most of which will be negative. If you read the reviews you will see many not enough experienced or educated investors talking about their losses. 9 out of 10 lost their funds due to a lack of knowledge about the platform before trading. Most platforms can offer you risky tools, and you really need to watch what you are doing, and educate yourself.
Sometimes traders are very impatient and risk more than they should. In trading, same as in real life, when you lose it is better to take a pause and think about a new strategy. Many traders make a mistake on this stage and invest more hoping to cover the losses, and eventually losing more. The results are usually sad, and not only investors suffer, but platforms too, when they get negative reviews from disappointed traders.
Thus we have collected the necessary information about the 3 best and most safe crypto trading platforms of 2020-2021.
What differentiates Plus500 from some other platforms is that you actually do not own cryptocurrency. Plus500 is a CFD (Contract For Difference) broker. When buying a cryptocurrency you open a contract, same as when you sell your crypto the contract is closed. In other words, you only bet on the price of a digital currency. If you wish to speculate only, then Plus500 will be the best trading place for you.
Plus500 is also very convenient for newbies who only start trading, as the platform offers the possibility to invest with a demo account, which is free to open. You can learn the platform while speculating with paper money. Besides, this way you cannot lose in case of a mistake or taking the wrong decision.
Another big benefit of Plus500 is leverage. Leverage allows you to gain big revenues with a small investment. You can borrow money from the platform to leverage your trades. But do not forget that leverage is a double-edged sword that brings you easy and lucrative profits but could make you lose the same big.
And answering your most important question - yes, Plus500 is a reliable broker being a leader in the trading market since 2008. The platform has millions of customers around the globe and is controlled by the UK FCA, which is considered to be one of the world`s most demanding financial regulators.
eToro was originally a stock trading platform launched in 2007 in the United Kingdom. The platform has started offering its customers cryptocurrency trading in January 2017. But long before purchasing and selling cryptocurrencies, since 2013 eToro had offered CFDs for Bitcoin.
eToro offers its customers a variety of trading options. For example “Crypto CopyFunds” option allows you to copy the moves of other successful traders. One of the biggest benefits of eToro is that you can copy a cryptocurrency portfolio set up by a group of experienced top traders.
There is a useful option for newbies called “virtual money accounts”. With this feature, you can get “fake” $100,000 that you can trade and invest. This way you can learn trading techniques and understand better how the platform works in order to secure yourself from losses and disappointments. Virtual money accounts also give you access to market analysis knowledge and other necessary information.
Your account on the platform is fully secured, as eToro is regulated by the Cyprus Securities and Exchange Commission (CySEC) and holds a cross-border license from the CySEC to offer its services in member states of the European Union, and outside of it.
It is impossible to talk about crypto trading platforms without mentioning the most popular and regulated exchange Binance. It has been the largest crypto exchange in terms of market cap since 2018. Moreover, Binance’s matching engine is capable of maintaining up to 1.5 million orders a second, making it one of the fastest crypto exchanges.
If you want to imagine the size of Binance, we want to inform you that over $2 billion in trades per day comes only from the US. Binance is today's leader in the matter of security, as it is federally regulated in all but 15 countries. But let’s discuss other benefits of trading on Binance.
Trading on Binance is pretty easy. But to register you will need to provide valid identification for KYC/AML compliance purposes. Once you have passed the registration process, you have to link your funding source. You can use a debit card if you plan to make a trade with small amounts, but connecting your bank account directly will give you more flexibility when purchasing and withdrawing.
The variety of trading options is wide on Binance. CoinMarketCap states that Binance sustains 602 trading pairs only, which is already huge. The platform offers the most attractive transaction fees on the market, which is only 0.1%. Besides, Binance constantly offers promotions, such as 10% cashback when using discount codes.
And on top of its exchange services, Binance has entered the crypto derivatives market. The biggest advantage for experienced investors in the Binance derivative section is that the platform offers trading on super-high leverage levels, which allows entering buy and selling positions with more funds than are available on your account.