Want to jump straight to the answer? eToro is better for learning more about cryptocurrency, and Webull is better for more advanced users.
Webull and eToro are 2 of the largest cryptocurrency brokerage firms. eToro became one of the first major exchanges, while Webull is a long-standing brokerage house that is embarking on crypto. Each platform has its own advantages and disadvantages. Here’s a deep dive into who each platform is best for, and brokerage or trading may be the best fit for you.
What is a cryptocurrency exchange?
A cryptocurrency exchange is a place where investors can buy and sell cryptocurrency. Currencies can be purchased with fiat (USD) or exchanged with another cryptocurrency (ETH or BTC). The exchange holds your funds and may charge fees when you trade.
Crypto exchanges differ from exchanges in that sometimes they are not as heavily regulated. Almost all scholarships must be insured at the federal level. Crypto exchanges, on the other hand, don’t need to offer insurance.
Crypto exchanges also do not limit the number of transactions that one can perform in a day. Exchanges are required to freeze the accounts of people whose account value is less than $ 25,000 if they trade for more than 3 days in a 5 day period. With crypto, users can trade as much as they want, 24/7.
Important Features of Cryptocurrency Brokerage
Every crypto exchange is different, meeting the needs of different types of investors. It is important to understand these differences so that you can choose an exchange that will be the most beneficial and useful for your needs.
For crypto exchanges and brokerage houses, some of the important metrics to analyze in your decision-making process are fees, available coins, and security.
Features on Webull
- Bank transfers : Webull offers ACH bank transfers for deposits and withdrawals. It also offers same day trading which means you can use your deposits to trade on the same day you send the money to your account.
- Command types: Webull offers market and limit orders, which not all stock exchanges offer. This feature means that you can submit an order to be executed at the best possible price right now, or set a price to automatically trigger the order. Limit orders can be useful for planning trades and setting stop-losses.
- Application: The Webull application is available on computer, browser and mobile. Webull supports any method you want to use to view your crypto positions and is accessible through multiple forms.
Features on eToro
- CopyTrader: eToro offers a unique “CopyTrader” functionality. This feature allows you to track the investments of other crypto traders and even copy their exact transactions. Followed traders earn commissions when others copy their trades. This feature can be useful for those looking to learn more about cryptocurrency trading.
- Registration bonus: eToro is currently offering a $ 50 bonus to new users. If you deposit and use $ 500 of crypto, eToro will reward you with an additional $ 50. This reward is much higher than those of other exchanges that offer rewards.
- Risk-free trading practice: eToro offers users the opportunity to learn more about crypto investing in a risk-free environment. It offers a $ 100,000 practice account so that users can learn more about crypto without risking their own money. eToro is one of the only exchanges to offer this functionality.
Webul fees vs eToro fees
eToro and Webull offer similar fees, but eToro uses percentages while Webull uses a points system. These are both considered “spread” fees that are added to the purchase price of the cryptocurrency. The fees vary depending on the cryptocurrency purchased. The overall costs are determined by the volume and demand of the underlying asset.
eToro uses percentages to determine the amount of fees. These percentages are added to the amount you spend on a currency. For example, smaller altcoins like MANA have a spread of 4.9%, while larger coins like BTC can have fees below 1%.
If you trade cryptocurrencies on Webull, expect to pay around 100 basis points (1%) on each side of the trade. These basis points are then added to the purchase price, so it may not be clear that you are paying them. It is important to be aware of these fees, as these are the fees charged for using the brokerage. Fees for individual parts vary, similar to eToro.
Depends on security and leverage
Security features on Webull vs eToro
Webull uses Plaid and AES-256 encryption to ensure the safety of its users. These methods are essential in the financial sector in terms of security. Plaid is a third-party service that allows users to securely log into bank accounts. It uses 2-factor authentication to mitigate the risk of bank account hacking.
eToro uses SSL encryption to protect user safety. SSL is standard for most types of online encryption. It also offers 2-factor authentication, although it is not automatically enabled. Client funds are secured in Tier 1 banks, providing additional security.
Altcoins supported on Webull vs eToro
One of the main selling points of many exchanges is both the quantity and the quality of the tokens on offer. This feature gives investors more options to invest. eToro and Webull share many of the same coins, but each have their own unique offerings. They share: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), Stella Lumens (XLM), Ethereum Classic (ETC) and Dash (DASH.)
eToro, as a primarily crypto exchange, provides a lot more altcoins than Webull, which also serves as a stock and crypto exchange. This characteristic should be taken into consideration when deciding which exchange to use.
Altcoins on Webull
- Shiba Inu (SHIB)
- Zcash (ZEC)
- Cardano (ADA)
Altcoins on eToro
So, Webull or eToro?
Webull and eToro offer different types of features. eToro offers more attractive aspects for beginners, such as the CopyTrading system and practice trading accounts. Webull offers more technical indicators, as well as stocks and ETFs. This feature can be useful for more experienced traders. Both exchanges offer qualities that support different types of traders.
Benzinga has developed a specific methodology for classifying cryptocurrency exchanges and tools. We prioritized platforms based on offers, prices and promotions, customer service, mobile app, user experience and benefits, and security. To see a full breakdown of our methodology, please visit our Cryptocurrency Methodology page.
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