Webull and eToro are 2 of the largest cryptocurrency brokerages. eToro emerged as one of the first major exchanges, while Webull is a longstanding stock brokerage that is branching out into crypto. Each platform has its own unique benefits and drawbacks. Here's a deep dive into who each platform is best for, and brokerage or exchange may be the best fit for you.
What Is a Cryptocurrency Exchange?
A cryptocurrency exchange is a place where investors can buy and sell cryptocurrencies. Currencies can be bought with fiat (USD) or swapped with another cryptocurrency (ETH or BTC). The exchange holds your funds and may charge fees when you make transactions.
Crypto exchanges differ from stock exchanges because they are sometimes not as heavily regulated. Almost all stock exchanges are required to be federally insured. Crypto exchanges, on the other hand, do not need to offer insurance.
Crypto exchanges also place no limit on the number of transactions one can make in a day. Stock exchanges are required to freeze accounts of individuals with account values under $25,000 if they make more than 3 day trades in a 5-day period. With crypto, users can trade however much they want, 24/7.
Important Cryptocurrency Brokerage Features
Every crypto exchange differs, suiting the needs of different types of investors. It is important to understand these differences so that you can choose an exchange that will be most beneficial and useful for your needs.
For crypto exchanges and brokerages alike, 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 both deposits and withdrawals. It also has same day trading, meaning you can use your deposits to trade on the same day you send the money to your account.
- Order types: Webull offers market and limit orders, something not all exchanges offer. This feature means you can submit an order to execute at the best possible price right now, or set a price to automatically trigger the order. Limit orders can be helpful for planning out trades and setting stop-losses.
- Application: Webull’s application is offered on desktop, browser and mobile. Webull supports any method you wish to use to look at your crypto positions and is accessible through several forms.
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. Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.
Features on eToro
- CopyTrader: eToro offers a unique “CopyTrader” feature. This feature allows you to follow other crypto trader’s investments and even copy their exact trades. Followed traders earn commissions when others copy their trades. This feature can be useful for those looking to learn more about cryptocurrency trading.
- Signup Bonus: eToro currently offers a $50 bonus for new U.S. users. If you deposit and use $500 of crypto, eToro will reward you with another $50. This reward is much higher than those of other exchanges that offer rewards.
- Risk-free Trading Practice: eToro offers users the chance to learn about crypto investing in a risk-free environment. It offers a $100,000 practice account so users can learn about crypto without risking their own money. eToro is one of the only exchanges to offer this feature.
Webull Fees vs. eToro Fees
eToro and Webull offer similar fees, but eToro uses percentages while Webull uses a point system. These are both considered to be “spread” fees that are added into the cryptocurrency’s purchase price. Fees vary based on the cryptocurrency that is purchased. The overall fees are determined by the volume and demand for 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 such as BTC may have fees less than 1%.
If you trade cryptocurrency on Webull, expect to pay around 100 basis points (1%) on either side of the trade. These basis points are then added to the purchase price, so it may not be clear you’re paying them. It’s important to be aware of these charges, as it’s the fee charged to use the brokerage. The fees for individual coins vary, similarly to eToro.
Security Features on Webull vs. eToro
Webull uses Plaid and AES-256 encryption to provide security for its users. These methods are staples in the financial industry in terms of security. Plaid is a third-party service that allows users to securely log in to bank accounts. It uses 2-factor authentication to mitigate the risk of bank accounts getting hacked.
eToro uses SSL encryption to protect users' security. SSL is standard for most types of online encryption. It also offers 2-factor authentication, though it is not automatically enabled. Client’s funds are secured in tier 1 banks, providing further security.
Altcoins Supported on Webull vs. eToro
One main selling point of many exchanges is both the quantity and quality of tokens offered. This feature gives investors more options to invest in. eToro and Webull share several of the same coins, but each has its 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 primarily a crypto exchange, provides many more altcoins than Webull, which doubles 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 aspects that are more appealing to 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.
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