Best Cryptocurrency Exchanges UAE & Dubai

Is eToro good for crypto?

Yes, I’d say that eToro is a good crypto broker as they are they are regulated by the FCA for cryptocurrency activities. I’d say that eToro is better than Binance and Coinbase for crypto trading for the average investor, but for those who want more exotic cryptos and are happy to take on more risk a specialised crypto exchange may be more suitable.

Market Access: eToro has quite a diversified range of markets to trade, so if crypto only forms a small part of your investing portfolio (as it should do)  you can also invest in other things like UK and US stocks and ETFs.

App & Online Platform:  You can withdraw cryptocurrency from eToro instead of keeping it on their trading platform, this is particularly important if you want to keep safe custody of your cryptocurrency so you don’t need to worry about, yet another crypto broker going bust.

Customer Service: Very good, you get an answer pretty quickly if you have any questions and if you accoutn is big enough you’ll get a personal account manager to help with any issues.

Research & Analysis: The social crypto trading feature is what makes eToro stand out. It’s really interesting to see what others are trading and why.

Pricing: There is a downside though to trading crypto through eToro and that’s the fees, they charge 1% commission, But this is still cheaper than Revolut and Coinbase. Generally, eToro is quite an expensive broker for crypto. eToro is expensive for crypto because quite they do at least some vetting before (as their UK MD told me) they add them to the platform, so you have a smaller chance of being caught up in a crypto pump-and-dump scam.

51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when 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.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice.  The value of your investments may go up or down.  Your capital is at risk.

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

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Is Coinbase good for Crypto investing?

Coinbase is one of the largest cryptocurrency exchanges and is publically listed on the NASDAQ exchange (COIN). It offers access to large selection of cryptocurrencies that can be traded on it’s crypto exchange or withdrawn to a cryptocurrency wallet.

Pricing: It’s expensive, when Iwas testing the app I bought some Bitcoin to test the app, I was charged over 3% in commission, that’s far more than eToro who at the moment only charge 1%. But having said that, I did double my money as Bitcoin had a bit of a rally after my original review, so it’s not all bad, if it goes up that is…

Market Access: Coinbase offers the most cryptocurrencies compared to other exchanges, which makes them a great venue if you are interested in spreading your risk or looking for more volatile cryptos with a higher risk/reward ratio.

App & Online Platform: No complaints here, just does what it’s supposed to. No stand out features or research though.

Customer Service: Pretty good. I had a question, they answered it. Sorted.

Research & Analysis: No research on the app, but then again, brokers only provide research to get people interested in markets and I don’t think I’ve had a conversion about money in the last 12 months that hasn’t included crypto in some way so no stimulus needed.

One thing I do like about Coinbase though is that it’s a US company listed on the NASDAQ so in theory, if there are any problems with it that should be reflected in the share price.

Why should investors be more cautious when investing in crypto assets with Coinbase

I knew I should have sold when Bitcoin reached $100,000! When I reviewed Coinbase back in July last year, I some bought Bitcoin and Ethereum to test the app, and then forgot all about it. As Bitcoin has reached record highs, it jogged my memory and I was delighted to see when I logged back in that it’s now worth double. But I still think cryptocurrency is an imaginary asset and should be treated with extreme suspicion, here’s why.

I don’t really like crypto as an investment, I think it’s daft. Yes, there is money to be made from crypto, but not necessarily if you are investing in it. Yes, some will make huge amounts from exchanges like Coinbase, and they will be the most vocal about the merits of digital currencies as an asset class. But no, not everyone or even the majority will make money.

However, it it fairly undeniable that Bitcoin is now mainstream and that as major funds start buying it and it becomes easier to trade on regulated stock exchanges it does have a place in most people’s portfolios.

But it’s the hype that is driving crypto prices, rather than the use case. The young though are taking massive risks and dangerously putting all their eggs in one baskets. And most worryingly being heavily influenced by people ramping crypto prices and coins on social media.

The mentality of following the herd is not new, two decades ago when I first started out as a stockbroker it was mining and oil stocks. Companies would raise money on the stock market from people buying new shares to drill a hole in the ground. If they struck gold or “black gold” the share price would go through the roof, but if they didn’t it would be worthless.

Then it was tech stocks, same story, The City filled their boots as it wasn’t really about what the company was worth or even if they made any money, it was about how many people were buying them, and what the perceived future value could be.

Then carbon credits, which although a real thing, crooks in call-centres in Spain basically made up to cold-call and pressure sell investors into buying them on the basis they would be worth more in the future. All very Wolf of Wall Street, it wasn’t even stuffing people into an investment for high commissions it was just lying and stealing money.

• Worried a crypto coin is a scam? Check out our list of the biggest crypto shitcoin disasters.

Next came binary options, which I actually quite liked as they were a form of limited risk short-term bet on the movement of a market. In theory, the perfect way to day trade. The market is either going to do one of two things during the day, go up or go down, so you just placed a bet on what you thought was going to happen and your risk was capped based on your stake. This I felt was slightly safer than CFDs and spread betting because with those your potential losses are unlimited (or were at the time before negative balance protection and leverage caps). Plus one of the major mistakes that traders make is not cutting their losses (another is banking profits too soon).

But the problem with binary options wasn’t the product it was the fact that they were not regulated by the FCA. Reputable firms in the UK did offer them in a regulated environment to their customers, but, then, the carbon credit scammers moved on to binary options, and set up basic platforms without hedging any underlying risk and stuffed punters full of welcome bonuses and “trade ideas”, again just lying and stealing.

So, now that binary options have been banned, where have the scammers gone? Crypto, that’s right. But then, the FCA’s in their ultimate wisdom, decided to ban retail traders in the UK from trading through spread bets and CFDs. Now clearly in some respects, this was a good thing because trading a product on leverage which has price moves of 50% a day is clearly very high-risk and will almost definitely result in high financial losses for the majority of people that trade them. But what happened, was that because the FCA didn’t want to take responsibility for regulating crypto, it was binary options scams all over again. Honestly and with no hyperbole, I have just received a call on my mobile whilst writing this review from a Germany number asking me “how my investments are performing and if I’d heard of crypto”. I get these at least twice a day. I don’t even bother answering my phone anymore.

But, if there is a market, people are going to want to trade it and you just have to look at any analytics to see that crypto is what people want to invest in and trade.

As it becomes a more regulated financial asset, it will become safer to buy and hold, but not nesseicarly as an investement.

The FCA is taking steps to regulate providers to ensure that customers are treated fairly, but you still don’t get FSCA protection.

If you want to buy cryptocurrency you have two options really, you could go with a provider like eToro or Revolut, who are regulated by the FCA for other products or you can go with one of the massive VC backed crypto exchanges.

I used Coinbase, but it isn’t the cheapest though as when I did some test trades the fees were 3.84% for buying Bitcoin and Ethereum compared to eToro’s 1% and Revolut’s 2.5%. Coinbase does offers the most cryptocurrencies to trade though, 150 versus 120 and 30 respectively. Coinbase is at least a public company so you can keep an eye on their finances to see how likely it is they are going to go bust. Coinbase is currently traded on the NASDAQ and at the time of writing worth $14bn, (although the share price is down 85% since they IPO’d in April 2012). eToro and Revolut are still private companies (not for the want of trying to IPO mind).

I’ve traded crypto as a derivative before it was banned (although you can still trade crypto with a professional account), I’ve traded $50m clips of FX, worked £10m positions when trading stock CFDs, but oddly enough, I felt more nervous when depositing £500 into Coinbase to buy some Bitcoin for that review. I even used my secondary bank account, because I did’t want the transaction on my main personal account, just in-case when we came to re-mortgage “the computer says no” because they viewed me as some sort of crypto bro.

I’m still not sure about crypto, but this shouldn’t really be about crypto it’s about Coinbase, after all they are just giving people what they want. They are not forcing anyone to buy crypto (Twitter, Youtube and Instagram do that), they are just making it easy. And it is easy, it’s an incredible piece of tech, like Betfair was to gambling and what the LSE was to share trading, if you want to trade it you can.

But it’s still in it’s infancy as a regulated product and so as an “investor” you are not protected if anything goes wrong. Coinbase say they provide FDIC insurance if someone hacks them and nicks your crypto (up to $250k), but this doesn’t cover you if you get hacked, or Coinbase goes bust.

Unlike buying stocks in the UK where you are covered by the FSCS and shares and investments are held in nominee accounts in a very well-established and highly-regulated banking infrastructure. In the immortal words of Mark Corrigan,

There are systems for a reason in this world, economic stability, interest rates, growth, it’s not all a conspiracy to keep you in little boxes all right.

If you want to have a punt on crypto, you pays your money, you takes your chances, caveat emptor.

Is Revolut good for cryptocurrency investing?

Revolut is a good choice if you are just dabbling in cryptocurrency and don’t need anything too complicated.

Market Access: You can buy, sell, and send over 228 digital currencies at the touch of a button, with no hidden fees. But, Revolut’s cryptocurrency service is not regulated by the FCA in the same way as investing in the stock market. As you will find out when you take the “how well do you understand crypto” quiz when you try to buy cryptocurrencies on the app.

App & Online Platform: It’s pretty easy to buy crypto on Revolut, it took me about 3 minutes to login, acept the terms and conditions that I may lose all my money and buy some Bitcoin and Ethereum. If you want to know which is best, we’ve just written a guide on Bitcoin versus Ethereum. However, it’s a bit annoying that it’s app only and you can’t use it on a laptop or desktop.

Revolut Fees: Versuse eToro & Coinbase For Crypto

Fees are pretty high, if you are just buying a small amount. To test the app, I bought £200 worth of each I was charged a whopping £2.98, which is 1.49%. That’s very high compared to buying share,s which are largely commission-free these days. However, Revolut has recently reduced their crypto commission for trades above £20,000. It’s not as cheap as eToro’s 1%, but it’s certainly a lot cheaper than Coinbase.

Customer Service: Obviously, there is no phone number (Revolut has far too many customers for a call centre to handle), and no in-app live chat feature, but there are direct links if you need to report any fraud or banking issues.

Research & Analysis: You get access to some fairly standard articles and news feeds on crypto but nothing unique. There are links to the cryptocurrencies official websites and the white papers, so you can do your own more thorough research.