Platform selection for trading cryptos

[antonyyu3]

I am a beginner. I just opened an account in Binance and bought some coins. at the same time, I also trade with brokerage firms like XM, which also offer crypto trading assets. This broker provides trading with leverage. I am curious are there any similarities between platforms like Binance and XM?

[joniboini]

As far as my research goes, this XM platform doesn't accept deposits or withdrawals in crypto, is that true? If that's the case, then the similarities end with them being a trading platform where you can trade crypto, the rest are different. Binance allows you to deposit and withdraw crypto, most of their products are focused on crypto trading, etc. You can also trade with leverage on Binance iirc, or other leverage platforms if that's your thing. You don't own anything if you use a platform like XM, what you trade is a ticker instead of the real BTC while you can still withdraw your coins if you use Binance (or other crypto exchanges in general). CMIIW.

[ABCbits]

I am curious are there any similarities between platforms like Binance and XM?

Binance let you withdraw coin to your wallet, while XM doesn't seem to offer that option. And looking at their article[1], they claim they offer zero fees while Binance has trading fee up to 0.1%[2].

[1] https://www.xm.com/xm-introduces-bitcoin-btc-usd-for-trading-58797
[2] https://www.binance.com/en/fee/trading

[Z-tight]

Binance is a cryptocurrency exchange, while XM is a brokerage firm, so there is already a difference in how they operate, though XM offers crypto trading, but it cannot be exactly in the same way that crypto exchanges do. If you want to trade crypto, i recommend you stick to cryptocurrency exchanges, either centralized ones or p2p exchanges.

[Dr.Bitcoin_Strange]

OP, to echo what has already been said by the other members, I want you to know that XM is a Forex and CFD broker where you can mostly trade different foreign currencies in their trading pairs and make either profit or lose. Despite the fact that they are Forex brokers, they can also offer crypto trading on leverage, but Binance is a centralized exchange, specifically for trading any kind of cryptocurrency that has been listed on the exchange, while XM is for trading generally all foreign currency. In clear terms, Binance doesn't offer forex brokerage services. 

[Faisal2202]

I am a beginner. I just opened an account in Binance and bought some coins. at the same time, I also trade with brokerage firms like XM, which also offer crypto trading assets. This broker provides trading with leverage. I am curious are there any similarities between platforms like Binance and XM?

I'm not a user of XM exchange but I do have the idea that it's not only a crypto-supported exchange because we can trade other derivatives in XM also like forex etc. But yeah we can trade crypto in XM and with leverage also. We can also take leverage in Binance as well, but there might be differences between how much leverage one platform is providing, from my knowledge, Binance is providing 100x to 125x and XM provides more than that (as the leverage varies from assets to assets).

If we consider security factor then we will know that XM is kinda more secure then the Binance, and you might have heard that Binance is banned in India but now its also banned by the authorities in Nigeria as well. Mean these centralized platforms (especially the ones being targeted) are risky to keep your funds on.

[bayu7adi]

Both are digital asset trading platforms, but Binance is more specific to cryptocurrency digital assets while XM leans towards forex. Binance holds the top spot globally in the cryptocurrency realm, whereas XM is only prominent in certain countries within the forex world. However, the forex market still carries higher trading volume compared to the cryptocurrency market currently.

Since we're in an altcoin forum where discussions mostly revolve around cryptocurrency, it might be better to focus more on Binance as it's more relevant to the discussions here. Therefore, Binance is more pertinent to discuss in this forum.

I don't mean to sideline forex traders, as I know there are quite a lot of users and supporters in the forex community.

[Crwth]

If you are interested in trading cryptocurrencies, you need to be more on pure cryptocurrency exchanges like Binance. Since it is the largest exchange, it's not a wrong choice to make. I don't have any experience with XM but it's not like Binance for sure. There might be higher fees with it as well.

If you want leveraged trades, there are futures in Binance and margin trading.

[Stompix]

Simple as this:
With Binance you trade crypto that you own and you can withdraw to your wallet
With XM you trade crypto CFDs, not real cryptos.

[Litzki1990]

When it comes to trading, one should consider those platforms where the transaction fees are very low and where an investor can complete all his transactions with ease. There are some platforms that impose very high transaction fees on businesses which is a huge problem for medium to small traders. We can use BSC or any other platform for business as we do not have any problem of additional transaction fees in such platforms. 

To deposit money in two different platforms, if one charges a deposit fee of $20 and the other charges a dollar, traders will choose a platform that charges a transaction fee of one dollar.

[Z-tight]

When it comes to trading, one should consider those platforms where the transaction fees are very low and where an investor can complete all his transactions with ease.

Centralized or custodial platforms do not charge tx fees, they charge service and trading fees, and even when withdrawing from their platform, you pay them a withdrawal fee and they compile many withdrawal requests and send them in one tx and pay the fees themselves. About convenience, many crypto users prefer centralized exchanges because they consider it to be more convenient, however in decentralized exchanges, you get privacy, security and zero third party.

[Stompix]

Centralized or custodial platforms do not charge tx fees, they charge service and trading fees, and even when withdrawing from their platform, you pay them a withdrawal fee and they compile many withdrawal requests and send them in one tx and pay the fees themselves.

Which is basically the same, you don't care how much they actually pay for that tx, you care how much they charge you claiming it's costs for their tx, labeling stuff to look like some extra service and extra effort they put in to fleece you more.
When Binance charges you $30 to get your bitcoins out you kind of stop caring about labels and look only at the $ value you're having to pay! 

About convenience, many crypto users prefer centralized exchanges because they consider it to be more convenient, however in decentralized exchanges, you get privacy, security and zero third party.

You don't get all! of those if you deal with BTC, there is no true decentralized exchange for BTC and when it comes to fiat<>btc you still need to hand over to some stranger your bank details.

[Aanuoluwatofunmi]

Binance is an exchange base on my knowledge but i don't know much about XM if its an exchange or not, but under the virtue of what they are providing, we can say that they provide a leverage service and you can as well have something more similar in using a crypto exchange also, but never forget that they are all centralized institution and it will be very important for you to know their advantages and disadvantages before going into them.

[Crwth]

I'm not sure if XM would be up to par with Binance because Binance is built for cryptocurrency exchange, not all assets like XM. If you are interested in crypto trading, it would be best to trade with Binance because it's focused on that. I think that would be the best way to have a good experience when trading with cryptocurrency.

It's great to trade in a DEX though.

[bayu7adi]

It's great to trade in a DEX though.

But Binance is a CEX (Centralized Exchange) not the DEX you mean. For my experience in buying and selling crypto via DEX, it ended up being a mediocre experience. Etherdelta and Forkdelta used to be the DEX exchanges I used. Everything looks nothing special, I think that's why currently CEX is getting more attention than DEX.

DEX may now be transformed into a 'swap' exchange like Uniswap did. The mechanism is good, but not more advanced than CEX.