Altcoins Talks - Cryptocurrency Forum
Learning & News => For Beginners => Basic Questions about Cryptos => Topic started by: antonyyu3 on February 20, 2024, 07:37:27 AM
-
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?
-
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.
-
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 (https://www.xm.com/xm-introduces-bitcoin-btc-usd-for-trading-58797)
[2] https://www.binance.com/en/fee/trading (https://www.binance.com/en/fee/trading)
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
I think dexes no longer follows the Etherdelta format after Uniswap becomes popular. I don't think we need to limit them to the same orderbook as Etherdelta anyway as long as they allow users to trade with their web3 wallet. It is no brainer that CEX is more popular since the average joe doesn't want to trouble themselves with learning how the orderbook works, what slippage and liquidity are, etc. Binance DEX also allows you to put a limit order iirc. At the end of the day, people who prefer DEX are not looking for advanced features, but privacy.
-
Most traders make use of exchanges not minding the way they are being centralized by the nature of how they appear and the risk a centralized exchange could possess, when we are to make any of our selection, it is very important that we consider the way some of these exchanges operate, know their terms and condition and also be ready in facing any kyc related challenges with using them, however, we must not also forgot that when we are not trading, it is better we have our fun on a personal wallet and not on exchange, this is most applicable to the long time holders.
-
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?
The difference between brokerage and crypto centralized exchanges is that one offer stock trading with limited coins but centralized exchanges only support only crypto coins, that's the difference between these two. In Binance, I believed you can find many varieties of coins that you can trade but you can't trade most of the foreign exchanges or currencies but Brokerage only have a limited coins that you can trade. That's the difference.
I will advice you to used Binance for trading cryptos and use brokerage for other stocks just to be at a safer side, Binance has a reputation even though it can't be trusted too but better than the Brokerage that has some coins for trading.
-
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.
Every exchange trading incurs some fees and a trader has to accept that and then decide to trade. No exchange will definitely give us any service for free, just as we can make money by trading, they deduct some amount of money as trading fee before accepting each trade, even though the amount of that fee is very small. I think people who plan to trade or who are trading do not take this matter very seriously because then they are completely focused on how they can make a profit by trading or how they can improve their skills.
-
I am curious are there any similarities between platforms like Binance and XM?
What is common is that both platforms are both related to trading. However, Binance is more inclined towards cryptocurrency trading while XM is not. XM supports trading forex, shares, equities and others. And XM is a broker, where all the assets you own will be able to get help with trading advice from the broker, however you should be careful too.
Because not every broker can have high trust, therefore make sure you always anticipate if something bad happens when using the broker's services.
-
You can choose platforms that prioritizes crytpo trading so it would be easier for you to buy and sell coins. In addition, I think binance would be the best fit for it because it is mainly for crytp trading.