FTX collapsed last week, and that has left many investors scrambling for alternatives. eToro provides a reliable alternative for people looking to use secure trading platforms.
FTX, one of the leading crypto exchanges in the world, collapsed last week. By the end of the week, the exchange had filed for bankruptcy.
The cryptocurrency exchange was reportedly using customer funds for its business purposes. With the collapse of the FTX exchange, many investors are looking for alternatives where their funds and assets can be secure.
Why eToro is a reliable FTX alternative
eToro has been in the financial space since 2007, before the emergence of Bitcoin. The company is known for providing investors access to a wide range of financial markets, including forex and stocks.
User funds are safe on eToro thanks to some of its features. For starters, eToro is a regulated, multi-asset broker that has been in business since 2007. The brokerage platform is regulated all over the world, by some of the leading regulators, including the FCA, CySEC, ASIC, and more.
FTX’s balance sheet showed that the exchange was diverting some customer funds to its sister company, Alameda Research.
eToro assures its customers that this is not the case when they trade with them. The brokerage platform’s underlying business remains healthy and profitable, and its balance sheet is strong.
FTX’s downfall began after its FTT token lost more than 90% of its value within a few days. The company’s holdings drastically reduced during that period.
eToro doesn’t engage in crypto lending
eToro said it has never issued its own token and does not engage in crypto lending. The lack of an eToro token means that customers don’t have to worry about the token’s price dipping. eToro also doesn’t engage in cryptocurrency lending, unlike FTX.
Finally, eToro assured its users that their funds and assets are segregated and reconciled on a daily basis to ensure safety and liquidity and comply with its regulatory obligations.
eToro is a leading brokerage company that allows people to invest in a wide range of financial assets, including cryptocurrencies, stocks, and more.