FTX collapsed last week, which has left many investors looking for alternatives. eToro offers a reliable alternative for people who want to use safe trading platforms.
FTX, one of the leading crypto exchanges in the world, collapsed last week. By the end of the week, the exchange filed for bankruptcy.
The cryptocurrency exchange reportedly used client funds for business purposes. With the collapse of the FTX stock market, many investors are looking for alternatives where their funds and assets can be safe.
Why eToro is a reliable FTX alternative
eToro has been in the financial space since 2007, before the rise of Bitcoin. The company is known for providing investors with access to a wide variety 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 operating since 2007. The brokerage platform is regulated around the world by some of the leading regulators, including the FCA, CySEC, ASIC, and more.
FTX’s balance sheet showed that the exchange funneled a portion of client money to its sister company, Alameda Research.
eToro assures its clients that this is not the case when trading with them. The brokerage platform’s underlying business remains healthy and profitable and its balance sheet is strong.
FTX’s downfall began after the FTT token lost more than 90% of its value in a matter of days. The company’s holdings declined drastically during that period.
eToro said it has never issued its own token and is not engaged in crypto lending. The lack of an eToro token means that clients don’t have to worry about the token’s price drop. eToro also does not 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, liquidity and compliance with legal obligations.
eToro is a leading brokerage firm that allows people to invest in a wide variety of financial assets, including cryptocurrencies, stocks, and more.