Kraken and Binance are the two of the largest crypto exchanges in the world. Let’s break down each one so that you can decide which suits you best.
Now more than ever, investment and trading have become more accessible. Whether you prefer to be hands-on with your investments and decide how to trade on your own, or you just want to have the right mobile app to guide you, you’ll learn everything in this article.
Kraken and Binance are the top platforms for crypto exchanges. They are the best places to buy, trade, and sell cryptocurrencies.
Let’s break down the differences between Kraken and Binance and find out which global crypto exchanger suits your needs and wants better.
Contents
Basic Info
To start with the comparison, Kraken is situated in San Francisco, USA, and was founded in 2011, while Binance was established in 2017 and has no centralized headquarters.
Kraken is best suited for beginners. Binance, on the other hand, can be used by both beginners and advanced users. Both exchanges have a lot of educational materials on their websites. They both have a simple and straightforward interface.
In terms of average trading volume, Binance ranks first, and Kraken is fourth. Binance has about 13.5 million users; Kraken only has around four million. One reason for this is accessibility: Kraken is only available in the USA, while Binance is available in the USA, Europe, Africa, and Asia.
Kraken is not afraid to delist altcoins that it believes are potentially harmful – one example is Bitcoin SV. But unfortunately, Kraken doesn’t offer as many cryptocurrency pairings as its competitors.
In-depth Features
Kraken and Binance have the same features that they offer to users. They both provide advanced trading features, allowing users to buy, sell, and trade crypto, place market orders, and do other transactions.
As for Binance, some features are available on Binance USA but not for Binance in other countries. Margin trading, for one, can’t be accessed by Binance USA users. However, it is accessible on Kraken.
Value for money is one of the most important parameters you should consider when choosing cryptocurrency exchanges. You have to determine whether they offer acceptable quality compared to their prices. Binance, in this case, gives more value for money than Kraken.
In Kraken, a unique feature called the Cryptowatch allows users to place multiple trades at once, taking advantage of many opportunities.
Binance offers peer-to-peer (P2P) trading and margin lending. It also offers advanced charting and technical analysis.
Currencies
Kraken has 69 currencies on offer, including three stablecoins – USD Coin (USDC), DAI (DAI), and Tether (USDT). Stablecoin is a new class of cryptocurrency that attempts to offer price stability. They are backed by reserve currencies.
It also accepts seven fiat currencies. These are government-issued currencies and aren’t related to any other financial assets such as gold. These fiat currencies are USD, CAD, EUR, GBP, and AUD. Moreover, users from the USA are limited to 52 coins.
Binance supports 500 currencies for its users and stablecoins like Binance USD (BUSD), DAI, and Tether. It also accepts 19 fiat currencies, including USD, EUR, GBP, and HKD.
Users will find niche coins with smaller market caps on Binance due to a wider selection of available currencies. In addition to stable coins and fiat currencies, Kraken and Binance also support a myriad of trading pairs and popular cryptocurrencies like Dogecoin (DOGE), Bitcoin cash (BCH), Litecoin (LTC), Cardano ADA), Ether (ETH), and Monero (XMR). Keep in mind that that for USA residents, only Kraken offers Polkadot (DOT).
Binance has more currencies supported, but Kraken supports the most popular coins and tokens.
Security
Kraken is one the most trusted crypto exchanges there is because it has never been hacked. Its track record when it comes to security and safety is unmatched among all crypto exchanges. In this platform, multiple crypto exchanges can be done via its own Cryptowatch.
In 2019, Binance was hacked, unfortunately. About $40 million worth of bitcoin was stolen. Many users lost their trust in the platform, and many questions have been raised about its security.
Kraken has been outstanding in ensuring its security protocols. They perform penetration testing and undergo proof-of-reserve audits. On top of that, it has an ongoing bug bounty hunting program. It helps the company identify vulnerabilities in their security system and improve them.
While both crypto exchanges offer two-factor authentication and other usual security measures, Kraken beats Binance when it comes to safety and security.
Fees
Kraken and Binance both utilize the maker-taker fee structure, allowing them to have lower fees than other crypto exchanges.
Kraken charges up to 0.26% per trade, but the amount varies depending on the user’s activity level in 30 days. If they are more active and trade more money, then the fees will be lower.
Withdrawal fees for Kraken can reach up to $60. Both margin and futures trading may incur additional fees.
Trade charges for Binance are usually 0.1% or less. Withdrawal costs around 3.5% with $10 at minimum. Take note that you can save a lot of money with Binance Coin (BNB) as Binance offers a 25% discount when you use it to pay your fees.
For cryptocurrency withdrawals, fees vary depending on the currency for both platforms.
When it comes to affordability, Binance clearly overtakes Kraken.
Ease of Use and Accessibility
Both Kraken and Binance can be used in web browsers and mobile apps.
Binance offers three views from which the users can choose: basic, classic, and advanced. This platform assumes that its users have basic knowledge when it comes to cryptocurrency.
The basic view has a very simple display with only two dropdown menus. The classic one shows charts and order books that can be confusing for beginners. The advanced view is for more experienced traders.
UK residents can’t use Binance since it was recently banned there recently.
Kraken has a better interface for beginners as the menu is direct and easy to understand.
Kraken has an updated and shorter verification process. In addition, it can be accessed in 48 states, but not including New York and Washington. In addition, residents of Afghanistan, Iran, Iraq, Cuba, Libya, Syria, Congo, and North Korea can’t use it.
Mobile App
When Kraken and Binance are compared based on their user reviews, Kraken will take the top spot. Kraken generally has better reviews than Binance.
Users may have a hard time navigating the app at first, but the interface will grow on you in time. It may be buggy at times and cause login problems, but overall it’s still a good application.
Kraken has two mobile apps: Kraken and Kraken Pro. It has a clean user interface and has built-in chat support to help its customers. Another thing is Kraken takes in suggestions of its customers and uses them to improve its mobile app.
Both Binance and Kraken are available in the App Store and Google Play.
FAQs
What are Kraken and Binance?
Kraken and Binance are cryptocurrency exchanges. Users can buy, sell, and trade financial assets and various cryptocurrencies with these platforms.
Who should use Kraken and Binance?
Both beginner and experienced traders can use Kraken and Binance. Kraken is better for new users, while Binance caters to both beginners and advanced traders.
Are they safe?
While both crypto exchanges offer two-factor authentication and meet USA standards for security, Kraken is more trusted since it has never had a security breach, unlike Binance which was hacked in 2019.
Conclusion
Binance and Kraken are the largest crypto exchanges in the world. Binance has more cryptocurrencies to offer than Kraken and has a higher volume of users. It also has lower fees. But for other aspects, Kraken is better. It has superior security, customer service, and interface. It is beginner-friendly, and multiple exchanges can be done using their Cryptowach feature.
