Binance and Kraken are among the biggest crypto exchanges today. They are known for their diverse investment options, security, and user-friendliness.
This Kraken vs. Binance review will compare what these platforms offer to help you decide where to invest.
Binance is the largest crypto exchange, according to CoinMarketCap. It was launched in 2017 and has been a big deal since then. Binance is known for its low trading fees, which help it attract millions of global users.
Binance gives you access to more than 300 cryptocurrencies and a wide range of products and features. This makes it a great crypto exchange for investing in different assets. Binance is available in a lot of places, but in some, like the United States, it is not.
Kraken is the third-largest crypto exchange, according to CoinMarketCap. It was launched in 2011 and serves around 200 countries. Kraken offers products for both beginner and advanced traders.
The platform offers some of the lowest trading fees in the market and lets you invest in over 200 cryptocurrencies. It is a centralized exchange that follows strict rules to protect investors' money. Kraken is also known for its simplicity, making it excellent for newbies.
Binance vs. Kraken: Products and Features
Binance and Kraken provide many similar investment products. However, they still differ in factors like interest rates, user friendliness, and security. We will compare these platforms’ different products and features to help you decide which platform is best for you.
Binance has a powerful platform for buying and selling crypto. The platform lets you buy more than 100 crypto assets with different fiat currencies, and it supports several payment options.
Kraken provides a user-friendly platform that lets you buy crypto for $10. It offers access to around 200 cryptocurrencies that you can buy instantly. All you need to do is create an account, verify it, and start buying and selling crypto.
Binance has a simple spot market platform that anyone can use to trade. The platform shows the prices of major trading pairs, and you can also search for specific pairs. It also provides technical tools to help you analyze the market more seamlessly.
Kraken is another fantastic option for spot traders due to its many trading cryptos. It has simple price charts that show price trends and technical tools that make trading more effective.
Binance lets you borrow funds to help open big positions when trading. So, if you only have $100 and need to open a $500 position, Binance lends you the remaining amount to help you profit more.
The margin trading platform lets you choose how much leverage you need to execute positions. The leverage varies from 3X to 10X, depending on your needs.
Kraken has over 100 margin trading markets. The platform lets you magnify your positions with up to 5X leverage. Plus, it offers pretty stable margin trading fees. This enables you to accurately calculate the expected earnings.
Binance lists some of the biggest NFTs, such as Bored Ape, and has a user-friendly interface to let you see everything in one place. The best-performing NFTs based on 24-hour volume are listed on the first page of its NFT platform. It also allows you to use filters such as the number of current owners to help find the rarest NFTs. And you can also use specific keywords to find specific projects. Binance mostly lists the top NFTs on the BNB Chain and Ethereum blockchains.
Kraken is also a great choice, especially because its security can't be broken, which is important for NFTs. It offers zero gas fees, which makes trading cheaper, enabling you to earn more.
Kraken lists the best NFTs on the Ethereum and Solana blockchains. The platform’s rarity rankings feature helps to easily find unique NFTs. And you can apply different filters for a more efficient search.
Binance provides a simple futures trading platform with some of the best futures products. The platform has over 90 futures contracts, including BUSD and USDT instruments.
It is also very stable and fast. It can handle around 100,000 orders per second with very little latency. And you can even trade using Binance’s smartphone app. Binance also has more advanced trading options, like grid trading and strategy trading, which let you use automation tools.
Kraken’s multi-collateral feature makes it excellent for futures trading. It lets you open a position with a different trading pair than the one used as collateral. For instance, you can use USDT as collateral but open positions with DOT/USD. Kraken provides about 10 collateral options to choose from.
The platform also lets you leverage your trades. This boosts your futures trading power and helps you earn more money. For better risk management, Kraken also lets you choose between an isolated margin and a cross margin.
Binance provides an easy way to stake crypto without managing private keys, as you don’t need an on-chain wallet to do so. So, you don’t need to open trades or complete complicated processes to earn interest because Binance does everything for you. All you have to do is stake your assets for the agreed-upon period and wait for the rewards. Plus, Binance does not charge gas fees.
After staking, interest begins to accumulate the following day. However, redeeming your rewards before the agreed time will cost you the earned interest. The interest rate depends on the asset that is being staked. For example, some cryptocurrencies offer around 21% APY. Binance provides over 60 crypto staking assets, including Bitcoin and stablecoins like USDT.
Kraken provides some of the highest staking rates in the market. The interest rates go as high as 24%, and you start earning interest instantly. Kraken lets you un-stake your cryptocurrency whenever you want, with no fees or penalties. However, staking on Kraken is unavailable in the United States.
Kraken lets you stake crypto assets such as:
|Coin||Reward Rate %||Minimum Balance|
|ADA||Up to 3%||1 ADA|
|ATOM||Up to 18%||1 ATOM|
|DOT||Up to 15%||1 DOT|
|KSM||Up to 13%||1 KSM|
|SOL||Up to 5%||0.01 SOL|
Kraken pays staking rewards twice a week. And it does not charge any staking fees. Kraken does not have a minimum staking time, letting you decide the most comfortable duration.
Supported Fiat Currencies
Binance supports 40+ fiat currencies.
Kraken only supports seven fiat currencies.
|Exchange||Fiat Currencies Supported|
Binance supports 350+ crypto assets, which is more than most people need.
Kraken supports 200+ cryptocurrencies.
|Binance Coin (BNB)||✓|
|Bitcoin Cash (BCH)||✓||✓|
Binance uses highly advanced security systems to secure users’ funds. It also lets users use security measures like two-factor authentication to keep other people from getting into their wallets without their permission. Plus, Binance insures all USD deposits with the FDIC. This means that if Binance lost your money, it could easily repay you.
Kraken is one of the most secure crypto exchanges on the planet. The platform has never been hacked and even runs a bounty program to help detect issues and fix them early enough. This makes it stand out from other platforms, such as Binance, which was hacked in 2019, leading to a $40 million loss.
Binance has a clean user interface, but that doesn’t make it easy to use, especially for beginners. It might take you some time to learn where every feature lives. Creating a Binance account is usually straightforward. And the verification process takes a few minutes to ten days, which might be too long for most people. However, Binance offers different trading tools and order types, making trading easier, especially for advanced traders.
Kraken has a simple sign-up process, and the verification takes minutes. The verification of pro-level accounts takes a maximum of 5 days. Kraken also has a simple user interface that makes it easy to locate everything. The simple interface makes buying and selling crypto easy, even without prior experience.
Kraken also has two trading platforms: Kraken and Kraken Pro. Kraken is the main trading interface that is easiest to use. Kraken Pro is a more advanced trading platform with more trading tools. The variety helps you choose the most suitable trading platform depending on your experience.
Binance is available globally. Some places, like the United States, Canada, and Singapore, don't have it, though.
Kraken is also widely available, even in the U.S., except in Washington, D.C., and New York City. It is restricted in other locations, such as Afghanistan, Lebanon, and Yemen.
|Cryptocurrency Adopted Countries||Binance||Kraken|
|United States||No - See Binance.US||Yes|
Both Binance and Kraken are known for offering affordable trading fees. Binance charges a trading fee of around 0.1% or less. And you can even get a 25% discount if you pay trading fees using BNB (Binance Coin). Binance offers cheaper trading fees to users with high trading volumes. VIP users get the cheapest rates of around 0.04%.
Kraken’s trading fees range between 0.16% and 0.26%. Having a high trading volume earns you a cheaper rate. Users who trade more than $10,000,000 a year don't pay any maker fees and only pay 0.08% in taker fees.
Also, Kraken has a simpler fee structure than Binance, making it easier to understand for both new and experienced traders.
|Exchange||Maker Fee||Taker Fee|
Smartphone trading apps are essential for traders, especially if you travel a lot. They make it easy to keep track of trades even when you're not at your computer. This makes sure that everything runs smoothly.
Kraken and Binance both have mobile apps that can be used at any time. Both of their apps are available on Android and iOS. Unlike Kraken, Binance’s app supports Touch ID and Face ID features, ensuring extra security. Kraken has two apps: the main Kraken app and the Kraken Pro app. Kraken apps have a live chat feature to help you get support faster.
Binance has a help center with a list of frequently asked questions (FAQs) and other self-service options that can help you find the answers you need right away. It also offers customers different ways to get support. These methods include 24-7 live chat, email, and social media.
Kraken has a support page that provides guides to help solve common problems. It also provides different ways to reach support 24-7, such as phone calls, email, and live chat.
Binance scores a 2-star rating on Trustpilot based on an average of almost 5000 reviews. Most negative reviews are about a lack of responses from customer support and withdrawal issues. However, Binance responds to most complaints.
Kraken has a 2.2 average rating based on 2000 Trustpilot reviews. Most complaints are about lost funds and unreliable customer support. Kraken responds to the reviewers, giving them more directions on resolving their issues.
Binance provides crypto guides to help you learn different topics, from beginner to advanced. On the Binance Academy platform, each article says whether it is for beginners, intermediate users, or advanced users. It also provides courses to help traders learn more about specific topics.
Kraken’s education section is filled with crypto articles, videos, and a link to their podcast to help you explore more. The section covers both beginner and advanced topics and lets you learn about specific cryptos instead of general topics. It also contains webinar videos hosted by professionals to help you gain more value.
Binance has faced regulatory issues in different countries for a while now. For example, the platform does not meet US regulatory standards, forcing it to ban US users. The platform is also restricted in other locations, such as China, Japan, and the UK. Fortunately, Binance is regulated in countries like France, Spain, Italy, Sweden, and the Middle East.
Kraken has been the pioneer of proof of reserves for over a decade. The platform works with international regulators on a regular basis to make sure it follows the rules in different areas. Kraken is regulated by international regulators such as FinCEN and FINTRAC.
Proof of Reserves (PoR)
Binance does its proof of reserves (PoR) in a 1:1 ratio using the Merkle tree method. Users’ funds are completely backed up in cold wallets, with only some in hot wallets. Therefore, your assets would be safe even if the platform got hacked. Binance lets you check to see if your assets were part of their audit of proof of reserves. Also, note that Binance performs the audit without a third-party auditor.
Kraken performs its proof of reserves biannually. It uses Armanino, a leading accounting firm, to perform its proof of reserves audits. It lets you check if your money is properly backed by your account. And it also lets you verify the same information with its auditor.
Learn more about crypto platforms with proof of reserves and how they do it.
Pros and Cons of Binance
|Binance offers 380+ crypto assets.||Binance is not available in the United States.|
|It offers different order types and advanced trading features for more advanced traders.||The Binance platform can be confusing, especially for beginners.|
|It charges low fees, making it affordable.||It has been hacked before and faces legal issues in several countries.|
|It provides a mobile app for easy accessibility.|
Pros and Cons of Kraken
|Kraken Pro offers low trading fees.||The main Kraken platform charges higher fees than Kraken Pro.|
|It is beginner friendly.||Its staking services aren’t available in the United States.|
|It is available in most parts of the United States.||It does not support many fiat currencies.|
|It offers a huge variety of digital assets to invest in.|
|It offers advanced trading options.|
Is Kraken the Safest Exchange?
Kraken is among the most secure cryptocurrency exchanges in the crypto space. The platform has top-level security systems and stores users’ funds offline in cold storage. It has legit proof of reserves, thus guaranteeing users their assets are fully backed. Plus, unlike other platforms, Kraken has never been hacked since it was launched over a decade ago.
Is Kraken Better Than Binance?
Kraken stands out because it is easy to use. This makes it a popular choice for both new traders and traders with more experience. It also has different trading platforms, so traders can choose the one that works best for them based on their level of experience. Plus, unlike Binance and other cryptocurrency exchanges, it has never been hacked. However, Binance offers more crypto assets than Kraken and even lower fees. Therefore, both Kraken and Binance have their strengths.
What Is BNB?
BNB stands for Binance Coin. It is a type of digital asset that is mostly used on the Binance platform to pay transaction fees. Holding it helps you earn discounts on your trading fees. Binance even allows you to integrate BNB into your crypto platform or product.
Who Should Use Kraken and Binance?
Kraken and Binance are both outstanding crypto platforms that anyone can benefit from. But Kraken seems to be better for new traders, while Binance is better for traders with more experience.
Binance vs Kraken: Verdict
Kraken and Binance are some of the best crypto exchanges today. They both have massive liquidity and are highly secure. However, Kraken takes its security more seriously, as it has never been hacked, and it uses an auditor to perform its proof of reserve audits. Binance also offers low fees and a variety of investment options, making it popular in the international market.
If you are a beginner, then Kraken would be the perfect fit. But if you are an experienced trader, especially if you live outside the US, Binance's advanced features and wide range of crypto assets would be more useful to you.
Methodology for this review
The team at Bitcompare poured through as much information as possible directly from Binance and Kraken. However, that wasn’t enough, we needed to use the product as well. This allowed the team to fully grasp its features and how competitive it was with other crypto exchanges.
When scoring this product, we evaluated:
- Security: Does it have best practices like two-factor authentication and cold wallet storage, and has it ever been compromised?
- Usability: Is it easy to navigate? Have we experienced any bugs? And how does its usability compare with that of the competition?
- Regulation and licensing: Is it regulated and licensed to operate in its respective markets?
- Insurance: Is it insured? How much, and under what conditions?
- Features: Does it have features for advanced and beginner users? How do those features stack up with the competition?