As cryptocurrencies continue to grow in popularity worldwide, so do the number of exchange platforms that facilitate digital currency transactions. You'll find some of these platforms easy-to-use, highly educational, and very secure and safe.
Of course, others don't make this cut. They leave something to be desired, which is the last thing you want to hear when it comes to trusting your hard-earned money with a financial service.
How can you find an exchange that makes sense for you? It starts with research into each platform. For example, take Binance vs. Kraken.
How do these two sites compare in terms of pros and cons, security, and more? Let's take a closer look.
Binance vs. Kraken
If you have any familiarity with the crypto market, you've likely already heard of Binance and Kraken. Both exchanges are top-rated for many different reasons, and each has a significant history in the industry.
That said, when you drill down into what each platform does, you'll also find many differences. In other words, each has unique strengths and drawbacks. These pros and cons will suit some customers more than others.
Of course, this begs the question. Which site is right for you?
The answer to this question depends on a variety of different criteria, including:
- Ease of Use
- Supported coin count
- User count
A comprehensive comparison of these different factors will help you known which exchange is right for you.
Kraken vs. Binance: Ease of Use
Cryptocurrencies continue to grow in popularity as an investment alternative. As a result, the exchanges where you can transact in these digital currencies have become more mainstream. And that's a good thing because it's placed greater focus on usability.
As people continue to join the ranks of those investing in cryptos, more newbs are frequenting exchanges than ever before. They have plenty of questions and require platforms that are intuitive to navigate and use.
These beginners are in luck when they go to Kraken. This platform was carefully designed for ease of use. It provides users with vital features and capabilities without becoming overwhelming.
With Kraken, you get all of the bells and whistles an investor could desire without treading into overly complicated territory. And whether you're a beginner or just new to Kraken, you'll get the hang of the platform rapidly.
Unfortunately, you can't say the same about Binance. When it's all said and done, Binance proves tricky to use. If you have no prior knowledge of cryptos, using the site will require a very steep learning curve.
Of course, once you understand how Binance works, you'll have a wealth of fantastic features at your fingertips. But if you don't savor the idea of learning the system, we recommend sticking with Kraken.
Binance vs. Kraken: Security
Security's another significant issue that we need to tackle before deciding which exchange proves the better fit for your financial needs. Fortunately, Binance and Kraken both offer some of the most secure platforms in the crypto world.
Both sites use two-factor authentication to secure log-ins. With two-factor authentication (2FA), you can rest assured that nobody will unlawfully gain access to your account. Of course, this security protocol has its limits.
For example, 2FA won't safeguard against phishing or hacking. Nevertheless, it remains an essential part of any crypto exchange's security system.
It's worth noting that Kraken takes security a significant step further. It stores 95 percent of its users' crypto assets in cold storage. It doesn't get much more secure than this.
Why? Because when your assets get stored in cold storage devices, they're offline. That means nobody can gain access to them. If you feel especially nervous about security, Kraken has the overall advantage, although both platforms perform well in this area.
Kraken vs. Binance: Fees
Fees are another criteria that you need to consider when choosing a crypto platform. After all, these can vary widely, and they have a significant impact on your overall crypto earnings. You don't want these fees to take you by surprise.
Let's start by taking a look at Kraken. The exchange presents its fee structure in a transparent and easy-to-follow way. This fact is always a good sign when vetting a potential exchange. It charges users up to 0.26 percent for each trade.
What impacts the percentage charged in fees? A variety of different factors, including the amount of crypto traded. Whether or not you're a maker or a taker also impacts the final rates you'll pay.
According to Kraken's website, the maker-taker fee model lets the exchange differentiate between orders providing liquidity (i.e., maker orders) and those that take away liquidity (i.e., taker orders).
Maker orders get charged between 0 and 0.16 percent. Takers will see fees of anywhere from 0.10 to 0.26 percent.
Find out more about Kraken's maker-taker fee model. It's also worth noting that Kraken charges up to $60 in withdrawal fees and has a trading cap of $100,000.
Where does Binance fit into the picture? With Binance, you never have to worry about daily trade limits once you join at the maximum account level. The exchange also offers some of the lowest rates in the crypto world, hands down.
How low are we talking? They max out at 0.1 percent, making them among the lowest fees in the industry. Period.
What about withdrawals? There's a minimum fee of $10, and Binance charges you 3.5 percent after that.
In this area, Binance comes out on top. It's hard to beat the super low fees charged, which means more money remains in your pocket.
Binance vs. Kraken: Supported Coin Count
What are some other factors you should bear in mind when choosing between Kraken and Binance? Knowing which coins are supported by a given platform is vital in making a solid exchange decision.
After all, there's no point in joining a platform if you can't trade in the virtual coin that interests you there. Currently, Kraken offers users about 40 different cryptos.
Of course, this selection includes all of the major coins on the market (e.g., Bitcoin, Ethereum, Litecoin, etc.) and many altcoins.
That said, if you're looking for a platform that provides the greatest level of diversity possible, Binance has Kraken beat. The exchange supports more than 150 crypto assets, which is an incredible selection.
While an excellent list to choose from, do you need access to all of these different digital currencies? More than likely, no. However, if you're interested in a specific altcoin, you're far more likely to find it supported on Binance than Kraken.
And once you've become a crypto whiz? Then, you'll appreciate the vast selection of choices available through Binance. But until you reach that level of confidence, most crypto experts recommend sticking to the most widely traded and reliable coins.
Kraken vs. Binance: User Count
Why is taking a look at user count critical when it comes to choosing a platform? Because it can tell you a lot about the reliability of each platform. It also indicates how well your trades may go.
More users are indicative of exchanges with the best security features, customer service, and overall reliability. Of course, a higher user count also means greater opportunities once you start buying and selling on the platform.
How do Kraken and Binance compare in this area? Both platforms boast millions of users. More specifically, Kraken has approximately 4 million users, and Binance has about 13.5 million users.
In other words, Binance has about three times as many users as Kraken. Nevertheless, both exchanges have excellent user numbers. As a result, you won't run into issues finding buyers or sellers on either platform.
Pros and cons of Kraken
- When it comes to security, no exchange can outdo Kraken
- Users who are new to the crypto world will find it quite easy to start trading on Kraken as it is beginner-friendly
- Kraken is one of the most liquid crypto exchanges today as it is quite popular among both professional traders and crypto enthusiasts
- Regulated in the US and they have a US banking license
- Kraken is very transparent, and that is how it has become one of the most trustworthy exchanges in the world. In fact, Kraken is the first exchange that carried out proof of reserves.
- There are 50+ cryptocurrencies on Kraken for buying and selling, which includes the likes of Bitcoin, Ethereum, Litecoin, and much more
- Kraken supports trading in six different fiat currencies, which gives Kraken an advantage over many other cryptocurrency exchanges that only supports 1-3 fiat currencies
- There have been many complaints from Kraken users about the slow verification process of new users for intermediate and pro-level accounts
- Kraken is suffering from the same issue that many multi-exchange platforms suffer from - sluggish customer support. But we have to give credit to Kraken as the company is trying its best to improve its customer support
Pros and cons of Binance
- One of the most trusted brands in crypto
- Best-in-class features with everything an advanced trader could want
- Significant advantages when using the native Binance tokens BNB such as decreased trading fees
- Very fast, easy to use interface
- Binance offers extremely low transaction fees, particularly when using with their native BNB tokens
- Assets are insured in case of security breaches. Except for breaches from personal security issues
- Can be overwhelming for people who are new to crypto or trading
- Much of its functionality is being disrupted by decentralised options like Uniswap
- The platform doesn’t support most traditional payment methods
- Currently, Binance US does not offer services in New York, Alaska, Alabama, Connecticut, Georgia, Florida, Hawaii, Louisiana, North Carolina, Idaho, Vermont, Washington, and Texas due to missing regulatory requirements
- Binance does not give comprehensive daily market analysis
Frequently asked questions about Kraken
We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.
Is Kraken Safe to use?
To safeguard the funds and privacy of their users is a number one priority of Kraken. They have a team of experts who have implemented multiple safeguards to prevent theft of money or information.
Any users that decide to trade on Kraken can be rest assured as Kraken ensures that the cryptocurrency exchange is stable, has full reserves, and meets the highest standards of legal compliance. With two factor authentication and email confirmations to withdraw funds, along with round the clock monitoring for any suspicious activities, Kraken is committed to its mission of being the most secured crypto exchange in the world.
Is Kraken licensed or regulated?
Kraken announced in September that they received a U.S.bank charter. This is a first for any crypto company. They stated that Kraken Financial “will be the first regulated, U.S. bank to provide comprehensive deposit-taking, custody and fiduciary services for digital assets.”
They comply with legal and regulatory requirements in all he jurisdictions they operate in.
Kraken is registered as a Money Services Business (MSB) with:
- FinCEN in USA — registration number 31000176593851.
- FINTRAC in Canada — registration number M19343731.
In Australia, Kraken (as the entity "Bit Trade Pty Limited") is registered as a Digital Currency Exchange and regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC)
Payward Asia, Inc. is registered as a Crypto Asset Exchange Operator with the FSA in Japan. Registration Number: Director-General of Kanto Local Finance Bureau No. 00022
Is my Personal Data Secured?
Kraken's security team has ensured that the personal information of its users remains protected through their dedicated design efforts. It is not possible to access the encrypted sensitive client data of Kraken through their website. At the same time, it is almost impossible to decrypt the encrypted client data. A hacker will have to access multiple highly secured systems first to get their hands on the sensitive client data.
When it comes to document security, all user documents are watermarked. Hence, these documents cannot be used elsewhere. For account-related security measures, the most likely scenario that can come true is the leakage of client-specific data. That, too, is only possible if someone manages to access a user's login credentials. Even in this scenario, Kraken has put a safeguard measure as very limited information is viewable.
What fiat currencies and crypto coins and tokens Kraken support?
Kraken supports seven fiat currencies and 54 cryptocurrencies. This number may be less for markets where the ability of trading in some fiat currencies and cryptocurrencies has been restricted by Kraken. The supported fiat currencies include USD, EUR, CAD, AUD, GBP, CHF, and JPY. As for cryptocurrencies, Kraken supports popular ones, such as Bitcoin, Ethereum, Litecoin, among others.
How can I deposit funds to Kraken?
Kraken supports both fiat currency deposits and crypto-asset deposits. Depending on your resident country and verification level, the availability of fiat deposits and withdrawal may be restricted. Multiple fiat deposit methods are available for users, but it again depends on your residence. Users in the United States can deposit USD to their Kraken accounts via Fedwire, whereas users in Europe can fund their accounts via SEPA & SWIFT. Australian users can opt for bank transfers to fund their Kraken accounts.
To deposit cryptocurrency supported by Kraken, you can select the cryptocurrency that you want to deposit and an address will be generated for it. You can either copy the address or scan the QR code and paste the address on the transfer page of the place where your funds are located.
Frequently asked questions about Binance
We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.
Does Binance have a storage wallet?
Binance has a stand-alone wallet called the Binance Trust Wallet, that allows users to store cryptocurrency outside of Binance.
How effective is Binance’s customer support?
Binance support staff is receptive and willing to provide detailed advice to traders in need. Help tickets are submitted via the web site’s online form, and answers are sent back via email.
How much Are Binance transaction fees?
Binance charges a transaction fee of 0.1% for all trades. It also offers a 50% discount on fees for trades made using Binance Coin.
What payment methods are accepted on Binance?
Binance supports the following payment methods:
Binance vs. Kraken: The Takeaway
When it comes to Binance vs. Kraken, both platforms come with unique advantages and disadvantages. Finding the right exchange for your needs will depend on your financial objectives, security requirements, coin preferences, and more.
You should also consider your level of experience with cryptos before making a decision. Kraken remains the best choice for those new to alternative currencies. It's intuitive and straightforward, yet you'll still gain access to many essential features.
Because Kraken offers fewer cryptocurrencies and altcoins, it also proves less bewildering when you're starting out as an investor. But you can expect to pay more for this streamlined platform.
As you move up in the crypto ranks and gain more experience, you may long to make the transition to Binance, and with good reason. You'll find a more comprehensive selection of coins for trading, and the fees can't be beat.
Are you interested in learning about the wide world of cryptocurrencies and altcoins on the market today? Explore our comprehensive digital currency coin list for more information.