There are many top-ranking cryptocurrency exchanges and in this guide, we will be presenting two of the biggest and oldest ones. In this Binance vs Kraken, you will learn the key features and disadvantages of both exchanges. This should assist you in determining which one is ideally suited to your requirements.
It's important to remember at this stage that neither exchange is suitable for complete beginners. If you've never bought or sold cryptocurrencies before, you'll probably feel more at ease using an online broker like Coinbase. Now that that's out of the way, let's compare Binance and Kraken.
Security
While the Binance vs Kraken debate reveals some similarities between the two exchanges, Kraken clearly outperforms Binance in terms of defense. The oldest surviving exchange, which was established in 2011, has never been hacked. Binance, on the other hand, has had many security breaches since its inception in 2017.
While both platforms offer two-factor authentication, Kraken adds Global Setting Lock, demand for strong passwords, and Master Key to its user protection features. Binance, on the other hand, allows users to set an anti-phishing code that will warn them if they are receiving a scam email.
Binance has a huge advantage in terms of customer trust, with over three times the number of active users. Though Binance has over 13 million users worldwide, Kraken only has over 4 million. Binance has the benefit of having a virtual presence in a number of countries around the world, where it has established subsidiaries to capitalize on the rising cryptocurrency sector.
User-Friendliness
In general, both exchanges are accessible to newcomers, but neither Kraken nor Binance has the same user-friendly interface as Coinbase. Users who have any experience trading cryptocurrencies can find both exchanges to be easy to use.
Furthermore, Binance has a little-known feature that allows beginners to use a simpler trading engine. Users will use this engine to pick the cryptocurrencies they want to convert, as well as the sum they want to convert, and then continue with the conversion. Kraken has a streamlined trading page as well, although it is not as user-friendly as Binance's.
This Binance vs Kraken comparison must include options for converting fiat currency into cryptocurrency, in addition to ease of use. Both platforms have minimal support for this conversion. Binance has a partner that allows you to buy coins with a debit or credit card. Kraken supports fiat bank transfers as well as a few other less popular types of payment.
Fees
The fees charged by an exchange are one of the most important factors that traders consider, so both platforms strive to be the best. When comparing the starting fees of Binance and Kraken, Binance comes out on top with Maker and Taker fees of 0.1 percent. Kraken, on the other hand, charges 0.16 percent Maker and 0.26 percent Taker as its initial fees.
While these fees are reasonable for traders who make a limited number of trades, they are not suitable for high-frequency or volume investors. Both platforms offer discounts based on 30-day trading volumes to entice these types of traders. Binance offers discounts until the trading volume reaches 50 BTC. As trading volumes reach $50,000, Kraken offers discounts.
When comparing the maximum discounts offered by Binance and Kraken, Kraken comes out on top, with 0.00 percent Maker and 0.10 percent Taker. To qualify for such pricing, you must have a 30-day trading volume of more than $10,000,000. Without any extra discounts, Binance's cheapest rate is 0.02 percent Maker and 0.04 percent Taker. When users pay fees with BNB and take advantage of the 20% kickback deal, the maximum discounted fees are 0.012 percent Maker and 0.024 percent Taker.
Both platforms offer no-fee deposits, but Kraken has the upper hand here as well. Using fiat currency to purchase coins with a card incurs an additional 3.5 percent charge from Binance's payment partner. In both sites, withdrawal fees differ depending on the coin.
Procedure for registering
Despite the fact that both sites are unregulated, they have implemented sign-up procedures similar to those used by Fintech firms and online casinos. Both operators recognize the importance of striking a balance between having a simple sign-up process and adhering to their own internal KYC and AML policies.
All users must register and check their accounts with Kraken. Binance would gladly consider simple account registration from users who do not trade more than 2 BTC per day. This means that when comparing the sign-up procedures of Binance and Kraken, Binance wins in terms of simplicity and tempo, while Kraken wins in terms of due diligence.
It's worth noting that high-volume Binance traders will still be required to provide identification documents similar to those required by Kraken and controlled exchanges.
Cryptocurrencies that are currently available
Aside from fees, another significant factor in determining the winner between Binance and Kraken is the number of cryptocurrencies and trading pairs available. Binance is the simple winner in this category, with over 150 different coins and tokens to choose from. Binance is well-known in the cryptocurrency community for being the go-to exchange for hard-to-find cryptocurrencies. Kraken, on the other hand, has about 50 coins and tokens to sell.
It's worth noting that the number of coins and tokens is not the same as the number of trading pairs. Although Bitcoin is a single coin, a platform can offer trading pairs such as BTCUSD, BTCEUR, and BTCGBP.
Binance seems to be the obvious alternative at first glance. It's worth noting that Kraken evaluates each coin it lists with a higher level of scrutiny than Binance. This reduces the likelihood that coins listed on Kraken will lose value due to fraud.
Additional Features
It's difficult to assess the contribution of these extra features when contrasting Binance and Kraken. However, we've included them here so you can get a full picture of both exchanges.
Binance is a well-known cryptocurrency exchange with a large selection of cryptocurrencies. The exchange is extremely liquid, with over $80 billion exchanged daily, ensuring that transactions are completed easily and without delays due to a lack of corresponding currency. Furthermore, the exchange provides a variety of Initial Exchange Offerings (IEOs) with tokens that can only be obtained via it.
Kraken's Cryptowatch platform is a standout feature. This useful tool allows traders to trade on multiple exchanges from a single gui, allowing them to engage in Crypto Arbitrage. Thanks to its security and track record, the exchange stands out in a competitive market, retaining its spot as one of the best.
Volume & Dimensions
Naturally, the exchange with the highest number of active users has the highest daily volume of trades. Binance, unsurprisingly, tops the list of the largest cryptocurrency exchanges in terms of traded volumes. With Binance reporting around $80 billion in trades every day and Kraken just managing around $2 billion, there is no contrast.
Support of High Quality
Surprisingly, two of the world's largest cryptocurrency exchanges have extremely low customer satisfaction ratings. The Binance vs Kraken controversy takes an unexpected turn when it comes to user support.
To begin, both platforms dedicate a portion of their main websites to customer service. Users may use the search function or browse the key topics to find answers. Both Binance and Kraken provide tutorials and other video assistance, as well as information and helpful links for further reading.
The most common way to contact a customer service representative is via live chat, which is available on all channels 24 hours a day, 7 days a week. Online consumer reports seem to be satisfied with the wait times, but most report that customer service is unable to resolve their issues. When comparing Binance and Kraken, we can see that Binance performs slightly better, but it's a close race.
Although poor customer service can be cited as a reason to avoid using either platform, the number of complaints must also be considered. We were only able to locate around a thousand complaints per site. This can seem to be a large amount, but when compared to the combined 17.5 million active users, it is less than 0.012%.
Conclusion
Between these two big exchanges, there can never be a definite winner. Each platform has a set of solutions that appeal to various markets, some of which overlap. Both platforms are led by industry experts who have earned the confidence of both internal and external stakeholders.
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