Kraken vs. Binance Cryptocurrency Exchange Comparison

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beautiful goob

2 years ago

Topics: Cryptocurrency, Life, Blog, Writing, Story, ...

Kraken and Binance are the two leading crypto exchanges. Both of them provide a wide range of services for beginners and experienced traders. In this article, we will consider in detail what each platform offers, their differences and similarities, and their pros and cons.

Differences between Binance and Kraken

Both Kraken and Binance are world-renowned exchanges that provide users with the opportunity to trade cryptocurrency, receive passive income, make fiat-to-crypto and crypto-to-fiat purchases, study, and much more. Advanced trading opportunities, low fees, and mobile applications are also available on these two platforms. However, despite many similarities, both exchanges have significant differences that are important to consider when choosing.

What is Kraken?

Kraken is a popular exchange known to many traders working on both the cryptocurrency and the fiat market. The platform was founded in 2011 with a legal address in San Francisco, has managed to earn a good reputation among users and is currently one of the leading exchanges on the market.

After the bankruptcy of the Japanese cryptocurrency exchange Mt.Gox in 2014, its clients were forced to open an account with Kraken to get their funds back. That situation significantly affected Kraken’s popularity.

To date, Kraken supports more than 65 cryptocurrencies and 7 fiat currencies for trading. Kraken provides users with an intuitive interface, competitive fees, and a wide range of trading options, including futures, margin, and over-the-counter trading.

The key point is that Kraken has an impeccable reputation — the exchange has never been hacked. The main part of client funds is stored in cold storage. It is also worth noting that the verification process is characterized by its complexity and multi-step nature.

In addition to the trading terminal, Kraken also provides tools for passive earnings, as well as various training resources.

What is Binance?

The world’s largest cryptocurrency exchange Binance was established in 2017. Today, it is not just an exchange but a whole ecosystem where everyone will find what they need: trading, training, wallet, philanthropy, NFT services, and much more. The exchange regularly comes out on top of the exchanges with the largest trading volume in 24 hours, which means that this exchange is the most (or at least one of the most) reliable exchanges in the world.

Binance is an excellent choice for traders who want access to both the most famous and rare coins and tokens. To date, there are more than 300 cryptos accessible for trading.

It is worth noting that US residents cannot use Binance services. However, there is a specially developed Binance.US platform for them. Although this platform does not have such a wide range of opportunities and a choice of cryptocurrencies, it is still one of the most competitive on the market.

Binance exchange users have two trading options to choose from (in fact, two trading interfaces). The first one is called “classic” and is unsuitable for people interested in more detailed technical analysis, which can be found in the “advanced” version. However, none of these interfaces can be called extremely easy to use.

Differences

As you can see from the table, Binance and Kraken have both similarities and differences. Many people note that Kraken is an excellent choice for beginners in crypto trading because even the classic Binance trading terminal causes some difficulties for inexperienced traders. The Kraken interface can be called more intuitive. There are many introductions to the use of this or that instrument on the platform. However, the Binance exchange is the best place for more experienced traders, as it provides more advanced technical analysis tools.

A crucial factor when choosing a trading platform is, of course, security. Although both exchanges have the highest security standards, it is worth paying tribute that Kraken is an exemplary exchange. In fact, on the official Kraken website, you can find an entire page dedicated to security. 95% of users’ funds are stored offline; the servers are protected by armed guards and are under 24/7/365 surveillance.

Speaking about the variety of currencies, the leadership is for Binance. More than 300 cryptocurrencies have passed the listing procedure on the Binance and are available for trading. Traders can find not only the top coins and tokens but also quite rare crypto assets. Kraken, in turn, provides a little more than 65 cryptocurrencies to trade with, which in principle satisfies the needs of most traders.

As for trade issues, both exchanges offer approximately the same services here. The key point is that both exchanges provide the opportunity for fiat-to-crypto and crypto-to-fiat operations. Both offer tools for passive earnings, training materials, margin trading, futures trading, OTC trading, and so on.

There are still unique functions on each of the platforms. For example, Binance allows users to trade currency on a peer-to-peer basis, on their own terms. Kraken, on the other hand, provides a unique Cryptowatch platform, with which traders can track several charts from various exchanges at once. This function is incredibly convenient for arbitration.

When it comes to fees, Binance is the undisputed leader here. In fact, both exchanges charge fees according to the maker-taker model, which is based on the user’s trading volume over the past 30 days. For newly minted users, the Binance fee is only 0.1% (regardless of the maker or taker). Kraken charges 0.16% from the maker and 0.26% from the taker at the first stage. In addition to initially low fees, Binance also provides an opportunity to reduce fees, when BNB token is used.

Speaking of applications, the situation is as follows. Binance has one application in which two interfaces are available: the first for performing simple tasks (tracking cryptocurrencies you are interested in, instant buying/selling, crypto portfolio management), the second for advanced trading (includes various technical analysis tools). Kraken did not limit itself to one application and created two that perform functions comparable to Binance Lite and Pro. As for user ratings, Kraken lite has a low rating, while the Pro versions of both platforms are characterized by convenience, efficiency, and reliability.