Binance and Kraken are leading crypto exchanges that have millions of users from different parts of the world that trade on their platforms every day. While Binance has witnessed massive growths that have made it into one of the top exchanges, Kraken has grown and remained relevant since it launched 11 years ago. Let's examine both exchanges to see which one takes the crown.
Binance is a very popular exchange that is the largest cryptocurrency exchange in the world by daily trading volume. The exchange was founded in 2017 by Changpeng Zhao, popularly known as CZ, and was a China-based exchange before it moved its headquarters to crypto-friendly Malta due to regulations. The exchange has the largest selection of supported assets among major exchanges and has very high liquidity with wallets usually topping the whale lists.
The platform offers useful features like margin trading, staking, trading orders, Peer-to-peer trading, and an instant purchase and a convert function that enables crypto-to-crypto swap without charts. The platform allows users to directly buy Bitcoin with the Visa or MasterCard debit or credit card, and buy stable coins through bank transfer and wiring. The exchange has a native token, Binance Coin (BNB), that is used to facilitate transactions within the platform, and an NFT marketplace for the trade of digital artworks and collections. It recently signed an NFT partnership deal with the football star Christiano Ronaldo as a way to boost adoption.
Due to regulations, Binance has a subsidiary in operation in the US called Binance.US, which offers similar services but has a smaller range of tradable assets and has lower trading volumes.
Finance has over 150 listed cryptocurrencies with over 600 trading pairs for International users and accepts 19 fiat currencies. US users are limited to about 50 altcoins and the USD.
Binance maker-taker fees range from 0% to 0.10%. Bank account fees are free outside the US, purchase fees range from 0.02% to 0.10%, and Binance charges 3.5% for withdrawals to accounts.
Trading fees are reduced by 25% if you use BNB to pay.
The exchange’s large selection of assets is a very convenient way to put all your trading options in one place. Thanks to the crypto-to-crypto and fiat-to-crypto options, the available assets can also be easily traded.
Binance has a wide range of taxing options that facilitate easy movement and trading of assets. Options like peer-to-peer, spot and margin trading are a good addition to the exchange.
Binance is the leading exchange when it comes to volume, so buying and selling crypto assets will not be an issue as there is more than enough liquidity.
Binance is packed with features, sections, and options that can be overwhelming to inexperienced and even intermediate traders.
Binance is known to have regulation issues in many countries. The exchange has been restricted in some places and outrightly banned in others.
Kraken is also one of the most popular crypto exchanges used by traders across the globe, and one of the oldest. Kraken was founded in 2011 by Payward Inc., and Jesse Powell, who is currently the CEO. The United States-based platform started operations in 2013 and is one of the first exchanges to offer spot trading with margin, regulated derivatives, and other services like stop loss, take profit, and crypto short sale. The exchange also offers staking options for both cryptocurrencies and first currencies.
Kraken exchange is a good exchange for beginners as the exchange has a relatable interface that makes it easy to navigate. Expert traders who require more features can also use Kraken Pro and its advanced features, as well as which allow experts to trade anonymously.
Through a relationship with Fidor bank, the exchange initially offered services to Europeans. However, in 2014, it teamed up with Coinbase to send Bitcoin trading data to Bloomberg Terminals, a financial data software used by financial professionals all around the world. This helped the exchange gain credibility and popularity. The exchange saw a boost in users and popularity in the same year when it supported an investigation into the disappearance of more than 850000 Bitcoin from Mount Gox, the biggest Bitcoin exchange at the time, which had to file for bankruptcy as a result of the incident. To recover their missing Bitcoin, regulators told Mount Gox customers to open Kraken accounts during the investigation; many of these customers, who were from all over the world, still have Kraken accounts today.
Kraken currently has over 70 cryptocurrencies available with over 170 trading pairs, including major assets, and stablecoins, and the exchange supports 7 fiat currencies across over 60 countries.
The exchange is also set to start operations in the UAE after receiving a full license, allowing it to become the first exchange to offer direct funding and trading in Dirhams against Bitcoin.
Kraken has very competitive fees that range from 0% to 0.26%
The exchange also charges $0 to $10 on deposits and $4 to $35 on withdrawals to bank accounts.
Kraken has never been hacked since its operations began in 2013. The exchange stores 95% of the coins in cold wallets, has 24 hours surveillance on physical servers, offers bounties to ethical hackers, and encourages 2-factor authentication and security locks.
Kraken has a specialized platform that allows users to trade on more than 8000 crypto markets as well as access real-time charting and data with a single interface.
The exchange undergoes audits by a third party on its proof or reserve and is highly regulated in the US, and received a banking charter recognized under federal and state law.
Kraken usually has several unsatisfied or unresolved complaints from its customers. The exchange is rated under 2.2 by users on Trustpilot.
Investors using Kraken cannot do so as privately as with other exchanges due to the ID verification process that is required.
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Which is superior?
Both exchanges have their own unique options, stand-out features, advantages, and setbacks. Choosing the right exchange to use will depend on the specific kind of service that you require. If you're looking for a wide selection of assets to trade, then Binance will be your choice, and if you consider security to be the most important feature for trading with your hard-earned money in largely volatile markets, then you will love Kraken. Just consider the options available to you or use both for a trial period and see for yourself.
Storing your cryptocurrencies in online wallets, exchanges and software wallets exposes you to risks of being hacked. Consider storing them in a hardware wallet today