Kraken and Binance are two of the most well-known cryptocurrency exchanges on the market. While Binance has seen tremendous growth over the past few years and became the largest cryptocurrency exchange by volume in a rather short period of time, Kraken holds the title for one of the most trusted exchanges as it has never been hacked. Let’s take a closer look at Kraken vs Binance and see which cryptocurrency exchange will be the right option for you.
By: CryptoVantage Staff | Jun 2, 2020 | Modified Sep 25, 2020
Founded in 2011, Kraken has a long history of providing the most important feature of a cryptocurrency exchange: not getting hacked. The exchange offers a variety of cryptocurrency trading options, and they aren’t afraid to delist altcoins that they think do harm to the overall cryptocurrency space, such as Bitcoin SV. To learn more check out our comprehensive Kraken review.
When measured by volume, Binance is currently the most popular cryptocurrency exchanges in the world. Low fees and the availability of a large number of trading pairs have been key to the increased popularity of this exchange, along with the fact that the trading limits on a non-verified account are quite high. For a complete evaluation on Binance, check out our comprehensive review here.
|Headquarters:||San Francisco, USA||No central headquarters|
|Fees:||Low (0% to 0.26%)||Low (0.015% to 0.1%)|
|Verification required:||Yes||Region dependant|
|Available cryptocurrencies:||Bitcoin, Ethereum (33 Total)||Bitcoin, Ethereum (175+ Total)|
|Buy/Deposit Methods:||Bank Transfer, Cryptocurrency||Stablecoins and Cryptocurrencies|
|Sell/Withdraw Methods:||Bank Transfer, Cryptocurrency||Stablecoins and Cryptocurrencies|
|Fiat trading:||Yes||Yes (stablecoins only)|
Both Binance and Kraken are exchanges that are generally trusted as safe and secure for cryptocurrency traders; however, Binance has a feature that makes it a bit friendlier to beginners. When trading on Binance, users are able to choose a “basic” trading engine that makes trading as simple as possible. The interface simply asks the user to input the amount of a particular cryptocurrency they would like to trade for another cryptocurrency.
Having said that, Binance only works with stablecoins, which could be confusing for newcomers. After all, a new user will need to get some cryptocurrency from an alternative source before they’re able to use the Binance platform at all. For someone who wants to attach a bank account to their cryptocurrency exchange of choice, Kraken will be a better option here. Kraken also has a simple interface option for trading; however, it’s not as basic as what is offered by Binance.
The best exchange option between Binance and Kraken for a beginner will likely depend on whether that individual already has some cryptocurrency holdings.
In terms of trust and security, it’s no contest: Kraken is clearly the better platform.
Kraken was originally founded in 2011 and has never been hacked, while Binance has faced multiple security issues since it was launched in 2017. Additionally, Binance operates in a sort of legal gray area where they don’t want to tell people where they’re actually headquartered, which could be viewed as an existential risk to the platform.
Both Binance and Kraken use a model for fees that is commonly found in the cryptocurrency exchange industry. As a user trades more volume on their exchange of choice, they will gain access to lower fees. Choosing between Binance and Kraken based on fees will depend on how much trading you expect to do on the platform. For small amounts, Binance will be a better option; however, those trading millions of dollars worth of cryptocurrency per month will, generally speaking, find lower rates on Kraken.
It should be noted that Binance has its own token, Binance Coin (BNB). It enables traders to gain access to discounted trading fees when fees are paid in BNB.
Much like the security features found at Kraken are much better than those found at Binance, Binance is the clear winner in terms of the sign-up process. This is mainly due to the fact that Binance allows up to 2 Bitcoin of daily trading without going through any sort of serious account verification process. The only sort of identification that is required to trade on Binance is an email address.
Of course, if you want to trade large amounts of cryptocurrency with your account, you’ll need to go through the same sort of identity verification process that is found on Kraken and basically every other cryptocurrency exchange.
Binance is well-known as the exchange to turn to when you can’t find the crypto asset you wish to trade on your current exchange. There are 175 altcoins that can be traded against Bitcoin alone on Binance, while there are only 28 cryptocurrencies available on Kraken at the time of writing. *Number of available cryptocurrencies should not be confused with the number of available trading pairs.
While Binance offers much greater variety in terms of the crypto assets on the platform, Kraken tends to do more research into a project before it is listed on their exchange. Having said that, both Binance and Kraken delisted the Bitcoin SV altcoin due to its association with Craig Wright, who has been accused by many individuals in the cryptocurrency community of fraud due to his unproven claim that he invented Bitcoin.
The two key stand out features found with Kraken are its Cryptowatch platform and the level of security offered by the exchange. Cryptowatch allows users to trade on multiple different cryptocurrency exchanges via a single interface. Additionally, Kraken’s record when it comes to security simply cannot be matched by anyone else in the market.
For Binance, the sheer number of altcoins available on the platform cannot be overlooked. No other liquid exchange comes close to Binance in terms of the availability of various crypto assets on the platform.
Instead of trying to figure out whether Binance or Kraken is better as a cryptocurrency exchange, you should think about what sorts of features you need in particular. If you’re a new cryptocurrency user who is looking for a wide variety of altcoins to trade, then Binance will definitely be your platform of choice, especially if you’re not trading extremely large amounts of value on a monthly basis. On the other hand, those trading large amounts of cryptocurrency every month will want to stick with Kraken due to the lower fees found at the higher trading thresholds and level of security offered by the exchange.