- >Best Cryptocurrency Exchanges 2021: In-Depth Exchange Reviews
- >KuCoin vs Binance
KuCoin vs Binance
When comparing KuCoin vs Binance, the first thing a user will notice is that there are many similarities between these two cryptocurrency exchanges. Of course, that’s likely why there is high demand for a comparison between the two platforms. The inclusion of advanced features like their own native tokens, a high number of cryptocurrencies being available for trade, low trading fees, and avoidance of heavy regulation make both of these exchanges attractive offerings for cryptocurrency traders.
CryptoVantage Staff | Oct 8, 2020
KuCoin Quick Overview
KuCoin was launched back in the hysteria of the 2017 bubble in initial coin offerings (ICOs). For that reason, it’s no surprise to see that this exchange focuses on offering a wide variety of crypto assets, including some of the smallest cryptocurrencies ranked by market cap.
KuCoin Pros & Cons
Ability to invest in the KuCoin exchange through the KuCoin Shares Token (KCS)
Extremely large selection of altcoins available for trade
Integration with the Arwen protocol enables a higher degree of security for traders
Low fees for trading and withdrawals
No connection to the traditional banking system
Relatively low liquidity
- Relatively new exchange
- Extremely simple sign-up process
- Very high level of security
- Users can invest in the success of KuCoin through KuCoin Shares
Binance Quick Overview
Binance is the most widely-known cryptocurrency exchange in the world, especially when it comes to the trading of altcoins. Much like KuCoin, Binance was established in 2017, has its own exchange token, and focuses on providing a wide variety of trading pairs. In terms of trading volume, Binance is the largest exchange in the world.
Binance Pros & Cons
More liquidity than any other exchange in the world
Low trading fees
Nearly 200 crypto assets available for trade
User verification process fairly simple
Economics of its BNB token are unproven
Cannot connect a bank account to this platform
- Easy sign-up process
- Lowest transaction fees of any major exchange
- 175+ different digital assets available
- Free deposits
KuCoin vs Binance Compared
|Headquarters||Singapore||No central headquarters|
|Fees||Low (-0.005% to 0.1%)||Low (0.015% to 0.1%)|
|Verification required||No||No (Yes for Binance US)|
|Available cryptocurrencies||Bitcoin, Ethereum (150+ Total)||Bitcoin, Ethereum (175+ Total)|
|Buy/Deposit Methods||Credit card/debit card, stablecoins, and cryptocurrencies||Credit card/debit card, Stablecoins and Cryptocurrencies|
|Sell/Withdraw Methods||Stablecoins and cryptocurrencies||Stablecoins and Cryptocurrencies|
|Fiat trading||Yes (stablecoins only)||Yes (stablecoins only)|
While Binance and KuCoin are useful for advanced traders looking for the lowest possible fee rates, these platforms also have simple interfaces that allow cryptocurrency newcomers to purchase their first Bitcoin or altcoin.
The easier way to get started with either of these platforms if you’re a crypto beginner would be to click the “Buy Crypto” option at the top of the page. This will take you to a special section of each respective website where you are able to purchase some cryptocurrency with a credit or debit card.
On top of the easy-to-understand page where users are able to buy cryptocurrency with a form of payment that they already understand, these platforms also offer different versions of their user interfaces based on the level of experience a user has with cryptocurrency trading. This is spelled out a bit more explicitly on the Binance platform, where users can slowly move to new trading interfaces as they become more familiar with the world of crypto asset trading.
Trust & Security
KuCoin has never faced a serious security incident, which may lead some to claim that it can be viewed as a more secure exchange than Binance. This is due to the fact that Binance has faced multiple security issues, including the theft of user funds, over the years. That said, it should also be considered that Binance is a much more popular platform than KuCoin. For this reason, Binance will face many more attacks on a regular basis than what is seen with KuCoin.
Another factor to consider is KuCoin’s integration with the Arwen protocol. This effectively allows the exchange to operate in a non-custodial manner from the user’s perspective. The Arwen protocol uses technology similar to Bitcoin’s Lightning Network that allows traders to retain custody over their own funds until the point at which they wish to make a trade. This allows traders’ funds to remain secure in a situation where KuCoin’s own wallets are hacked.
One last factor to consider when it comes to the level of trust and security offered by these exchanges is that they operate in somewhat of a legal gray area. Specifically, the ability to transact on these exchanges despite the lack of strong compliance with Know Your Customer and anti-money laundering regulations. Additionally, the actual location of the Binance headquarters is unknown at this time.
The fee structures found on Binance and KuCoin are almost identical until you get to the rates charged to users who are trading extremely large amounts of money on a monthly basis. The fee rates on both platforms drop as a user’s monthly trading volume increases, and users are also able to gain access to additional discounts if they use the exchange’s own proprietary token.
In the case of KuCoin, traders with more than 15,000 BTC worth of monthly trading volume are able to gain access to negative maker fees. This is an attempt by KuCoin to incentivize large token holders to bring liquidity to the platform.
The sign-up processes found on both of these platforms are also rather similar. Indeed, both exchanges will allow users to gain access to a limited amount of trading without offering up much personal information about themselves.
Both websites offer the same account limits on unverified users, which is a 2 BTC per day withdrawal limit. Users are able to massively increase this limitation by sharing personal data, such as a copy of their government-issued ID, with their exchange platform of choice.
For both Binance and KuCoin, a new user just needs to share their email address and create a password in order to create a new account.
Binance and KuCoin are two of the best possible exchanges to use if you’re someone who likes to trade a variety of different altcoins. Both platforms have more than 150 different altcoins available for trade; however, Binance has a couple dozen more altcoins on its platform than what is found on KuCoin.
Stand Out Features
The ability to trade on these exchanges without sharing much personal information is definitely a stand out feature for both platforms. Not many platforms will allow users to trade at the levels available on Binance and KuCoin without offering anything more than an email address in terms of the users’ identities.
The level of liquidity available on Binance also cannot be overlooked. As the most popular exchange in the world, users can be sure that they’ll be able to liquidate their crypto assets. That said, users should always check for trading pairs, trading volume, and liquidity of the specific coin they wish to trade on various platforms before picking an exchange.
Lastly, KuCoin’s use of the Arwen protocol should grab any trader’s attention. The ability to hold onto the custody of crypto assets while they can also be bought or sold in a matter of seconds is an extremely novel feature from a security perspective that cannot be overlooked.
As mentioned previously, the best way to choose between Binance and KuCoin may be to check the trading volume of the specific coin you wish to trade before signing up for an account on either platform. Then again, it may make sense to create accounts on both platforms if you are someone who likes to trade a wide variety of altcoins.
If you’re just looking to trade some of the largest crypto assets, such as Bitcoin and Ether, then Binance is going to be the better option due to the high liquidity found on the platform.
However, if you’re someone who takes the security of your crypto asset holdings extremely seriously, then you may want to take a closer look at the availability of the Arwen protocol on KuCoin. The feature allows you to trade on the platform without handing over your private keys to a third party, which means your funds will remain safe if KuCoin’s security protocol is ever breached.