Kraken vs. Binance: Which one is a better exchange
Many cryptocurrency exchange platforms exist, but Kraken and Binance are the most popular ones!
Kraken and Binance are both well-known cryptocurrency exchanges with millions of users. They offer crypto trading, staking, spot and margin trading, and many other services related to finance and trading. However, regarding Kraken vs. Binance, most people need clarification. They need to know which one is better to choose and invest in.
The same question is often discussed in financial circles and trading meet-ups, but a satisfactory response to this question has yet to be given by anyone, anywhere!
This article will analyze the data taken from reputable and authentic sources. The data will be compared to each other to find out the best exchange.
What Is Kraken?
Kraken is a cryptocurrency exchange. It was founded in 2011. After going through a long developmental process, Kraken was finally launched in 2013. It is one of the very first exchanges developed for crypto trading. It allows the exchange of both crypto and fiat currencies.
A USA-based company, Payward Inc., owns Kraken. Its headquarters is present in San Francisco. Payward provides technical support, trading tools, user interference, and security. Jesse Powell holds Payward and is the co-founder and CEO of Kraken.
At first, Kraken offered Bitcoin, Litecoin, and euro trading. Over time, the number of cryptocurrencies and trading tools such as margin trading kept increasing.
One of the main features of Kraken that outstands it among so many other crypto exchanges is Cryptowatch. Kraken acquired Cryptowatch in 2019, and since then, it has attracted the attention of so many users. Cryptowatch provides real-time charting, market data, and trading services for more than 25 exchanges. Data is fetched from more than 4,000 markets using APIs. In simple words, it provides crypto market signals to make better decisions.
Kraken is offering both free and paid plans for using Cryptowatch. Investors can also devise the strategies according to their needs.
Following are the prominent features:
- Check your trading history, positions, and orders
- Trade on various exchanges from a single platform
- Analyze and interpret market trends using advanced charting and reliable data
- Receive alerts for technical analysis, price fluctuation, and trading volumes
- Using Trollbox chat with fellow traders and exchange experiences'
What Is Binance?
Binance was founded in 2017. Changpeng Zhao founded it. Binance was initially based in China. However, it was moved to George Town, Cayman Islands, due to increasing regulations of the Chinese government on cryptocurrencies and related networks.
Currently, Binance is the largest and most popular cryptocurrency exchange globally. It is the biggest platform of crypto trading by daily trading volume. In addition, it offers top-notch security and the best trading options in any trading application present in the market.
Binance offers more than 350 cryptocurrencies and tokens, including Bitcoin, Etherium, Dogecoin, and Binance Coin, along with many fiat currencies. In addition, it provides data charts to analyze the market and multiple trading options, including spot and margin trading. Unfortunately, Binance does not offer any personal wallets for cryptocurrencies.
What is the difference between Kraken & Binance?
Comparison often comes with different features being compared with each other. However, we strive to provide valuable content for our readers. We will shed light on some of the main differences between the two exchanges to offer a deeper insight.
First of all, Kraken was established way before Binance. Kraken was there to serve the crypto community in its initial days. No doubt, Binance eventually took the lead because of the facilities it provides to its users around the globe. On the other hand, Kraken focuses more on delivering quality to the users of specific areas. For an instant, American users can freely use a Kraken compared to Binance.
The account verification time also varies for both exchanges. Binance has an advanced verification system. It takes just a few of minutes to complete the verification process, and the account gets verified in no time. On the other hand, it takes a little extra time to get your account verified on Kraken. Verifying "Pro Account" on Kraken can take up to five whole days.
Kraken vs. Binance: Ease of Use
What is the use of any trading platform or exchange if you are not comfortable with it?
Knowing how to use an exchange is essential because your savings and investment are at stake. At first, crypto exchanges can look like an alienated concept to you. It could be a novel experience. However, Kraken is the winner when discussing the "Ease of Use" of Kraken and Binance. Binance displays information in a complex and more complicated way. It takes work for an average user to understand.
You can use both Kraken and Binance via the web. You can install any suitable browser and use the site. Apart from the site, you can use the mobile apps of both exchanges. It is possible to carry a laptop everywhere. That is why a mobile app is an excellent option while outdoors. Besides that, mobile apps are also fully equipped, and you can enjoy all the features.
The Binance web interface is complex for new users. However, developers assumed that new users would eventually find their way. The web version offers three viewing options, i.e., basic, classic, and advanced.
The basic model offers a simple illustration of trading options. It is easy for everyone to purchase and sell cryptocurrency in the basic mode. Classic mode, however, is more about traditional viewing and trading experience. It can be unclear for new users because of the diversified options. However, it is a standard mode for experienced users. Order history and open orders can be seen in this viewing option.
As the name suggests, the advanced version is for "Pro" investors who know all the trading roles. In the advanced version, charts are powered by TradingView. In addition, it has additional charts and graphs for detailed technical analysis.
New users unfamiliar with exchanges and crypto trading may find Kraken more useful. Its simple and effective interface allows users to freely negative and executes most of the actions needed to be done. Most of the things are clearly spelled, and the interface is straightforward. Users can select a new order tab and choose the desired crypto or fiat currency for further trading.
Kraken vs. Binance: Features
Unlike ordinary trading platforms, Kraken and Binance offer unique features to their users. They provide extensive trading knowledge through candlesticks and graphs. The information can be used to analyze the market. Investors can then decide to invest in a coin that will gain value shortly.
These platforms also offer advanced trading features. For example, they allow investors to place market orders, margin trading, stake crypto, and other transactions. However, Binance does not allow margin trading on the American mainland, but on the other hand, Kraken allows investors of the US to do margin trading.
Binance has two versions, i.e., Binance and Binance US. There is not so much difference between the two. One is for the whole world, and one is for US users only. There are a few differences between the two versions. For example, American users need help finding Binance Visa Card information on the website. They cannot see Binance Academy, and Binance does not offer any reward center to earn rewards in America. Binance is the only crypto exchange website with simple trading options and FAQs in America. However, it provides analyzing tools such as charts and tables.
Kraken, on the other hand, is a US-based exchange. That is why American users can freely use this exchange. It is the same for American users and the rest of the world. Its features are not limited to specific regions but are global in nature.
Besides all these plus points, Kraken and Binance are only for experienced traders. Those who have enough knowledge of cryptocurrencies and know how to do market analysis because it is not easy to read all those signs and signals without having expertise in the field. That is why these platforms offer stake crypto, which allows investors to place market orders and many other transactions. On the plus side, Binance provides margin trading, and you have to enable margin trading on Kraken first.
Kraken offers a unique platform known as Cryptowatch. It is of its kind platform and only available for premium trading. It provides more than 4,000 crypto marketplaces along with real-time data and charting.
The best feature offered by Binance is P2P trading. A user can buy cryptocurrency from another user directly and pay them in fiat currency outside the Binance.
Kraken vs. Binance: Security
Both Kraken and Binance follow strict security protocols to ensure a sustainable investing environment. There is a constant threat of a cyber-attack on trading platforms that operates online. To ensure security, continuous efforts are vital.
Kraken and Binance adopt a different approach to security!
- Kraken is stringent when it comes to security.
- It is their prime concern to ensure the security of their platform to protect their users' assets.
- According to Kraken, 95% of the deposits are kept in cold storage to avoid any theft during any cyber heist.
- Regular testing is carried out to test the security protocols.
Kraken has never been hacked. On the other hand, Binance is not clear about its security measures, and it does not offer details about its security measures. For example, Binance only says that it holds only s small percentage of coins in its "Hot Wallet" but does not tell the exact amount.
The recent breach of 2019 tells otherwise that Bitcoin worth more than $40,000,000 was stolen in an attack on Binance. Binance is also being investigated for money laundering and other illicit activities, according to a report published by Bloomberg.
Kraken offers a lower fee and easy-to-understand structure. Kraken charges 0% TO 0.26% in terms of marker-taker fee.
Binance comes with a complex fee structure based on the VIP levels. Their maker-taker fee ranges from 0% to 10%.
Following is the spot trading fee structure of Binance
Kraken vs. Binance: Currencies
At the moment, Kraken is offering 69 coins. It is a small number as compared to Binance. Kraken is also offering the following three stable coins.
- USD coin
Kraken also accepts 7 fiat currencies. These currencies can be used to make a deposit in Kraken and to buy stable coins.
Binance offers more than 350 coins to invest and trade-in. It is the biggest trading platform in the world right now, and the diversity in the currencies they offer is one of the reasons that took Binance to heights. Along with 350 or more cryptocurrencies, Binance accepts more than 75 fiat currencies for P2P trading.
Kraken vs. Binance: Deposits and Withdrawals
To start trading in cryptocurrencies, you need to buy coins. In order to buy them, you need fiat currency because only one currency can buy another. Therefore, you need to deposit fiat currency that is your currency issued by the national government, in these online exchanges to get started.
Following are the deposit protocols of Kraken:
- Bank deposit: You can deposit fiat currency in your Kraken wallet using your bank account.
- Cash deposit: Kraken is a US-based exchange. They allow you to deposit cash in person.
- Fiat currencies: You can buy new cryptocurrencies using fiat currencies such as US dollars (USD), Canadian dollars (CAD), Euros (EUR), and Indian Rupees (INR)
- Kraken takes 1 to 5 days to process your deposits.
Binance allows investors to deposit, purchase, sell and withdraw currencies. As said earlier, cryptocurrencies are digital ones, and our world is working on fiat currencies issued by the government of a country, such as the US Dollar or British Pound. That is why Binance's operation is expended on many platforms.
It supports the following fiat depositing methods:
- Debit or Credit cards
- Peer-to-Peer (P2P) trading
- External wallets
- Bank transfers
- Third-party payments: such as payment through organizations, i.e., Simplex and Banxa
- Deposit in fiat currency or cash balance. Binance accepts more than 75 fiat currencies such as US dollar, Indian Rupee, Canadian Dollar, Euros and Pakistani Rupee, etc.
Pros and cons of Kraken
Like any other trading platform, there are specific pros and cons of Kraken and Binance. A Con for one person may not be a Con for another one. It all depends on our preferences.
Pros and cons of Binance
Being the world's largest crypto exchange, Binance has developed some outstanding features.
Comparing cryptocurrency exchanges is a challenging task. There are so many variables and features that it is complicated to compare them at once. So instead, we have presented a fact-based analysis of these two widely popular exchanges to develop a basic understanding.
Indeed, Binance is offering more cryptocurrencies than Kraken. In addition, there are more fiat options available on Binance than on Kraken. On the other hand, Kraken is safer than Binance. It keeps 95% of the total assets in cold storage to ensure security.
Value for money should be the prime concern when choosing an exchange for trading purposes. Being an investor, you will invest your hard-earned money in that exchange, and it should return you the maximum. When it comes to value for money (Kraken vs. Binance), Binance provides higher value for the invested money than Kraken.
Kraken vs. Binance FAQ
Following are some frequently asked questions about Kraken and Binance
Which features are the most relevant in Kraken vs. Binance cryptocurrency exchange comparison?
One should consider the essential features when choosing a cryptocurrency exchange: trading fee, deposit/withdrawal fee, security, payment methods, supported cryptocurrencies, countries of operation, and overall brand reputation globally. Keep in mind that you are looking for specific features according to your need, mood, and abilities. These evaluating points may be less important than those you set for yourself.
Which cryptocurrency exchange is best for beginners?
If you read the reviews by customers regarding various online trading platforms, you would notice that they all have something in common, and that is their user-friendly interface. These all exchanges are easy to use. While some are more compatible for beginners, others require basic knowledge to use them properly. It is a matter of choice. You may like one exchange and may not like the other.
You may be looking for specific features in exchange. You will like the one with all the desired characteristics. Almost every exchange tries to make the registration and trading process easy for beginners.
How can I choose the best crypto exchange for me?
First, you need to evaluate your information and knowledge of the crypto world. Then you can use this to set goals and targets using your background knowledge of exchanges and trading. As a beginner, you may have different goals and objects in your mind than a person who has spent years in the market and crypto trade. Even if you have decided for yourself, it is not easy to search and go through dozens of exchanges to find the best one. This article makes it easy to compare these two most popular and reliable crypto exchanges globally.
In this post
- What Is Kraken?
- What Is Binance?
- What is the difference between Kraken & Binance?
- Kraken vs. Binance: Ease of Use
- Kraken vs. Binance: Features
- Kraken vs. Binance: Security
- Kraken vs. Binance: Currencies
- Kraken vs. Binance: Deposits and Withdrawals
- Pros and cons of Kraken
- Pros and cons of Binance
- Kraken vs. Binance FAQ
- Which cryptocurrency exchange is best for beginners?
- How can I choose the best crypto exchange for me?