Kraken vs Binance: Comparing Crypto Exchanges 2022
You’re not new to the Crypto-game. You want to make an informed decision as you step into a new level of trading your alt-coin, and you’re looking for details about some popular crypto exchanges to enhance your trading acumen. Here is our Binance vs. Kraken comparison.
We’ll take you through the main points of Binance and Kraken in this juxtaposition article: Hopefully, you find it helpful.
Table of Contents
What is Binance?
Binance is the largest cryptocurrency exchange in the world with platforms available in many countries including the U.S.A. Originally founded in China in 2017, Binance offers over 350 cryptocurrencies on its exchange, but only 65 are available in the U.S. including Dogecoin (DOGE), VeChain (VET), Harmony (ONE), Etherium (ETH), and Bitcoin (BTC) to name a few. Unfortunately, Binance does not offer an in-app wallet.
Trading on Binance can be done on the Binance website, desktop app, or mobile app which is highly convenient, but the platform is geared more for advanced Bitcoin traders than rookies. The real-time charting tools, moving and exponential moving averages are great features for those with the experience to divine their significance. Binance also offers several order types like stop order, trailing stop order, and stop-market order.
The fee structure at Binance is based on trading volume and among the lowest in the industry. Using Binance, you are rewarded for making large volume trades. You can also receive fee discounts by using Binance (BNB) coins in your trades, making referrals, and achieving VIP status when you trade enough assets.
Binance charges no fee for ACH transfers or wire transfers, unless you’re in the U.S., then wire transfers cost you $15 each. Paying with your debit card costs you 4.5%, trade fees range from 0% to 0.1%, and buying and selling crypto is charged a flat 0.5%.
The security features on Binance are average across crypto exchanges. It has two-factor authentication via SMS messaging, address whitelisting, and device restriction. However, regulatory issues have come up and investigations are happening in several countries, while other countries have banned Binance altogether. Safe to say, it doesn’t have a five-star reputation.
Customer service at Binance is available over three channels: submit a ticket through email, reach out via Twitter, or ask basic questions via chat. That said, the customer service experience of members at Binance is a mixed bag with some reviews hailing the excellent service and simple user interface of Binance. Others reviews complain that customer service is ineffective, and some claim the exchange is poorly managed because accounts have been frozen making withdrawing funds impossible. Binance has received some heat from various countries recently including an investigation regarding money laundering in the U.S.
Binance Pros & Cons
Pros: The Good Stuff
Largest crypto exchange on the planet available in many countries
Low fees based on volume
Extensive market analysis tools available
Hundreds of cryptocurrencies supported
Cons: The Not So Good Stuff
Interface isn’t very user friendly
Regulatory issues have arisen in several countries
No wallet available in the app
Wealthsimple prides itself on being an accessible, easy-to-use wealth management platform.
Wealthsimple Invest uses a computer-driven algorithm to make investment decisions on behalf of the investor. That means Wealthsimple Invest clients are not required to make trading decisions or monitor their investments. It charges a Management Expense Ratio (MER) in exchange for managing these accounts.
Upon sign-up, new investors must fill out a questionnaire that details their age, savings goals, and risk capacity. Portfolios are built automatically on their behalf.
Wealthsimple Trade and Wealthsimple Crypto requires more active trading and requires a little more experience. Investors must make decisions on which stocks or ETFs to purchase.
What is Kraken?
Kraken is one of the oldest cryptocurrency exchanges in existence. It started in 2011 and remains a popular choice for experienced and novice cryptocurrency investors to this day.
A global crypto-exchange that serves nearly 200 countries, Kraken offers a wide variety of options for traders including, buy, sell, send, receive, exchange, futures trading, staking, market watch (cryptowatch), and staking.
This trusted exchange has an impeccable reputation for security, boasting that they have never suffered a major security incursion. Kraken offers many of the most popular crypto’s including Bitcoin (obviously), Chainlink, Etherium, Cardano, Litecoin and many more. There are exactly 97 different crypto’s available on Kraken.
Apart from great security, and a large variety of crypto available, Kraken also offers low fees maxing out at 0.26%. The fees you pay to trade on Kraken are based on a rolling 30-day period where your fees go down as your transaction amounts go up.
Kraken Pros & Cons
Pros: The Good Stuff
Numerous crypto options
Educational videos and articles for new crypto traders
Cons: The Not So Good Stuff
More advanced interface that new users may find intimidating.
Not available to all U.S. states
Kraken vs Binance: Compare and Contrast
Kraken and Binance both offer a similar, yet distinct sliding scale fee structure for trades, but Binance charges double (0.50%) compared to Kraken’s max cost to buy and sell crypto (0.26%).
Both Binance and Kraken offer an education section where anyone interested can read blogs-style posts about crypto and blockchain topics.
Binance rewards users with actual cryptocurrency for completing courses on various topics including basic crypto knowledge, trading on Binance, and more.
Regarding ease of use, Kraken and Binance are not rated very high. Their interface models and complicated trading options may scare new crypto traders away.
In the Binance vs. Kraken debate, Kraken wins here, big time.
Binance has been banned in certain countries for poor security measures or for operating in that country without a proper license. Also, there is a U.S. investigation into Binance for possible insider trading, market manipulation, and tax evasion. Customer reviews on security are poor as well, with many people complaining that their accounts were either frozen or emptied while using Binance.
Kraken employs a rigorous security system which, they say, has never suffered a major security incursion. Ever. Kraken employs industry standard security measures like two-factor authentication, address whitelisting, among others. But, what sets them apart might seem insignificant at first, they do not allow SMS authentication to prevent security issues if a user’s phone is stolen.
Types of Transactions
Kraken offers the following transactions: buy, sell, send, receive, exchange, futures trading, Cryptowatch (a nifty feature displaying crypto behaviour on different exchanges, including Coinbase), and staking.
Binance offers many trading types and several types of orders like stop order, limit order, stop-limit order, and trailing stop order. Users also have the options to adjust the trading views along a spectrum, from classic, margin, and finally OTC views. Sadly, not all these features are available to the U.S., specifically margin trading among others.
Frequently Asked Questions
Great questions. I would suggest Kraken for beginners, not because their platform is much easier to use, it’s not, but because beginner crypto traders should go where their investments are safest. Kraken is the safer option because it has many positive reviews and excellent track record of security. Binance, however, has dealt with several concerning regulations lapses and an ongoing IRS investigation.
Yes. Binance is the largest cryptocurrency exchange on the planet. Binance has nearly 30 million users, while Kraken has only 6 million users. Because of this divergence in user numbers, it should be no surprise that Binance does significantly more trading volume than Kraken with an estimated $76 USD being traded in a peak 24-hour period.
Yes, you can. It’s actually a simple process where you send bitcoin from your Coinbase wallet to Kraken by setting up a new deposit address in Kraken. Then you just confirm the recipient address–the new deposit address you just received from Kraken–on your Coinbase wallet, and you’re done!