Binance Vs Kraken: Which Crypto Exchange Is Better For You in 2022

Binance Vs Kraken

If you are looking to invest in cryptocurrencies, you need to choose a cryptocurrency exchange first. These exchanges allow you to buy and sell cryptocurrencies, as well as store them in wallets on the exchange.

Two of the most popular crypto exchanges are Binance vs Kraken. In this comparison article, we will compare Binance Vs Kraken Exchange to help you decide which is best for you.

Both exchanges have their pros and cons, so make sure to read both carefully before making your decision!

Overview

Overview

Two of the most well-known cryptocurrency exchanges on the market are Kraken and Binance. While Kraken has the status of one of the most dependable exchanges since it has never been hacked, Binance has experienced enormous development over the past few years and has quickly become the largest cryptocurrency exchange by volume. Let’s compare Kraken and Binance in more detail to determine which cryptocurrency exchange is best for you.

What is Binance?

The Binance Exchange is a leading cryptocurrency exchange founded in 2017 in Hong Kong. The head of Binance is Changpeng Zhao (aka CZ). He is the former manager of the Development Department at Blockchain.com, the co-founder and technical manager of the once famous exchange – OKCoin.

It features a strong focus on altcoin trading. Binance offers crypto-to-crypto trading in more than 600 cryptocurrencies and virtual tokens, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dogecoin (DOGE), and its own token Binance Coin (BNB).

In early July 2017, Binance raised capital through ICO fundraising. Thanks to the CEO’s huge profile, the Binance exchange project quickly gained attention from the community. Binance’s ICO round, which lasted from July 1 to July 21, 2017 raised $15 million and had over 20,000 signups in its early days.

What is Kraken?

Kraken is a cryptocurrency exchange, providing Bitcoin and Etherum virtual currency trading, two very popular virtual currencies today, margin trading and dark pool (dark pool is a private stock exchange, where investors – usually large financial institutions and highly invested individuals that conduct confidential transactions). Deals are available worldwide and in most US states. The exchange owns a large volume of transactions and payments with the Euro.

Pros and Cons

Pros and Cons of Binance exchange:

Pros Cons
  • Multi-language support: Vietnamese in particular is one of the earliest languages created by the interchange. In addition, Binance maintains a group and a Telegram channel devoted to helping Vietnamese. Make Binance exchange simple to use and remove language obstacles.
  • There are more than 1000 trading pairs available: This is a huge number.
  • Vast cryptocurrency ecosystem.
  • User Asset Protection Fund (referred to as SAFU): 10% of trading fees on the exchange will be transferred to this fund to insure your assets.
  • There are many types of transactions for you to skin in the game: Trade spot, margin, OTC or P2P on Binance.
  • Binance is also a very high target for hacking attacks.
  • Frequent maintenance errors.
  • Frequent problems with 2FA.

Pros and Cons of Kraken exchange:

Pros Cons
  • Allows users to freely trade six different fiat currencies. This saves time, users do not have to visit other exchanges before starting.
  • The transaction fees are quite low, suitable for a variety of users
  • Kraken exchange supports margin trading.
  • User-friendly interface
  • High trading volume
  • Margin trading with low leverage
  • The personal information verification process requires quite a lot of information sources
  • Kraken exchange support on mobile devices is still poor, not diverse on many platforms
  • At peak hours, the exchange always has many problems
  • Limited payment methods

Binance Vs Kraken Which is Better

Binance Vs Kraken: Which is Better?

The two biggest names in the cryptocurrency exchange world are Binance and Kraken. They are both large, established exchanges with a long history in the industry.So, which is better?

It depends on what you are looking for.

If you want a large selection of coins to choose from, then Binance is the better option. They have a much wider range of coins listed on their exchange than Kraken does.

If you are looking for a more secure and regulated exchange, then Kraken is the better option. They are a US based exchange and are subject to stricter regulations than Binance.

Features

Binance exchange:

As was previously mentioned, Binance supports staking on a number of assets, including Shiba Inu, Solana, and Ethereum. You may use either your Polkadot or Kusama money to bid in Polkadot slot auctions.

Additionally, Binance provides spot, margin, and P2P trading to its consumers. Additionally, you may engage in yield farming, strategy trading, or even start a cryptocurrency savings account. In conclusion, Binance offers much more than just the opportunity to buy and sell assets, and with its cheap costs and extensive geographic availability, it could be the right exchange for you.

Kraken exchange:

There are many outstanding features of Kraken which makes it a top choice among cryptocurrency exchanges.

Some of the outstanding features of Kraken include:

  • Security: Kraken has implemented multiple layers of security to ensure that their platform is secure and safe. They have implemented 2FA, PGP encryption, and a host of other security measures.
  • Liquidity: Kraken is one of the most liquid cryptocurrency exchanges in the world. This means that users can always buy or sell cryptocurrencies on the platform without having to worry about the order not being filled.
  • Advanced trading features: Kraken offers advanced trading features for experienced traders. These features include margin trading, short selling, and advanced order types.

Supported Currencies

With more than 175 currencies accessible as of June 2022 on Kraken, compared to more than 100 on Binance, Kraken has the advantage in terms of the amount of coins that can be traded on each exchange. But at any exchange, you shouldn’t have any problem finding the most well-liked currencies.

If you truly want to trade a lot of different currencies  Kraken or another exchange like Coinbase, which has access to 158 coins, would be a better choice. But if you’re just looking to trade the largest cryptocurrencies like Bitcoin and Ethereum, you should be fine with Binance or Kraken.

Staking, Credit Cards, Other Options

Staking

Staking is a feature that both Binance and Kraken’s systems provide. Investors in cryptocurrencies have the opportunity to profit from staking incentives by backing the currency during the verification process. The exchanges deduct any fees before depositing any revenue you have generated into your account. At the moment, neither Binance nor Kraken levy staking fees.

While Binance offers staking on seven currencies, Kraken presently offers staking on 13 coins with plans to add more in the future. In contrast to Binance, Kraken enables staking on Ethereum, therefore if you want to stake Ethereum, one of the most widely used cryptocurrencies, you must choose Kraken as your exchange.

Credit Cards

Kraken accepts all major credit cards, including MasterCard, Visa, and American Express. However, the company charges a 5% fee on all credit card transactions. Kraken also accepts wire transfers and ACH transfers from US bank accounts.

Binance offers a wide range of credit cards for the convenience of its customers. The credit cards offered by Binance are Visa, MasterCard, American Express, and Discover. Binance also offers a debit card for the convenience of its customers. The debit card offered by Binance is Visa.Binance also offers a prepaid card for the convenience of its customers. The prepaid card offered by Binance is Visa.

Other Options: Customer support

Customer service is sometimes inadequate on cryptocurrency exchanges, which is unfortunate given their rapid expansion. Only inquiries or issues will be accepted from Binance customers through support tickets. There is no phone, email or chat support.

Kraken sets itself apart in this area by offering hundreds of trained specialists to answer questions via chat 24 hours a day, seven days a week (even on major holidays). Kraken also offers phone support 12 hours a day, which is great for those complex questions that are difficult to explain in writing.

Security Binance and Kraken

Security

Binance exchange

If you’re entrusting your assets to any platform, you want to ensure they’re protected. This is why it’s crucial to take into account the security features provided by each and every crypto exchange. What does Binance have to offer, then?

  • First, Binance protects your account with two-factor authentication. This procedure supports SMS and Google Authenticator.
  • Additionally, you may make sure that only addresses you’ve given the go-ahead to conduct transactions with you by using Binance’s address whitelisting tool. This will reduce the likelihood that a bad actor may transfer your money to an arbitrary wallet address. You can also rest easy knowing that Binance offers FDIC insurance for any balance in the form of U.S dollars.

Kraken exchange

Kraken offers users a range of security features to protect their accounts as much as possible.

  • First, you may login using two-factor authentication to make it harder for unauthorized users to access your account. Yubikey and Google Authenticator are both used by Kraken for two-factor authentication.
  • Additionally, Kraken forbids SMS and phone account recovery and provides a customizable account timeout window so that you don’t accidentally keep your account page open for extended periods of time. In order to prevent hostile parties from viewing your private information while it is in transit or at rest, Kraken completely encrypts all of your sensitive data.
  • The Kraken team also continuously scans the platform for any unusual activity, reducing the likelihood that hackers would be successful in their attempted assaults on Kraken users. All withdrawals can also be confirmed by email through Kraken, which increases the security of your account.

Geographic Availability

  • On its exchange, Kraken now offers staking functionality for 15 different assets, including Solana, Cardano, Ethereum, and Tezos. Its three off-chain staking options, Bitcoin, euro, and U.S dollar, are all subject to geographical availability, so it’s important to check whether your country of residence allows for the off-chain staking of your desired asset.
  • Binance is available in most of the countries across the globe. Payment Methods Accepted by Binance. Binance accepts payments from its users through cryptocurrencies only.

Fees

Binance trading fees

30-DAY VOLUME MAKER TAKER
Less than $50,000 0.10 percent 0.10 percent
$50,000 – $100,000 0.09 percent 0.09 percent
$100,000 – $500,000 0.08 percent 0.09 percent
$500,000 – $1 million 0.07 percent 0.08 percent
$1 million – $5 million 0.05 percent 0.07 percent
$5 million – $10 million 0.04 percent 0.06 percent
$10 million – $25 million 0 percent 0.06 percent
$25 million – $100 million 0 percent 0.05 percent
$100 million – $250 million 0 percent 0.04 percent
$250 million – $500 million 0 percent 0.03 percent
$500 million and up 0 percent 0.02 percent

Kraken trading fees

30-DAY VOLUME (USD) MAKER TAKER
$0 – $50,000 0.16 percent 0.26 percent
$50,001 – $100,000 0.14 percent 0.24 percent
$100,001 – $250,000 0.12 percent 0.22 percent
$250,001 – $500,000 0.10 percent 0.20 percent
$500,001 – $1 million 0.08 percent 0.18 percent
$1,000,001 – $2.5 million 0.06 percent 0.16 percent
$2,500,001 – $5 million 0.04 percent 0.14 percent
$5,000,001 – $10 million 0.02 percent 0.12 percent
$10 million and up 0.00 percent 0.10 percent

Binance clearly outperforms Kraken in terms of trading expenses, particularly for taker orders, despite Kraken’s cheap pricing. Additionally, you may save an additional 25% on trading costs if you pay with BNB, Binance’s own coin.

  • This is how it goes: If you want to conduct a new $10,000 transaction and you’ve already performed $25,000 worth of trades over the past 30 days, Kraken will charge you 0.16 percent ($16) for a maker order or 0.26 percent ($26) for a taker order. For any order type, Binance will charge 0.10 percent ($10). But, if you pay using BNB, the fee drops to $7.50.
  • If your 30-day trading volume exceeds $2.5 million, Kraken does offer a modest edge on maker orders. Once your 30-day average volume reaches $10 million, neither exchange imposes a fee for manufacturer orders. At every volume level, Binance offers discounts for taker orders.

Binance has a benefit. Comparing Binance to Kraken, it will be the greatest way to save on trading fees unless you trade frequently and with large sums of money.

Ease of Use

Binance exchange is easy to use both on mobile and desktop. With a staff of 24/7 support when customers have difficulties. How to open an account and transfer money to the account is simpler than Kraken exchange.

Interest Rates

  • Binance has the advantage here by not charging deposit or withdrawal fees on ACH transfers in U.S. dollars. Binance doesn’t charge for deposits on wire transfers, but it does for withdrawals for domestic wires, which cost $15.
  • Kraken’s fees fluctuate, however they may be anywhere from free and $10 for deposits and $4 and $35 for withdrawals.

At a Glance

INFORMATION                                        KRAKEN                                                                      BINANCE

HEADQUARTERS:                                 San Francisco, USA                                                      No central headquarters

COMPANY TYPE:                                   Exchange                                                                      Exchange

FEES:                                                      Low (0% to 0.26%)                                                        Low (0.015% to 0.1%)

SECURITY:                                             High                                                                               Medium

BEGINNER FRIENDLY:                          No                                                                                  Yes

VERIFICATION REQUIRED:                  Yes                                                                                 Region dependant

AVAILABLE CRYPTOCURRENCIES:    Bitcoin, Ethereum (33 Total) Bitcoin,                              Ethereum (175+ Total)

PROPRIETARY TOKEN:                        No                                                                                   Yes

ON-SITE WALLET:                                 Yes                                                                                  Yes

BUY/DEPOSIT METHODS:                   Bank Transfer, Cryptocurrency                                       Stablecoins and Cryptocurrencies

SELL/WITHDRAW METHODS:             Bank Transfer, Cryptocurrency                                       Stablecoins and Cryptocurrencies

YEAR ESTABLISHED:                           2011                                                                                2017

FIAT TRADING:                                     Yes                                                                                   Yes (stablecoins only)

GOLD:                                                   No                                                                                     No

Readmore: https://www.cryptovantage.com/best-crypto-exchanges/kraken-vs-binance/

FAQ Binance and Kraken

FAQs

How Do Binance and Kraken Work?

Binance and Kraken work similarly to most other cryptocurrency exchanges. Users deposit fiat currency or cryptocurrency into their account and use it to purchase other assets.

The main difference between Binance and Kraken is the type of assets that each exchange offers. Binance offers a wider range of assets, including many altcoins that are not available on Kraken. Kraken, on the other hand, offers more traditional assets such as stocks and commodities.

Is It Safe to Hold Cryptocurrency in the Binance or Kraken Exchanges?

There is no one definitive answer to this question. Some people believe that it is safe to hold cryptocurrency in Binance or Kraken exchanges, while others believe that it is not safe. Ultimately, it is up to the individual to decide whether or not they feel comfortable holding their cryptocurrency in either of these exchanges.

Who Should Use Binance or Kraken?

If you are looking for a large selection of coins to trade, then Binance is the exchange for you. However, if you place a higher importance on security, then Kraken is the better choice.

Which One Should You Choose?

Overall, between Binance and Kraken, Binance comes out on top as the better choice for most people. If you are looking to get started in the world of crypto trading, then Binance is a great place to start.

Conclusion

Although Binance and Kraken are both excellent cryptocurrency exchanges with loads to offer, it seems that Binance is superior in many aspects. In addition to being generally less expensive, Binance also supports more currencies, has more staking possibilities, and has more trading capabilities overall.

However, this does not imply that Kraken is a bad option for trading cryptocurrencies. This is a broad and expanding exchange that may give you a safe and practical platform for your demands relating to cryptocurrencies.

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