Binance vs Kraken: Which Crypto Exchange is Better for Trading?

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Binance vs Kraken: Like many other options in the market, both platforms are part of a growing list of the best cryptocurrency exchange platforms. Each has its own unique features and strengths. Amid the crowded crypto space, a few standout exchanges have distinguished themselves—and Binance and Kraken are definitely among them.

Binance vs. Kraken’s battle for the throne of the best crypto exchange is ongoing and is not only about trading volume, and we are still without a winner. For most traders, it is a struggle to find the right cryptocurrency trading exchange platform for their trading needs. The average crypto trader wants an exchange with all the hot crypto coins listed, an alluring user interface, and low trading fees.

These factors and many more are the determining factors when traders set out to pitch their tent. In this review, we present the peculiarities of two of the most prominent popular cryptocurrency exchanges for our readers to choose from. 

Binance vs Kraken: What is a Crypto Exchange Platform?

A crypto exchange is a trading platform that allows you to trade cryptocurrencies and digital assets like Bitcoin, Ethereum, and fiat currencies. One reason why comparing Binance vs Kraken’s offerings makes sense is that crypto traders can weigh their options before choosing the exchange that works best for them. For the sake of this review, Binance and Kraken are assessed based on 7 key criteria:

• Unique features
• Customer service
• Security
• Trading fees
• Supported currencies & payment methods
• Supported countries
• Trade and withdrawal limits

That said, let’s get into it.

Binance vs Kraken: Binance Exchange A Brief Introduction

Regarding cryptocurrency trading exchange platforms, Binance and Kraken have solidified their positions as two popular cryptocurrency exchanges in the market. Each offers a wide variety of crypto assets and advanced trading features tailored to different types of traders. Both platforms support Bitcoin, Ethereum, and numerous other cryptocurrencies, but they cater to different types of active traders.

The Company

The company is the brainchild of Changpeng Zhao, a Chinese-Canadian billionaire who founded the platform in 2017 after raising $15 million through a token sale rather than a traditional Initial Coin Offering (ICO). To navigate regulatory environments, Binance operates with a decentralized approach and has shifted its operations across various jurisdictions, including the Cayman Islands and Seychelles.

Regulatory Issues

Binance faces ongoing regulatory scrutiny regarding AML (Anti-Money Laundering) and KYC (Know Your Customer) policies, with specific details about ongoing investigations available through credible news sources and official regulatory announcements. These regulatory concerns have spotlighted Binance’s compliance with financial laws, especially in a market as stringent as the U.S. As a result, U.S. authorities are scrutinizing Binance’s operations more closely, highlighting the platform’s challenges in adhering to evolving legal frameworks that aim to prevent illicit activities and ensure greater transparency in cryptocurrency trading​. Binance.US is the Binance subsidiary in the US, and it services all the states, excluding New York, Texas, Louisiana, Hawaii, Idaho, and Vermont as a crypto-to-crypto exchange. This list may expand or change based on developing regulations. 

Binance Mobile App

In terms of appearance, the Binance mobile app isn’t much different from its desktop version. Its user interface is alluring, and the app is relatively easy to navigate. While using the app, you can locate every function you need on the app with ease, and it has advanced trading options like margin trading. You can download the Binance App from the Apple App Store and Google Play Store if Binance holds a license to operate in your country.

Binance web interface 

Digital Wallet 

A digital wallet is a software application designed to store, manage, and allow transactions with cryptocurrencies and other digital assets, setting it apart from a cold storage solution. Binance Wallet allows its users to earn substantial interest on most digital assets held in their wallets under certain conditions, providing an avenue for passive income.

Peer-to-Peer Trading 

Peer-to-peer trading on Binance is when traders trade on agreed terms and conditions without Binance’s interference. However, Binance may step in to arbitrate in the event of a conflict. This method enhances the variety of trading options available to users.

Security

Binance uses a two-factor authentication (2FA) protocol. You can only access digital assets with two-factor authentication, which requires passing two authentication factors. Similarly, Binance uses KYC verification to ensure its users get the best customer experience. Binance has also addressed whitelist, device management, and the function of restricting access to devices. Additionally, Binance employs a bug bounty program and penetration testing to identify and mitigate potential vulnerabilities, ensuring robust security measures.

Binance vs Kraken: Customer Service

For many beginner and experienced traders, customer service is very important. However, you don’t have to worry about customer service support in most cases, as the built-in features should fix all the common issues. Binance offers a chatbot where users can get one-on-one support. However, the bot usually fails a few times before it pops up the option to chat with the support team and talk to a person.

Trading Fees

Binance offers a 25% discount on transaction fees when users pay the transaction fees with the
Binance Coin. (BNB) The discount typically starts at 25% but can decrease based on the user’s trading volume and VIP level. Binance has 11 fee structure levels or stages, ranging from VIP 0 to 10. Traders can trade with as little as $10 on the exchange and use margin trading. (You can find the latest Binance fee structure by clicking on the link)

Supported Countries

You can trade in more than 100 countries in the world and 46 US states. This extensive coverage makes Binance accessible to a wide range of international users.

Supported currencies and payment methods

Binance has listed over 400 cryptocurrencies, including popular cryptocurrencies like USDT, BTC, LINK, LTC, AVAX, USDC, SOL, ADA, BNB, and many more. On Binance, three payment methods are supported:

Bank Deposit: Users can deposit fiat via their bank accounts. However, there are countries, such as Nigeria, where government regulations forbid direct funding of traders’ accounts. In such cases, peer-to-peer transactions come in handy.
Third-Party Payments: Users can deposit fiat currencies through third-party platforms like Banxa and Simplex.
Credit and Debit Cards: Users can deposit fiat currencies on Binance using their Visa or MasterCard. The fiat can then be converted to crypto for trading purposes, offering flexible funding options. 

Binance Trading and Withdrawal Restrictions 

On Binance, users can trade a wide range of cryptocurrencies in major trades such as margin trading, spot trading, peer-to-peer, and futures trading. Withdrawal limits depend on your account level. Account levels, or tiers, depend on the extent of a user’s account verification. For basic accounts, traders can withdraw up to 0.6 BTC per day. For fully verified accounts, traders can withdraw up to 100 BTC daily. Binance is favored by international users for its global accessibility, and its wide range of supported cryptocurrencies ensures that active traders can diversify their trading portfolios.

Binance vs Kraken: Pros and Cons of Trading on Binance 

Pros 

Access to a lot of features and services, like the Binance Academy.
Variety of available crypto options to buy and trade.
A fantastic user interface that facilitates ease when trading.
Relatively low trading fees.
Advanced trading options are available.
Advanced charting tools enhance trading strategies.
A wide variety of crypto coins.

Cons

Security cannot be vouched for, as Binance has been hacked in the past.
Considerably high withdrawal fees.
Binance’s main site is unavailable in the United States.

Binance vs Kraken: What is Kraken Exchange?

We created a Kraken review in which we shared that Kraken is a San Francisco-based and US-regulated crypto exchange that was co-founded in 2011 by Jesse Powell and Thanh Luu. Kraken is famous for its excellent security, but recently, Kraken was hacked in a weird way. 

Unique Features 

Each crypto platform provides a few additional unique functions. Kraken provides simple staking options for well-known proof-of-stake coins, such as ATOM, XYZ, and DOT. Additionally, Kraken offers Leveraged Tokens and supports non-fungible tokens, providing a wide array of trading options. The platform’s powerful tools cater to both beginners and experienced traders. By using Kraken for staking purposes, those wishing to earn a dividend on their cryptocurrency may stake crypto assets and earn profits. 

Kraken users can also execute deals on numerous exchanges using a special interface called Cryptowatch. This feature enables traders to profit from arbitrage opportunities.
Offering cross- and isolated-margin trading provides flexibility for different trading strategies. Kraken provides both REST and WebSocket APIs, allowing its users to develop automated trading strategies.

Mobile App

Kraken offers both the Kraken and Kraken Pro mobile apps. Both apps are similar to the web version of the exchange and have received great ratings from both Android and iOS app users. However, in contrast to Binance, Kraken constantly works to improve the user experience of its mobile apps by responding to almost all feedback or ideas and trying to implement them. The Binance Advanced Trading Platform is known for its comprehensive tools, while Kraken focuses on enhancing positive user experience.

P2P

As of early 2023, Kraken has introduced the advanced trading capabilities of peer-to-peer payment services (P2P) in select regions, allowing users to buy and sell cryptocurrencies directly. This expands the trading options available to its users compared to Binance, which has long supported P2P trading.

Security 

Cryptocurrencies have shown to be particularly susceptible to hacks over time, costing crypto owners millions of dollars in stolen coins. You don’t want to end up using a cryptocurrency exchange with weak security measures that could leave you and your coins vulnerable to theft.

As the only cryptocurrency exchange to receive a flawless score on the security review website CER, Kraken has shown that it takes its commitment to security seriously. Only recently has Kraken experienced one significant security breach.

Kraken guarantees safe coin storage and platform security, holding 95% of its deposits offline in cold storage facilities worldwide. Its servers are kept in safe cages and watched around the clock by armed guards and cameras. In addition, customers are offered two-factor authentication (2FA) to take physical security precautions; Kraken periodically tests its system for vulnerabilities and encrypts sensitive customer contact information at the data and systemic levels. Kraken employs advanced security measures, including email encryption for communications and additional security protocols to safeguard user data. Bug bounty programs and regular penetration testing are also in place to ensure the platform remains secure.

Customer Service 

Kraken Clients Q/A Flowchart 

Kraken’s customer service is available 24/7 via live chat and email. Phone support availability may vary based on the user’s region and account type. I submitted a support case after experiencing a slight problem adjusting an account trade setting (mainly due to human error). Kraken staff reacted and fixed the issue in around 20 minutes. The customer support team ensures issues are resolved promptly, enhancing the user experience.

Kraken offers crypto guides and educational materials through its own Kraken Learn Hub, aiding crypto newbies and crypto newcomers in understanding the platform better. Despite excellent customer service, not every user experiences the same results. Some dissatisfied customers claim they have problems getting Kraken to release cash kept in their accounts due to identified security threats on such accounts.

Trading Fees

Both Kraken and Binance use a maker-taker fee structure. Binance offers lower fees, starting at 0.10% for spot trading, while Kraken’s fees range up to 0.40% for takers with low 30-day trading volumes. However, Kraken’s fee structure is simpler and easier to follow, especially for active traders with smaller volumes. For those using Kraken Pro, the fee drops as low as 0.02% for makers and 0.12% for takers when trading volumes exceed $10 million in 30 days. This makes Kraken Pro attractive to advanced traders who seek lower fees as their volume increases.

Kraken Pricing

The charge for most crypto trades is 0.25/0.40 percent. However, transactions involving the top 5 stablecoins pegged to U.S. dollars incur a fee of 0.20 percent.

Depending on how you pay for the transaction, there may be extra charges. For typical crypto trades using Instant Buy/Sell services, Kraken charges up to 3%. Funding options like using a credit card can incur higher fees of around 3.75% + 25 EUR. Additionally, credit card purchases may have minimum withdrawal limits to ensure security and compliance.

Kraken Pro Pricing

Pricing for Kraken Pro is determined by a user’s 30-day total trading volume. For volumes up to $10,000, the maker fee is 0.25%, and the taker fee is 0.40%. These fees decrease with higher trading volumes, providing substantial discounts for experienced traders and high-volume traders. At the highest Kraken Protiers (over $10 million), fees drop to 0.00% for makers and 0.10% for takers. This tiered pricing structure incentivizes larger trading volumes and rewards active traders on Kraken Pro.

Supported Countries

Except for New York and Washington, Kraken is accessible in 48 states in the US. Globally, Kraken offers its services in 178 nations. However, some regions remain restricted due to regulatory reasons. Kraken supports the majority of countries in the world. This wide accessibility makes it a reliable choice for international users. The nations covered by the Kraken exchange do not include the following countries: Afghanistan, Congo-Kinshasa, Cuba, Congo-Brazzaville, Iran, Libya, Iraq, North Korea, Tajikistan, and Iraq do not have access to Kraken’s services.

Supported Currencies And Payment Methods

Kraken users can fund their trading accounts with Canadian dollars, U.S. dollars, or euros. They may also trade using cryptocurrencies that they already own. Only seven fiat currencies are supported by Kraken, and the exchange has listed a little more than 290 crypto coins, U.S. or euro dollars coins. Although it’s not the largest collection of virtual money you can find (especially compared to Binance), it’s on par with some top exchanges. The high liquidity on Kraken makes it simpler to buy and sell at fair prices.

Currently, credit or debit cards—as well as online wallets like Skrill, Neteller, or PayPal—cannot be used to make deposits or withdrawals. One of Kraken’s biggest downsides is that only bank deposits or wire transfers are permitted. This limits some of the funding options available to users, making credit card purchases less flexible.

Trade and withdrawal limits 

Kraken’s withdrawal limits are based on account verification levels. For Starter accounts, the daily withdrawal limit is $5,000, while Intermediate accounts have a daily limit of $500,000. For Pro accounts, the withdrawal limit can reach $10 million per day, which is ideal for advanced traders handling larger portfolios. These limits help maintain regulatory compliance and cater to varying user needs based on their trading volumes and verification.

Moreover, deposit limits vary depending on the payment method used, ensuring that users have flexible options based on their funding preferences. Configurable account timeout settings add an extra layer of security, protecting users from unauthorized access.

Binance vs Kraken: Pros and Cons of Trading on Kraken

Pros

High platform security
A wide range of listed cryptocurrencies
High withdrawal limits
A wide range of fiat currencies are tradable on the platform
Low trading fees
Quick, round-the-clock customer service response times
Access to advanced trading capabilities

Cons

Credit and debit cards and e-payment have some restrictions
Very limited starter accounts
Geographical restrictions for account holders

Binance vs Kraken: Final Verdict

Binance and Kraken are large crypto exchanges that allow users to trade a wide range of cryptocurrencies. Both have considerable daily trading volumes. The primary advantages that set Binance apart from the competition are its wide variety of cryptocurrencies, its very low trading fees—some of the lowest among its competitors—its relatively easy-to-use and diverse payment methods, and its top position among the top exchanges in terms of daily trading volume. Its simple app and staking options are great for active traders.

Additionally, Binance’s Advanced Trading Platform offers automated trading strategies and advanced order types, enhancing the trading experience for experienced traders. The robust API allows for seamless integration with third-party tools, providing a competitive edge in the arena of cryptocurrency trading.

However, Kraken remains firmly ahead of practically everything else. The platform has a better mobile app, offers superior customer service, and allows customers to execute trades on various exchanges at their discretion. Kraken will likely be the superior exchange for those new to cryptocurrencies and crypto trading. With its sophisticated charting features, its wider global reach, and considerably lower fees and margin trading, Binance is preferred—and more recognized—by more experienced traders.

Kraken’s comprehensive API and customizable API tools cater to high-volume traders seeking to implement automated trading strategies. Furthermore, Kraken’s advanced security measures, including cold storage and two-factor authentication, ensure that user assets are well-protected.

Binance vs Kraken: In conclusion

Both Binance and Kraken offer many features and benefits. Binance excels in providing a wide variety of cryptocurrencies and advanced trading options suitable for active traders. On the other hand, Kraken offers superior customer service, robust security measures, and a user-friendly experience that is ideal for crypto newcomers and experienced traders alike.