Trading Platforms: Choosing Between Binance vs Kraken

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Just like every other software, there are several crypto trading platforms, each with its peculiarities. Amongst the multitude of platforms, there are top-of-the-pack platforms that have set themselves apart from the others. 

Binance vs Kraken’s battle for the throne of trading platforms is ongoing, and we are still without a winner yet. For most traders, it is a struggle to find out the right exchange platform for their trading needs. The average trader wants an exchange with all the 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 article, we present the peculiarities of two of the most prominent exchanges for our readers to choose from. 

What Is A Crypto Exchange?

A cryptocurrency exchange is a trading platform that allows you to trade cryptocurrencies and fiat currencies. One reason why comparing and contrasting Binance and 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 Exchange: A Brief Introduction

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Binance is a good starting point for beginners and crypto veterans alike with respect to trading platforms. For some time, Binance has maintained its place as the largest cryptocurrency trading platform based on weekly reviews and trading volume.  

The company is the brainchild of Changpeng Zhao, a Chinese-Canadian billionaire who founded the platform in 2017 after raising $15 million in an Initial Coin Offering (ICO). Binance is a Hong Kong-based platform. However, money laundering problems in 2019 caused US Federal authorities to ban Binance, resulting in a version of Binance called Binance.US. Binance.US is the Binance subsidiary in the US and it services 48 states. 

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. The Binance App is available for downloads on both the Apple App Store and Google Play Store, provided Binance is licensed to operate in your country. 

Binance web interface 

Digital Wallet 

A digital wallet is a software program that lets you accept cryptocurrencies or other digital assets for storage and trading. Binance Wallet allows its users to earn substantial interests on most digital assets held in their wallets under certain conditions.

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.

Security

Binance uses two-factor authentication (2FA) protocol. This means that access to digital assets requires passing two different security checks. In the same vein, Binance uses KYC verification to ensure that its users get the best possible customer experience.  

Binance also has addressed whitelisting, device management, and the function to restrict or restrict access to devices.

Customer Service

For many users, customer service is very important. However, in most cases, you don’t have to worry about customer service support 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

Technically, all traders on Binance pay a 0.1% fee for every trade they make, but there is a 25% discount on all transaction fees if you trade in Binance Native Coin (BNB). However, for every instant buy, there is a 0.5% charge on the transaction amount. Binance has 11 fee levels or stages, ranging from VIP 0 to 10. Traders can trade with as little as $10 on the exchange.

Supported Countries

You can trade in more than 180 countries in the world and 46 US states.

Supported currencies and payment methods

Binance has listed over 600 cryptocurrencies, including popular coins like USDT, BTC, LINK, LTC, FTM, USDC, BUSD,  SOL, ADA, BNB, and more.

On Binance, three payment methods are supported. They are. 

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 MasterCards. The fiat can then be converted to crypto for trading purposes. 

Binance Trading and Withdrawal Restrictions 

On Binance, users can trade a wide range of commodities in major trades such as margin trading, spot trading, peer-to-peer trading, futures trading, and more. Withdrawal limits depend on your account level. Account levels, or tiers, depending on the extent of verification of a user’s account. For basic accounts, traders can withdraw up to 0.6 BTC per day. For fully verified accounts, traders can withdraw up to 100 BTC per day.

Pros and Cons of Trading on Binance 

Pros 

  • Access to a lot of features and services.
  • Variety of available crypto options to buy and trade.
  • An amazing interface that facilitates ease when trading.
  • Relatively low trading fees 

Cons

  • Security cannot be vouched for as Binance has been hacked twice in the past
  • Considerably high withdrawal fees
  • Binance’s main site is unavailable in the United States 
  • Binance is less regulated than some of its competitors

What is Kraken Exchange?

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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 renowned for its excellent security and has never been hacked in the past. 

Unique Features 

Each crypto platform provides a few additional unique functions. For some of the most well-known proof-of-stake coins, such as ATOM, XYZ, and DOT, Kraken provides simple staking options. By using Kraken for staking purposes, those wishing to earn a dividend on their cryptocurrency may stake their crypto assets and earn profits. 

Users of Kraken can also execute deals on numerous exchanges at once using a special interface called Cryptowatch. This feature enables traders to profit from arbitrage opportunities.

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 users. But in contrast to Binance, Kraken constantly works to improve the user interface and experience of its mobile apps by responding to almost all feedback or ideas and trying to implement them.

P2P

Kraken does not offer Peer-to-peer payment services to its users yet. 

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 cybersecurity 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. Notably, Kraken has not seen any significant hacking incidents in its ten-year history, a feat that even Binance cannot boast of.

Kraken guarantees safe coin storage in addition to platform security, holding 95% of its deposits offline in cold storage facilities throughout the world. Its servers are kept in safe cages and are watched round-the-clock by armed guards and cameras. In addition to taking physical security precautions, Kraken periodically tests its own system for vulnerabilities and encrypts sensitive customer contact information at the data and systemic levels.

Customer Service 

Kraken Clients Q/A Flowchart 

Kraken’s customer support is delivered by phone, live chat, and email around the clock. I submitted a support case after experiencing a slight problem adjusting an account trade setting (mainly because of a human error). Staff from Kraken reacted and fixed the issue in around 20 minutes. 

Although I got excellent customer service, not every user experiences the same results. Some dissatisfied customers claim they have problems getting Kraken to release cash that has been kept in their accounts due to identified security threats on such accounts. 

Trading Charges 

Depending on the trading platform you use and the trade you make, different platforms have different pricing and fees. Spread fees apply to pricing in both scenarios. The following is a list of the most significant fees to keep in mind:

Kraken Pricing

The charge for most crypto trades is 1.5 percent, however, transactions involving stablecoins pegged to the U.S. dollars incur a fee of 0.9 percent. 

Depending on how you pay for the transaction, there may be extra charges. The cost of funding ranges from 0.5 percent when using a bank account to over 3.75 percent + 25 EUR when using a credit card, digital wallet, or debit card.

Kraken Pro Pricing

Pricing for Kraken Pro is significantly less than for the free Kraken platform. Pricing is determined by your 30-day total trading volume. A 0.26 percent taker charge or a 0.16 percent maker fee applies to most trades on the pro platform. 

Supported Countries

With the exception of New York and Washington, Kraken is accessible in 48 states in the US. Globally, Kraken offers its services in 178 nations. The majority of countries in the world are supported by Kraken. The nations covered by 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 Method

Kraken users can fund their trading accounts with Canadian dollars, U. S. dollars, or Euro. Users 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 170 coins. Although it’s not the largest collection of virtual money you can find (especially when compared to Binance), it’s on par with some of the 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 remains that only bank deposits or wire transfers are permitted.

Trade and withdrawal limits 

The withdrawal limit on Kraken is $9,000 per day for Starter accounts and $100,000 for Intermediate Accounts. For pro accounts, the withdrawal limit is pegged at $10,000,000 per day. 

Pros and Cons of Trading on Kraken

Pros

  • High platform security
  • Wide range of listed cryptocurrencies
  • High withdrawal limits 
  • Wide range of fiat currencies are tradable on the platform
  • Low trading fees

Cons

  • Quick, round-the-clock customer support response times
  • Credit and debit cards, e-payments processors are not supported
  • Very limited starter accounts
  • Geographical restrictions for account holders

Final Verdict

Binance and Kraken are large crypto exchanges that let their users trade a wide range of popular cryptocurrencies. Both have considerable daily trading volumes as well. The primary advantages that set Binance apart from the competition are its wide range of available cryptocurrencies, it’s very low trading fees — some of the lowest amongst its competitors, the relatively easy-to-use and diverse payment options, and its top position among the top exchanges in terms of the trading volume. 

However, Kraken remains firmly ahead for practically everything else. The platform has a better mobile app,  offers crypto staking services, offers superior customer assistance, and allows customers to execute trades on different exchanges at their discretion. 

Kraken is likely to be the superior exchange for those who are new to cryptocurrencies and crypto trading. With its sophisticated charting features, its wider global reach, and considerably lower fees, Binance is preferred — and more recognized — by more experienced traders. 

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Chidera Anushiem
Chidera Anushiem
Chidera is an experienced crypto writer who believes in the power of the blockchain to revolutionize our world. Reach him at [email protected]