Binance Vs. Kraken: Which Crypto Exchange Is Better For You?

Today, a trader or anybody who wants to enter the crypto market is spoilt for choice when it comes to cryptocurrency exchanges. Binance, Kraken, Coinbase, KuCoin, Huobi Global are just some of the options that the average trader has if he or she wants to jump into the crypto market. Binance and Kraken are two exchanges from the list mentioned above that we shall be taking a slightly closer look at. Both of these are popular and very trusted cryptocurrency exchanges.

Briefly introducing them, Binance is the largest cryptocurrency exchange globally and among the most popular. It offers a host of services, all on one platform, and was founded in 2017. Kraken is an experienced hand, as one of the oldest cryptocurrency exchanges in the world, founded in 2011, just a couple of years after Bitcoin.

A Brief Summary

  • Binance is the largest and most popular cryptocurrency exchange globally, with an average daily volume of 4 billion.
  • Kraken is one of the oldest cryptocurrency exchanges in the world, founded in 2011.
  • Both Binance and Kraken offer users trading features like futures trading, spot, and margin.
  • Both exchanges have robust security systems and practices, such as two-factor authentication, cold storage of user funds, and more.
  • Binance and Kraken both support multiple cryptocurrencies, giving users a host of options to choose from for trading.
  • Both cryptocurrency exchanges support multiple methods of deposits and withdrawals. However, specific payment methods may take longer to process on Kraken.

Binance Vs. Kraken: Which Exchange Is Better For You?

This point is subjective and depends on what you are looking for in a cryptocurrency exchange and the type of trading you intend on doing. Although Binance was established in 2017, the exchange offers its users over 500 cryptocurrencies. Users on Binance can trade without extensive KYC procedures. Users on Binance have access to popular cryptocurrencies such as Bitcoin, Ethereum, Binance Coin, and stablecoins such as Tether.

Binance can be called a jack-of-all-trades when it comes to features, giving users a host of crypto-related features, all on a single platform. In addition, it has features for both beginners and advanced traders. Beginners can quickly sign up and start trading, while more advanced users can avail themselves of features such as charting and custom API keys.

On the other hand, Kraken is a platform for traders that are more active when it comes to trading. It gives its users several options for buying, selling, and trading crypto. Although Kraken’s user interface may seem a little on the dated side, it offers several features such as futures trading, options trading, and margin trading. Kraken was designed as a platform that would be easy to use for both beginners and advanced traders.

Beginners or those new to Kraken can find their way around Kraken’s interface pretty quickly, while advanced traders have access to several features without making the platform a complex puzzle.

Binance Pros Binance Cons 
Binance is cheap and easy to useBinance has a complicated user-interface, sometimes proving tricky for even experienced users.
Offers users of the platform over 500 cryptocurrencies. Binance lacks an on-platform digital wallet.
Offers its users multiple types of transactionsThe exchange has a limited presence in the U.S, with consumers unable to use the exchange in several places. 
Kraken ProsKraken Cons
Kraken offers its users low trading fees. Kraken’s user interface may look and feel a little outdated.
Users have access to multiple types of trading.Kraken is not available in states like Washington State and New York. 
Has a robust redressal mechanism, with 24/7 support.

Binance Vs. Kraken: At A Glance 

BinanceKraken
FeaturesBinance offers its users multiple order types such as derivatives and futures, multiple trading interfaces, API keys and low trade fees.Kraken also offers users multiple trading interfaces, multiple order types and low trade fees.
FeesTrading fees and purchase fees can vary from 0.02% to 0.10%, going up to between 3% to 4.5% on debit card purchases.Kraken has a 0.9% fee on stablecoins and FX pairs and a 1.5% fee on other cryptocurrencies. The platform charges an additional fee of 3.75% + $0.31 on purchases by debit and credit card. Crypto trading, deposit, and withdrawal fees may vary. 
Cryptos Binance supports over 500 cryptocurrencies on its exchange. Kraken supports over 56 cryptocurrencies on its exchange. 
Security 2 factor authentication through SMS or Google Authenticator, device management, cold storage and address whitelisting2-factor authentication via SMS or Google Authenticator, Device-level restrictions, U2F security through hardware keys, pre-approved address whitelisting, Global settings lock.
TransactionsBuy, sell, deposit, trade, withdraw, stop order, limit order, margin options and futures tradingBuy, sell, trade, deposit, withdraw, stop order, limit order, margin trading, options trading, futures trading

Okay, so now we have an idea of how Binance and Kraken stack up against each other. Next, let’s dive in a little more into the details.

Binance Vs. Kraken: Fee Structure

Fees usually decide which cryptocurrency exchange a user would gravitate towards, which is why they are first on the list. Kraken presents its fee structure in a fairly straightforward and transparent manner. The exchange charges users up to 0.26% for each trade. Of course, this is impacted by several factors, like the amount of crypto traded and whether you are a maker or taker.

Kraken’s maker-taker model is based on a trader’s 30-day trading volume. When a trader places an order on the market and is filled immediately, they are classified as a “taker” and charged the “taker” fee. When a trader places an order, and the order is not matched immediately, it is placed in an order book, and the trader is classified as a “maker” and is charged “maker” fees. Maker orders are charged between 0% – 0.16% while Taker orders are charged between 0.10% – 0.26%. You can check Kraken’s fee structure in detail here

Binance’s fee structure incentivizes high-volume traders, and the platform also offers traders lower fees per transaction. Like Kraken, Binance also uses the maker-taker fee structure, but maker fees and taker fees are identical. Binance has lower fees when compared to other cryptocurrency exchanges. The platform offers its users crypto-trading, which is relatively cheaper than trades that involve fiat currency. A fee of 0.1% is charged for all trades, and trades carried out using Binance Coin (BNB) can avail discounts. You can take a look at the detailed Binance fee structure here.

Binance Vs. Kraken: Ease Of Use

The Binance user interface is easy to use for both beginners as well as advanced users. Newer traders can sign up and start trading, while the platform’s advanced features allow users to access features such as charting and custom API keys. Users can create a free account using their email address. Once the verification of the email address is complete, users can secure their account using two-factor authentication, and connect their bank account or card and start trading.

Binance allows users to trade from pretty much anywhere in the world and supports 15 languages. The platform is available on Windows, macOS, Linux deb, and Linux rpm. It is also available on Android and iOS.

Kraken’s interface is designed for traders that are more active, giving users several advanced trading options. Kraken offers its users several features such as options trading, futures trading, and margin trading. In addition, users can choose between Kraken, Kraken Pro, and Kraken Futures, depending on their trading needs. Signing up on Kraken is easy, and traders can create a free account, verify their email address, and secure their account using two-factor authentication. 

Depositing funds on Kraken requires users to complete advanced verification and submit their photo ID, residence proof, and social security number. Kraken is available on Android and iOS, and although not available as a desktop version, users can use it via an emulator.

Binance Vs. Kraken: Security

Security is one of the most important factors to consider before choosing a cryptocurrency exchange, and both Binance and Kraken take security very seriously. Both platforms offer significant security features. Binance offers users anti-phishing measures and allows the setting up of anti-phishing codes, enhancing existing account security. In addition, both Binance and Kraken offer two-factor authentication, an old trick of the trade but very effective. Two-factor authentication ensures that no third party can gain access to your account. Let’s look at the security features of each platform in detail.

Binance

  • Whitelisting crypto addresses – The Binance exchange offers its users address whitelisting. Address whitelisting restricts access to addresses that can withdraw cryptocurrency from your account. The addresses are saved in your address book, blocking other addresses from accessing funds. 
  • Two-factor authentication – Binance offers two-factor authentication via SMS or through the Google Authenticator app.
  • Partnership with Trust Wallet – Binance does not offer its users a digital wallet on its platform. However, it has partnered with Trust Wallet. Trust Wallet is one of the leaders in the digital wallet industry, with over 5 million active users. Trust Wallet secures user funds with a secure PIN, encrypted key, 12-word recovery phrase, and biometric access.
  • Device management – Users can review which devices have accessed their account and when. It also allows users to restrict which devices can access the account.
  • Advanced verification – Binance requires users to complete an advanced verification to access more features on the platform. Advanced verification also ensures that no one can access your Binance account.

Kraken

Let us look at Kraken’s security features; Kraken is highly secure and reliable with features such as email confirmations for withdrawals. Like Binance, it also offers two-factor authentication through YubiKey and Google Authenticator. Kraken also offers its users customizable API keys, SIM swapping, and SSL encryption. Users can keep 95% of their assets in cold devices, offline and entirely air-gapped. Let’s look at some of the security features of Kraken.

  • Two-factor authentication – Kraken offers its users two-factor verification through Google Authenticator and YubiKey. Account recovery via SMS is disabled to protect the account from being hacked through the phone.
  • Whitelisting of approved addresses – All withdrawal addresses on the Kraken exchange are required by the platform to go through a thorough verification process. This restricts access to accounts that the account holder does not approve.
  • Global settings lock – This feature freezes the account settings for anywhere between 1 to 29 days, preventing any unauthorized access or attempts to change account settings.
  • U2F security – Users can secure their account through a U2F hardware key, allowing them to store their crypto-asset keys offline.
  • Offline storage – Users can keep their assets offline in cold storage devices which are entirely air-gapped.

Binance Vs. Kraken: Cryptocurrencies supported

Both Kraken and Binance give their users access to the top cryptocurrencies in the market. However, Binance dwarfs almost every other exchange, giving users access to over 500 cryptocurrencies. Binance US currently has access to only 52 cryptocurrencies. Users on Binance have access to trading pairs based on Bitcoin, Ethereum, Binance Coin, Tether, and other stablecoins.

Platform users can also use Binance Coin (BNB) to avail lower trading fees on the platform. Additionally, Binance also supports BEP-2, ERC-20, and NEP-5 tokens. The platform’s partnership with Simplex allows users to purchase coins using debit or credit cards. You can check Binance’s market listings here

Kraken offers its users 56 cryptocurrencies on its platform, with the list including all the top currencies in the market, along with a decent chunk of altcoins too. Unfortunately, some cryptocurrencies are unavailable in select countries. You can take a look at Kraken’s supported cryptocurrencies here.

Binance Vs. Kraken: Unique Features

Both Binance and Kraken offer a host of unique features to users on their platform. Let’s look at the features of each platform, starting with Binance.

Binance Unique Features

  • Variety of options – Binance offers its users an array of trade options, more than any other exchange. Binance users have access to Limit order, Market order, Stop limit order, stop market order, OCO (One cancels the other) orders, Margin trading, peer-to-peer trading, and several more options.
  • API keys – Third-party integration with Binance is easy as the platform gives the public access to its API keys.
  • Charting – Users can create advanced charting views with overlays and indicators through TradingView charts.
  • Educational videos – Binance’s educational platform, Binance academy, offers users beginner and advanced tutorials on starting trading.
  • Rewards – Binance increased participation on the platform through frequent giveaways and other challenges, along with airdrops for currencies that are about to be listed. Users can collect their giveaway awards from the rewards center.

Kraken Unique Features

  • Trading options – Like Binance, Kraken offers its users a variety of trading options such as Market orders, Settle position orders, Limit order, stop market orders, stop-limit orders, trailing stop order, margin trading, futures trading, and Time in Force limit orders.
  • API keys – Users can access Kraken’s API keys and allow third-party application integration with Kraken. Furthermore, users are also able to control or limit access, giving them further security.
  • Charting – Users on Kraken can toggle “advanced market view” and view live order book transactions and charts with multiple indicator overlays.
  • Investor service – Kraken offers high-net investors a 1-1 white-glove service, helping investors make large chunks of investments in cryptocurrencies like Bitcoin and Ethereum off the main exchange. The service also offers consultations and reporting, along with helping to facilitate trading and the secure storage of crypto.

Binance Vs. Kraken Advantages And Disadvantages

Let us now take a closer look at some of the advantages and disadvantages of each platform, starting with Binance.

Binance Pros and Cons

Binance Pros

  • Binance is currently the largest and most popular cryptocurrency exchange globally, with an average daily trading volume of $2 billion.
  • Users on the platform can use BNB to transact on the Binance chain or can trade it as a token. BNB is currently the 4th largest cryptocurrency globally, with a market cap of more than $52 billion.
  • Binance supports a host of cryptocurrencies (more than 500), including several popular to lesser-known cryptocurrencies.
  • Binance has several advanced trading features such as charting, making it an excellent platform for traders who want to carry out complex trades.
  • Binance provides its users with high liquidity, thanks to high trading volumes.
  • The platform has a reasonably proactive security team.

Binance Cons

  • Binance customer support could use an improvement, as it is notoriously difficult to reach customer support assistance.
  • Binance has a rather lengthy KYC process, while it is also considered negative for users looking for greater anonymity.
  • The interface can be a little intimidating for newer users of the platform.

Kraken Pros and Cons

Kraken Pros

  • Kraken emphasizes security, giving its users high financial and digital security. Kraken has not faced a single hack since its inception, and this speaks volumes about its security practices.
  • Kraken offers users a sizable selection of almost 60 (56 to be precise) cryptocurrencies, which puts it in good stead compared to most other exchanges.
  • Kraken is not the cheapest cryptocurrency exchange, but the platform’s fees are reasonable. Kraken’s maker-taker fees are lower than exchanges such as Coinbase.
  •  Kraken offers several features such as futures trading, options trading, and margin trading and has an easy-to-understand user interface. 

Kraken Cons

  • Although Kraken boasts of 24/7 customer service, its customer service falls below expectations, with the response from the support team often delayed.
  • The starter account, which users can use without furnishing photo IDs, has very limited functionality.
  • Kraken’s advanced trading features could overwhelm newer, less experienced traders.

Binance vs Kraken: Which Exchange Should You Use?

 This is a question that comes down to what functionalities a trader is looking for in an exchange. Both exchanges offer excellent features to their users. Binance is available globally in over 180 different countries. It offers a separate US platform to comply with KYC and anti-money laundering laws in the US. It offers excellent features for both beginners and advanced traders, and traders can execute complex trades on the exchange. Binance also offers significantly more cryptocurrencies than other exchanges.

Kraken is beginner-friendly and easy to use. It has something for both beginners and advanced traders. Beginners can quickly start trading on the platform, thanks to its simple user interface, while advanced traders have access to pretty much every feature they could need without having to deal with a cluttered user interface. Kraken’s strict security protocols are a boon for traders who make large investments, and both platforms give users a solid experience both on desktop and mobile.

However, traders have a host of other exchanges that they can choose from, such as Coinbase Pro, KuCoin, DXOne, and Bitfinex.

Binance Vs. Kraken: Which Exchange Has A Better App?

Both Binance and Kraken are available on Google Play Store and the Apple App Store.

Kraken

The Kraken app has three versions that are available for users. The new Kraken App, Kraken Pro, and Kraken Futures.

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Binance

Binance, on the other hand, is available on Android and iOS and has a client for macOS, Windows, and Linux.

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Binance Vs. Kraken: FAQs

Are Binance and Kraken trustworthy?

Both Kraken and Binance put significant emphasis on security. Kraken offers two-factor authentication and other features such as whitelisting approved addresses, U2F security, and global settings lock. Kraken also stores 95% of the user’s crypto assets in offline wallets, completely air-gapped.
Binance also offers its users two-factor authentication through SMS or Google Authenticator, along with other security features such as device management, address whitelisting, and the ability to restrict account access. Both Kraken and Binance are also compliant with all required KYC and AML laws.

Where is fiat deposit faster?

Binance processes deposits and withdrawals much faster than Kraken.

Which exchange is better for day trading?

Both Binance and Kraken are excellent choices for day trading; both platforms have relatively low fees. Binance allows day traders to sell cryptos multiple times, while lower fees make it a perfect platform for day trading.

Which exchange has better customer support?

Binance has a fairly responsive customer support team and also offers 24/7 live chat. However, support can get sluggish during periods of high trading volumes. Kraken also offers 24/7 customer support via chat. However, many believe that customer support is one area where Kraken needs to improve significantly.

Binance Vs. Kraken: Conclusion

Kraken is one of the stalwarts of the crypto exchanges out there and is widely considered among the world’s top cryptocurrency exchanges. Kraken puts a significant focus on security and is one of the most secure cryptocurrency exchanges out there. It speaks volumes about its security protocols that it has not been hacked since its inception. Kraken is a platform designed with active traders in mind, but its interface is simple enough for even beginners. It offers users low fees, margin trading, futures, advanced limit orders, and other features.

Binance, on the other hand, is more popular with advanced traders who want advanced trading options and analytics to carry out complex trades. The platform has a steep learning curve but offers an array of cryptocurrencies and trade options. In addition, verification requirements on Binance are flexible, a feature popular with users that do not want to share personal information.

Overall, both platforms offer users excellent options for features, and both are excellent platforms to trade.