Binance vs Kraken

Binance vs Kraken

Robert McDougall 

November 3, 2022

Cryptocurrency

Kraken was founded in 2011, making it one of the oldest exchanges in the space. In that time, it has built up a solid reputation as a safe and secure place to trade cryptocurrencies. One thing that makes Kraken stand out is its focus on security. It was one of the first exchanges to implement proof-of-reserve audits and is one of the few exchanges that allow users to margin trade with up to 50x leverage.

Binance, on the other hand, was only founded in 2017 but has quickly become one of the most popular exchanges due to its low fees and wide range of altcoins. Binance also offers its own token, BNB, which is not only a rapidly growing cryptocurrency in its own right but comes with a couple of benefits, including a 25% discount on trading fees. This has helped to fuel the growth of the exchange as more and more users flock to it to take advantage of its cheap fees.

So, which exchange is better? Let's see.

Cell

Fiat Currencies

USD, GBP, EUR, CAD, AUD, HKD, JPY & 35 more

USD, EUR, GBP, JPY, CAD, CHF, AUD

Number of Coins

600+

185+

Trading Fees

0.1%

1.5% for instant trades;

0.16/0.26% (maker/taker) when trading on the market

Deposit Methods

Cell
Cell

Bank Transfer

Google Pay

Fedwire

PayPal

Credit Card

(not available in USA)

Debit Card

(not available in USA)

Apple Pay

SWIFT

Skrill

SOFORT/iDEAL

Cryptocurrency

Features

Cell
Cell

User-friendly

Mobile app

Live Chat

Security

Cell
Cell

2FA

Biometric security

ISO 27001 certified

Offline cold storage

Website

Cell

Fiat Currencies

USD, GBP, EUR, CAD, AUD, HKD, JPY & 35 more

USD, EUR, GBP, JPY, CAD, CHF, AUD

Number of Coins

600+

185+

Trading Fees

0.1%

1.5% for instant trades;

0.16/0.26% (maker/taker) when trading on the market

Deposit Methods

Cell
Cell

Bank Transfer

Google Pay

Fedwire

PayPal

Credit Card

(not available in USA)

Debit Card

(not available in USA)

Apple Pay

SWIFT

Skrill

SOFORT/iDEAL

Cryptocurrency

Features

Cell
Cell

User-friendly

Mobile app

Live Chat

Security

Cell
Cell

2FA

Biometric security

ISO 27001 certified

Offline cold storage

Website

Pros
  • Has a P2P marketplace for instant trades
  • Users can trade on the spot, margin and future markets
  • Binance Earn platform where users can earn passive income
  • Supports 600+ cryptocurrencies
  • Lower fees than Kraken
Cons
  • Poor customer support (doesn’t offer email or live chat customer support)
  • Not available to US residents (but they can use Binance US)
Pros
  • Supports futures, margin and spot trading.
  • Offers 185+ cryptocurrencies
  • Responsive customer support team
  • OTC desk for high-volume traders
Cons
  • Fewer advanced features and cryptocurrencies
  • Some fiat currencies don’t have all crypto pairs; you might have to change to USD to exchange for your preferred coin
  • Higher fees than Binance

Binance vs Kraken: Fees

Binance's trading fee structure is tiered based on your 30-day trading volume. The base fee starts at 0.1%. They also offer discounts to users who pay fees using their native token (BNB). This means that your fee will be reduced from 0.1% to only 0.075% per trade. 

Deposits and withdrawals of fiat currency vary depending on your country and which currency you wish to use. For some locations, it is free to deposit and withdraw fiat.

Kraken trading fee structure is higher than Binance, and changes depending on whether you want to trade on the market, or instantly buy/sell directly on Kraken. For instant trades on stablecoins, the fee is 0.9%; otherwise, it is 1.5% for other cryptocurrencies. If you prefer to trade on the market, you can access lower fees of 0.16% for makers and 0.26% for takers.

Deposting fiat currency may incur a fee, depending on the fiat currency and deposit method. For example, if you deposit USD using FedWire (MVB Bank) there is no fee, but depositing USD with FedWire (Synapse) will cost you $5. Click here to see what fees are for the various deposit methods.

Winner - Binance

Binance wins with much lower trading fees, that can be reduced further if you pay using BNB. At just 0.075%, it is one of the lowest trading fees you will find on any crypto exchange.

Binance vs Kraken: Payment Methods

Binance supports several deposit methods, including bank transfer, credit card, debit card, SWIFT, SOFORT/iDEAL, and cryptocurrency.

Kraken accepts a wider range of deposits, such as bank transfer (ACH), SEPA, Apple Pay, Google Pay, Fedwire, SWIFT, debit card, credit card, cryptocurrency, and more, depending on your country. 

Winner - Kraken

Kraken definitely has the edge here, with a much wider range of payment options that suit traders from all over the world.

Binance vs Kraken Features

Trading Markets

Spot trading is the most popular type of trading on Binance. You can trade over 600+ cryptocurrencies and 1,000+ trading pairs on the spot market.

Besides spot trading, you will find margin trading with up to 10x leverage, and users can choose between isolated and cross-margins. Binance also offers crypto loans, which can be used to finance margin trades. This service is provided at competitive interest rates, making it an attractive option for traders looking to make the most of their capital.

Binance offers futures trading on a wide range of digital assets. With more than 110 contracts available, investors can take advantage of highly leveraged positions and make use of the Stop Loss functions to protect their downside risk. The platform offers both USD-M perpetual contracts and COIN-M perpetual contracts that offer up to 20x leverage.

In addition to futures, spot, and margin trading, Binance also offers leveraged tokens. These digital assets are pegged to another asset's price and provide leveraged exposure to the underlying asset. Currently, there are 40 leveraged tokens available on the Binance platform.

While Kraken doesn't come close to Binance's range of cryptocurrencies, it offers a decent selection of altcoins and has a good reputation in the industry. Kraken currently lists 185+ cryptocurrencies, which is still a good number, especially for a novice.

The platform also supports margin and futures trading on select cryptocurrencies. For margin trading, there are over 40 coins available with leverage up to 5x. If you're a high volume trader, you can qualify for higher margin limits up to $500,000. 

Kraken offers a variety of futures contracts to trade, including single and multiple collateral options with up to 50x leverage. 30 USD perpetual contracts are available to trade. This variety of contract options and leverage amounts allows Kraken users to trade according to their risk profile. Kraken also offers a demo account for potential futures traders to try out the platform before putting any real money at risk. This is a great way to learn about the features and functionality of the Kraken futures trading platform before committing any capital.

Trading Features

In addition to offering a wide range of tradable assets, Binance provides users with access to powerful trading features. For instance, the Binance P2P marketplace allows users to quickly trade between themselves without having to use the market. This is great for those who want to get in and out of trades quickly.

Similarly, the Binance Spot Grids feature offers automated trading, so users can set up their trades and let the platform do the work for them. Binance also provides advanced charting tools and order types, so traders can plan and execute their trades with precision. All these features make Binance an excellent choice for those looking for a comprehensive and user-friendly trading experience.

Institutions and high-net-worth individuals can take advantage of Kraken's Over the Counter (OTC) desk to fill large orders without disrupting the market. The OTC desk offers deeper liquidity and a more personalized service, allowing clients to trade with confidence, knowing their orders will be filled at a competitive price. The desk also supports all fiat and cryptocurrencies listed on the exchange, making it easy for clients to find the right currency pair for their needs.

NFT Trading

The Binance NFT marketplace is a great platform for NFT creators, traders, and enthusiasts. The platform supports the buying, selling, and trading of a wide range of digital assets, including art, games, music, and more. It features a minting studio where users can create their own NFTs and a marketplace where they can buy and sell NFTs. There's also an events section where traders have premium access to NFTs from renowned artists and exhibitions. If you're feeling lucky, you can try your hand at winning a mystery box full of rare NFTs. With Normal, Rare, Super rare, and Super Super Rare NFTs up for grabs, you could be in for the find of a lifetime!

The Kraken NFT marketplace is still in the works but is expected to launch soon. You can, however, join the waitlist to be among the first to test it out.

Passive Income Opportunities

If you are looking for ways to generate income without putting in too much work, you'll be pleased to know that both Binance and Kraken offer passive income-generating opportunities.

Binance has a platform called Binance Earn that offers a wide range of products to help you grow your crypto assets. These products include savings, staking, farming, and dual investment. Through its Savings program, users can earn interest from HODLing their cryptocurrencies. Interest rates depend on the coin, but they are generally between 0.30% and 10%. Staking offers flexible and fixed-term options for earning rewards from products such as USDT (locked staking), ETH, DeFi, and DOT. And with farming, users can put their idle assets to good use by lending them to crypto borrowers and earning interest. For those looking for a little more interaction, Binance also offers dual investment and portfolio auto-invest options. The Portfolio Auto-Invest feature allows users to automatically reinvest their earnings into various assets.

Kraken only offers staking as a way to earn rewards on your crypto holdings. Staking works similarly to how it does on Binance, with users earning interest on their crypto assets. However, the interest rates offered by Kraken are much higher than what Binance offers, going up to about 23% APR.

User Experience

Binance is packed full of features, and because of this, it can be overwhelming for beginners to crypto. If you have never used a crypto exchange before, you may not understand how to navigate the platform, or trade on the markets. There is also no customer support at all, not even ticketed email support, so if you are having issues, there is no one to assist.

Kraken on the other hand, is a very simple and user-friendly platform. It is built for those who have never bought or sold crypto before, and they have a 24/7 live chat support team available to help you at any moment.

Winner - Binance

Binance outshines Kraken when it comes to features. There are more trading markets, more coins, more passive income products, and more advanced trading features. However, if you are a beginner to crypto, it may be wise to use Kraken, which is more user-friendly and has 24/7 live chat support.

Binance vs Kraken: Security

Being the largest crypto exchange by trading volume, Binance is a popular target for hackers. In May 2019, hackers stole over $40 million in BTC from Binance's hot wallets. With such a target on their back, Binance has had to invest heavily in security. Some of the measures they've taken include:

  • Implementing a multi-tier and multi-clustered architecture
  • Storing the vast majority of customer funds in cold wallets
  • Data encryption
  • Wallet and IP address whitelisting
  • Two-factor authentication
  • A risk management and control system to monitor and flag suspicious activity
  • Compliance with financial security initiatives like AML and KYC

The exchange has also set up a $1 billion insurance fund to cover any future losses in the event of a hack.

Kraken has a better track record when it comes to security, and has never been hacked. Kraken attributes their success to their commitment to security best practices.

They have a world-class security team that is constantly innovating and expanding their security infrastructure. 95% of all deposits are kept in offline cold storage, so they are never vulnerable to hacks. All sensitive account information is encrypted, and two-factor authentication (2FA) is required for all withdrawals and changes to account settings.

The website itself is SSL-encrypted, and regular penetration testing is conducted to identify any potential vulnerabilities. In addition, Kraken is widely regulated by FINTRAC in Canada, FinCEN in the USA, AUSTRAC in Australia, FCA in the UK, and the FSA in Japan. This ensures that the Kraken team is always working to maintain the highest security and compliance standards.

Winner - Draw

It's a tie! Both platforms have demonstrated a commitment to keeping user funds and data safe. While Binance has been hacked in the past, it has boosted its security measures, and subsequently received ISO 27001 certification.

Number of Cryptocurrencies

Binance offers more than 600+ cryptocurrencies, which is one of the largest ranges you will find on any crypto exchange.

Kraken has over 185+ cryptocurrencies, which is not as many as Binance, but is still a significant offering. 

Winner - Binance

Binance has the larger collection of cryptocurrencies, and wins this section.

Binance vs Kraken: Summary

Kraken is one of the oldest and most well-respected cryptocurrency exchanges in operation today. Founded in 2011, Kraken was one of the first exchanges to offer crypto-to-fiat trading pairs. It has since become a go-to exchange for serious traders and investors who want access to a wide range of cryptocurrencies. Binance is a relative newcomer to the world of cryptocurrency exchanges compared to Kraken, but it has quickly established itself as one of the leading platforms in the industry, and is now the largest crypto exchange in the world based on trading volume.

When comparing the two, Binance is the standout winner in terms of trading features, fees, cryptocurrency variety, and an advanced trading experience. However, if you are a newcomer to crypto and want an easy-to-use platform, Kraken is the better choice. 

Overall Winner - Binance

Binance wins with lower fees, wider range of cryptocurrencies and trading markets, and more advanced features.

Still Researching?

To find out more about these two crypto exchanges, read our detailed reviews of Binance (here) and Kraken (here). You can also take a look at this article on the top crypto exchanges, and compare them in our table below.

Comparison Table of the Best Crypto Exchanges in the USA

eToro
MEXC Global
Pionex
Coinmama
Uphold
Crypto Exchange
Crypto Exchange
eToro
MEXC Global
Pionex
Coinmama
Uphold
Fiat Currencies
Fiat Currencies
USD
USD, TWD, AED, PHP, AUD, JPY, CAD, EUR & more
USD, TWD
USD, EUR, AUD, CAD, GBP, JPY
USD, GBP, EUR, CHF, AUD, JPY & 21 more
Cryptocurrencies
Cryptocurrencies
BTC, ETH, BCH, XRP, DASH, LTC, ETC, ADA & 75 more
MEXC, BTC, ETH, EOS, BCH, LTC & 1,520+ more
BTC, ETH, LTC, SOL, DOT, TRX & 120+ more
BTC, ETH, ETC, UNI, LINK, LTC, BCH, DOGE, MATIC, EOS, AAVE, COMP, OMG, YFI, WBTC
BTC, ETH, ADA, DOGE, COMP, DOT & 125+ more
Deposit Methods
Deposit Methods
PayPal, Debit card, Credit card, Wire transfer, Online banking
Visa/Mastercard, Bank Cards, Bank Transfer, Apple Pay, Google Pay, Cryptocurrency
Credit card, Cryptocurrency
Credit card, Debit card, Fedwire, Apple Pay, Google Pay
Bank Transfer (ACH), Bank Transfer (SEPA), Debit/Credit Card, Wire Transfer, Faster Payments Service, SWIFT, Cryptocurrency
Trading Fees
Trading Fees
1%
0.2% for spot, 0.02%/0.06% for futures
0.05%
2.93% - 3.90% (depending on loyalty level)
Fees included in the spread

eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. "Virtual currencies are highly volatile. Your capital is at risk."

Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us. 

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