Binance VS Kraken
Binance and Kraken are both large and popular cryptocurrency exchanges with millions of users. Both exchanges are reputable and process a large amount of volume making it often tricky to decide which exchange you should go with.
Both Binance and Kraken offer advanced features such as futures, margins and staking pools. When it comes to ease of use and benefits such as low fees and mobile apps it becomes a close race. Binance is often chosen due to its high number of tokens and slightly lower trading fees however Kraken has an edge in security and other aspects we will talk about in this comparison.
As far as exchanges go Kraken and Binance can be looked at as more advanced exchanges with features such as futures trading and order types that some investors wouldn’t use. This makes these exchanges great not just for investing but also for trading.
In this comparison we will be comparing a range of features and areas that are important to have when it comes to a cryptocurrency exchange, we will be comparing the follow:
Knowing how much you are paying in fees is super important when using an exchange, even having a 0.05% difference in fees can save you a lot of money in the long run. In the recent months we have been seeing a competitive change in fees across a lot of exchanges as they make a bid for users and volume.
Security is possibly the most important factor to look at when choosing an exchange. Knowing your money is safe and secure will give you peace of mind. Security is one thing not to be skint on when setting up your exchange account.
Ease of use
No one wants to have to figure out how to use a trading dashboard that looks like the dash of a high tech airplane. Having an easy to use and understand trading dashboard is important especially when trying to market to the masses.
Volume and user count
In a sense high volume and user count can instill a bit of confidence in you as a user.
Binance is one of the largest cryptocurrency exchanges available and quickly made its name known as the go to exchange. Founded in 2017 by Changpeng Zhao it has since become the number 1 exchange by volume.
Kraken is the 9th biggest exchange by volume and was founded in 2011. Kraken was one of the first exchanges to offer spot trading with margin and has been around long enough to withstand the test of time.
Binance VS Kraken
Right off the bat we’re going to compare the fees between the two to find out which one is cheapest for you to trade on. Understanding exchange fees can be tricky so we will try to break it down simply here.
Spot Trading Fees
Binance has a tiered system to work out how much they charge in fees and as a beginner it can be quite difficult to understand. Binance also offers discounts on their fees when opting to use their native currency BNB.
To keep it simple as a new user with no trading volume you will pay a 0.1% fee when trading spot with Binance. From the above graph you can see that as you progress through the tiers via increasing trading volume your spot trading fees drop.
They start at 0.1% and get right down to 0.02% at the highest tier.
Kraken calculates how much your fees are based on a few factors such as the previous 30 days of trading volume. Kraken charges users up to 0.26% for each trade.
Kraken also has a max daily trading amount of $100,000 whereas Binance does not have a max.
Binance has a flat rate withdrawal fee of $15 when withdrawing USD and a $0 fee when depositing USD. When depositing and withdrawing crypto from Binance the fees vary greatly depending on the cryptocurrency, you can view the full list of crypto fees here.
Kraken on the other hand charges up to $60 in withdrawal fees. Again similar to Binance when withdrawing different cryptocurrencies the fees and minimums change depending on the token you are wanting to withdraw. To view a full list of tokens and their fees click here.
From these two comparisons we can see that Binance has an advantage over Kraken with lower fees and also no daily trading limit.
Security is one of the more important factors when choosing an exchange and it is worth spending the time to set up your account correctly and securely.
Both exchanges are in the top ranked exchanges and both have great security measures. With both exchanges offering 2FA and a secure database the security on both Binance and Kraken is top notch.
When creating your crypto exchange account you should take extra measures setting up your account such as using an exchange specific email address from a secure provider such as ProtonMail. When setting up your accounts 2FA you should also avoid using a SMS 2FA as this can be hacked by people doing what is called a sim swap.
Using Googles 2FA app is the most secure way you can set up your account.
When it comes to security both Binance and Kraken offer similar security measures.
Ease of use
Being able to easily navigate an exchange and even being able to trade from your mobile phone can be a real deal breaker when choosing a cryptocurrency exchange.
Binance offers multiple trading layouts and has a very vast range of features which often can overwhelm someone who is newer to the crypto space. Kraken on the other hand has a super simple and clean layout that makes it very easy for a newer user to understand what they are doing.
Both exchanges offer mobile apps, again with Binance offering multiple layouts such as simple and advanced while Kraken offers a very beginner friendly and easy to use layout.
From a beginners perspective Kraken would be the winner here however from a function ability perspective Binance would win as they offer a surprising amount of data and trading options from their mobile app.
Number of users & trading volume
At the time of writing this Binance has done $7.6 billion in volume in the past 24 hours and Kraken has done $187 million in volume in the past 24 hours.
Based purely on volume we can see Binance is a clear winner in this category, being the ranked number 1 exchange by volume they will beat any comparison in this category.