Kraken vs Binance which one is right for you?

Kraken vs Binance

this review will make it easier to find a trusted and reliable crypto platform to buy or trade crypto. Some crypto platforms offer lower fees, but some don’t offer trading platforms. While some platforms don’t offer many cryptocurrencies to buy and this may lead the user to register on different platforms to have all features.

In this article we will review the two popular crypto websites Kraken vs Binance. Both of the crypto platforms allow the user to trade and buy crypto. We will also go in detail through the fees, supported payments, verification system, supported cryptos, security features, customer support, and more.

Overview

Binance

Binance was founded in 2017 by Changpeng Zhao. He has worked on different projects and companies, such as Blockhain.info, OKCoin, etc. Binance first launched as Initial Coin Offering (ICO). Binance is separated into different domains for European, American, and International clients.

Based on the crypto exchange volume, Binance is one the largest. It has an average daily volume of 2 billion and over 1 million transactions per second according to the company. The user on the Binance platform can buy major cryptocurrencies coins. And it allows the user to trade different cryptos through its own trading platform on the website.

Kraken

Kraken is one of the oldest crypto platforms that allow the user to buy and trade crypto. Launched in 2011 by Jesse Powell, Kraken supports the major crypto coins. Kraken has a daily crypto market capital of more than $200 million USD. The most active crypto coin is Bitcoin with a daily volume of more than $50 million USD. Kraken doesn’t have a separate domain for European, Asian, African, or American users. And the users from the supported countries can use the official domain for all services.

Supported Cryptos

Binance Cryptos

With Binance the user can buy and sell crypto coins. Binance supports a variety of payment methods to buy crypto. Once the user buys the crypto from the platform, it allows the user to trade hundreds of cryptocurrencies on the trading platform. The supported crypto coins on Binance platform are:

• Bitcoin (BTC)
• Ethereum (ETH)
• Litecoin (LTC)
• Bitcoin Cash (BCH)

Kraken Cryptos

Compared to Binance, the Kraken platform offers more crypto coins to buy. Major crypto coins like Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Dashcoin (DASH). The full list of supported cryptocurrencies is below:

Algorand (ALGO), Augur (REP), Basic Attention Token (BAT), Bitcoin (BTC), Bitcoin Cash (BCH), Cardano (ADA), Chainlink (LINK), Cosmos (ATOM), Dai (DAI), Dash (DASH), Dogecoin (XDG), Eos (EOS), Ethereum (ETH), Ethereum Classic (ETC), Gnosis (GNO), ICON (ICX), Lisk (LSK), Litecoin (LTC), Monero (XMR), Nano (NANO), OmiseGO (OMG), PAX Gold (PAXG), Ripple (XRP), Siacoin (SC), Stellar Lumens (XLM), Tether (USDT), Tezor (XTZ), Tron (TRX), USD Coin (USDC), waterMelon (MLN), Wawes (WAWES), Zcash (ZEC).

Trading Platform

Binance Platform

Binance platforms, offer cryptocurrency trading too. The user can trade 25 crypto coins on the trading platform. However, the user can only use the platform if the amount of trade is at least 10,000 USDT worth of coins.

There are no fees charged on the trading platform according to Binance. But there are spreads when the user buys crypto. This means that if you trading with a buy order, the price will be above the market price. If the user trades with a sell order, the price will be below the market price.

To trade on the Binance platform, go to www.binance.com And Sign in with your email and password. Then on the top menus click the “Market” tab. After this, the user will have access to the trading platform. For more details on how to use the trading platform, with an order, stop-limits, etc, you can find the binance link here.

Kraken Platform

The trading platform on Kraken is more different and user-friendly to use. For a beginner in crypto, without much know knowledge in trading platforms, Kraken is a good way to go. Compared to cryptos available for trading, Kraken offers more crypto coins to trade on the platform.

Currently on the trading platform, there are hundreds of cryptocurrencies to trade. Some of the major crypto coins available to trade are Bitcoin, Bitcoin Cash, Ethereum, Litecoin, Stellar, etc. The full list of kraken supported crypto coins on the trading platform can be found at this link.

Kraken offers leverage up to 5x to go long or short on the trading platform. Depending on which crypto pair is opened, Kraken charges 0.02% per position. If the user holds the position more than 4 hours then, a higher fee than 0.02% can be charged.

Verification

Binance verification

Binance users need to verify their account in order to use the platform. Binance uses the know-your-costumer (KYS) validation system to verify the users. To continue with the verification, the user needs to enable the two-factor-authentication (2FA) to continue with the further verification steps.

There are three level types of verification on the Binance platform. The first level that each user registers is “Basic”. The “basic” level has a daily withdrawal limit of $5,000 USD. The “advanced” level upgrades the daily withdrawal limit of $1,000,000 USD. The “flat” level offers the same daily withdraw limit amount, but besides the digital assets, the user can use USD currency too.

Kraken verification

To have access to all features on the Kraken platform, the user needs to verify the account with its documents. There are three verifications levels and you need to upgrade to the “Intermediate” or “Pro” level to enjoy all features. Each new user on the Binance platform will start with the “Starter” level.

The starter level doesn’t offer full access to the trading platform, with restrictions on Kraken futures. The user also can’t use the dark pool system. With the dark pool, the user can place buy or sell orders without revealing information about the trade order. There are limits on withdrawal, with the starter level and the user cannot access the OTC desk to trade.

Intermediate level users, can withdraw more crypto as the limit is increased. However, trading on the dark pool and otc desk is not available too. But the user can trade the Kraken futures and have an increased limit on flat currencies.

The pro-level offers full access to the trading platform. You can use the dark pool system to trade, also the user can trade Kraken futures too. Trading on the OTC desk is available too and the user can trade a corporate account.

Fees & Payment Methods

Binance payment methods

Binance platform offers funding methods with crypto and credit card. The user can deposit funds with Visa and Master Card. Also, the user can deposit funds with Bitcoin, Ethereum, Litecoin, Stellar, Dash, etc.

All the deposit payment methods have 0 deposit fee. For the withdrawal payment method, fees are applied depending on the withdrawal method. To see the full list of supported deposit and payment method with fees, visit the Binance link here.

Kraken payment methods

The user can deposit on the Kraken platform with 0 fees on deposit. The deposit fee increased when the user deposits with different payment methods.

To start depositing, a minimum amount of $20 is required for all United States clients. Clients from the united states, can deposit with 0 fees on some payment methods and it can go up to 5 USD fee per deposit. The supported deposit methods are processed through FedWire. And the deposit process can take 1-5 business days.

The European clients can deposit with a low amount of 1 EUR and fees start from 0 to 5 EUR. The deposit method for European clients is available only through SEPA Bank Transfers. And the users from the UK can deposit through Faster Payments Service (FPS), Clearing House Automated Payment System (CHAPS), and Swift Bank Transfers. The processing time of the deposit can take 1-5 business days.

The Canadian users, can deposit through Wire Transfers, Cash/debit with Canada Post, InterFIN, and Swift Bank Transfer. Deposit methods with Wire Transfer and InterFIN have no deposit fee charged. For other payment methods, 1.25 CAD + 0.25% fee applies. The deposit process can take 1-5 business days.

Security

Binance Security

When it comes to security, Binance doesn’t have a good reputation with that. In 2019, the Binance platform was hacked and more than $40 million worth of Bitcoins were stolen. However, Binance has increases to there crypto jacking security measurements according to the company. The user can enable two-factor authentication (2FA) to secure the account.

Binance offers the “Withdrawal Address Management” feature, which allows the user to limit the wallet address during the withdrawal. The user can also secure his funds with the “Trust Wallet”. With the trust wallet, the user can store his funds on a crypto wallet that can store different crypto coins.

Kraken Security

Compared to Binance, the Kraken platform has never been hacked. The security of the Kraken website and the user’s data, has given Kraken a good reputation in the security phase. Kraken doesn’t offer Trust Wallet but offers other security features. These features could be enough to keep the account safe if the user manages to protect himself from different threats.

Some of the security features on the Kraken platform include 2FA (Google Authenticator and Yubikey). With the two-factor authentication, the users’ accounts could be safer.

However, if the user losses cannot access the 2FA phone app, generated codes, or his phone number associated, 2FA cannot be recovered. Some other crypto jacking security features include email confirmations, API key, account timeout, account lock, etc.

Client Support

Binance Client Support

The client can reach the support team for any questions, suggestions, or issues on email or live chat. The email support team can take 1-2 business days for a reply to your email message.

The live chat team is available 24/7 and can be accessed easily. Currently there’s no support via phone numbers. However the user can access hundreds of articles and videos that can help you explore or find more details of the Binance platform.

Kraken Client Support

To contact the support team, you can reach them only with email or 24/7 live chat. Support via phone number is not available. And the support team for live chat is available 24/7 too. Kraken offers helpful articles too, that can help you learn more about the Kraken platform and its services.

Affiliate Program

Binance Affiliate Program

Binance affiliate program offers a 50% commission when a referral user completes a trade. To become part of the affiliate program, you need to have at least 5,000 followers on social media accounts. Binance also offers a 20% discount on trading fees for your account. The user can also use many banner designs and sizes to attract more clients.

Kraken Affiliate Program

Compared to the Binance affiliate program, Kraken offers a lower commission for each referred client. The affiliate program on Kraken it’s easier to get accepted. Because it doesn’t have any limit on followers, websites, etc. However the user’s application is not guaranteed that it will get accepted 100%. So if you have any website or social media account with a large audience, it could benefit you during the application.

Summary

As we mentioned, both platforms allow the user to buy and trade cryptocurrency. Compared to security, Binance may offer more features to secure the account. But the past event when Binance was hacked, could question the security’s user.

Kraken doesn’t offer an integrated wallet to automatically withdraw crpto funds. But the good reputation in the website’s security could offer a more safe experience for the user.

Binance as a trading platform can be a bit difficult to use due to the poor user-interface. But Binance can be accessed more easily if you’re an experienced trader.

Kraken overall offers a more intuitive design and has a more user-friendly platform for trading cryptocurrency. The trading platform is best suited for both experienced and beginner crypto traders. Overall we would recommend Kraken over Binance, and we hope you did enjoyed this Kraken vs Binance Review. If you did want to learn more about other exchanges we also recommend our Kraken vs eToro review.

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Images via shutterstock, Writer Behar H.