Binance vs. Kraken

Preface to Binance - Most well-known Crypto Exchange in the world

Regarding daily bitcoin trading volume, Binance is the biggest cryptocurrency exchange globally. It received a lot of attention and a sizable community despite only being formed in 2017. It was started by Changpeng Zhao and is registered in the Cayman Islands. Even though the exchange was once situated in China, it was forced to relocate as the Chinese government tightened cryptocurrency regulations. Consequently, Binance’s corporate offices are now located outside of China. More than 500 virtual tokens and cryptocurrencies, including Ether, Bitcoin, Dogecoin, and Binance Coin, are available for trade on Binance.

Preface to Kraken - Extensive crypto staking options with rewarding APY rates

Founded in 2011, Kraken is a crypto bank and exchange. It enables the trading of cryptocurrency and fiat money. However, after two years of preparation, the exchange finally debuted in September 2013. It began with trading bitcoin, Litecoin, and euros; subsequently, it added margin trading and other currencies. Payward Inc. owns Kraken, which CEO and co-founder Jesse Powell runs. Over time, the exchange grew in prominence, especially after 2014.

What Are Binance and Kraken’s Differences?

In the Binance vs. Kraken comparison, we noticed some significant differences. Despite Binance’s eventual ascendancy, Kraken was founded earlier. However, there are more distinctions as well. Kraken, for instance, is available to all Americans except those who reside in New York and Washington. Regarding Binance, users from 43 states can utilize it. But it’s unavailable to Idaho, Connecticut, Hawaii, Texas, Vermont, New York, or Louisiana residents. Additionally, US citizens cannot purchase MKR, MATIC, ENJ, and ZRX on Kraken; however, they can do so on Binance. 

However, Kraken’s website and exchange are simpler to use and offer a more straightforward search experience. Kraken also takes little time to verify accounts. Unless you select a Pro account, which might take up to five days, accessing the account takes a few minutes. Nevertheless, Binance’s verification procedure is more sophisticated. It may take up to fifteen days or even longer, depending on the circumstances.

Evaluating the Features of These Two Exchanges

Features are the first section that must be noted in the Binance vs. Kraken comparison. Binance and Kraken are designed for traders with prior trading expertise and understanding. Because of this, they provide more sophisticated functionality, enabling investors to do various transactions in addition to staking cryptocurrency and placing market orders. Kraken, however, allows several transaction types (like margin trading) that Binance does not. Kraken features a stand-alone platform called Cryptowatch, which contrasts Binance. With over 8,000 cryptocurrency markets accessible, this premium trading terminal also offers real-time statistics and graphing.

The Binance and the Binance US websites are the two versions of Binance. There are a few distinctions between the two. For example, Americans cannot access the Binance Academy, learn about the Binance Visa Card, or access a rewards section where they may accumulate cryptocurrency on the U.S. website. It is only a website with FAQs and a cryptocurrency exchange. Nevertheless, both services provide sophisticated charting features.

In contrast, investors worldwide use the same platform on Kraken, an exchange headquartered in the United States. The platform is, therefore, less constrained than Binance. Now you know Binance and Kraken’s differences in terms of main features.

Which Currencies Are Accepted on Binance and Kraken?

In our comparison of Binance vs. Kraken, supported currencies are the next issue to note. For international investors, Binance provides more than 500 currencies, and stablecoins like Tether, DAI, and BVinance USD. 19 fiat currencies, including AUD, GBP, HKD, USD, and INR, are also accepted. However, only USD fiat money and 47 cryptocurrencies are available to US citizens. In addition to 69 currencies, Kraken offers three stablecoins: Tether, USD coin, and DAI. It has seven fiat currencies: EUR, USD, GBP, AUD, CAD, JPY, and CHD, in that order. Americans are only given fifty-two coins.

Additionally, both platforms provide some of the most well-known cryptocurrencies, like Cardano, Dogecoin, Monero, Ether, and many more, with 100 trading pairings. Kraken is the only company that gives American citizens access to Polkadot. These are notable Binance and Kraken’s differences in supporting different coins.

Security Aspect of Binance vs. Kraken

A complete Binance vs. Kraken article must analyze the security of the exchanges in detail. The security features offered by Binance and Kraken vary. Binance states, “Binance holds a small percentage of coins in its hot wallets,” with the other funds being kept in cold storage. It provides no information regarding its security protocols. Nevertheless, Binance had to contend with a significant security breach in 2019 that resulted in the theft of more than $40,000,000 in Bitcoin. Bloomberg claims that Binance is also being looked at for possible illegal conduct.

Kraken, however, has taken several precautions and takes security extremely seriously. While the platform conducts routine testing, 95% of the deposits are in cold storage. Furthermore, even though Kraken has been since 2013, it has never been hacked.

Although both systems adhere to the Know Your Customer (KYC) requirement and fulfill tight U.S. standards, they take slightly different approaches to security. For example, Binance only spends a little effort revealing information about its security protocols. “Binance only holds a small percentage of coins in its hot wallets,” according to an article from the business; the remainder are kept in cold storage.

Binance and Kraken differ in security aspects. Kraken is notable for its security protocols and strives to raise industry-wide security standards. 95% of the reserves are in geographically dispersed, air-gapped cold storage. They also operate a bug bounty program, conduct penetration testing, and let a third party audit their proof-of-reserves. 

It’s also critical to remember that Kraken last had a hack in 2013. However, over time, distributed denial-of-service (DDoS) operations have been launched against Kraken and Binance. 

However, in 2019, a significant security breach at Binance led to the loss of more than $40,000,000 in Bitcoin. According to Bloomberg, the Justice Department and the Internal Revenue Service recently announced that they are looking into possible illegal activities related to Binance. Another blockchain forensics company claimed, “more funds tied to criminal activity flowed through Binance than any other crypto exchange.”

Because of this, Kraken stands apart for its dedication to safety and transparency in the crypto sector, even though both platforms provide two-factor authentication (2FA) and other standard security precautions. The fees section will be the following part of this Binance vs. Kraken comparison.

Comparing Fees of Binance and Kraken

Kraken offers reduced rates and an easier-to-understand price schedule. Its maker-taker fees range from 0% to 0.26%. However, Binance’s more intricate costs are based on the VIP level. They also increase their maker-taker fees from 0% to 0.10%.

Regarding bank account costs, Kraken charges $4 to $35, whereas Binance offers no fees for users outside the United States. Kraken charges 3.75% + €0.25 in fees, while Binance charges between 3% and 4.5%. Also, you can find Binance and Kraken’s differences in purchase fees. Binance charges costs ranging from 0.02% to 0.10%, whereas Kraken charges $5.

User-Friendly

Both exchanges have comparable sign-up procedures, and US investors must adhere to stringent verification guidelines. According to Binance, advanced verification (L2) can take up to 15 days, although many users claim it’s taking considerably longer. Kraken, on the other hand, gives precise deadlines for each level, except Pro levels, which might take up to five days. All levels are completed in minutes, not days. 

While Binance and Kraken cater to those who know a little about cryptocurrency and investing, Kraken’s exchange and website are more straightforward. Additionally, searching for and accessing assistance articles on Kraken is easier. Naturally, though, the abundance of charting tools available on both platforms might be daunting for novice investors.

Which Mobile Apps do the Exchanges Support?

The practicality of mobile apps is one of Binance and Kraken’s differences. Binance has a mobile app for its main website, and for US residents, it provides another. Users may initially find the app difficult to use, as with its web-based systems. However, the user interface (UI) is generally tidy and easy to use.

Kraken offers two mobile applications, Kraken and Kraken Pro. IOS and Android users give excellent ratings, and Kraken offers features comparable to online exchanges. In contrast to Binance, Kraken continuously enhances the user interface and experience and reacts to almost all criticisms and ideas about its mobile apps.

Comparing Binance vs. Kraken in Supported Regions

All US states, except Washington and New York, may access Kraken. The only nations currently not supported on the Kraken cryptocurrency trading platform are Iran, North Korea, Japan, and Cuba.

However, US citizens are not permitted to use Binance’s worldwide platform. US investors must instead utilize Binance.US, a different website. Sadly, Binance.US’s trading capabilities are somewhat more restricted than those of global platforms.

Kraken Is for Who?

This platform works well for seasoned and engaged cryptocurrency traders who wish to transact in well-known coins like Dogecoin, Bitcoin, and NFTs via Kraken’s experimental NFT market. Kraken provides account management and consulting services to high-net-worth individuals, corporations, and investors.

Binance Is for Who?

Binance is a good platform for cryptocurrency investors wishing to trade various coins, tokens, and NFTs. At Binance Academy, beginners may learn about cryptocurrency and earn complimentary tokens.