Binance Vs Kraken: 5 Things That Make Them Totally Different

Last updated on March 23rd, 2023 at 01:32 pm

Introduction

Binance and Kraken are among the world’s most popular exchanges for trading cryptocurrencies. Both have millions of users and are among the top 10 exchanges based on trading volume in the world.

But when it comes to people from the United States, they must use Binance’s American platform, known as Binance U.S. For most of the other countries, Binance Global does the job.

Both platforms are known for the excellent features they offer. They come with mobile apps and have low fees while offering great trading options. Moreover, both are designed to appeal mainly to intermediate or advanced traders.

Still, they are different platforms with different features that you should be aware of before choosing between them. Let us see some of the key differences between Binance Vs Kraken.

Binance Vs Kraken: Basics

Basics of Binance

The man behind the founding of Binance in 2017 was Changpeng Zhao, also known as “CZ”. When he came up with the concept of Binance, he could never have imagined that Binance could one day become the largest cryptocurrency exchange in the world in just 180 days.

Though the exchange ran into a lot of trouble with US lawmakers in its early stages. But when it came to launching the latest separate version for the US, “Binance US”, there was a change in scenery.

However, it maintains a separate version for other international users. We will skip the Binance intra-version comparison in this article and will compare Binance Vs Kraken and see which one stands out.

But first, we’ll cover all of Binance, including a burning question many of you have: “Is Binance safe enough to invest in?”

Binance is a centralized cryptocurrency exchange headquartered in the Cayman Islands; Mahe, Seychelles. Originally, the head office was in China. In 2019, Binance acquired WazirX to target the Indian market.

So far you know that Binance is a centralized exchange. Simply put, the importance of centralized exchanges is that the control, decision-making, and operation of the exchange are in the hands of one entity. Therefore, the above functions are in the hands of a third party, which can be either a company or an association.

However, this contradicts the concept of decentralization on which cryptocurrencies are based. We will learn more about Binance later in the article.

Basics of Kraken

The same platform is provided by Kraken for both novices and specialists, however, if you are a trader Kraken Pro is an advanced version that is available. They provide a simple method for deposits and withdrawals and also provide information about your portfolio.

Numerous cryptocurrencies, including industry giants like Bitcoin and Ethereum, are supported by Kraken.

Its growing popularity is due to the simplicity with which money can be transferred between connected accounts and paired tokens.

Their usefulness as a crypto exchange is increased by a thorough security strategy. Kraken works with the finest in the industry to address any potential flaws that might endanger the safety of the platform and the confidence of its users.

Wallets

Kraken is a personal wallet service. They keep the funds of the client safe in the hot and cold wallet and do not provide any personal wallet service. First, you need to decide between Kraken and Kraken Pro, and remember that pro is for professionals.

After the registration and verification process, it is time for you to place your order. This can be done from your bank account directly without ever needing to add funds to your Kraken account. 

It’s good to know that you can also deposit your cryptos as savings on the platform to earn interest. To ensure security at the customer’s end, Kraken uses two-factor authentication to safeguard your interest. 

Kraken Pro is mainly for experienced traders and offers many features that the other platform doesn’t, like more detailed charts and crypto information. Contrary to popular beliefs, Kraken Pro offers a reduced fee than Kraken, encouraging traders to use it more.

To place an order, you must choose your favorite token and fill out the form with options like Limit order and Market order, as per your preference. Use Limit orders if you want the order to take place at a set price. And use Market orders to trade on current market prices. Following the successful submission of the order form, you need to wait for the order execution confirmation before proceeding to do other trading operations. 

Similar to Kraken, Binance also has a Normal and a Pro version and also offers a Wallet. So there is not much difference here.

However, here are a few other parameters based on which we will judge the performance of Binance Vs Kraken on different parameters which may include the following-

1. Fees 
2. Security 
3. Trading Options 
4. Number of Listed Cryptocurrencies 
5. Advantages
6. Disadvantages

Let’s dive into each of them individually now.

1. Binance Vs Kraken: Fees

Binance

When you trade, that means when you buy, sell or exchange your cryptocurrency on any centralized exchange, you have to pay a fee. Each centralized cryptocurrency exchange like Binance puts in a lot of funds in the developing process, innovating the platform, and then maintaining these platforms. Hence, this fee acts as compensation in the exchange for letting you use their platform.

Consequently, most exchanges charge a small amount of fee. But when the quantum of transactions increases the total amount also becomes massive. Similarly, Binance charges a fee between 0.1 to 0.02% for higher ranges of trade. They are known as spot trade fees. With Binance you get access to different trades like Spot, Margin, Futures, P2P. The fees for them vary as well.

Binance charges the fees in a properly organized way. Therefore, it consists of categories. The categories are based on the 30-day Trading volume of the investors investing in it. For example, VIP0 is for traders with the lowest trading volume. Whereas, VIP9 is for those with the highest trading value in the tier. 

Kraken

Like its counterparts, Kraken also employs a variable fee structure for the executed trades. Kraken has the highest instant fee among all major crypto exchanges. As they charge a debit/credit card transaction fee on top of the Kraken fee of a whopping 3.75%. Consequently, it calculates $105 for a $2000 instant transaction.

Non-instance fees are capped pretty low on Kraken – even as low as 0%, only a tad bit higher than Binance – their top competitor on market – on the highest cap of 0.26% While Kraken doesn’t take an inactivity fee, deposit fee, or account management fee from its clients, the withdrawal fees are far more expensive than its competitors in some aspects. 

Token Withdrawal Fees

Token	Withdrawal Fees
ACH	NA
SWIFT	$35
WIRE	$0
SEPA	0.09 EURO
BTC	0.000150 BTC
ETH	0.00170

For cash withdrawals, The rates depend on the chosen Fiat currency and method.

Fiat Currency Withdrawal Fees

Country	Method	Minimum Withdrawal	Withdrawal Fee
USA	FEDWIRE	20 USD	4-5 USD
WORLDWIDE*	SWIFT	150 USD	35 USD
SEPA	SEPA	2 EUR	1 EUR
WORLDWIDE*	SWIFT	100 EUR	5 EUR
CANADA	EFT	50 CAD	0.25%
WORLDWIDE*	SWIFT	100 CAD	13 CAD
UK	CHAPS	25 GBP	21 GBP
WORLDWIDE*	SWIFT	100 GBP	13 GBP
AUSTRALIA	OSKO	5 AUD	FREE
WORLDWIDE*	SWIFT	150 AUD	35 AUD

2. Kraken VS Binance: Security

Binance Security

Nonetheless, security is the most concerning aspect for any cryptocurrency investor. Because the Centralized exchanges are vulnerable, therefore people witness different hacking cases. Wondering why is it so vulnerable.

The answer is that the vulnerability of Binance is because the private keys of cryptocurrencies lie with Centralized Exchanges and not with the investors.

Hence, it means that when you perform a transaction on the Centralized Exchange, you make it with the pool on the Exchange and not the cryptocurrency. You should know that the ownership of the cryptocurrency is with the Centralized Exchange. Also, the CEX displays you as the owner of the cryptocurrency only for record-keeping and trading sake. Nothing more than that.

It is not just the case with Binance but with all the Centralized Exchanges. However, if you go with Decentralized Exchanges, the private keys remain with the investors in their wallets, increasing the security levels.

In the past, even Binance has not been an exception. But, thanks to the financial standing of the exchange, it was able to help them out from the investor’s loss. Once Binance got hacked and lost its funds worth 7000 BTC in 2019. But, the investors got their money back and they did not suffer any loss.

Now, the cryptocurrency is kept in the Cold Wallet by Binance, instead of a Hot Wallet. Why a cold wallet? Because it is safer than the hot wallet, due to the inefficiency of connecting to the Internet.

The two factor authentication

The next factor to consider in security is- 2 Factor Authentication.

It is a personal recommendation to go for 2 Factor Authentication (2FA) if you perform any sort of transaction at a Centralized Exchange including Binance. Also, with the help of the 2 factor authentication, you get extra security for the funds that you own.

Therefore, whenever there is a login or transaction request from your account, the Binance platform asks for an additional code sent on your mobile(SMS), email, or Google/ Binance Authenticator. Accordingly, please check the configuration of the 2-FA with your mobile or Email or Google/ Binance Authenticator beforehand. It will help you understand the use of this feature better.

The interesting fact is that Binance supports hardware 2FA keys like YubiKey too. All you need to do is, physically connect the Yubikey to your device before the occurrence of any transaction from the account. And you are all set to go.

Kraken Security

The perk with Kraken is that not only the whole team but every member of Kraken hold experience in blockchain security. Hence, it makes Kraken the safest. Therefore, let’s see how safe Kraken is-

1. 95% of the deposits are in cold storage.
2. It provides 24×7 surveillance maintaining proper protocols. The in-person access to the servers is very closely monitored and authorized with a zero-trust approach. The review of the code deployment and software revisions is clear.
3. Sensitive personal and financial details of clients are completely encrypted and thoroughly monitored for discrepancies. 
4. The bug bounty program of Kraken in addition to penetration testing by their experts ensures a more trustable platform for everyone. 

3. Binance VS Kraken: Cryptocurrencies Listed

Binance 

Nonetheless, the best part about using Binance is that it is a very innovative platform and you can never get bored of it. Also, it does not only innovate its existing features but also lists down different innovative projects. 

You can also see that in Binance you get a list of new and innovative cryptocurrencies. On its platform, these cryptocurrencies are available now and then.

Also, now Binance has its coin called the Binance Coin (BNB) which was initially used in the concept of Ethereum Blockchain. And later it went to its native, the Binance Smart Chain. The Binance Smart Chain is not uncommon because several cryptocurrencies now use the Binance Smart Chain.

Also, if you see the list, you will observe that it supports over 383 coins and 46 Fiat currencies. Subsequently, this figure is staggering as few centralized exchanges have listed more cryptocurrencies than Binance has. Further, Binance has given the assurance that people from a large number of countries can purchase cryptocurrencies using their native or fiat currency. A big step to make the interface user-friendly.

Kraken

Kraken has a long list of cryptocurrencies that it supports. There are almost 219 cryptocurrencies that are listed in Kraken. Amongst which the most popular are-

1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Cardano (ADA)
4. Dogecoin (DOGE)
5. Litecoin (LTC)
6. Polkadot (DOT)
7. Polygon (MATIC)
8. Ripple (XRP)
9. Stellar Lumens (XLM)
10. Solana (SOL)
11. Sushi (SUSHI)
12. Uniswap (UNI)

Other than cryptocurrencies Kraken is also capable of supporting stablecoins. And it does so, by supporting a handful of stablecoins which includes Tether, USD coin, and Dai. in Kraken you get the flexibility to convert the US dollars into Canadian dollars, Japanese Yen, and Swiss francs, if you want to.

Also, an important note for you is that- not all currencies are available in every country. Therefore, do check the currency that your country supports.

4. Kraken Vs Binance: Advantages 

Binance

Transaction Speed

You read that right, the transaction speed. It allows everybody to purchase the cryptocurrency with a click of an instance. You just need to put the order on the spot on futures. Since it has enough liquidity, it has many investors to fund your project. Therefore, they hold a great amount of liquidity because they have locked a good amount of liquidity with themselves.

The liquidity of an exchange is its ability to quickly allow the sale, purchase, or swap of your cryptocurrency without any alterations in its price.

Hence, a good transaction is something that a lot of exchanges cannot provide.

The Deposit Fees

The deposit fees for Binance are one of the lowest. You probably would not expect it but the truth is that they are dependent on the location you are. Not only that but the sum that you want to invest also has the lowest fees. It is typically between 1.5 – and 3 %. But, when we look at the other companies, they are taking a minimum of 2.5%.

So if you are wishing to save a bit more, when it comes to deposits. Binance is the one for you to start trading.

Security

We have learned about security in detail above. And it is clear to us that it provides strong security to the buyers and the sellers. Subsequently, it allows every customer to be able to verify with google authenticator, e-mail address, and mobile phone. Accordingly, considering all three, it is a pretty secure place.

The Reviews

There are 4K+ reviews and the average is 4.5K that is obviously the apple store and on the other devices, it is pretty much a similar scenario.

Customer Support

Another limitation is customer support. Likewise, there is a live chat in which you can get instant answers from their customer support. Therefore, it is the main thing. Because if you suffer any issue you will go to customer support and they will solve it as quickly as possible. 

Lite VS Pro Feature

The ‘Lite Version’ of Binance is for new users, whereas the ‘Pro Version’ targets advanced users.

With the help of the Lite Version, the users can simply buy and sell the crypto assets without encountering any hassle. Specifically, the user interface is simple to understand. Because even if you are new to the platform and have never done any investment, do not worry, you won’t get understanding problems with it. Hence, once you are clear with the basics of investing in the Lite Version of Binance you can then jump to its Pro version with a single click. 

Kraken

Following are the advantages that you will witness while using Kraken-

Supports Crypto Tokens

More than 219 Crypto tokens are supported on the platform, which should be ample enough for your trading needs. 

High Liquidity

High liquidity and fast-paced exchange offer you a minimal latency time in between your orders and market execution. Therefore, as volatile as cryptos are, this feature ensures minimal discrepancies between market price and your desired price. 

Security

2-Factor authentication with several combinations gives you better safety when trading with Kraken. 

Encrypted sensitive data. Kraken encrypts every user data available to them. This means that even if anyone gets their hands on your financial data, they won’t be able to decrypt them without a key, which only you have access to. 

Real-time monitoring of suspicious activity of both clients and employees. Customizable API keys with range boundaries. Also, Cold Wallet Facilities help you to keep the funds secure.

Certification

SSL certification to keep you safe when you use the Kraken browser. 

Low fees

Kraken Pro offers much lower fees than Kraken. Hence, with a variable fee structure, the more you trade with Kraken, the less you pay. Subsequently, the range varies between 0.16% to 0.26%. Provides the customers with futures and options trading.

5. Binance VS Kraken: Limitations

Binance

1. The biggest limitation of Binance is that it is banned in the UK. Yes, that’s so unfortunate.
2. Therefore, the local banks of the UK do not allow the people to invest or withdraw from Binance. So, if your location is the UK, then Binance is not for you. 
3. With a finance card, you can purchase things and the cryptocurrencies that you have put alongside. But, with Binance you cannot do so. Because there are not any cards. And even if you wish to get one, you won’t be able to do so for at least a month.
4. It is regulated but not to the full extent. Thus, that is also the reason why UK regulations have issues with it. Because you need to go into the depth of all those coins that you are putting into the market. 
5. Binance can get hacked, and that is pretty much the case with every exchange. Binance did get hacked once but it was a long time ago.

Kraken

1. Customer support is not up to the standards of the competitors like Binance and By bit. Although Kraken has dedicated 24/7 customer support available via email or chat, the representatives are educated enough to handle basic issues, but not beyond that. 
2. The User interface is not beginner-friendly at all. Kraken Pro is the most complicated of the two.
3. High fees for beginners. While it’s not as high as some other crypto exchanges, the fee associated with trading is considerably higher than most of them. 
4. Education materials available on their platform are quite irrelevant and don’t help beginners much, which nullifies the point of educational materials being educational materials. 
5. Withdrawal fees are comparatively higher with high minimum withdrawals. 
6. Although Kraken has a mobile platform, it’s very simple in features and feels forgotten. Also, Order type selection options are also unavailable on their mobile platform. 
7. No Options trading on tokens. And you won’t see the point of having an F&O trading feature on their platform and not allowing you to trade in crypto. 

Kraken VS Binance: The Final Verdict

Here is the Final Comparison Table between the two-

	BINANCE	KRAKEN
Customer Support	Average	Very Poor
Ease to Use	4.2 stars	4.4 stars
Statistics
Active Users	13.5 M	4M
Acceptable Cryptocurrencies	BTC,ETH, LTC+ 380 more	BTC, ETH +217 more
Fiat Currency Trading	USD/EUR +43 more	USD, EUR, GBP + 4 more
Features
Analytical Tool	✔	✔
Mobile Application	✔	✔
Security	Excellent	Good
Social Trading	Χ	Χ
Copy Trading	Χ	Χ
Anonymity	Χ	Χ
Pricing
Maximum Trading Amount	Unlimited	$100K
Withdrawal Fees	3.50%	Upto %60
Trading Fees (beginner tier)	0.10%	0.16%-0.26%
Payment Methods
Mastercard	✔	✔
Wire Transfer	✔	✔
Card	✔	✔

Conclusion

Hence, from analyzing the above data, we observe that in a few fields Kraken turns out to be better than Binance, such as Value for Money and Ease of Use. And these two are a few important factors that one should consider while choosing an exchange.

Though Kraken seems to be better on these subjects. But, when we compare the results of the entire table we observe that Binance has a pretty decent score and in many fields, it is better than Kraken.

Finally, looking at the statistical analysis of Binance and Kraken we observe that the number of active users is more towards Binance, and that too by a great number. 4M and 13.5M have a huge difference.

Nonetheless, the popularity of Binance is because of the excellent services that it provides its customers. These services are such as the greater number of acceptable crypto and maximum trading amount. 

The best comparison that is also the deciding point about whether to choose Binance or Kraken is Security. And clearly, we see that Binance has a little edge over Kraken with better market standing and customer service. I would recommend you to use Binance as your primary exchange and Kraken as your secondary exchange.

Also, do let us know your opinion about Binance and Kraken. And whom do you think is the better one?