Kraken vs Binance, these are two well-known and very competitive exchanges and it only makes sense to compare side by side. In a very competitive industry here everyone is trying to “make it” one has to be very careful in choosing the right exchange suitable for their needs. Kraken vs Binance are two competent exchanges you can choose from and they both cater to a unique client. Let’s dig deeper to analyse and compare the quality of services both exchanges offer.
Kraken is a crypto-crypto as well as fiat-to-crypto exchange that is considered one of the top crypto exchanges in the world. The exchange was launched in 2011 and is based in San Francisco. Kraken’s main objective is to develop a much safer, more fair-trading platform with digital ledger technology. As it calls itself the Bitcoin exchange, rightfully so, the exchange holds the highest euro volume when it comes to Bitcoin trading and is often consistent with featuring in the top ten cryptocurrency exchanges worldwide not only for Bitcoin but for trading volume of all supported cryptocurrencies.
Binance is a cryptocurrency exchange that started its journey in China then moved to the Island of Malta which is more crypto-friendly. The exchange is well-known and appreciated for its crypto-to-crypto services than anything. Binance also offers very competitive rates and for crypto-crypto focused traders it is the go-to platform. The crypto exchange is available worldwide and has consistently gotten excellent reviews. Binance may just be one of the most valued crypto exchanges in the world at present.
Safety is a very important aspect to consider when choosing an exchange. In this day and age online trading can be very profitable but it also comes with risk. The crypto industry is undoubtably a hacker’s playground, therefore you need to be extra by making sure you choose an exchanges the prioritises the safety of their clients funds.
Kraken: When it comes to security Kraken is definitely considered one of the much safer exchanges. With Kraken, each account holder is highly required to verify their personal identification; this is different from other exchanges who don’t require that verification at such high levels. Kraken works with a self-regulatory system however the platform states that it is working with regulators towards the future government of digital asset exchanges. The kind of security the Kraken strives for is one where there are no hacking incidents, therefore having cold storage wallets that have no internet linkages whatsoever; fairly big Fiat reserves as well as proof-of-reserves audits that are cryptographically verifiable. Moreover, individual account holders can further protect themselves by activating two-factor verification, Master account lock and PGP email encryption.
Binance: Even the exchange went through significant hack in May 2019 the security at binance quite sound overall. Binance highly recommends that its users enable two-factor authentication; moreover, they are also encouraged to set up an anti-phishing code and whitelist addresses. They also have a FAQ section that gives users advice on how to protect themselves against any phishing attempts and any other security issues. It helps that any withdrawal has to be confirmed via email as well. Binance is especially proud of its state-of-the-art artificial intelligence solutions for risk control that make use of facial recognition and identity, cyber forensic investigations and large data analytics to keep an eye on the activities of the exchange as well as scan for any suspicious activity.
Supported Currencies and Methods of withdrawal/deposit
In terms of coins that Binance supports people have always commended the platform for having such a wide variety of coins available for their users. Some of the coins available for trading on Binance are Bitcoin Cash, Bitcoin, Ethereum, Bitcoin Gold, EOS, Ethereum Classic, Litecoin, Dash, GAS, NEO, Zcash, Ripple and many more. Moreover, Binance also supports a couple of tokens as ICO listings, therefore traders are able to trade these tokens on the platform.
For deposits and withdrawals, since Binance only offers crypto-to-crypto markets one has to go through external wallets in order to convert their fiat into crypto to make a deposit or transact on the platform. Other than that, Binance’s deposit and withdrawal process is quite fast.
Kraken on the other hand accepts fiat currencies that include; US dollars (USD), Euros (EUR) and Canadian dollars (CAD). Therefore, deposits and withdrawals can be carried out through SWIFT, SEPA, domestic transfers as well as wire transfers. With Kraken the processing time for deposits and withdrawals is from 1 to 5 business days. As for cryptocurrencies, Kraken accepts 20 unique coins including; Bitcoin, Dash, Bitcoin Cash, Dogecoin, Ethereum Classic and more.
Compared to all major Bitcoin exchanges Kraken’s fees are one of the lowest. The platforms fee system is on a maker-taker basis. The fees are charged according to your last 30 days’ trading volume. Generally, Makers pay a lesser fee that takers as makers add limit orders to the platform as opposed to takers who fulfil orders that already exist. The fee for stablecoin trading is from 0.2%-0%, the dark pool fees is from 0.36%-0.2% and the Spot trading fees is from 0.26%-0.06%.
Binance does not charge a fee for deposits, however, this does not apply at all to withdrawals and trades. The withdrawal and trade fees are relatively low as the platform takes 0.1% from every trade that occurs. This, therefore, would make it one of the cheapest cryptocurrency exchanges in the world. Moreover, to have even cheaper trades a user’s needs to have an adequate amount of trading volume on average for 30 days as well as Binance native coins.
In terms of customer support Kraken offers support via online chat and email 24/7. Customer support hasn’t always gotten the greatest reviews with Kraken, especially when it comes to the time of response. However, when the response does come it is usually quite helpful.
Binance Understands that a successful exchange needs a good customer support team. Therefore, even though it has its shortcomings that need to be worked on it has a very responsive team that manages to provide traders with professional assistance when they need it. The platform provides an online ticket system with answers provide via email. There Is no live chat nor telephone services available.
Tying all elements of comparison together, both exchanges seem to be capable of meeting the needs of different kinds of users quite well. Binance’s pros are more than its cons and the same can be said for Kraken. All the factors mentioned above are very important when it comes to choosing a good exchange and must not be taken lightly. I hope this article has helped you.