10 Differences Between Binance and KuCoin

What are the differences between Binance and KuCoin? It is not an easy task to choose a reliable crypto exchange given the fact that there are so many out there.

Even if you are given only two specific crypto exchanges such as Binance and KuCoin to choose from, it may not be easy without knowing the differences between these two amazing tools.

If you do not know the categories to differentiate these two crypto exchanges, this article will let you know those categories as well as help you to decide which among the two is suitable for your needs.

Ideally, Binance and KuCoin are two of the biggest players and most popular crypto exchanges that follow the same business strategy. Check out Differences Between Binance and eToro.

It is only when you compare the two exchanges you will find that either of the two exchanges will suit your personal and crypto needs slightly better.

However, when you make a comparison between these two crypto exchanges, you should look at the features offered by them along with the differences in pricing, user experiences as well as the respective pros and cons of both.

Therefore, without much ado, you should dive deeper into the details of these two crypto exchanges and find the best one for your crypto trading needs.

10 Differences Between Binance and KuCoin

Differences Between Binance and KuCoin

There are different categories to consider in order to make a complete comparison of Binance and KuCoin. Here they are.

1. Creation and Purpose

Binance, a combination of two terms Binary + Finance, was created by Changpeng Zhao and became a prominent name in 2017 due to the crypto craze back then. At that time, it was typically a crypto exchange only.

However, over time and within a few years it became a full-fledged crypto ecosystem that serves different purposes for the crypto traders and investors today.

It allows making fiat deposits through dozens of different payment methods, offers a large number of trading pairs, allows spot along with margin and futures trading, earning interest in crypto via staking and savings, buying and selling crypto coins over the P2P marketplace, creating and trading NFTs on the newly launched NFT marketplace and more.

It also offers its own crypto credit card which is the best and one of its kinds but you will not get it in a lot of parts of the world.

KuCoin, on the other hand, was founded by a group of blockchain enthusiasts. The primary objective of creating this crypto platform is to provide the users with a safer, more convenient, and better exchange to make digital asset transactions.

All premium assets are integrated into it to create a state-of-the-art crypto transaction platform. However, this platform is considered to be ‘a poor man’s Binance’ which offers almost similar features like Binance such as crypto lending, staking, saving, crypto card, a P2P marketplace, futures trading, margin trading and trading bots.

2. Fees

Both Binance and KuCoin charge trading fees at the rate of 0.1% but as for Binance, there are no fees for making any deposits. However, there are fees charged while making any withdrawal and the amount charged largely depends on the type of the asset used.

However, this withdrawal fee is usually 3.5% with a minimum of $10. There are no dividends paid on the Binance token. This token is used simply to pay for the fees charged by the platform which saves money for the users as opposed to paying them by using different coins.

As for its other platform, Binance US, which is dedicated to the users in the US, the spot trading fee is also 0.1% flat.

However, it may go as high as 5% depending on the method of payment. You can however get a discount of up to 25% on the trading fees if you pay them in its native token BNB.

Kucoin, on the other hand, however, offers the users a dividend of 50% from the earnings of the platform on its native token with other fees remaining the same as Binance.

For example, the trading fees of KuCoin is 0.1% and the withdrawal fees can be up to 0.05% and vary according to the type of crypto coin used for that matter.

You can reduce the trading fee by a further 20% if you pay them with their native coin KCS. However, Kucoin, in addition to offering discounts and bonuses, also charges a small fee for futures trading.

3. Assets

When it comes to the choice of coins or assets, Binance beats KuCoin quite notably. It offers nearly 300 different types of coins for the users to choose from.

Apart from that, this particular platform also allows the users to trade with its own native token as well as Tether over and above Bitcoin and Ether.

On the other hand, the KuCoin platform also offers quite a wide choice of assets which is more than 200. This platform also offers different pairs to the users to trade with, including Tether, its own native token, and BTC Cash and NEO.

4. User Interface

When you compare the user interface of both Binance and KuCoin you will see that there are usually two types of user interfaces in the Binance trading platform.

One is the basic user interface and the other is the advanced user interface. The two types of user interfaces have distinctly different features. As for the basic version of it, you will get to see and use different currency pairs for trading, several charts, and a lot of graphs, the trade history and an order book.

On the other hand, the advanced version of the Binance user interface offers you different currency pairs, a trade history, open orders, and, most importantly, a more advanced and in-depth technical analysis of the value of different crypto assets over time.

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On the other hand, the KuCoin user interface functions a bit differently as compared to that of Binance. Usually, the trading screen will pop up only when you have chosen a particular crypto pair to trade.

On this screen you will be able to view all the customary candles, order book, and a trade history. However, you cannot buy or sell your chosen currencies right away.

When you enter this screen for the first time you will be asked for the Google Authenticator code before you can start trading. No matter how annoying this is, it is a good feature of KuCoin because it acts as an additional layer of security to the platform and therefore is highly recommended.

5. Trading Volume

Binance, typically, ranks at number one when it comes to trading volume whether it is for spot trading or for derivative trading.

According to a previous report of CoinMarketCap, the daily spot trading volume of Binance was more than 280 billion and that for derivatives trading it stood at more than 70 billion.

In comparison, based on the daily trading volume on the KuCoin platform, it is ranked 6th for spot trading reaching less than 2 billion in trading volume and in terms of derivatives trading the daily trading volume is even much lower which pushes it to even lower than the 20th rank in the list.

6. Native Coins

The native coin of Binance is represented as BNB. This coin is based on the Ethereum blockchain and used to be an ERC 20 token. However, over time the platform launched its own unique Binance Chain and Binance Smart Chain.

It is due to these chains that this token is now available also as an ERC 20 token as well as a BEP 20 token on all of the three chains. This token can be used to make payments for different types of fees on this particular platform such as listing fees, exchange fees, withdrawal fees, and others.

The total supply of the native BNB token of Binance was 200 million but the platform uses 20% of profits each quarter in order to buy them back and destroy them.

This process continues until they buy back and destroy half of the total supply of BNB tokens, eventually leaving only 100 million BNB left over in circulation.

In comparison, the native token of the KuCoin platform is KuCoin Shares, which is represented as KCS for short. This coin has a total supply of 200 million as well.

This is also a decentralized cryptocurrency that is created on the Ethereum blockchain. This is a standard ERC 20 token and has the property to support all of the available Ethereum wallets.

The bonus offered on KCS holding is considered to be one of the best ways in which you can earn a passive income on your crypto. Ideally, if you hold more than 6 of these tokens in your wallet, you will be entitled to get a daily dividend which is usually given from 50% of the daily trading fee revenue of the platform.

The amount of dividend that you may receive will typically depend on the number of tokens you hold in your wallet as well as the trading volume of the exchange.

This is considered to be quite a unique incentive mechanism by the experts because the process typically benefits both the KCS token holders as well as the builders of the KuCoin ecosystem.

However, when it comes to buying back and disposal of the KCS tokens, the platform only uses 10% of its net profit, at least, for that matter in each quarter instead of 20% as it is done by Binance.

The aim is however the same for both the platforms which is to keep the supply of tokens fixed at 100 million. The KCS tokens are destroyed immediately after the buyback.

7. Safety Aspect

Both these platforms, Binance and KuCoin, are quite safe to use for your crypto needs but Binance, in particular, was not as safe as it is today. It has been hacked before and there was also a considerable amount of money lost due to cyber attacks.

However, there is a debate on whether it was the fault of the security system of the platform or of the users who did not use the 2FA. However, now it has an upgraded security system that meets the standards of the ISO.

On the other hand, KuCoin has not been hacked ever, to date. There are no reports from any users or from the community of any issues regarding the safety and security of the user accounts, the money, and the platform on the whole.

8. Customer Service

When it comes to providing customer support and service, KuCoin seems to be quite good in comparison to Binance. It is pretty fast and effective. They offer a 24-hour telegram support chat. This typically has an incredibly fast response rate.

Binance, on the other hand, also has several means of providing support to their customers in case of need. However, the primary means of customer support is through the email ticketing system.

This system in particular is pretty slow as compared to the response rate of KuCoin and often takes up to a few days according to the reports of a few users of this platform.

One particular Reddit user claimed that it took about two weeks in his case to receive an answer from their end! Barring that, the customer service of Binance is above average as compared to other crypto exchanges.

9. When to Use

It is best to use the Binance platform if you want to be well informed and on the top of all of the latest events and happenings within the crypto space.

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Also, you should use this platform typically when you want to trade your crypto coins in different markets either to make profits or simply to check how exactly it is performing in real time.

The Binance platform is also good in terms of relevance to remote workers. They can buy and sell crypto coins without any hassles in a matter of a few minutes.

On the other hand, it is best to use KuCoin when you want to have the opportunity to choose from a wide range of crypto coins to trade them at a low fee all over the world.

The remote businesses find that using the KuCoin platform is the best option when they want to deal with some of the major fiat currencies in the world including and not limited to USD, EUR, CAD, AUD, CNY, GBP, and many more.

The P2P fiat trade feature in particular is very useful in this matter which allows them to buy crypto coins with fiat money, a credit card or a debit card through Simplex, PayMIR, Banxa, or via its Fast Buy service.

10. A few Additional Points of Difference

Here are a few other points for you to know that differentiate Binance and Kucoin.

In terms of the number of active users, the Binance platform is way ahead of that of KuCoin with the number being nearly double in comparison making it the largest crypto exchange in the world.

When you consider the types of cryptocurrencies acceptable by the two platforms, both accept BTC, ETH, and LTC but the Binance platform also supports other coins such as XRP and hundreds more.

In terms of fiat currency trading, the platform supports more than 50 such trading pairs including USD, EUR, GBP, CAD, AUD, JPY, HKD, and more.

On the other hand, KuCoin supports BCH and other types of crypto coins but as for fiat currency trading, it supports USD, EUR, CNY, AUD, GBP, RUB, CNY, and more.

As for the additional features of the two platforms, Binance comes with a comprehensive user center. This is one place where you will get all of the information that you need to make your trades.

As said earlier, the platform also allows staking, margin trading, futures trading, and also can be used as an NFT marketplace.

As for Kucoin, this platform comes in two variants, one of which is convenient for the beginners to use and the other is suitable for the advanced traders. This platform also supports margin trading and futures trading apart from crypto lending and offering trading bots.

In terms of the maximum daily trading amount, the Binance platform has no limits to it which is not in the case of KuCoin.

The current headquarter of Binance is in Malta though there are some confusions about it. As for KuCoin, their head office is in Singapore.

The two platforms support a few common and some different deposit methods. As for Binance, it supports SEPA and ACH bank transfer, PayID, credit card, debit card, SWIFT, SOFORT and iDEAL payment gateways apart from cryptocurrencies.

On the other hand, the KuCoin platform supports SEPA bank transfer, PayPal, credit card and debit card, Apple Pay, and Skrill, apart from different types of crypto coins.

Which is Better – Binance or KuCoin?

Both Binance and KuCoin are major names in the crypto industry and both have hundreds of crypto coins, high trading volume and liquidity.

These platforms also come with a lot of features but with some close comparison between these two crypto exchanges, you may find that Binance, in fact, is the clear favorite and most commonly used, and therefore it is slightly better than KuCoin.

However, there may be other factors to consider such as location limitations that may eventually influence your choice.

Keeping these things in mind, you should make your choice according to your needs, location, and preferences. In short, it is all your personal decision.

The Binance platform will allow you to trade from anywhere and by using any device since it is compatible with various devices.

It is a pretty safe and convenient platform to trade your crypto. It comes with a simple interface that is easy to use, charges minimal trading fees and offers support to their customers all around the clock.

KuCoin also offers a set of impressive crypto services that includes a fiat onramp, margin, and futures trading.

It is also a good place for earning passive income through services such as crypto lending and staking, IEO launchpad for necessary crypto fund raising, P2P marketplace, and much more.

The good thing about the Binance exchange is that unless you choose to go for a membership of a higher level you will not need an ID proof. That means, you can maintain your anonymity while making a trade.

Both these platforms, KuCoin and Binance are initially from China but had to move out from there due to the crackdown on cryptocurrencies by the Chinese government.

Both established their headquarters in Hong Kong but Binance, later on, shifted its office to a more crypto-friendly location Malta in the European Union.

However, according to some recent reports from The Block, it is claimed that Binance does not have its office there but instead on some other unknown hitherto location, if at all!

As for Binance, the user verification process is pretty simple and it also offers more liquidity in comparison to any other crypto exchange in the world.

Though the trading fees charged are low and the trading pairs offered are high, it is good to remember that this platform is not regulated and is known to scrap some of its popular features every now and then due to regulatory pressure.

Moreover, the native BNB token of it seems to be a money grab and very dubious. This platform is not available to the US residents and the Binance US version of it lacks and lags severely behind the main platform.

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On the other hand, though Kucoin is a much smaller crypto exchange than Binance, it is quite a worthy opponent that provides an equally high selection of trading pairs of Altcoins and its security is much improved and is of much higher degree due to the integration with the Arwen protocol.

This platform is available in the US and charges low trading and withdrawal fees. However, this platform is also unregulated and falls short in terms of offering liquidity.

You can choose to go with Binance if you want a crypto exchange that offers a wider and diverse range of Altcoins.

However, KuCoin is the platform to choose if you want faster, if not better, customer support.

In terms of fee structures and security features, both these platforms are more or less the same. You may try using KuCoin if you are not interested in any obscure Altcoins, which, typically, you will find only on the Binance platform.

However, when you make your choice please do focus on the user interface of both the platforms so that you know which of the two suits you the best.

You can also make your decision considering the advantages and disadvantages of the two respective crypto trading platforms.

As for Binance, the advantages that it offers include a larger selection of crypto coins to choose from, two-factor authentication, and the largest and most popular trading platform in the world.

However, there is one significant downside of this platform that you should also keep in mind while making your decision which is that the Binance interface may be a bit difficult to use by the new crypto enthusiasts.

On the other hand, one of the most significant advantages offered by KuCoin is that it ensures that you make a trade and stay anonymous as well.

In addition to that, you will also have a more secure, well reputed and trusted platform that also supports quite a large variety of crypto coins.

However, on the flip side, the major downside of this crypto trading platform is that the trading volume on it is pretty low.

Typically, the deciding factors should be the fees charged for trading. Usually, Binance charges a small fee to make fiat deposits but that can also be waived in some cases.

However, when you use this fiat money to buy crypto coins you will have to pay a fee of 0.1%.

On the other hand, when you use the KuCoin platform you will not be able to access the crypto markets if you intend to do so by using fiat currency.

On this platform you will need to buy crypto coins with fiat by paying a huge fee ranging between 3 and 12% in order to take the full advantage of the 0.1% trading fee.

And, you will not be allowed to withdraw fiat currency from the KuCoin account.

Hence, in comparison, Binance has a much better fee structure than KuCoin even though both follow the same business model.

The slight edge of it comes in the form of the discounted rates using the native token. Typically, the fees of Binance are lower at 0.075% in comparison to that of KuCoin which is 0.08%.

Additionally, buying crypto using fiat currency on Binance is much cheaper than buying them on KuCoin.

However, as said earlier, one of the most important concerns of using KuCoin is that it does not allow its users to withdraw fiat currency.

Another significant point that you should keep in mind while determining which among Binance and KuCoin is better is the deposit methods.

Depending on the selection of deposit methods offered by both these crypto trading platforms, which is mentioned earlier, you will find that Binance is a close winner since it offers a few more options in comparison to KuCoin.

And, if you consider the features of these two crypto trading platforms, KuCoin seems to beat the Binance platform by a significant margin though both the platforms come with a series of useful features such as a P2P marketplace, futures market, margin trading, and a simple interface.

It is the more useful trading bots of KuCoin that pulls it a bit ahead of Binance along with the features that allow the users to lend crypto assets and earn interest on them while investing.

Another important aspect to consider while differentiating KuCoin and Binance is their respective security features.

For that matter, both are good and safe to use as of now but you may tend to favor Binance a bit more in comparison to KuCoin because it comes with an added ISO 27001 certification for its security standards.

This certificate is quite hard to find and is a prestigious one to have in the crypto industry.

Therefore, after considering all these above factors, it is evident, in spite of the fact that the Binance exchange is more favored, there is no clear winner between the two of them.

They are both reliable and good to use for crypto trading. The best part is that both these exchanges do not make any false promises like some of those dodgy websites.

Conclusion

Though Binance is better, do not shun KuCoin totally. If you look into them in depth, you may also find using it is also worthy for crypto trading. The differences between the two listed in this article will be useful to make the right choice.