12 Differences Between Kraken and Binance

What are the differences between Kraken and Binance? Two of the biggest and most popular crypto exchanges in the world are Kraken and Binance, which are similar in their purpose but different in their approach.

They also differ in terms of fees, average daily trading volume, and ranks. Binance exchange is at the top of the list and Kraken is positioned fourth in the list.

However, the main Binance platform is not available for US residents but Binance.US is which ranks ninth on the list.

There are also several other differences between them which this article speaks about.

The users of the Binance platform get to choose from a wider range of crypto coins, offer higher liquidity and trading volumes, and charge lower fees.

Kraken, on the other hand, is high in security and is supposed to become a publicly-traded company in 2022.

This article evaluates these two platforms in different aspects in order to make it easy for you to compare between them and make the right choice. These aspects are:

  • Fees
  • Security
  • Mobile apps
  • Features
  • Ease of use and
  • Currencies supported

This will provide you with in-depth knowledge and insight about both these platforms so that you can determine by yourself which is a better performer, if at all.

This will not only enable you to choose the most suitable platform to meet all your trading needs but will also raise your confidence in crypto trading and investing.

12 Differences Between Kraken and Binance

Differences Between Kraken and Binance

Typically, Kraken is a crypto trading exchange that probably offers the largest selection of Altcoins by market capitalization while Binance is one of the top crypto exchanges that offer Bitcoin.

Apart from these basic differences, there are several others to know. While Kraken is considered to be one of the most liquid exchanges existing out there, its interface is a bit complicated for the newcomers in the crypto space.

Here is the list of differences for your knowledge and help in choosing the right platform for you after making a complete and proper comparison between the two.

1. Overview

The Kraken platform comes with some of the most advanced and useful features that make it one of the most favored crypto exchanges. It offers a variety of crypto trading options.

The platform is not easy to hack and Altcoins like Bitcoin SV that can cause harm to the crypto space overall are delisted as well. However, the platform does not offer as wide and a large crypto pairing as Binance or a few of its competitors.

As for Binance, it is considered to have a much larger average daily trading volume and is therefore one of the most popular crypto exchanges available out there.

It offers a large number of trading pairs for the users to use at low fees which is the key to its success and high popularity. Also, the trading limits offered by this platform even to a non-verified account are pretty high.

2. User and Beginner Friendliness

In terms of user and beginner friendliness, Binance seems to be better due to its unique features. While trading on Binance, the crypto traders can choose its basic trading engine.

This makes it much easier and more convenient for them to trade on this platform, even if they are new to the crypto space. The interface is easy to use and all that is needed to be done is enter the amount of a specific cryptocurrency that the users like to trade for another cryptocurrency.

As for Kraken, though the interface of the platform is pretty simple and helps the users a lot in their trading, it is not as basic as that offered by Binance. However, it is a good choice if someone wants to attach their bank account to the crypto exchange.

3. Trust and Security

In terms of trust and security, Kraken is clearly the winner with very little contest from Binance. The fact that Kraken has not been hacked since its launch in 2011 is the proof of this.

Kraken is based in the USA and is also one of the regulated crypto exchanges in the world that is audited on a regular basis. Add to that, this platform has a bank license in the USA which adds to the level of accountability of the platform.

In order to make its security features even more comprehensive, the exchange stores 95% of the customer’s funds in air-gapped cold storage. Its servers are also protected well with armed guards and 24/7 video surveillance.

Add to that, the exchange also encrypts all personal details of the users as well as the sensitive info related to the accounts both at the data and system levels.

The most unique aspect of it is its continuing bug bounty hunting program which rewards the white-hat hackers who find vulnerabilities in the system and report them before the bad guys get a chance to use them to corrupt or hack into the system.

On the other hand, Binance has had several security breaches and issues even though it is much younger compared to Kraken, being founded in 2017.

Apart from that, the Binance platform also is supposed to operate in some sort of a legal gray area. This is even more evident due to the fact that the platform does not disclose where it is headquartered actually.

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To some users who look for transparency and security, this is a considerable risk.

4. Fees

In terms of fees, both Kraken and Binance use a structure that is commonly found in most of the crypto exchanges. Based on the fee structure of Binance, it is suited best for making trades with smaller amounts.

The trading fees charged by Binance are quite low at 0.1% or less. Also, the fees charged by this platform can be lowered even further by 25% if the users use its native token Binance Coin or BNB to pay for it.

They will simply need to hold the BNB coins in their account and a part of it will be considered as the payment for fees. The withdrawal fee is 3.5% with a minimum of $10 and may vary depending on the type of coins withdrawn.

However, in comparison, Kraken will be a much better platform to choose for those crypto traders who deal with crypto every month worth millions of dollars.

Eventually, they will find much lower rates on Kraken than they would on Binance. The fee charged by this platform for every trade usually stays within 0.26%, though the actual amount charged may vary depending on the trading volume of the users over a period of the past 30 days.

The higher is the trading volume, the lower is the fees charged. And margin and futures trading will need you to pay some additional fees. As for the withdrawal fee on Kraken, it can be up to $60.

5. Sign-Up Process

In this particular aspect, Binance beats Kraken by a significant margin. You will just need to furnish your email address to trade on Binance provided you restrict it to two Bitcoin every day.

For this, you will not have to go through a severe account verification process. However, if you want to trade larger amounts of crypto with your account, you will then have to go through an identity verification process that is usually followed by other crypto exchanges including Kraken.

On the other hand, the Kraken crypto exchange needs its users to go through a stricter identification process. The primary reason for such a requirement is due to the fact that it is regulated by multiple authorities and is based outside the USA.

However, the platform offers nice sign-up bonuses that you can take advantage of being the new user depending on your trading volume.

6. Available Cryptocurrencies

Binance is an exchange to go with if you cannot find a particular crypto coin on any other exchange due to its wide range of crypto support numbering several hundreds of them.

You can trade with almost a couple of hundreds of Altcoins against Bitcoin alone on this platform. Just to name a few of the coins supported by this platform the list would include DOGE, VET, BNB, ETH, USDT, BTC, VTHO, ADA, NEO, LINK, ONE, SOL, XLM, NANO, HBAR, ALGO, LTC, BUSD, MANA, ZIL, MATIC, EGLD, ENJ, BCH, HNT, EOS, DAI, IOTA, QTUM, RVN, ONT, STORJ, BAND, OMG, UNI, ETC, XTZ, USDC, ICX, BAT, ATOM, DASH, MKR, OXT, ZRX, COMP, ZEC, ZEN, WAVES, KNC, THETA, FIL, WBTC, REP, PAXG, and SHIB.

On the other hand, the number of crypto coins supported by Kraken is quite low. The list includes AAVE, ALGO, REPV2, BAT, ANT, REP, BAL, XBT, LINK, COMP, BCH, ADA, ATOM, CRV, MANA, XDG, DAI, DASH, EWT, EOS, FIL, FLOW, ETH, ETC, GNO, ICX, KSM, KNC, KAVA, KEEP, LSK, LTC, NANO, OCEAN, MLN, XMR, OMG, OXT, QTUM, XRP, PAXG, DOT, SC, XLM, TBTC, USDT, STORJ, SNX, XTZ, GRT, USDC, WAVES, TRX, UNI, YFI, ZEC, and BNB.

7. Payment Methods

Both these platforms support different types and numbers of payment methods. Kraken supports Bitcoin Payments, PayID, Clear Junction, Silvergate Bank Transfer, Etana, and wire transfer.

Add to that Kraken also allows its users to make bank deposits in different fiat currencies such as USD, GBP, JPY, AUD, EUR, CAD, and CHF.

And, as for Binance, it supports ACH Transfer, ADVcash, Credit Card, Etana, Banxa, Bitcoin Payments, Flutterwave, Google Pay, PayID, PIX Payment, Mastercard, Paybis, Samsung Pay, Simplex, wire transfer, Vietcombank Transfer, and Visa.

8. Interface

Binance is not the platform to go with if you are new to the crypto space. The complicated interface typically does not make things easier for an average newcomer.

The web interface of this platform is designed on the basis of an assumption that the users already know how to get around with it. It comes with three different views that you can choose from such as:

  • Basic, that comes with only two dropdown menus that make it very simple for the users to convert one crypto to the other.
  • Classic, that offers a more conventional trading experience and comes with order books and charts. However, this is confusing for the newcomers but standard to the experienced crypto traders even though they can view order histories and open orders here.
  • Advanced, which comes with everything that the classic view offers as well as extra charts, powered by TradingView and technical analysis tools making it very useful for advanced traders and experienced users.

In comparison, the interface of Kraken is much more suitable for the inexperienced and the newcomers to the crypto space. The design of the interface is a bit more appealing to the users being more clear-cut and crisp.

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It tells how things are done quite explicitly. For example, if you want to place a buy or sell order, all you have to do is simply:

  • Click on the ‘New order’ tab
  • Select the preferred crypto and fiat pair and
  • Mention whether you want to use a limit or market order.

The layout of the interface, the larger text and the colorful display does not only make things look beautiful but will also make the process much easier.

9. Niche Features

Both these platforms come with some niche features that differentiate them. As for Kraken, the users are offered much simplified staking solutions as well as some of the trendiest PoS or Proof-of-Stake coins such as ATOM, DOT, and XTZ.

These coins offer a good opportunity to the users to earn a high yield on their crypto assets. Add to that, the platform also offers its users an exclusive platform called Crypto Watch.

This feature allows them to trade on several exchanges at the same time and make the best use of the arbitrage opportunities offered by this feature.

Binance, on the other hand, also comes with a unique feature of its own that allows P2P or Peer-to-Peer trading. In addition to that, the platform also allows the users to make margin lending, futures trading, and options trading.

All these trading opportunities are facilitated further by the advanced charts and technical analysis tools offered by this platform.

10. Mobile App

The Binance mobile app lacks useful features. Users complain about its poor customer support, long account verification process, locking out the accounts, and lack of price tracking of the coins held in the account. This single app however comes in two different versions namely, Lite and Pro.

  • In the Lite mode, you will get a rather simple interface that is easy to use for the beginners in this crypto space. It will allow you to place buy or sell orders instantly, keep a watch list of crypto coins that you favor, and manage your account easily.
  • The pro mode is designed for more advanced traders and comes with more sophisticated features and charting tools to help them in their trades. It offers the users full-screen charts, a lot of technical indicators, and access to all trading modules offered by Binance including options trading and futures trading.

The Kraken mobile app, on the other hand, is easy to use, has a clean interface, and comes with a live chat feature built in it for customer support. However, it has two different apps that serve the same purposes as the Lite and Pro versions of the Binance app.

  • The simple version allows the users to buy crypto assets quickly pre-set amounts like $20 or $40. It also comes with line charts that are quite simple to comprehend to see the price and other data without requiring doing a lot of technical analysis.
  • The Pro version of the Kraken mobile app is more complex. In fact, it is more complex to use than the Pro version of the Binance mobile app.

However, you will need to switch between these apps to use them which is not in the case of the Binance mobile app which comes in two versions but in a single app.

11. Accessibility Limitations

The Kraken platform is not accessible in the following countries at the time of writing:

  • Afghanistan
  • Cuba
  • Congo-Brazzaville
  • Congo-Kinshasa
  • Iran
  • Iraq
  • North Korea
  • Libya
  • Tajikistan and
  • Syria

Apart from that, there are some funding restrictions imposed in a few countries in Africa and the Middle East but users of these countries can create a Kraken account nevertheless.

As for Binance, this platform is practically accessible from anywhere except that it has been banned in the United Kingdom and the residents of the US need to use Binance.US instead of the main platform of Binance.

However, as of now, Binance.US is not available in 7 US states namely Connecticut, Hawaii, Idaho, Louisiana, New York, Texas, and Vermont.

12. Few Smaller Differences

These seemingly insignificant differences will also help you in making the right choice.

If you want to make your choice in terms of a demo account offered, then Kraken is the one you should go for gaining experience in crypto trading without investing your own capital.

If you want a platform that charges minimum deposits, then Binance is the one to go for because it does not need anything as opposed to the 0.0001 XBT requirement of Kraken.

If you prefer a platform that is more regulated and secure, Kraken will surely be the right choice since it is regulated by the FCA, FINTRAC, AUSTRAC, FinCEN, and FSA. On the other hand, the Binance platform is regulated only by the FCA.

In terms of minimum trade, you can make your own choice whether you are okay with 0.0002 XBT of Kraken or favor $10 offered by Binance.

As for the spreads, that of Kraken ranges from 0 to 2% on an average but that of Binance depends on the variable fees of the different account tiers.

As for buying limits, there is nothing as such on Kraken. On Binance, however, it is based on the verification steps undergone by the users.

If you provide your name, date of birth and address, your limit is $300 worth of crypto assets per day, and for adding an ID and current photo with the account the limit is $5,000 per day and after address verification, the limit is increased up to $50,000 per day.

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Kraken, however, limits deposits and withdrawals according to the account level. If you have a starter account you deposit up to $9,000 in a month and withdraw up to $5,000 in a day.

For the Pro account holders it is $10 million a day or $100 million a month for deposits and the withdrawal limit is up to $10 million per day.

Binance has its own Trust wallet that supports iOS and Android devices, more than 500 crypto coins, Non-Fungible Tokens or NFTs, and a Web3 browser.

This browser allows the users to access dApps or Decentralized Finance Apps and even allows buying or selling crypto assets by using a smartphone.

No fees are charged for sending money to anyone in the world instantly from this wallet as well. Kraken, on the other hand, does not offer such wallet service but has storage built in the app to store the coins safely in the accounts of the users.

On Binance, traders need to choose the payment method first before opening the order form, which is a bit awkward because they cannot see their current positions.

Kraken, on the other hand, does not have such limitations and even allows the users to see the prices of the crypto coins in dozens of different currencies. This means that they are not restricted to thinking in terms of USD only.

There is no minimum deposit requirement in using Binance no matter whichever currency or payment method you use but traders who want to use Kraken need to meet their minimum deposit requirement of $1 or 1 unit of the currency you want to deposit.

Finally, as for customer service, Kraken is much better in options. It offers support to the customers 24/7 through email and live chat though the live chat support is quite slow which may take hours and even days (!) to get a response.

However, that of Binance is offered only through its self-service help center and a messaging center.

Which is Better – Kraken or Binance?

Both Kraken and Binance are good and popular crypto exchanges to use and the one to choose should depend on the features and functionalities that you need.

Therefore, instead of trying to make out which among the two is better, try to figure out the features that you need for crypto trading in particular.

If you want to have a wide range of Altcoins to trade at lower fees then Binance will be a good choice. If security is more important for you, Kraken will be the right one on the other hand.

Kraken is supposed to have unmatched security and allows the users to use its Cryptowatch platform to trade on several exchanges paying some of the most competitive fees.

If you want to buy crypto with a variety of fiat money, then Kaken is the right choice provided you are okay with the fair amount of identification required by the site.

However, if you reside in New York or Washington, Kraken cannot be your choice since it does not offer its services in these regions.

The Binance users can trade up to two Bitcoin in a day anonymously at competitive rates using their Pro account.

There are several hundreds of trading pairs available on this platform that offer high liquidity.

However, keep in mind that you will not be able to connect your bank account with this platform and use stable coins instead. There have also been issues due to bugs and security lapses on this platform.

In terms of user experience and ease of use, Kraken is a clear winner though both platforms can be accessed through a web browser or a mobile app.

This is because the features of Kraken are more suited for use by first timers in the crypto industry with a novel experience.

If you consider the fees of the two platforms, it is as under:

  • For trading it will be within 0% to 0.25% on Kraken for ordinary pairs and 0.2% for stable coin pairs and that on Binance it will be 0.012% to 0.1%.
  • For withdrawing fiat currencies the fee on Kraken is between $4 and $35 for USD and the amount depends on the method but on Binance it is at least 3.5% or $10.
  • For making fiat deposits, the Kraken platform will charge you anywhere from $0 to $10 depending on the method of withdrawal whereas it is free on Binance.

However, for withdrawing crypto coins, the fee will vary according to the type of coin on both these platforms. And for crypto deposits, it is free on both these platforms.

Conclusion

With all these facts and figures now known to you, it should be very easy to choose one among Binance and Kraken for your crypto trading needs.