In the crypto world, we have an abundance of choices for just about everything, be it assets, DeFi applications or exchanges. Crypto exchanges form the foundation of the industry, allowing users to buy, sell, trade and bet using their assets. But it can be difficult to choose which exchange is right for you.
So today we will compare two major crypto exchanges, Kraken and Binance, to see which one suits your crypto preferences.
What is Binance?
Binance is one of the world’s most popular crypto exchanges, with a 24-hour trading volume of over $16 billion. Binance has nearly 30 million users worldwide and offers a wide range of different features to suit every single trader. Moreover, this exchange is available in most nations worldwide. However, the United States is one of the few countries excluded from this list.
So, let’s get into the ins and outs of the Binance exchange.
Supported coins
When it comes to Binance, you will certainly have no shortage of coins and tokens to choose from. Currently, Binance supports over 600 different assets, including market giants and smaller newcomers. Of course, you can trade classic assets like Bitcoin, Ethereum, Litecoin, Dogecoin and Tether on Binance, but it doesn’t stop there. If you are looking for up and coming currencies, Binance is also a useful avenue.
Binance also supports a number of different staking options. While many exchanges only offer a handful of staking assets, Binance currently hosts a list of over a hundred assets for staking, although each asset has different reward rates and conditions.
Safety features
If you entrust your assets to a platform, you want to ensure that they are protected. This is why the security features offered by any given crypto exchange are incredibly important to consider. So what does Binance have to offer?
First, Binance uses two-factor authentication to protect your account. Both Google Authenticator and SMS can be used for this process.
In addition, you can use Binance’s address whitelist feature to ensure that only addresses you have given the green light can transact with you. This will reduce the chance of a malicious actor sending your money to a random wallet address.
You can also rest easy knowing that Binance offers FDIC insurance for any US dollar balance.
Fees
Fees can often be a make or break factor when it comes to choosing a crypto exchange. Some exchanges can take large chunks of your profits every time you make a transaction, which can be incredibly frustrating. So how does Binance measure up in terms of fees?
Currently, Binance charges a maker and taker fee of 0.1%, which is pleasantly low compared to other platforms. Because Binance uses a maker-taker model, there are no spread fees. In addition, the exchange does not charge for deposits, withdrawals or stakes.
Additional functions
As previously discussed, Binance offers bets on various assets, including Ethereum, Solana, Cosmos, and Shiba Inu. You can also participate in Polkadot Auto Auctions using either Polkadot or Kusama funds.
Binance also offers its users spot, margin and P2P trading. You can also engage in strategy trading or yield farming or even open a crypto savings account. In short, there’s a lot you can do on Binance beyond just buying and selling assets, and with such low fees and wide geographic availability, this could certainly be the exchange for you.
Now let’s take a deep dive into the Kraken exchange.
What is the Kraken?
Kraken is another widely popular cryptocurrency exchange that was founded in 2011 when the cryptocurrency industry was still in its infancy. Since then, Kraken has become a common option for crypto traders worldwide. Although some countries do not support Kraken trading, such as Afghanistan and Syria, Kraken is available in most nations.
So, what makes Kraken a top choice for crypto holders?
Supported coins
Kraken currently supports almost 200 coins. While this isn’t nearly as many as Binance, you still have plenty of assets to choose from. Kraken supports all the industry giants like Bitcoin, Ethereum and Dogecoin, and also hosts a number of smaller cryptos that are newer to the market.
Safety features
Kraken offers users a variety of security features to protect their accounts as much as possible. First, you can use two-factor authentication for login so that unauthorized parties cannot access your account as easily. Kraken uses both Google Authenticator and Yubikey for two-factor authentication.
Kraken also prohibits SMS and phone account recovery and offers an account timeout window that you can change to your preferences so you don’t leave the account page open for long periods of time without realizing it. Your sensitive data is also fully encrypted by Kraken so that malicious actors cannot see your private information when it is at rest or in transit.
Kraken’s team also monitors the platform around the clock for suspicious activity, reducing the chance of cybercriminals succeeding in their attempts to attack Kraken users. You can also use Kraken’s email verification feature for all withdrawals, which adds an extra layer of security to your account.
Fees
When it comes to fees, Krakens is slightly higher than those offered by Binance, but still by no means outrageous. Like Binance, Kraken uses the producer/taker fee model and currently charges a 0.16% producer and 0.26% rater fee. But Kraken does not charge at all for any withdrawals or deposits, and of course does not charge spread fees due to the use of the maker/taker structure.
Kraken also does not charge a fee for on-chain staking on its platform, which is a big plus. But you can incur a fee for off-chain staking.
Additional functions
Kraken currently supports staking for 15 different assets on the exchange, including Solana, Cardano, Ethereum and Tezos. The three off-chain staking options, Bitcoin, Euro and US Dollar, are all subject to geographic availability, so it’s important to check if the country you live in allows off-chain staking of the asset you want.
On top of this, you can participate in slot auctions on Kraken using either Polkadot or Kusama.
Kraken also offers a number of other features, including margin and futures trading. The platform also offers a feature known as CryptoWatch, which you can use to keep track of your portfolio and various markets. This extra layer of analysis can help you make trading decisions.
Finally, Kraken is currently developing an NFT marketplace that you can use to sell, secure and collect NFTs. Although this is not available at the time of writing, you can join the waiting list to be notified when it is finally launched.
Kraken vs. Binance: The Final Verdict
While both Kraken and Binance are fantastic crypto exchanges with a lot to offer, Binance seems to come out on top in many ways. Not only is Binance cheaper overall, but it supports more coins, offers more staking options, and has more trading features in general.
But this is not to say that Kraken is a bad choice for crypto trading. This is also a diverse and ever-growing exchange that can provide you with a safe and useful platform for your crypto needs.
Research your crypto exchange before using it
If you are going to entrust your crypto holdings to any exchange, it is very important that you read up on their reputation and security protocols before doing so. Additionally, it’s always worth checking what features an exchange offers to see if you can achieve your crypto goals using that specific platform. That way, you can ensure that the exchange you choose suits you and your preferences well.
