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Transferable to your own wallet
Self-custody of cryptocurrencies plays an important role for many users who want to manage their cryptocurrencies and thus their "private keys" themselves and not leave them in the hands of the exchange. Most exchanges offer the option of sending the purchased cryptocurrencies to their own wallet.
Deposit protection is a safeguard for the assets of users of a stock exchange or broker, which is intended to protect investors in the event of insolvency or a high loss due to a hacker attack. Service providers based in Germany are legally obliged to provide deposit protection of €100,000. In some cases, international exchanges have a special insurance policy that covers a certain portion of the assets instead of a deposit guarantee.
The overall rating is the average of our individual ratings. Our ratings do not constitute investment advice, but merely our personal opinion. You are welcome to use them as rough indicators and additional perspective. In the dynamic and fast-growing crypto sector, parameters can often change from one day to the next, so we cannot guarantee that the rating data is up to date. Therefore, please never use our ratings as an isolated basis for decision-making and not as a substitute for your own research.
This rating describes our personal assessment of the user-friendliness of the product. How easy is the onboarding process? How modern is the user interface and is it easy to use? Are all the important functions quick and easy to find? We ask ourselves all these questions in order to give a personal rating from 1 to 10 points.
This rating describes our assessment of the fee structure of a stock exchange or broker. It is not only the amount of fees that can differ, but also the type of fees. The most common type of fees for crypto exchanges are the "maker/taker" fees or spreads. In some cases, there are also hidden fees that are not recognizable to users at first glance.
For products or services in the crypto space, trust and security should be the biggest factors in the selection process. Since we could not seriously evaluate the technical security of a platform or product, we analyze publicly available factors such as security features, location, regulation, certifications, audits, team/company, general reputation and, of course, track record.
Crypto doesn't have to be cryptic. Especially for beginners, the first contact with the crypto world can be overwhelming. With this rating, we give our assessment of how easy it is for beginners to find their way around: from the onboarding process to using the most important functions.
Customer support is an important factor for many users. A long wait or no response at all in the event of problems can be frustrating, especially when it comes to sensitive topics such as finances. With this rating, we give our assessment of the quality of customer support. In order to provide as balanced an assessment as possible, we also include user opinions from other platforms in our evaluation.
Some exchanges and brokers are regulated by financial supervisory authorities in certain countries/states. This often entails strict financial regulatory requirements and compliance requirements to which the company must adhere. Regulatory clarity can contribute to greater transparency and thus also greater trustworthiness.
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Kraken vs Binance in comparison
Overview
Kraken stands out as one of the premier cryptocurrency exchanges in the United States, established in 2011. It's recognized for its competitive fees and a robust level of trustworthiness, anchored by its lengthy history and compliance with U.S. regulatory standards. Since 2020, Kraken has enhanced its offerings with a banking license.
Binance stands as the preeminent global cryptocurrency exchange, boasting the largest trading volume. Known for its extensive cryptocurrency offerings, competitive fees, and robust features for seasoned users and traders, it also provides a proprietary software wallet, Trust Wallet, for cryptocurrency self-custody.
Features Comparison
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Functions
Company Details
Our Review
Binance excels for those prioritizing a vast selection of tradable coins and low fees. Despite its wide array of functions, the platform's complexity may be daunting for newcomers. Not being officially regulated may concern security-focused individuals, but Binance suits those transferring cryptocurrencies to their personal wallets.
Kraken vs Binance Showdown: Find Your Ideal Crypto Exchange 2024
Deciding between Kraken vs Binance for your cryptocurrency trading? This article lays out a candid comparison on fees, security, and usability to help you choose the platform that best fits your trading strategy and priorities without the typical sales pitch or marketing jargon.
Key Takeaways
- Binance boasts a larger selection of cryptocurrencies and lower trading fees compared to Kraken; however, it faces more geographical restrictions and regulatory scrutiny, especially for U.S. users.
- Kraken provides a more user-friendly interface, faster account verification, and robust security measures, including 95% of funds in cold storage, with no hacks since its inception in 2013.
- Both Kraken and Binance offer advanced trading features and crypto staking, but Binance’s advanced interface and high trading volume cater to experienced traders, while Kraken prioritizes customer service with 24/7 support options.
Kraken vs Binance: A Comparative Snapshot
In the competitive landscape of cryptocurrency exchanges, Binance stands as the preeminent platform globally, while Kraken holds its own with a respectable fourth-place ranking. With an extensive selection of over 500 digital assets for trading that includes prominent currencies like Bitcoin and Ethereum, Binance serves an expansive international clientele. Although supporting a significant number of digital coins itself, Kraken is somewhat constrained by regional limitations within the U.S., unlike some other crypto exchanges.
Kraken has received accolades for its highly rated mobile application that facilitates trading anywhere at any time. Meanwhile, though Binance offers a corresponding app experience to their users worldwide, including in the U.S., it’s been criticized for having less user-friendly features and experiencing issues with logins.
The procedure to verify accounts on Kraken can be completed swiftly within minutes. Undergoing verification on Binance may take up to two weeks, still both platforms require only minimal initial deposits when setting up new accounts.
Both kraken and binance employ a maker-taker fee structure, but when it comes down to cost-effectiveness in transaction fees - ranging from nothing at all (0%) to just 0.10%, Binance emerges more economical than Kraken whose charges could escalate upwards towards 0.26%.
Unveiling Kraken: A Deep Dive into the Exchange's Core Offerings
Founded in 2011 and navigated through the turbulent waters of regulatory scrutiny, Kraken has solidified its position as a reputable exchange within the cryptocurrency sector, with CEO and co-founder Jesse Powell at the helm. Operating across more than 170 nations, Kraken facilitates transactions for an array of over 120 cryptocurrencies and stablecoins that include major names like:
- Bitcoin
- Ethereum
- Litecoin
- Dogecoin
It provides support for seven different fiat currencies, among which is the widely used USD fiat currency.
Kraken distinguishes itself with its dedicated Cryptowatch platform, which features amenities such as:
- Live charting and data access to upwards of 8,000 crypto markets.
- The opportunity for users to engage in trading starting at a mere $10.
- The impressive daily trading volume on Kraken exceeding $1.1 billion.
Adopting rigorous standards when assessing new cryptocurrency listings ensures only qualified projects make their way onto the platform. Developers interested in having their currencies listed are encouraged to reach out via email with proposals for consideration by Kraken’s team.
Inside Binance: Understanding the World's Largest Cryptocurrency Exchange
Established by Changpeng Zhao and Yi He in 2017, Binance rapidly gained status within the global cryptocurrency market. By a year after its inception, it had ascended to become the top cryptocurrency exchange internationally. Key moves that fueled Binance’s swift growth included relocating servers beyond China’s borders due to a domestic prohibition on cryptocurrency trading, purchasing Trust Wallet in 2018 and initiating Binance Jersey to cater to European customers in 2019.
Binance extends various services and functionalities for those engaged in trade activities such as:
- Its proprietary cryptocurrencies named Binance Coin (BNB) along with BinanceUSD (BUSD)
- An offering called “Binance Futures”
- A Multi-Assets Mode
- A Leaderboard feature
- And a competitive aspect termed “Battle”
Hosting support for an expansive selection of over 500 types of cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Dogecoin – this has propelled binance into amassing a remarkable daily average trading volume exceeding $18 billion.
The journey hasn’t been entirely free from challenges for binance. In particular during 2021 when the platform came under critical examination due to investigative actions undertaken by both the U.S Department of Justice and the Internal Revenue Service, which posed allegations linked with money laundering besides potential tax infringements.
Feature Face-Off: Comparing Kraken and Binance
Digging into the details, we will explore the sophisticated trading capabilities and staking opportunities that Kraken and Binance offer. These platforms are tailored to attract experienced traders through their unique services and functionalities, although it is important to note that Binance has specific limitations in place for users based in the United States.
Advanced Trading Features
Kraken provides an advanced trading platform for cryptocurrency that encompasses:
- Futures and derivatives trading in cryptocurrencies
- Margin trading with up to 5x leverage on spot trades for selected pairs, and as high as 50x when engaging in futures trading.
- An OTC (over-the-counter) service catering to the demands of individuals and institutions with substantial net worth, enabling them to execute large transactions while minimizing market disruption.
- Cryptowatch offering enriched charting capabilities featuring visual representations of price shifts, depth of market data, and various indicators useful for trade analysis.
Conversely, Binance’s sophisticated platform is designed specifically for advanced traders. It includes a broad range of futures trading functions such as modifiable leverage settings alongside cross-collateral possibilities. Available are intricate order types like stop-losses and take-profit commands. By upgrading to Kraken Pro users can tap into finer-grained pricing charts along with elaborate trade configurations including those previously mentioned order types — making it even more attractive for seasoned traders who demand comprehensive options within their chosen trading platforms.
Staking and Additional Perks
Staking in cryptocurrency involves the commitment of one’s coins to underpin a blockchain network, offering yields on the locked-up crypto. Both Kraken and Binance.US offer staking services for 17 unique cryptocurrencies. Each platform supports a different set of cryptos. Earning rewards through Kraken’s staking service is possible with an array of cryptocurrencies as well as fiat currencies.
In contrast, Binance.US awards staking incentives for various digital currencies like bitcoin, ether, solana, polkadot, and tezos – with potential returns reaching up to 17.10% based on the specific currency involved. Distinguishing itself is Kraken’s provision of extensive options when it comes to what you can stake coupled with strong customer support amenities that include round-the-clock telephone assistance.
Fee Structure Finesse: Analyzing Trading Costs on Kraken vs Binance
Both Kraken and Binance employ a maker-taker model for determining trading fees, with charges varying based on this structure. The fee system at Kraken ranges from 0% to 0.26%, presenting an uncomplicated configuration for users. Conversely, Binance boasts a more competitive rate of 0% to 0.10%. The cost benefit comes with increased complexity due to its tiered VIP levels.
When considering debit and credit card transactions, Kraken imposes a fee of 3.75% plus €0.25 per purchase. Such purchases on Binance can attract fees that fluctuate between 3% and 4.5%. This variation directly impacts the overall cost incurred by traders who opt for card payments.
Kraken aka Kraken. Pro caters particularly well to individuals dealing with substantial trading volumes by offering lower rates starting from zero percent for makers up until only one-tenth of a percent for takers— again depending on their trade volume magnitude.
User Experience: Navigating Kraken and Binance Platforms
When deciding on a crypto exchange, the user experience is an essential factor to consider. Comparing Kraken with Binance reveals several noteworthy contrasts.
- The account verification at Kraken can be completed within minutes and provides clear expectations for completion time, while the process at Binance could extend beyond 15 days.
- For those new to investing in cryptocurrencies, Kraken’s interface is more accessible and less daunting, whereas Binance may appear complicated and cluttered by comparison.
- Both the kraken platform and binance cater to seasoned traders with sophisticated functionalities.
For crypto traders who prioritize mobile access, both Kraken and Binance have developed mobile applications that offer notable capabilities.
- Including comprehensive trading options and advanced charting tools, the apps from Kraken like krakEN PRO are designed for thorough trading experiences.
- BINANCE’S APP presents itself as approachable with its analytical features designed for users’ convenience.
However, it’s worth noting that some find flaws in terms of intuitiveness in the BINANCE.US app, which has been described as somewhat glitchy.
In addition Binance Platform does not mirror all its services across various regions, resulting in a reduced feature set for Binancece us compared to its global counterpart. This is unlike Kraken, where features remain constant between the US and International versions of their service.
Fortifying Funds: Security Protocols Compared
In the realm of cryptocurrency exchanges, ensuring robust security is essential. Kraken safeguards its customers’ deposits with 95% being kept in air-gapped cold storage facilities spread across various locations. It also performs consistent security audits and has preserved a flawless safety record since it started operations in 2013. Similarly, Binance’s approach to protecting assets involves an array of cold storage solutions like hardware wallets, paper wallets, steel wallets, and seed phrases that provide an extra layer of defense against online hacking threats, thefts, and reduces susceptibility to malware.
Despite these precautions though, Binance experienced a major setback when hackers breached their defenses in 2019 leading to the loss exceeding $40 million worth of Bitcoin. Both kraken.
Binance remains committed to user protection through stringent Know Your Customer (KYC) protocols and two factor authentication.
SSL encryption as part of their comprehensive suite of security measures designed to safeguard client funds from unauthorized access or other cyber risks.
Support Systems: Weighing Customer Service Options
When it comes to choosing a crypto exchange, the quality of customer support is often a critical factor. Kraken ensures its users are well-supported by offering multiple customer service channels such as 24/7 live chat, email support, and even phone support options for round-the-clock assistance. Binance also prioritizes continuous user help with their 24/7 email services and live chat functions. Unlike Kraken’s constant availability, the live chat at Binance has specific hours of operation. To this direct form of assistance, Binance provides an extensive ticket system and a detailed knowledge base for self-service assistance.
Educational resources are key offerings from both Kraken and Binance which aim to enlighten their respective user bases. Through its ‘Learn’ section replete with videos tutorials and podcasts, it enriches its users’ understanding. Conversely, educational endeavors focus on providing instruction through the medium of ‘B,’ where participants can gain cryptocurrency rewards while they learn. While both platforms endeavor greatly in extending exceptional education materials, they paired up strategic efforts toward informatory deliverables within various formats allowing individuals to acquire new insights coupled with crypto returns.
Summary
In the comparison between Kraken and Binance, it’s evident that each cryptocurrency exchange has its respective pros and cons. While Binance stands as the largest crypto exchange globally, featuring a broad selection of cryptocurrencies along with sophisticated features for traders, newcomers may find its user interface quite complex. It has encountered notable security issues and legal challenges.
Contrastingly, Kraken offers an accessible and user-friendly platform which is especially appealing to those new to trading. It boasts an admirable record on security matters and provides access to a diverse range of digital currencies. The fees are also laid out clearly for easy comprehension by users. Nevertheless, one should note that there can be delays when seeking assistance from their customer support team. When deciding between these two platforms as your go-to for trading activities in cryptocurrencies like Bitcoin or Ethereum, etc., your individual requirements will greatly influence which is more suitable for you.
Frequently asked Questions
This passage addresses prevalent inquiries and issues related to Kraken and Binance. Fee-wise, both exchanges employ a maker-taker pricing model that is competitively lower than what Coinbase charges. Kraken’s trading fees vary from 0% to 0.26%, which are slightly steeper compared with the fee range of Binance, set between 0% and 0.10%.
Security measures are paramount for users. In this context, Kraken ensures robust security by storing 95% of its deposits in air-gapped cold storage units strategically positioned across various locations. Impressively maintaining an unblemished record free of hacks since commencing operations in 2013. Conversely, Binance experienced a significant breach in May of 2019 wherein hackers exfiltrated Bitcoin worth over $40 million, facing criticism concerning funds purportedly linked with illicit activities.
In terms of service availability and offerings, U.S.-based customers can access all services provided by Kraken except those residing in Washington State or New York State. It enables margin trading for qualified U.S individuals too. To its complete international platform features list though—Binance imposes more limitations on American clients via their separate domain ‘Binance.US’. Internationally Binance boasts an extensive catalog featuring upwards of three hundred fifty cryptocurrencies versus the two hundred twenty-plus available through Kraken’s selection—for which there may be some restrictions imposed upon US-based traders.
Is Binance or Kraken better?
Depending on individual needs and preferences, Binance may be superior due to its global popularity, robust trading volume, diverse coin support, and range of fiat currency options. Conversely, Kraken offers broader accessibility for traders from various countries.
Which platform offers lower fees, Kraken or Binance?
- Binance boasts some of the lowest fees in the market, with trading fees ranging from 0% to 0.10%, and offers additional discounts for users paying with Binance Coin (BNB).
- Kraken’s trading fees are slightly higher, between 0.16% and 0.26%, but it maintains a straightforward fee structure, making it easier to understand for both new and experienced traders.
Which platform supports more cryptocurrencies, Kraken or Binance?
- Binance offers a more extensive selection of cryptocurrencies, with more than 500 virtual tokens, alt-coins, and stablecoins available for trading. This wide range ensures a higher likelihood of finding specific or lesser-known cryptocurrencies.
- Kraken supports over 120 cryptocurrencies and stablecoins globally, with more than 65 assets available for U.S. traders. While its selection is more modest compared to Binance, it covers most of the popular and widely traded cryptocurrencies.
How do the security measures compare between Kraken and Binance?
- Both Kraken and Binance place a high emphasis on security, offering two-factor authentication among other security measures. Kraken is praised for its robust security practices and has a strong reputation for safety.
- Binance also emphasizes security, with additional features like P2P trading options and the support for fiat-crypto acquisitions, indicating a comprehensive approach to protecting user assets.
What about the availability and support in different countries?
- Kraken is widely available, including in the U.S. (except for Washington, D.C., and New York City), and supports a good amount of fiat currencies, making it accessible for a global audience.
- Binance operates globally but faces restrictions in certain locations, including the United States, Canada, and Singapore, with Binance.US serving as an alternative for American users.
About the author
Ethan is the go-to crypto guru at Exchange Flow, with nearly a decade steering traders through crypto exchange platforms worldwide, Ethan brings welcome clarity to the complex terrain of digital currencies. His hands-on approach to testing and analyzing exchanges worldwide makes his reviews and articles valuable information for readers and newcomers in the crypto world. Beyond his crypto expertise, Ethan is a retro gaming enthusiast and an explorer at heart, using his crypto gains to fuel adventures around the world. Dive into Ethan’s articles and reviews for a global perspective on cryptocurrency that’s as enlightening as it is engaging.
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