Binance vs. Kraken: Which Is Better?
The best place to buy digital currencies is a cryptocurrency exchange. Exchanges always have the best rate. They provide high liquidity, so assets are easy to buy and sell. Also, many trading platforms offer buying crypto by fiat and support a large number of payment methods.
TGDRating experts reviewed two popular crypto exchanges – Binance and Kraken. Each platform offers users something unique, but at the same time has its drawbacks. Binance or Kraken – which exchange is better?
Binance is #1 by trading volume in the world and the fastest growing cryptocurrency exchange. Everyone who works with crypto knows about Binance.
Basic information about Binance:
- Founding year: 2017;
- Founder: Changpeng Zhao;
- Verification: required;
- Trading pairs: 1400;
- Available markets: spot, derivatives, quick buying from card, P2P, OTC, margin trading, NFT;
- Trading fees: 0,02% – 0,1% for makers and 0,04% – 0,1% for takers (25% discount when paying BNB);
- Coingecko trust rating: 10/10.
Kraken entered the crypto market back in 2011 and is also one of the largest exchanges in terms of trading volumes. The exchange has 9+ million users from 190+ countries.
Basic information about Kraken:
- Founding year: 2011;
- Founder: Jesse Powell;
- Verification: required;
- Trading pairs: 660+;
- Available markets: spot, futures, OTC, margin trading, NFT;
- Trading fees: 0% – 0,16% for the maker and 0,1 – 0,26% for the taker (depending on the trading volume in the last 30 days);
- Coingecko trust rating: 9/10.
Binance vs. Kraken Fees
Commissions are one of the important criteria to consider when choosing a crypto exchange. Any trading platform charges commission fees, however the lower they are, the better for users. There are different ways to reduce the fees. For example, paying fees with the native currency of the exchange or reaching are large amount of trading volumes. Let’s compare the commissions of both exchanges to determine the most profitable.
Binance trading fees:
- Spot Market: 0,02% – 0,1% for maker and 0,04% – 0,1% for taker (when paying in BNB – 0,075%), 0% commission on BUSD pairs and individual BTC pairs/fiat and BTC/stablecoin;
- Futures: USDⓈ-M Futures – 0% – 0,02% for maker and 0,017% – 0,04% for taker (-10% when paying BNB), COIN-M Futures – -0,009% – 0,01% for the maker and 0,024% – 0,05% for the taker.
Kraken Trading Fees:
- Spot market: 0% – 0,16% for maker and 0,1% – 0,26% for taker (depending on trading volume over the last 30 days);
- Stablecoins/Pegged tokens/FX pairs: 0% – 0,2% for all market participants (depending on trading volume over the last 30 days);
- Commissions for margin trading: for opening a position – 0,01% – 0,02% (depending on the coin), for position rollover – 0,02% for 4 hours;
- Futures: 0% – 0,02% for a maker and 0,01% – 0,05% for a taker (depending on trading volume over the last 30 days).
Binance vs. Kraken Fee Comparison Table
|Deposit/Withdraw fiat from the card||1,8%;||Not supported;|
|Fiat top-up via a third-party EPS||For USD: |
through Simplex – 2,5% per transaction for EEA users and 3,5% per transaction for users from other countries;
via Banxa – 1,99% per transaction;
|Fiat top-up by bank transfer||0 – 1 euro (input methods and conditions depend on the user’s currency and country of residence);||0 – 10 USD, 0 – 3 EUR, 0 – 21 GBP, 0 JPY etc.;|
|Spot trading fees||0,02% – 0,1% for the maker and 0,04% – 0,1% for the taker (when paying in BNB – 0,075%); |
0% commission on BUSD pairs and selected BTC/fiat and BTC/stablecoin pairs;
|0% – 0,16% for the maker and 0,1% – 0,26% for the taker;|
|Derivatives trading fees||USDⓈ-M Futures – 0,02% for maker and 0,04% for taker (10% discount when paying in BNB); |
COIN-M Futures – 0,01% for maker and 0,05% for taker;
|0% – 0,02% for maker and 0,01% – 0,05% for taker|
|P2P trading||P2P transaction fee is charged only from the maker (no fee is charged from the taker). Its size depends on the currency (for example, 0,35% for USD and 0% for EUR);||Not supported;|
|Options trading||0,02% for regular users, 0% for VIP makers and 0,015% for VIP takers;||Not supported;|
|Swap farming||0,02% for regular users, 0% for VIP makers and 0,015% for VIP takers;||Not supported;|
|Staking fee||Not charged;||Not charged;|
|Mining fee||Binance Pool commission rate is 2,5% (VIP status has reduced commission rates for high hash rate users).||Not supported;|
|Withdrawals||Depends on currency, network and network load at the time of withdrawal. |
Bitcoin: 0,0000042 (Bitcoin), 0,00018 (ERC20), etc.
Ethereum: 0,0012 (ERC20), 0,000057 (BEP20), 0 (Arbitrum One, Optimism), etc.
USDT: 0,29 (BEP20), 3,55 (ERC20), 1 (TRC20, Polygon, Solana, Tezos, EOS, AVAX C-Chain).
|Depends on currency and network load at the time of withdrawal. |
Bitcoin: 0,00001 BTC
Ethereum: 0,0035 ETH
USDT: 3,55 USDT (ERC20), 2,5 USDT (TRC20);
Binance vs. Kraken: Features
Let’s consider the main features of both crypto platforms.
Binance Unique Features
Binance is the world’s largest crypto exchange by trading volume. The platform offers 1400 trading pairs, including Crypto/Fiat pairs.
Binance clients get access to various markets: spot, derivatives, P2P, OTC, NFT. Up to x125 leverage is avalaible for futures trading (COIN-Margined and USDS-Margined contracts) and margin trading.
In addition to trading opportunities, there are many ways to earn passive income on the platform: DeFi staking, Launchpad, dual currency investments, autoinvestment, Binance Pool, liquidity farming, BNB Vault (an options to earn income from holding BNB) and others. Additional services include cryptocurrency conversion (swap), native crypto wallet called Trust Wallet, crypto loans, Binance Card, Binance Pay.
Kraken Unique Features
US exchange Kraken is also one of the largest crypto platforms in terms of trading volume. Most of the volume is traded in the pairs USDT/USD and USDT/EUR. In total, 660+ trading pairs are available on Kraken in Crypto/Crypto and Crypto/Fiat pairs types.
The following markets are available to platform users: spot, indexes and futures, over-the-counter trading (OTC), margin trading, NFT. Kraken has staking, referral program, Bug Bounty (reward for founding errors) as passive earnings options on the crypto. Other additional services: cryptocurrency guide, podcasts, account management, Cryptowatch (trade on multiple crypto exchanges through one platform).
Both trading platforms offer wide listing as well as fiat support.
Binance Supported Currencies
Currently about 1400+ trading pairs are available on Binance, including pairs of Crypto/Crypto and Crypto/Fiat types. The main trading volume takes BTC/USDT pair.
The exchange has its own token – BNB. It gives the following privileges: 25% discount on trading fees, BNB Vault (various options for earning income from holding BNB);
Kraken Supported Currencies
Crypto exchange Kraken supports 660+ trading pairs in types of Crypto/Crypto, Crypto/Fiat and Fiat/Fiat. The main trading volume takes USDT/USD pair.
Binance and Kraken are crypto exchanges with mandatory verification. In order to gain access to the functionality of the trading platforms, new users must pass a full identity verification. Let’s consider what steps this process consists of on both platforms.
Binance Verification Requirements
Binance offers 2 levels of verification:
- Basic (Verified) involves the provision of personal information and ID card, as well as passing the face recognition procedure;
- Extended (Verified Plus) requires confirmation of the users’ address of residence. To do this, you can use bank statement, utility bill, etc.
Trading opportunities after passing different levels of verification on Binance:
|Fiat deposit and withdrawal limits||$50K daily||$2M daily|
|Cryptocurrency deposit limit||Unlimited||Unlimited|
|Cryptocurrency withdrawal limit||8M BUSD daily||8M BUSD daily|
|P2P transaction limits||Unlimited||Unlimited|
|Other features||LPD/OTC||LPD/OTC/Binance card|
Kraken Verification Requirements
Kraken has three levels of verification:
- Basic is limited to providing personal information (name and surname, date of birth, address, phone number);
- Standard involves uploading identity card, as well as a paper confirming address of residence;
- Pro consists of checking the financial information about the user of the exchange.
Trading opportunities after passing different levels of verification on Kraken:
|Bank transfers||not available||$100k/day, $500k/month||unlimited|
|Deposits in cryptocurrency||unlimited||unlimited||unlimited|
|Cryptocurrency withdrawal||$5k/day||$500k/day||10,000,000 (may be increased)|
|Margin trading||none||Available to most users outside the US;||Available to most users outside the US;|
|Receiving rewards from staking||On-chain staking available||Off-chain staking available. Excluding users from certain countries (USA, Australia, Canada, etc.);||Off-chain staking available. Excluding users from certain countries (USA, Australia, Canada, etc.);|
|Crypto futures trading (outside US only)||none||yes||yes|
Binance vs. Kraken: Security
One of the main requirements for a cryptocurrency exchange is a high level of security. As a rule, exchanges offer users various methods of account protection, which we advise you not to neglect.
Binance Security Features
Binance is registered in the Cayman Islands. Exchange has a license to operate in the following countries: France, Italy, Lithuania, Spain, Cyprus, Poland, Dubai, Kazakhstan, New Zealand, Canada, South Africa.
Exchange users can enhance the security of their account in many ways:
- Complex password to enter your personal account;
- Passing full identity verification;
- Activate two-factor authentication immediately after registration;
- Linking a phone number;
- Configure email confirmations;
- Configure anti-phishing code;
- Regularly monitoring of account activity, etc.
Kraken Security Features
The exchange is owned by Payward Inc, a US registered company.
The exchange is regulated by the following authorities:
- FinCEN (Financial Crimes Enforcement Network) in the USA;
- FINTRAC (The Financial Transactions and Reports Analysis Center of Canada) in Canada;
- FCA (The Financial Conduct Authority) in the UK;
- AUSTRAC (The Australian Transaction Reports and Analysis Centre) in Australia;
- FSA (The Financial Services Authority) in Japan.
The exchange offers users following security measures:
- Use a complex and unique login password;
- Enable two-factor authentication (2FA can be used when logging into an account, transferring, trading);
- Check the timeline for active sessions for suspicious activity in the account;
- Check devices connected to the exchange account, etc.
Binance vs. Kraken: Staking Rewards
Both trading platforms offer users a popular way to make passive income on the crypto – staking. By sending unused assets for staking, you can regularly receive additional rewards.
The conditions for staking on platforms are different. Let’s consider what Binance and Kraken have to offer.
On Binance, DeFi staking is available, i.e. using smart contracts, as well as Ethereum 2.0 staking.
Binance offers two types of staking with different % rewards:
- With flexible lock: you can withdraw staked assets at any time;
- Fixed lock: assets are locked for a fixed period (30/60/120 days) and cannot be withdrawn early.
The yield depends on coin and type of staking and ranges from 0,6% to 5,39%. You can stake 14 assets on Binance: BTC, ETH, LTC, XRP, BUSD and others.
The exchange offers 20+ staking assets, including BTC, ETH, USDT, DOT, ADA, SOL, MATIC, etc., as well as in EUR and USD.
Each asset has its own interest rate: it varies from 1% to 21% per annum. Rewards can be earned weekly or biweekly (depending on the asset being staked).
Binance vs. Kraken: Main Differences
|Number of trading pairs||1400+||660+|
|Available markets||Spot, derivatives, purchase by card, P2P, OTC, margin trading, NFT;||Spot, indexes and futures, over-the-counter trading (OTC), margin trading, NFT;|
|Spot trading commission||0,02% – 0,1% for makers and 0,04% – 0,1% for takers (25% discount when paying with BNB); |
Zero commission on BUSD pairs and selected BTC/Fiat and BTC/stablecoin pairs;
|0% – 0,16% for makers and 0,1% – 0,26% for takers;|
|Staking||Yes (Fixed/flexible lock DeFi staking and Ether staking)||yes|
|Crypto wallet||Trust Wallet||none|
|Additional Services||Cryptocurrency conversion, liquidity farming, crypto loans, Launchpad, dual-currency investments, auto-investment, Binance Pool, Binance Pay, ETH 2.0, etc;||NFT, Cryptocurrency Guide, Podcasts, Account Management, Cryptowatch, Bug Bounty;|
|Security settings||2FA, phone binding, SMS notifications, withdrawal whitelist, anti-phishing code, etc;||2FA, history of active sessions, devices management, etc;|
Binance was founded in 2017 by Chinese entrepreneur Changpeng Zhao. Kraken is an American crypto platform founded in 2011.