Kraken vs Binance: Fees, Features and More (2024  Comprehensive Guide)

In recent years, cryptocurrency has gained popularity as more investors capitalize on the digital asset blast. Many popular cryptocurrency exchanges have entered the market as intermediaries between buyers and sellers. The exchanges offer a safe and efficient way to purchase, sell, or barter digital currencies. 

Cryptocurrency exchanges can be centralized or decentralized. Centralized exchanges are managed by a single authority that controls all transactions and holds user funds. Decentralized exchanges, on the other hand, function on a peer-to-peer network, and they have no authority to control them. 

Kraken and Binance are good examples of centralized exchanges that have become popular due to user-friendly interfaces, swift transaction speeds, and better liquidity. These platforms have millions of users, which earns them a top ten position: Kraken is in third position while Binance is first. US-based Binance users must use a Binance platform in the US. 

In this post, Foundeck discuss Kraken Vs Binance: features and more to help you make informed decisions on cryptocurrency investments.

What is Kraken?

Kraken is a leading cryptocurrency exchange platform offering robust margin trading that caters to new and expert traders. Market participants can trade different cryptocurrencies purchased or sold with fiat currencies. But what are fiat currencies? Fiat currencies are legal tenders controlled by the government.

The popular cryptocurrencies on Kraken include Bitcoin (BTC) and Ethereum (ETH). Derivatives and futures are also allowed to trade on the platform. However, other tokens have earned traction in specific communities like EOS (EOS), Solana (SOL), and Non-Fungible Tokens (NFTs). 

Kraken Margin trading is a method of trading whereby market participants borrow money from the exchange to buy cryptocurrencies. Participants are expected to pay back the borrowed funds later with interest. It’s crucial to note that lending money to buy cryptocurrencies increases the chances of profits and losses. 

In simpler words, Kraken margin trading allows users to trade with more money than they’re worth in their accounts. The opportunity to borrow means you can profit significantly more from price shifts than traditional trading.

Kraken’s Origin

Kraken was founded in 2011 and officially started trading in 2013 under the ownership of Payward Inc. David Ripley is the current CEO, replacing the original co-founder Jesse Powell in 2022. Kraken is focused on facilitating the easy movement of money between digital wallets and connected bank accounts to ensure investors effectively trade cryptocurrencies.

Before Kraken took the lead in crypto exchange, it mainly served European customers through a partnership with Germany-based Fidor Bank but had started trading in Japan. Let’s discuss Kraken’s features. 

Kraken's Features

As one of the most established cryptocurrency exchanges, Kraken has exceptional features. The most notable features include: 

1. Leverage. Kraken has different leverage levels, allowing users to manage more prominent positions with some initial investment. The other leverage levels increase potential profits, but some risks need careful management. 
2. They have advanced Trading Tools. Kraken’s trading tools are advanced. They include charting features that help you make informed decisions, like setting stop-loss orders, accepting profit orders, and refining your trading tactics. 
3. Margin Pairs. Kraken margin trading has over 140 margin pairs, enabling you to trade crypto-to-crypto and fiat-to-crypto pairs. The flexibility allows you to trade focused on particular preferences and market trends. 
4. Risk Management. Like all businesses, margin trading is risky, but Kraken offers risk management features such as margin liquidation and margin call warnings to prevent significant losses.
5. It has advanced security features. The platform has advanced security features like a two-step authentication process (2FA), global setting lock, and encryption (PGP, GPG) for all email communication.
6. Numerous crypto-currencies. Kraken supports numerous cryptocurrencies like Bitcoin, Litecoin, Ethereum, and Ripple.
7. High liquidity. Kraken allows daily trading of up to $500 million.
8. Over The Counter (OTC) Desk. The platform offers an OTC desk that ensures secure and speedy execution for significant trading of over $100k. There’s also a “Dark Pool” feature where people can execute large trades privately without influencing market prices.

Kraken Pricing

Kraken uses a maker-taker fee model. Makers pay a lower fee that ranges from 0% to 0.16% than takers who pay more, ranging from 0.10% to 0.26%. The cost for both cases depends on the user’s monthly trading activity; higher-volume traders are eligible for discounted fees.

1. Crypto market makers provide liquidity by buying and selling orders.
2. Crypto market takers execute these orders immediately. 

Deposits and withdrawal fees apply but vary depending on the currency in use. Bank transfer funding is free, whereas deposits made through other payment methods like PayPay or credit attract a small fee.

Kraken Trading Options

1. Basic trading is the most suitable for newcomers and offers a straightforward buy-and-sell interface.
2. Intermediate trading is a more advanced option that allows users to put limit orders, seize losses, and take profit orders.
3. Advanced trading is ideal for experienced traders seeking to access features like margin trading and advanced charting tools.

Kraken Pros and Cons

PROS:

1. The verification process is short and up-to-date. 
2. 95% of assets are in cold storage
3. Users in US states can access the platform in 48 states.
4. Fiat currency support
5. High liquidity
6. Advanced trading options
7. Low trading fees

CONS:

1. Novices should embrace themselves for a learning curve
2. There’s no standalone hot wallet
3. Fewer trading coins

What is Binance? 

Binance is a Chinese discovery founded in 2017 by Changpeng Zhao and Yi He. They both worked at the OKCoin exchange before venturing into building an exchange of their own.

However, the company was FORCED out of China in September 2017 after the Chinese government forbade cryptocurrency trading. Since then, Binance has established offices in Japan, Malta, and Taiwan in the Cayman Islands.

Due to strict US regulations concerning cryptocurrencies, Binance was banned in 2019. However, the company launched a subsidiary, Binance.US, to serve US-based traders. Binance US is an exchange that complies with all regulations allowing it to trade in the country. 

Binance has its cryptocurrency, Binance Coin (BNB). The initial coin offering of Binance Coin (BNB) funding raised $15 million in July 2017. Traders who use BNB to pay for trading fees receive discounts. 

Currently, Binance is hailed as an enormous crypto exchange on the market. It’s not uncommon for the platform to receive trading of over $1.4 billion worth of cryptocurrency.

Users on Binance can trade crypto-crypto and crypto-fiat, meaning they can interchange cryptocurrencies and fiat money. If you’re new to cryptocurrency trading, you must buy some with fiat money before trading.

How Binance Works

Binance is a centralized crypto exchange that provides all the services that any leading crypto exchange should. These services include: 

1. Crypto-crypto trading
2. Purchasing crypto using fiat 
3. Derivatives trading
4. Numerous earning tools

Binance supports all mainstream fiat currencies, EUR, GBP, and USD, for purchasing crypto. The platform also allows funding through payment methods like bank deposits, credit or debit cards, Apple, and Google Pay. In addition to traditional spot trading, Binance offers its users various trading options:

1. Margin trading 
2. Peer to Peer (P2P) trading 
3. Futures trading
4. OTC trading and more

From a technical point of view, Binance Exchange uses an order book to keep all orders on the platform intact. 

What is an order book? An order book is an electronic list of all purchase and sale orders for a specific asset. In essence, order books act in the interests of buyers and sellers.

Binance Key Features

As a leading cryptocurrency exchange, Binance has quickly become a popular exchange globally, offering a range of features and trading options at friendly prices, making it the most popular exchange in the market. With a user-friendly interface and advanced security features, the platform is ideal for anyone seeking to join the cryptocurrency trading world. The main features of Binance are:

1. A list of Numerous cryptocurrencies - Binance lists over 350 coins and tokens, including the major players like Bitcoin, Ethereum, and Ripple. The wide range of trading coins makes the platform attractive for all players: beginners and experienced traders looking for diverse portfolios.
2. High trading volumes - There are always buyers and sellers on the Binance platform, explaining its high trading volume. As a result, there’s quick trade execution with little slippage.
3. Several trading pairs - Besides the wide range of trading cryptocurrencies, Binance offers different cryptocurrencies and multiple trading pairs for every coin. As a result, users can diversify their portfolios and use various market opportunities to their advantage.
4. Advanced charting tools - With its user-friendly interface and advanced charting tools, Binance allows traders to examine market trends to make informed decisions. The tools include candlestick charts, technical indicators, and real-time order books.
5. Secure platform - The different security measures on Binance make it a safe platform for traders. The security measures include a step authentication process (2FA), email encryption, and anti-phishing codes that guard users’ accounts from cyber threats.

Binance Pricing

Compared to other cryptocurrency exchanges, Binance offers the most competitive fees. The standard trading fee is 0.1%, but it can be lower for traders who hold their Binance native BNB token in their account balance or trade in higher volumes. All deposits on the platform are free, but withdrawals attract a charge depending on the cryptocurrency in use. 

Binance Trading Options

1. Limit Orders allow Binance users to set a specific price to buy or sell a particular cryptocurrency, and once the price is achieved, the order is automatically executed.
2. Market Orders allow users to purchase or sell a cryptocurrency at the current market price. The orders are executed immediately, but the final cost can differ from what was initially displayed due to market fluctuations.
3. Staking and margin trading is where users hold specific cryptocurrencies and earn passive income on the exchange. Margin trading, on the other hand, allows users to leverage their trades with borrowed funds, which optimizes profit-making opportunities. 

Other services Binance offers include futures, spot, and peer-to-peer (P2P) fiat-to-crypto trading. Binance users can buy and sell cryptocurrencies at the current market price, known as spot trading. Futures trading permits users to trade with leverage of up to 125x on specific contracts. 

Other traditional methods of buying crypto with fiat currency on Binance’s P2P platform allow buyers and sellers to transact directly using different payment methods like bank transfers or online payment services. Here are more reasons as to why Binance stands out:

1. There are more cryptocurrencies to choose from
2. High liquidity on meme coins
3. Digital tokens
4. Gaming
5. DeFi solutions
6. Liquid stacking

Binance pros and cons

PROS:

1. Low trading fees
2. A wide range of trading coins

CONS:

1. Not too transparent about their security measures
2. The user interface is too advanced for beginners
3. US residents have fewer trading options 

Who is Binance Suitable for?

Binance is fashioned to attract as many users as possible. The platform is easy for newcomers to navigate and offers enough coins and features to keep seasoned traders happy. Binance is suitable for traders on any level. 

However, first-time users can need help navigating the platform, especially those without cryptocurrency trading knowledge. 

If these sentiments sound like you, it is better to start trading on Kraken. Then, after gaining experience, you can move to the big boys’ table by signing up on Binance. Kraken allows users to buy their initial cryptocurrency with fiat money and participate in simple trades. 

After performing these trades, you’ll be ready to join Binance, as it will elevate you from a novice to an expert through stages in its settings. You can begin by making simple trades and then move to more complex limit and stop-limit order trades.

Kraken Vs. Binance Head-to-Head Comparison

Kraken and Binance are crypto exchange platforms. Investors can buy, sell, and exchange cryptocurrencies. , stablecoins, and tokens. Global international users can trade futures or margin trading on both platforms, and white US residents can invest in other transaction types. Kraken supports margin trading for US users. Both platforms offer advanced trading features, which are ideal for active investors who watch the market and monitor their investments over time.

1. Features

Unlike other cryptocurrency exchanges, Kraken and Binance offer investors trading knowledge. 

Both exchanges have advanced trading features that investors use to place market orders and fulfill other transactions. However, US residents have limited Binance transaction types because others aren’t supported on Binance but are on Kraken. 

Moreover, Binance and Kraken have sharp differences between the typical Binance and Binance.US sites. For instance, US residents can’t find details about the Binance Visa Card; they can’t find a rewards center for earning crypto, nor can they see the Binance Academy on the Binance.US website. Instead, Binance.US has an FAQ section where users can find information about crypto exchanges. 

Both Binance sites offer advanced charting options akin to Kraken.  

As a US-based exchange, Kraken caters to local and international investors on the same platform. Global users can access more transaction options and coins, making the site less limited than Binance. 

Users find advanced charting features for Kraken markets on the Kraken Terminal and a powerful “Learn” section equipped with a podcast, videos, and tutorials. Additionally, Kraken has a standalone platform known as Cryptowatch, a real-time data and charting premium trading terminal. 

2. Currencies

Kraken users have access to over 240 coins, which include: 

1. USD Coin (USDC)
2. DAI (DAI), and 
3. Tether (USDT) 

The platform also accepts six fiat currencies, but some aren’t accessible to US investors:

1. USD
2. EUR
3. CAD
4. AUD
5. GBP and 
6. CHF 

Binance, on the other hand, supports over 350 coins for global users and several stablecoins, such as: 

1. DAI 
2. Tether 
3. Binance USD (BUSD) 

Binance also accepts many fiat currencies, but US residents can only access fewer coins and only USD fiat currency. The fiat currencies include: 

1. USD
2. AUD
3. HKD
4. EUR
5. GBP
6. INR

Both crypto exchanges provide more than 100 trading pairs and support common cryptocurrencies such as: 

1. Ether (ETH)
2. Cardano (ADA)
3. Litecoin (LTC)
4. Chainlink (LINK)
5. Bitcoin Cash (BCH)
6. Dogecoin (DOGE) and 
7. Monero (XMR) 

However, only Kraken offers US residents Polkadot (DOT) 

3. Fees

Kraken and Binance utilize the maker-taker fee structure, which charges much lower fees than other familiar platforms like Coinbase. Initially, you’ll notice that Kraken fees are higher, with maker-taker fees ranging from 0% to 0.26%, versus Binance fees which charge between 0% to 0.10%.

On Kraken, the marker fee for a new trader with a low trading volume is 0.16% or a taker fee of 0.26%. The same investor pays Binance maker or taker charge of 0.10% .

However, Binance users will get a 25% fee discount if they use Binance Coin (BNB) to pay fees. Users who hold more BNB also pay lower fees.

Kraken’s fee schedule is transparent and easy to read and understand, whereas Binance is more complex depending on the VIP level. Always confirm the fee schedule on each site directly, as it may vary depending on prevailing market trends. 

4. Security

Both platforms comply with the stringent US regulations for the Know Your Customer (KYC) rule, but they approach security matters differently. For instance, Binance doesn’t dedicate much space to disclose security measures. The closest information about security on their website is that Binance only keeps a small percentage of coins in its hot wallets while the rest is in cold storage.

In contrast, Kraken is famous for its security features and always aims to improve security in the entire industry. The platform keeps 95% of air-gapped, geographically assigned cold storage deposits. The platform also performs penetration testing, runs a bug bounty program, and undergoes a proof-of-reserves audit handled by a third party. 

It’s worth noting that since Krake started operating in 2013, it has never been hacked. Kraken and Binance have experienced Distributed Denial-of-Service (DDoS) attacks. 

Binance suffered a large-scale security breach in 2019, which resulted in the theft of over $40 million in Bitcoin. The Justice Department and the Internal Revenue Service recently disclosed their investigation against Binance for illegal activity. There’s an accusation by Bloomberg, a blockchain forensics firm, that more funds connected to criminal activity flow through Binance than any other crypto exchange. 

Even though both platforms offer two-factor authentication (2FA) and other popular security measures, Kraken comes at the top. The platform stands out for its relentless effort to support transparency and safety in the cryptocurrency industry. 

5. Ease of Use

The sign-up process in both exchanges is similar, and US investors are required to meet strict verification methods. However, Binance reports that advanced verification (L2) can take up to 15 days, and many users say it takes much longer. In comparison, Kraken has clear timelines for different levels, all of which happen quickly, except in Pro levels, which can take up to five days. 

Although Kraken and Binance focus on users with at least some knowledge of crypto and investing, Kraken’s website and exchange are more accessible to navigate. It’s also much easier to search and access help articles on Kraken to stay knowledgeable. But, of course, if you’re new to crypto trading and investing, the charting options on both platforms can be overwhelming, but you can’t give up as you’ll learn with time. 

6. Mobile Access

Mobile access is vital for any business operating online as it allows more people to access services. Binance has a mobile app for the leading site and another for US residents. Unlike its other web-based platforms, novices might need help navigating the app initially. 

But, generally, the entire platform has an easy-to-use interface (UI) that is pretty clean. However, the Binance.US app is buggy, which leads to difficulties when accessing the app. The UI for Binance.US isn’t as tough as the leading site’s application. 

On the other hand, Kraken has two mobile apps: Kraken and Kraken Pro. Both apps are highly rated by iOS and Android users for supporting functionality similar to web-based exchanges. Kraken is hailed as improving the cryptocurrency industry as it responds to almost all reviews or suggestions about its mobile apps. It continually enhances its user interface (UI)and user experience (UX). 

7. Accessibility

Kraken is accessible to all people in the US, apart from those in Washington and New York. Kraken users in the US residents can’t trade Ripple’s XRP, nor can they deposit, hold, or trade the following cryptocurrencies: 

1. ACA
2. AGLD
3. ALICE
4. ARB
5. ASTR
6. ATLAS
7. AUDIO
8. CFG
9. CSM
10. C98
11. GLMR
12. HDX
13. INJ
14. INTR
15. JASMY
16. KIN
17. MC
18. MV
19. NMR
20. NODL
21. NYM
22. ORCA
23. OXY
24. PARA
25. PERP
26. PSTAKE
27. RAY
28. REQ
29. ROOK
30. SAMO
31. SDN
32. STEP
33. TEER
34. WOO
35. YGG or 
36. XRT

While Kraken doesn’t allow US citizens to buy MKR, or ZRX on Binance allows it, the residents of 46 states can use the platform. Binance is forbidden in the following states: 

1. Hawaii
2. Vermont 
3. New York
4. Texas

In the access stem, both exchanges display the most significant differences. Having been banned for not meeting US regulations, Binance.US offers less than its central platform. In contrast, anyone can use the exchange on the Kraken platform. However, US residents have access to fewer options than global customers. 

Form Your LLC with Foundeck Today

Foundeck offers a range of fast and efficient online company formation services, allowing you to register a business structure of your choice quickly from anywhere and keep it compliant. To get started, kindly contact us here.

Frequently Asked Questions

Does Kraken work in the United States?

Kraken works in the US but functions under restrictions on certain activities that might be allowed elsewhere in the world. 

Which crypto exchange is cheaper? Kraken or Binance?

Binance is much cheaper than Kraken, which delivers a competitive edge for the platform. 

Is it safe to buy crypto on Kristen?

Kraken is safe to buy crypto from as it is a regulated exchange in the US. Hence, purchasing cryptos using Kraken services is safer than other non-regulated exchanges.

What is the main difference between Kraken and Binance?

The main difference between Kraken and Binance is that Binance offers a more integrated, authentic cryptocurrency ecosystem. It caters to investors who support the crypto lifestyle and existence. On the other hand, Kraken is an excellent corporate partner with solid cryptocurrency features that could be more friendly to beginners, but the platform best serves US residents. 

In Summary

Kraken and Binance are cryptocurrency exchanges offering various trading options for new and seasoned traders. While Kraken offers fewer trading coins than Binance, international users value the extensive number of cryptocurrencies accessible on Binance. However, the platform doesn’t provide many transaction types to US residents. As for Kraken, the platform is more transparent, prioritizes security, and offers US users a wide range of currencies.

So, Kraken Vs. Binance, who comes at the top regarding fees, features, and other services? Kraken stands out in different areas than Binance despite facing challenges related to the risks associated with the unpredictable nature of cryptocurrencies.

Ultimately, personal preferences will play a significant role in choosing between Kraken and Binance. Both exchange platforms offer a wide range of unique services, and if you live in the US, Kraken might be the ideal choice for you. AS for Binance, traders from all over the world can buy or sell cryptos on the platform. Kindly contact one of our Foundeck experts here if you have any questions about Kraken Vs. Binance.