Kraken vs Binance – Which One Is Better?

In the digital age, there are so many different ways to pay for goods and services. Cryptocurrency has taken off and expanded since its debut in 2009 with Bitcoin (read this – best place to stake Bitcoin).

Now, there are thousands of cryptocurrencies and exchanges out there, and the list is always growing. With all the options, how is one supposed to know which is the best?

We, as the SmartCryptoStaking team, have done the work of researching and evaluating various cryptocurrencies and crypto exchanges with the aim of informing those looking for the most reliable and beneficial option.

This article will present a comprehensive review of two popular crypto exchanges – Kraken vs Binance.

We’ll give a basic introduction to crypto exchanges and then explain in-depth how Kraken and Binance compare when it comes to volume, traffic, fees, trading coins and more. We will also cover how to transfer these cryptocurrencies and which networks are available for transfers.

By the end of the review, we hope anyone interested will come to an informed decision on which of these crypto exchanges is better to trade with.

Kraken vs Binance – Introduction to Crypto Exchanges

A crypto exchange is a platform that deals with the buying and selling of cryptocurrency. Crypto exchanges allow users to trade one crypto for another or buy crypto using normal currency.

Crypto exchanges always use the current market prices of cryptocurrencies. Since every crypto exchange offers something different for users, traders need to know what they’re looking for and make an informed choice based on which exchange meets their specific needs.

Kraken and Binance are two such exchanges that hold millions of users. They both feature on the list of the top 10 largest exchanges by trading volume (Kraken at number four, Binance at number one).

Both offer excellent trading options, good security, low fees, and availability on mobile apps. But which one is better – Kraken or Binance? Allow us to examine both in more detail.

Introduction to Kraken Exchange

In 2011, Jesse Powell founded Payward, Inc., which in turn owns the cryptocurrency bank and exchange known as Kraken. To this day, Powell runs Kraken as its CEO. It offers users the opportunity to trade both fiat currencies and cryptocurrencies.

When Kraken launched, it offered Bitcoin, Litecoin, and euro trades, but has since included more than 50 extra currencies, as well as future trading, margin trading, and over-the-counter (OTC) trading on its platform.

Traders recognise Kraken for its world-class security features and commitment to maintaining the protection of its users.

Intro to the Main Binance Features

Binance is currently the largest cryptocurrency exchange in the world in relation to daily trading volume. Since its inception, it has generated a vast community and strong reputation.

Founded in 2017 by Changpeng Zhao, the CEO of Binance, this crypto exchange was initially based in China but had to relocate its headquarters when the Chinese government increased regulation on cryptocurrency.

It is now located in the Cayman Islands. Binance offers users over 500 virtual tokens and cryptocurrencies to trade with, including Bitcoin, Ether, Dogecoin, and Binance Coin, along with some of the lowest fees in the industry.

Binance vs Kraken – Available Coins and Trading Volume

Binance offers more than 500 coins for international traders, including stablecoins like DAI, Tether, and Binance USD (BUSD). It also supports 19 fiat currencies, including USD, GBP, EUR, AUD, INR, and HKD. U.S. residents who have access to Binance may only trade with USD fiat currency and 47 altcoins.

Kraken only offers 69 coins and three stablecoins such as DAI, Tether, and USD Coin (USDC). It also supports seven fiat currencies, including USD, GBP, EUR, AUD, CAD, JPY, and CHF. U.S. residents who have access to Kraken may only trade with 52 coins.

When it comes to trading pairs, both Kraken and Binance offer more than 100 each and support some of the most popular cryptocurrencies – such as Ether, Cardano, Dogecoin, Monero, Litecoin, Bitcoin Cash, and Chainlink (read this – Chainlink staking Binance).

Volume and Traffic Comparison

If we’re basing a decision on which exchange is better by trading volume, Binance has the advantage as the world’s largest crypto exchange in terms of daily trading.

This is due largely to its vast number of coins and tokens available for investment. While Kraken surely has its own reputation as a popular crypto exchange with its trading volume and daily traffic, Binance is by far the bigger fish.

Which Exchange Can Offer More Coins to Trade?

If we’re comparing Binance vs Kraken in terms of trading coins, Binance wins again with its extensive list of supported coins – except for users in the U.S.

In that case, Kraken has the upper hand, with its 52 coins available for U.S. residents, as opposed to Binance’s 47. While Binance has the larger trading volume, Kraken still offers some of the most popular cryptocurrencies and various other coins.

Binance vs Kraken Fees Compared

Both these crypto exchanges employ the maker-taker fee arrangement, offering lower fees than other well-known crypto exchanges like Coinbase. Kraken’s fees are slightly higher than Binance, ranging from 0-0.26%, whereas Binance ranges from 0-0.10%.

Kraken’s fee schedule is simple and easy to understand, while Binance is a little more complicated and differs based on VIP level. Looking at Kraken vs Binance fees, it’s clear Binance is the more preferable option with its lower fee percentage.

With bank account fees, Binance is free outside of the U.S., whereas Kraken’s bank account fees range from $4 to $35. Within the U.S., Binance’s fees go from 3-4.5%. In terms of purchase fees, Kraken has a purchase fee of $5, and Binance’s range from 0.02-0.10%.

Withdrawal fees for Kraken can reach $60, and its futures and margin trading require additional fees. Binance charges 3.5% in withdrawal fees, and the minimum withdrawal amount is $10.

Trading Fees in Kraken and Binance

The Binance exchange token, Binance Coin (BNB), offers users the benefit of saving money when it comes to trading fees. Those with BNB in their account can enjoy a 25% discount when paying fees. In addition, the more BNB a user holds, the more fees decrease. Trading fees with Binance are 0.1%, and sometimes even less.

Kraken, on the other hand, requires 0.26% per trade. Of course, the more a user trades, the lower the fees will be. But in terms of Binance fees vs Kraken, the former comes out on top.

Kraken vs Binance vs Coinbase

Coinbase is another popular crypto exchange that some users prefer based on what it offers, even when considering Kraken vs Binance.

Coinbase is similar to Binance in many ways – both offer similar currencies, allow the trading of digital assets, and provide helpful information to new crypto traders. When considering Binance fees vs Coinbase, Binance still wins with its noticeably lower fee charge. Coinbase charges around 0.50% per transaction, and extra on top of that based on the account used for a transaction.

Coinbase is a great crypto exchange for beginners – it has a simple and appealing design that translates well to its mobile app, and it prioritises the security of its users, just like Kraken and Binance.

Deciding between Kraken fees vs Binance vs Coinbase, Binance once again offers the benefit for its lower trading fees as well as the fees required to fund an account.

Kraken to Binance – How to Transfer Crypto?

Along with the comparison between Kraken vs Binance, it’s also important to mention that it’s possible to transfer crypto between these exchanges. The process of transferring crypto from Kraken to Binance is quite simple.

Before transferring, the address of the withdrawal needs to first be confirmed. From there, these steps should be followed:

1. Click on ‘Funding’ within the Kraken account.
2. Select ‘Show all assets’ or type the asset intended for withdrawal into the search bar and select it.
3. Select ‘Transfer’ for the asset intended to be transferred.
4. Fill in the amount wished for transferring (ensuring it meets the minimum requirements).
5. Select ‘Submit’.
6. The crypto should be transferred successfully from one exchange to the other.

Available Networks for Transfers

Additionally, it’s important to mention which networks are available for transferring between Kraken vs Binance. Networks are essentially the various cryptocurrencies supported by the crypto exchange that are available to transfer between each other.

Kraken has a wide range of crypto networks available for transfers. These include the following:

• Bitcoin (BTC)
• Bitcoin Cash (BCH)
• Cardano (ADA)
• Cosmos (ATOM)
• Dash (DASH)
• Dogecoin (DOGE)
• Ethereum (ETH)
• Ethereum Classic (ETC)
• EOS (EOS)
• Filecoin (FIL)
• ICON (ICX)
• Karura (KAR)
• Kava (KAVA)
• Kusama (KSM)
• Litecoin (LTC)
• Monero (XMR)
• Mina (MINA)
• Nano (NANO)
• Polkadot (DOT)
• QTUM (QTUM)
• Ripple (XRP)
• Shiden (SDN)
• Siacoin (SC)
• Stellar Lumen (XLM)
• Tether (Omni) (USDT)
• Tether (ERC-20) (USDT)
• Tether (TRC-20) (USDT)
• Tezos (XTZ)
• Waves (Waves)
• Zcash (ZEC)

Binance has the following networks available for transfers:

• Binance Chain (BEP2)
• Binance Smart Chain (BSC) (BEP20)
• Bitcoin (BTC)
• Ethereum (ERC20)
• Native Segwit (bech32) (BTC) (SegWit)
• TRON (TRC20)

Binance U.S.

Binance U.S. is another cryptocurrency exchange worth mentioning when looking at Kraken vs Binance. The main difference between Binance and Binance U.S. is that Binance U.S. allows residents of the United States to trade with Binance.

Binance has a longer history of credibility and a stronger reputation, but Binance U.S. has been growing since 2019 and offers users of the exchange a chance to trade with Binance even if they live in the U.S.

Users who wish to complete a Binance to Binance U.S. transfer need only follow these few steps:

1. Log into the Binance account.
2. Select ‘Wallets’.
3. Select ‘Withdraw’.
4. For every coin wished to transfer from Binance, copy and paste the corresponding deposit address from the Binance U.S. wallet.
5. Complete the withdrawal, and the funds should be successfully transferred.

Kraken or Binance – Summary

Deciding on the best crypto exchange is a tough call, as most of them will offer benefits that others do not. It is always a good idea to first figure out what a user is looking for in a crypto exchange and then base their decision on that.

When it comes to deciding between Kraken vs Binance, both these exchanges are reliable and secure, with a wide range of coins to trade. Trading with futures and margin are also available on both.

However, with everything in consideration, Binance is the better option for its larger trading volume and lower fees.

If someone currently resides in the U.S., Kraken is a better choice for its wider range of currencies available for the United States, although it offers fewer coin options for international users than Binance.

Kraken is also possibly a better choice for new crypto investors, as its features and processing are simpler than Binance.

Those who have been in the crypto game for a while may prefer Binance’s more advanced features. All in all, both these crypto exchanges have a lot to offer, but Binance has some strong advantages over Kraken that will influence both experienced and international users.