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Binance vs Kraken. Which crypto exchange should you use?

Binance and Kraken are two of the world's largest cryptocurrency exchanges. Both provide users with access to resources and tools for a better trading experience. However, what happens when you put them to the test, and which cryptocurrency exchange is the right one for you? Let's analyze them and find out.

Kraken vs Binance: Security

In terms of security, here's what you need to know. Both of the platforms live up to strict standards when it comes to the KYC (Know Your Customer) procedure.

Binance does not disclose any security measures but has stated that only a small portion of the cryptocurrencies are held in hot wallets, while the rest are kept in cold storage - not connected to the internet. 

On the other hand, Kraken has several security measurements that aim to heighten the level of security. To be more specific, they hold 95% of all of the deposits in cold storage, geographically distributed throughout different regions. 

Moreover, Kraken even performs tests on their security measures. They even have a bounty-hunting program, where developers are rewarded for finding bugs and security vulnerabilities. On top of these, Kraken regularly contracts third parties to do proof-of-reserves audits. 

When it comes to security, which should be one of the main concerns of any crypto trader, the winner is Kraken.

Kraken vs Binance: Fees

Fees represent another critical aspect, especially if you are a crypto trader.

When we compare Binance vs Kraken fees, things get a bit interesting. Both of them use the maker-taker fee structure and offer low fees when compared to other platforms. 

To determine which crypto exchange was best, we did a little experiment (in June 2021).

We took 1,000 EUR, used the entire sum to buy BTC (using the cheapest deposit method), then immediately exchanged the Bitcoin for EUR. Lastly, we transferred the money back into our account (using the most inexpensive withdrawal method). 

On Binance, out of the 1.000 EUR, we were left with 988 EUR, which means we lost 1,2% of our capital. With Kraken, our return was 995 EUR, for a loss of 0,5%.

We did this experiment from Europe, but the results could be different if you're from another part of the world. Having a bigger capital also influences the fees, which, in turn, can change the results. 

All in all, when it comes to Binance vs. Kraken fees, there's no real winner. Still, both crypto exchanges have very low fees compared to some of their competitors. 

Kraken vs Binance: Available Cryptos

The number of available cryptos is essential if you're an active trader. 

Kraken gives you access to 70 cryptocurrencies in total, a list last updated in July 2021.

Binance, on the other hand, constantly adds new cryptocurrencies, even weekly at times, so the list is ever-growing. 

As of July 2021, Binance has over 500 cryptocurrencies that you can trade.

The clear winner when it comes to the cryptocurrency variety is Binance. Still, both exchanges give you access to the most popular cryptocurrencies (link to article) available right now. 

Kraken vs Binance: Ease of Use

It is essential to pick a crypto exchange with a shallow learning curve if you're new to trading cryptos. 

When it comes to creating accounts, both Kraken and Binance are easy to use. Navigation is easy, and buying or selling cryptos are simple, straightforward processes. 

Both crypto exchanges give you access to educational material that teaches you everything you need to know about every cryptocurrency. 

Moreover, each of the two crypto platforms has its unique features and enhancements that make them stand out from one another.

Kraken has more guides that teach you individually about each cryptocurrency, while Binance has more guides that teach you about their various technologies and features. Ultimately, as a new user, you are shown a more straightforward graph in each exchange before you unlock the more advanced option. 

Ultimately, this is a tie.

Bottom Line

Both of these cryptocurrency exchange platforms offer their users something unique. If you want to learn about each and every cryptocurrency token individually, invest slowly, take your time, and only invest in a limited selection of trusted and reliable coins, Kraken might be the best option for you.

However, if you want to engage in farming and trade over 500 cryptocurrencies, Binance could be the perfect exchange.

Both of these crypto platforms are quite competitive, and it seems like, while both of them target new traders, Binance is more tailored towards the ones seeking higher-risk investments, while Kraken is playing it safe and fills the role of an introductory exchange for newcomers. 

This doesn't mean that you only have to choose between Kraken or Binance. With our unique calculator, you can easily find which is the best crypto exchange for you. Answer our questions (in only takes a couple of minutes) and see which crypto platform is tailored to your needs.

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