Crypto has become a really hot topic these days ever since various coins started their remarkable ascendance and turned into some of the most valuable commodities that anyone could potentially invest in. Trying to invest in crypto will first involve looking for a crypto exchange platform since this is the digital space where you can buy and sell various cryptocurrencies. Whether your investment philosophy involves aggressive buying and selling or holding for extended periods of time, you will undoubtedly need to find the right exchange and there are a number of factors that are taken into account for this sort of thing.
Two of the most prominent exchanges that are currently out there are Binance and Kraken, both of which have received widespread acclaim from traders and investors. However, a case can be made for each of them due to their specific advantages and disadvantages. Essentially, you can benefit from each of these platforms so long as you have a specific trading philosophy in mind. Different people can get different benefits from both Binance and Kraken, and we are going to review both of them to determine which one might be suitable for you. We will be comparing these two platforms based on five different criteria, namely Security, User Friendliness, Cost, Coin Support and Popularity.
Binance — 8/10
Kraken — 10/10
Now, since these exchanges are viewed so positively among traders and investors, one can assume that they are both reasonably safe to use. Still, we are going to delve into the nitty-gritty of their security features so that you can obtain a better understanding of what makes them so worthwhile. A basic aspect of online security these days is two factor authentication, and both Binance and Kraken manage to offer this to help keep users safe.
Kraken manages to edge ahead of Binance in this department though thanks to how it stores user coins. Basically the lion’s share of Kraken’s user assets, 95% to be precise, is kept in cold storage units where they are pretty much as safe as can be. The fact that users can depend on such top notch security is definitely going to be a huge factor, and although Binance provides an admirable level of security as well, the cold storage units are an added touch that make Kraken a bit more advantageous in this regard. Hence, Kraken gets a slightly higher score in this category.
Binance — 6/10
Kraken — 8/10
By user friendliness we essentially mean the ease with which a user can take part in their day to day trading in any given platform. Binance tends to lag behind in this particular category due to its emphasis on versatility. Essentially, Binance wants to give users multiple options that can allow them to choose the layout that they prefer. One of their layouts is actually pretty intuitive; the problem is that most beginners wouldn’t really know how to implement this easier layout which is why Binance loses a few points here.
Now as for Kraken, this platform clearly placed a lot of importance in simplifying its interface for beginners. First time traders will have no trouble getting started if they were to use Kraken, whereas with Binance they would likely need to take a while before they can make sense of things. That said, experienced traders might like Binance’s variety of layouts but we are judging user friendliness here and Kraken’s intuitive default layout justifies it getting more points despite its relative lack of customization options.
Binance — 9/10
Kraken — 6/10
The fees that a particular platform might charge will likely play a huge role in your decision making process, so we are going to dive right in here. Kraken actually lags behind Binance in this regard with their higher pricing although it still tends to be rather reasonable if you think about it. Kraken charges 0.26% of any trade that you make, and it limits your daily trades to about $100,000 which a lot of high volume traders might take issue with. What’s more is that if you want to make a withdrawal, you would have to pay charges of up to $60, which is actually quite reasonable so we won’t be deducting further points for that.
Binance, on the other hand, actually gives users a pretty great experience in terms of fees and the like. Their maximum charge for a trade is 0.1%, and that is for a pretty high volume so you’d usually pay a lot less than that. They charge 3.5% of your withdrawal though which is why the platform doesn’t get a perfect score, although the fact that there is no daily trading limit means that a score of at least 9 is more than justified.
Binance — 9/10
Kraken — 7/10
Here once again a dichotomy can be made between platforms that are meant for beginners and platforms that are geared more towards experienced traders. First we are going to explain what we mean by this category. Basically, a trading platform will have a set number of coins that you can purchase or sell. Kraken offers an admirable 55 different types of coins which is perfect for the fledgling investor who might want to consider limited investments so that they can gain a bit of experience before branching out into somewhat esoteric options. Basically, with Kraken you get all of the mainstream coins that are out there, but your options would be rather limited.
That said, if you are an investor with experience who knows what to look for, you might be better off going for Binance thanks to their 302 different coins. Beginner traders wouldn’t really need this many options but if you want something that you have heard about here and there and want a piece of it Binance will likely be the best option for you in this regard.
Binance — 8/10
Kraken — 7/10
The amount of popularity that a particular exchange has obtained might be an odd metric to consider, but it definitely has an impact in the kind of trading you can take part in. After all, an exchange that does not have that many users will be quite dead despite market activity, so you should prefer an exchange that has a larger number of users.
Binance surpasses Kraken quite soundly here, with its 13.5 million users as compared to the latter’s 4 million. If you’re wondering why we didn’t give it an even better score considering it has three times as many users, this is because there is a limit to the advantages of platform popularity after which the added value starts to decline. Basically Kraken has enough users to create a lively and profitable market, and Binance has just enough more to make it a somewhat more exciting place. However, there isn’t as much functional difference between 4 million users and 13.5 million users as you might initially think.
Binance — 8/10
Kraken — 7.6/10
As you can see from our analysis above, both platforms can give you the chance to start investing in cryptocurrencies. Users that are just starting out would prefer Kraken due to its straightforward layout, but the added costs and limited coin support might make some lean towards Binance. Still, we feel like Kraken’s superior security justifies the added costs to a certain extent, and most new traders are not all that interested in lesser known altcoins anyway.
It all depends on what you want from your crypto experience. The minor differences in score should dissuade you from using either of their platforms. Try to closely analyze what we have mentioned above and make sure that you make a decision based on your own research!