| Fees | Kraken | Binance |
|---|---|---|
| Bank account | $4 to $35 | Free outside of the U.S. |
| Wallet | N/A | N/A |
| Debit/credit cards | 3.75% + €0.25 | 3% to 4.5% |
| ACH transfer | 1.7% + $0.10 | Free |
| Wire transfer | Free to $10 deposit, $4 to $35 withdrawal | $15 for U.S. customers |
| Crypto conversion | 0.09% to 0.015% | N/A |
| Purchases | $5 | 0.02% to 0.10% |
| Trades | 0% to 0.05% maker-taker fees based on rolling 30-day volume | 0% to 0.1% maker-taker fees based on rolling 30-day volume and BNB holdings |
| Other fees | None | 0.50% instant buy and sell fee |
Kraken vs. Binance: Ease of Use
The sign-up process is similar for both exchanges, with U.S. investors required to follow strict verification methods. However, Binance reports that advanced verification (L2) can take up to 15 days and many users say it’s taking much longer. In comparison, Kraken provides clear timelines for various levels, all of which take minutes, not days, except for 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 easier to navigate. It’s also simpler to search for and access help articles on Kraken. But, of course, if you’re new to investing, the charting options on both platforms can feel overwhelming.
Kraken vs. Binance: Mobile App
Binance offers a mobile app for its main site and another for U.S. residents. Similar to its web-based platforms, beginners may have a hard time navigating the app at first. But, overall, the user interface (UI) is pretty clean and user-friendly. Yet, the Binance.US app is still somewhat buggy, resulting in difficulties logging into the app. The UI for Binance.US is also less intuitive than the main site’s application.
Kraken provides two mobile apps, Kraken and Kraken Pro. Both are highly rated by iOS and Android users and allow functionality similar to the web-based exchange. However, unlike Binance, Kraken responds to nearly all reviews or suggestions about their mobile apps and continually improves the user interface and user experience.
Kraken vs. Binance: Access
Kraken is available to all U.S. residents, except those living in Washington and New York. On Kraken, U.S. residents can’t trade Ripple’s XRP and can’t hold, deposit, or trade the following cryptocurrencies:
- Ankr (ANKR)
- Bancor (BNT)
- Enjin Coin (ENJ)
- Energy Web Token (EWT)
- Flow (FLOW)
- Aavegotchi (GHST)
- Graph (GRT)
- Livepeer (LPT)
- Matic Network (MATIC)
- Mina Protocol (MINA)
- Maker (MKR)
- Rarible (RARI)
- Ren (REN)
- Sandbox (SAND)
- SushiSwap (SUSHI)
- 0x (ZRX)
While U.S. residents can’t buy ENJ, MATIC, MKR, or ZRX on Kraken, it’s allowed on Binance. Currently, residents of 43 states can use Binance.US. Those living in the following states can’t use the platform:
- Connecticut
- Hawaii
- Idaho
- Louisiana
- New York
- Texas
- Vermont
However, the biggest differences in access stem from the exchanges themselves. The Binance platform doesn’t meet U.S. regulations which led Binance to ban all U.S. residents from using it. The Binance.US platform offers far fewer features than the main website. In contrast, anyone can use the Kraken exchange; although U.S. users have fewer options than international customers, the differences aren’t as noticeable.
Final Verdict
Both crypto exchanges offer advanced trading options, low fees, and educational resources. International users appreciate the vast amount of cryptocurrencies available with Binance. But, U.S. residents will be less impressed with fewer choices. Kraken offers more transparency, prioritizes security, and provides a decent amount of currencies for U.S. users, although far fewer coins than Binance for international users.
Frequently Asked Questions
What Are Kraken and Binance?
Kraken and Binance are crypto exchange platforms where investors can buy, sell, and exchange cryptocurrencies, stablecoins, and tokens. International users can partake in futures trading or margin trading on both platforms, whereas U.S. residents can perform various other transaction types. However, Kraken supports margin trading for U.S. users, as well.
Both platforms offer advanced features, perfect for active investors wanting to watch the market and track their investments over time. Kraken and Binance also support staking, where users earn rewards for holding onto various assets.
Are Kraken and Binance Trustworthy?
Kraken is a trustworthy exchange that’s safe to use. The company prioritizes security, highlights security measures on its website, and is the “first digital asset company in U.S. history to receive a bank charter recognized under federal and state law.” Moreover, it’s been around since 2013 and hasn’t been hacked.
The Binance.US site adheres to all U.S. regulations, but Binance has a somewhat troubling past. It moved its headquarters many times to areas with favorable regulations. Then, instead of tightening its security levels to meet U.S. standards, it forced U.S. residents to use a different, less robust platform. However, Binance has millions of users although it was hacked in 2019.
How Do Kraken and Binance Work?
Both Kraken and Binance provide quick verification methods with entry-level tiers, but the lowest levels may not offer many trading or funding options, depending on your location. Like other exchanges, U.S. residents will need to follow the verification process to trade. Once you’re verified, it’s fairly easy to send money via wire transfer to fund your account and start trading.
Kraken and Binance offer many transaction types, and users unfamiliar with investing may benefit from learning about the kinds of transactions before attempting to complete them. In addition, to get the most from the platforms, it’s good to learn how to use the charts. And for Kraken users, the Cryptowatch terminal is an additional perk to track your currencies invested across multiple exchanges.
Who Should Use Kraken and Binance?
People with no experience with cryptocurrency and investing terminology will face a learning curve on both platforms. But, Kraken offers a good-sized knowledge base with crypto guides and videos. They’re also more responsive to customer service inquiries than Binance.
The Binance user interface is more busy-looking than Kraken, and the Binance.US platform lacks guidance about investing for beginners. They’re also less transparent about fees and security, so beginners may want to start with a simpler platform with fewer options, such as Coinbase.
Methodology
Kraken and Binance are alike in many ways, yet differences exist. First, we evaluated both platforms by looking at the features offered on the website and mobile apps, such as self-help information, advanced charting, and ways to earn crypto. Next, we compared supported fiat and cryptocurrencies available to U.S. and international users. Lastly, we explored each exchange’s approach to security and the overall costs associated with using the platforms.