KuCoin vs Binance

Beginner Friendliness

While Binance and KuCoin are useful for advanced traders looking for the lowest possible fee rates, these platforms also have simple interfaces that allow cryptocurrency newcomers to purchase their first Bitcoin or altcoin.

The easier way to get started with either of these platforms if you’re a crypto beginner would be to click the “Buy Crypto” option at the top of the page. This will take you to a special section of each respective website where you are able to purchase some cryptocurrency with a credit or debit card.

On top of the easy-to-understand page where users are able to buy cryptocurrency with a form of payment that they already understand, these platforms also offer different versions of their user interfaces based on the level of experience a user has with cryptocurrency trading. This is spelled out a bit more explicitly on the Binance platform, where users can slowly move to new trading interfaces as they become more familiar with the world of crypto asset trading.

Trust & Security

KuCoin has never faced a serious security incident, which may lead some to claim that it can be viewed as a more secure exchange than Binance. This is due to the fact that Binance has faced multiple security issues, including the theft of user funds, over the years. That said, it should also be considered that Binance is a much more popular platform than KuCoin. For this reason, Binance will face many more attacks on a regular basis than what is seen with KuCoin.

Another factor to consider is KuCoin’s integration with the Arwen protocol. This effectively allows the exchange to operate in a non-custodial manner from the user’s perspective. The Arwen protocol uses technology similar to Bitcoin’s Lightning Network that allows traders to retain custody over their own funds until the point at which they wish to make a trade. This allows traders’ funds to remain secure in a situation where KuCoin’s own wallets are hacked.

One last factor to consider when it comes to the level of trust and security offered by these exchanges is that they operate in somewhat of a legal gray area. Specifically, the ability to transact on these exchanges despite the lack of strong compliance with Know Your Customer and anti-money laundering regulations. Additionally, the actual location of the Binance headquarters is unknown at this time.

Fees

The fee structures found on Binance and KuCoin are almost identical until you get to the rates charged to users who are trading extremely large amounts of money on a monthly basis. The fee rates on both platforms drop as a user’s monthly trading volume increases, and users are also able to gain access to additional discounts if they use the exchange’s own proprietary token.

In the case of KuCoin, traders with more than 15,000 BTC worth of monthly trading volume are able to gain access to negative maker fees. This is an attempt by KuCoin to incentivize large token holders to bring liquidity to the platform.

Sign-Up Process

The sign-up processes found on both of these platforms are also rather similar. Indeed, both exchanges will allow users to gain access to a limited amount of trading without offering up much personal information about themselves.

Both websites offer the same account limits on unverified users, which is a 2 BTC per day withdrawal limit. Users are able to massively increase this limitation by sharing personal data, such as a copy of their government-issued ID, with their exchange platform of choice.

For both Binance and KuCoin, a new user just needs to share their email address and create a password in order to create a new account.

Available Cryptocurrencies

Binance and KuCoin are two of the best possible exchanges to use if you’re someone who likes to trade a variety of different altcoins. Both platforms have more than 150 different altcoins available for trade; however, Binance has a couple dozen more altcoins on its platform than what is found on KuCoin.

Stand Out Features

The ability to trade on these exchanges without sharing much personal information is definitely a stand out feature for both platforms. Not many platforms will allow users to trade at the levels available on Binance and KuCoin without offering anything more than an email address in terms of the users’ identities.

The level of liquidity available on Binance also cannot be overlooked. As the most popular exchange in the world, users can be sure that they’ll be able to liquidate their crypto assets. That said, users should always check for trading pairs, trading volume, and liquidity of the specific coin they wish to trade on various platforms before picking an exchange.

Lastly, KuCoin’s use of the Arwen protocol should grab any trader’s attention. The ability to hold onto the custody of crypto assets while they can also be bought or sold in a matter of seconds is an extremely novel feature from a security perspective that cannot be overlooked.

Conclusion

As mentioned previously, the best way to choose between Binance and KuCoin may be to check the trading volume of the specific coin you wish to trade before signing up for an account on either platform. Then again, it may make sense to create accounts on both platforms if you are someone who likes to trade a wide variety of altcoins.

If you’re just looking to trade some of the largest crypto assets, such as Bitcoin and Ether, then Binance is going to be the better option due to the high liquidity found on the platform.

However, if you’re someone who takes the security of your crypto asset holdings extremely seriously, then you may want to take a closer look at the availability of the Arwen protocol on KuCoin. The feature allows you to trade on the platform without handing over your private keys to a third party, which means your funds will remain safe if KuCoin’s security protocol is ever breached.

To learn more check out our other comparisons:

• Bitfinex vs Kraken
• Bitbuy vs Coinbase