Kraken vs Binance: Do You Want Stellar Security or Unmatched Choice?

Trading Features

Binance supports staking and OTC trading in the US and margin, options, and futures trading in other locations. Kraken provides OTC trading, staking, spot trading, and limited margin trading. Just note, futures trading is only available outside the US.

Kraken and Binance are highly liquid exchanges. With such a high volume of daily trading, Binance is arguably the most liquid platform in cryptocurrency. 

Beginner Friendliness

We’ll concede that Kraken and Binance have some way to go in terms of their user-friendliness. Binance targets more experienced traders, offering the full spectrum of Web3 functions, including NFT auctions. Kraken’s solution is easier to navigate than Binance’s, although it lacks the former’s one-stop purchase feature.

As for mobile functionality, two different apps for each exchange could provide a potential hurdle at the outset. These are Kraken and Kraken Pro and Binance and Binance.us. Kraken makes hard work of finding its regular app, only signposting the way to Kraken Pro on its website. User reviews note that Binance’s mobile app is easier to use than its web platform but the US version is unstable.

Trust & Security

As mentioned earlier, Kraken has the enviable trait of avoiding hacks for over a decade. It has endured Distributed Denial of Service (DDoS) attacks, but these are a risk for any company with a presence online, including Binance. Security problems at Binance drew the interest of the US Justice Department and the IRS in 2019.

Binance’s refusal to reveal the location of its headquarters ended in 2024 when it reached “regulatory maturity” and established itself in George Town, Malta. It has previously operated out of China and Japan. This apparent need for secrecy and the lack of clear information about Binance’s security measures may concern some users.

Kraken’s HQ is in San Francisco. The platform has a bank license in the US, regulated by the Wyoming Division of Banking. It also comes under the remit of the UK’s Financial Conduct Authority.

Fees

Kraken and Binance use the maker/taker model. This fee structure grants lower fees to those who provide liquidity (makers) and higher fees to those who take it away (takers). Maker fees at Kraken range from 0.25% for a 30-day volume of US$0-10,000 to 0.00% for a volume of US$10m+. Taker fees start at 0.40%, climbing to 0.10% over the same price structure.

Binance grades its users by VIP level and how much BNB they have. A balance of 0BNB (or less than $US1m) grants maker/taker fees of 0.1%/0.1%. The minimum is 0.0110%/0.0230% at 5,500BNB or more than US$4bn. A discount is available when operating exclusively in BNB, potentially bringing fees down to 0.0083%/0.0173%.

Kraken vs Binance, Binance is better for low-volume users, while Kraken has more to offer for those willing to provide the extra liquidity.

Sign-up Process

Binance users can sign up via desktop or the app. You’ll need to complete KYC checks. Binance.us requires a social security number. Functionality varies by degree of verification. For instance, to get higher withdrawal limits and OTC trading, you’ll need an official ID, such as a passport, and complete facial verification via Binance’s system.

Getting started on Kraken begins in the traditional way, i.e., with a username, password, and confirmation email. Verify your identity with your mailing address, job, social security number, and at least one document from a passport, driver’s license, or ID card.

Available Cryptocurrencies

Among the 240+ cryptocurrencies available on Kraken, for exchange and trading purposes, are Bitcoin, Bitcoin Cash, Cardano, Dash, Ethereum, Litecoin, Tether, Polkadot, and Ripple. Binance casts a much larger net than Kraken, which can make the selection seem a bit random. It supports the same big, “celebrity” coins as Kraken and 500+ others.

Of course, plenty of meme and gaming tokens occupy Kraken and Binance lists, including Dogecoin, Decentraland, Axie Infinity, and various football/soccer-related coins. We’ve found that Kraken and Binance are vigilant to industry changes and remove problematic cryptocurrencies from their exchanges.

Standout Features

One of Binance‘s major drawbacks vs. Kraken was a lack of support for fiat currencies, but it’s now possible to buy hundreds of cryptocurrencies (USD, CAD, GBP, etc.) with a traditional bank card. So, if you want to buy the Jupiter coin with Zambian Kwacha, that’s easy to do. Binance’s versatility when it comes to trading pairs is unmatched.

Kraken offers its users a fortress against intrusion. It has an extensive guide to securing every part of digital life in its help section. With friendly fees, Kraken is a potential ally for high-volume traders.

Conclusion

These two exchanges no longer seem as similar as they did when we started this Kraken vs Binance comparison. Binance offers more of a “playground” for investors who like their altcoins compared to Kraken, which gatekeeps the number and type of coins ending on its exchange.

The major gulf between Binance and Kraken is security, with the former experiencing a difficult few years. Posting the location of its HQ doesn’t seem like a decision made voluntarily. Its massive user base does grant it credibility in this area, however.

Binance is notable online for its slow response time to customer queries, which seems to bedevil Kraken too. Let’s face it, neither of these exchanges was made with beginners in mind.