Binance vs Kraken – Which Crypto Exchange Should I Use?

Binance vs Kraken - Which Crypto Exchange Should I Use?
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The decision to choose between Binance vs. Kraken can be very important for those looking to enter the world of cryptocurrency trading, as both platforms consistently stand out among other cryptocurrency exchanges and offer a plethora of features and benefits.

In this article, we will dive into the similarities and differences between Binance and Kraken to help you make an informed decision on which exchange to use. Whether you are a seasoned trader or just starting out, the insights in this article will provide valuable guidance on choosing the right crypto exchange for your specific needs.

What are the Main Differences Between Binance and Kraken?

Binance and Kraken are two of the most popular and well-known platforms on the crypto market. While both provide similar trading experiences and offer a wide variety of digital assets for trading, there are some key differences between the two.

Kraken, founded in 2011, was one of the first crypto exchanges to provide spot trading, derivatives, index products, and other Bitcoin and crypto investment tools. The California-based exchange has since grown to become the third-largest crypto trading platform by trading volume. The firm now provides a wide variety of products and services, including spot trading, margin trading, futures, indices, staking, OTC, and a non-fungible token (NFT) marketplace.

On the other hand, since its launch in 2017, the Binance exchange has grown to become the world’s largest cryptocurrency exchange by trade volume, with over $24 billion in daily average trading activity. It also offers multiple services, including spot trading, margin, futures, P2P, and staking, among others. The Binance ecosystem currently includes Research Labs, Launchpad, Info, Academy, Trust Wallet, Charity, NFT Marketplace, and more, in addition to the native digital asset exchange.

Which Crypto Exchange Should I Use between Binance and Kraken?

One of the most notable differences between the two crypto giants is the number of tokens available to traders. Over 350 cryptocurrency tokens are already listed for trade on Binance, giving users access to a considerably wider variety of digital assets than just those dominating the market. Kraken, on the other hand, offers fewer trading options than Binance, with roughly 180 cryptocurrencies available.

Moreover, when it comes to user bases, Binance boasts over 90 million customers worldwide, while Kraken serves only over 8 million traders and institutional clients globally.

It should also be emphasized that the Binance exchange is not available in the United States owing to the region’s rigorous regulations, leading the business to set up a separate entity called “Binance US” that allows American users to trade and invest in cryptocurrencies.

Kraken, on the other hand, operates all over the world, including the United States, with the exception of New York and Washington. Nevertheless, not all U.S. citizens may access Kraken Futures. Just recently, Kraken discontinued its staking services for all U.S. citizens after paying a $30 million fine to the Securities and Exchange Commission (SEC).

Which Exchange Charges less commissions: Binance or Kraken

Binance’s charges are exceptionally competitive, with 0% fees on several trading pairs including BTC/USDT, BTC/USD, and BTC/TUSD. These are referred to as “Tier-0 trades,” as the exchange offers a tiered trading system to its users. All other trades, however, come under Tier I or Tier II, with Tier I trades under $10,000, starting with a 0.2% taker and 0.1% maker charge.

Kraken, however, offers a maker-taker fee structure with volume incentives depending on users’ 30-day activity. For instance, the maker will pay a 0.16% charge and the taker a 0.26% fee if they conduct transactions worth $0 to $50,000 within 30 days. Also, if a customer trades between $50,001 and $100,000, the maker will pay 0.14% and the taker will pay 0.24%. The overall cost is often between 0% and 0.26%.

It should also be noted that there are higher charges on the main platform when not using the special Kraken Pro. Kraken Pro charges a maker fee of 0.16% and a taker fee of 0.26% for trades of $50,000 or less over a certain time.

Which exchange is the safest? Binance vs Kraken

Binance has a strong track record of security, having implemented measures like two-factor authentication and cold storage, among others, for user funds. Although the platform suffered a $40 million loss in 2019 from a hack, Binance has become one of the leading security-conscious crypto platforms with multiple practices for safety.

Binance and Kraken - Which Crypto Exchange Should I Use?

Kraken is also known for its security, with no major security breaches ever occurring. The company also asserts that its crypto infrastructure is housed in “secure cages” that are constantly watched over by armed guards, alarm systems, and video monitors.

Ultimately, both exchanges are considered safe, thanks to the range of methods they employ to safeguard users’ funds.

In Which Exchange Will I Earn More per Staking

The interest rate you earn on staking on both cryptocurrency exchanges is determined by the asset being staked. Binance offers over 60 crypto-staking assets, including Bitcoin, Shiba Inu, and stablecoins like USDT. In February 2022, it launched a product called the “High-Yield Center,” allowing users to stake tokens like AXS, SOL, ADA, and CAKE to earn a high APY.

Kraken supports up to 16 crypto assets for staking, including Cardano (ADA), Ethereum (ETH), Polygon (MATIC), and others. Their rewards per year (RPY) on flexible and bonded staking range from 1% to as high as 24%.

Recap: Comparative Table between Binance and Kraken

  Binance Kraken
Foundation date July 2017 September 2013
Country Cayman Islands San Francisco, California.
Fees Zero-fee charges on certain pairs, 0.02% to 0.10% purchase and trading fees, and 3% to 4.5% for debit card purchases. 0% to 0.26% per trade depending on if a person is a taker or maker, a $3 USD deposit, and a $4 USD withdrawal fee.
Nº of Cryptos supported 350+ 180+
P2P Platform? (Y/N) YES NO
Security (features) Cold storage, 2FA (hardware, app-based, SMS, and email methods), wallet whitelisting, biometrics, API access control 2FA (Google and Yubikey), email confirmation, cold storage, 24/7 surveillance, granular API key permission control, SSL encryption, and master key
Derivatives trading? YES YES
Payment Methods (Credit / Debit, PayPal, fiat, etc) Paypal, credit/debit card, bank transfer, P2P trading, 3rd party payment (Banxa and Simplex). Apple Pay, Google Pay, credit/debit card, ACH, wire transfer.
Easy to use (Low /Medium / Hard) Low Medium
Crypto Economy Valuation (xx/100)  95  90


When talking about Binance vs Kraken, there’s no one-size-fits-all answer. Both exchanges have their strengths and weaknesses, and the best choice ultimately depends on your specific needs and preferences. If you’re looking for a user-friendly platform with a wide range of trading options, Binance might be the way to go. On the other hand, if security and regulatory compliance are top priorities, Kraken may be the better choice.


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