Along with Coinbase, Kraken and Binance are what I consider to be “elite crypto exchanges.”
These spot exchanges have been around for years, and it’s doubtful they’ll go away anytime soon.
Why? Well, in Binance’s case, it’s so dang big!
Whether you look at CoinGecko or CoinMarketCap, Binance is always the largest spot exchange.
Fun fact: Binance is so big that it owns CoinMarketCap!
Let that sink in for a second.
While Kraken isn’t as large as Binance, it’s one of the OGs in the crypto industry.
Get this: Kraken was founded in 2011.
That’s just a few years after Bitcoin was created.
Plus, the Kraken team is gearing up for an IPO in 2022.
No question, both of these exchanges have a lot to offer their millions of crypto customers.
But which one is better?
If you’re torn between signing up for Kraken vs. Binance, you’ve got to check out the points below.
In this post, I’ll reveal the good and the not so good of using Kraken vs. Binance.
Kraken vs. Binance — Which Crypto Exchange Reigns Supreme?
Availability In The USA
Before you dig too deep into a crypto exchange, you have to verify it’s legit in your state.
What’s the point in researching a platform that you can’t use, right?
In terms of availability, Kraken is the clear winner…at least in North America.
Except for New York and Washington State, Kraken is legal for US citizens to use.
By contrast, Americans can’t legally access Binance’s main trading platform. Instead, US citizens have to settle for Binance’s partner exchange Binance.US.
Many of the features on Binance.US are similar to the original Binance. However, there aren’t as many coin offerings on Binance.US.
Plus, more US states don’t allow Binance.US vs. Kraken.
OK, it’s obvious Kraken is the better choice in North America, but what about internationally?
As far as I can see, Kraken and Binance offer trading in many foreign locales.
Unfortunately, I can’t list every single territory in one blog post. However, you can find a list of supported countries on Kraken and Binance’s websites.
Since Kraken is more easily accessible in the USA, I’ve got to give them the edge in this category.
Sure, Binance.US offers some US customers crypto trading, but it’s not the “authentic” Binance experience.
If you’re outside the USA, you’ll find that Binance and Kraken have similar availability. Just double-check your country’s status on each of these exchanges’ websites.
Winner: Kraken
Ease Of Set-Up
There aren’t huge differences between setting up accounts on Binance or Kraken.
Both of these exchanges require standard KYC info to access their platforms.
In addition to your email and full name, Binance and Kraken need to know your phone number, date of birth, and physical address.
While you could technically get an account with just this info, you’ll be limited in what you could buy, sell, and transfer.
For more advanced features, you’ll have to fork over some photo ID like a driver’s license or a passport.
You may also need to provide a selfie and proof of residence, especially if you want advanced trading features.
Some may argue KYC is an invasion of privacy, but it’s the only way centralized exchanges could stay compliant.
As long as you aren’t opposed to a KYC screening, setting up a Binance or Kraken account isn’t difficult. Just be sure you’re on the authentic website before hitting “Sign Up.”
You could click this link to set up a Binance account today.
Alternatively, follow this link to get a Kraken account.
Oh yeah, please don’t forget to download a 2FA app like Authy or Google Authenticator before signing up for Binance or Kraken.
These apps generate random codes you must use whenever trading or transferring crypto.
While it may be annoying to input these codes, 2FA is an essential safety feature.
Winner: Draw
Security
You can’t become a successful crypto exchange without top-notch security.
Since Kraken and Binance have millions of users, it’s no surprise they have sterling security standards.
Both of these exchanges store their crypto offline in cold storage wallets.
Kraken goes so far as to employ armed guards and 24/7 surveillance to protect its servers.
Oh yeah, Kraken also encloses their crypto wallets in cages.
Now that’s intense!
To help ward off hackers, the Kraken team uses “preparation testing” to test its resilience to hacking.
This strategy seems to have worked out, because Kraken has yet to suffer a major hack.
The main reason Kraken is so paranoid about security has to do with its founder Jesse Powell.
Before founding Kraken, Powell traded crypto on an exchange called Mt. Gox.
The reason you don’t see Mt. Gox today is that it suffered a severe hack.
Inspired by this traumatic experience, Powell created Kraken to address the security flaws in the early crypto industry.
When compared with Kraken, Binance’s security record may not seem as impressive.
For starters, Binance was created in 2017, so it has a shorter track record versus Kraken.
Infamously, hackers successfully stole 2 percent of Binance’s Bitcoin holdings in 2019.
Also, there are still questions surrounding Binance’s exact headquarters.
Despite all this bad press, you must remember that Binance is the largest crypto exchange on earth.
When you’re the big dog, you’re going to attract more attention.
Plus, Binance reserves ten percent of its trading fees in a Secure Asset Fund for Users (SAFU). In fact, Binance used its SAFU to reimburse everyone who was affected by the 2019 hack.
Binance offers all the same safety features Kraken users enjoy, including 2FA and anti-phishing codes.
When it comes to safety, it’s hard to pick a winner when comparing Kraken vs. Binance.
Sure, Kraken wasn’t hacked thus far, but Binance is way bigger. Plus, as Binance’s response to the 2019 hack revealed, it has its clients’ backs.
So, I think I’m going to call this category a draw.
Just remember that it’s always riskier to keep your crypto on a centralized exchange.
Unless you’re an active trader, I strongly recommend sending your crypto to a trusted external wallet.
If you don’t already have a crypto wallet, consider downloading the highly-reviewed Trust Wallet on this link.
Winner: Draw
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Ease Of Use
If you’re a novice to crypto trading, using Binance can be stress-inducing.
While pro traders love all the features Binance’s interface offers, it wasn’t designed with beginners in mind.
Kraken may not be as user-friendly as Coinbase, but I’d argue it’s simpler than Binance.
Also, as you browse Kraken’s website, you’ll notice this site places a heavy emphasis on crypto education.
The Kraken team works hard to produce top-notch content on all the coins they offer.
Even if you’re not going to use Kraken, I’d recommend checking out their info portal for straightforward crypto guides.
While Binance has a “beginner trading function” and an educational blog, its interface is geared towards intermediate to advanced traders.
If you’re new to crypto, you’ll have an easier time navigating Kraken’s intuitive trading options.
Winner: Kraken.
Access To Cryptocurrencies
As the world’s largest crypto exchange, Binance offers the most cryptocurrencies.
Recent estimates suggest Binance has at least 500 coins and tokens on its platform.
However, please remember that Binance.US doesn’t offer all of these cryptos. Instead, Binance.US users will have to settle for about 60 major coins.
When compared with Binance.US, Kraken has a similar crypto portfolio of about 80 coins.
Whether you use Binance.US or Kraken, you’ll have access to most big-cap coins, including:
While Kraken’s coin selection is probably enough for average investors, it’s not the best option for altcoin enthusiasts.
Also, please remember the Binance Smart Chain offers countless niche coins on Pancake Swap.
No question, a Binance account gives users access to way more small-cap cryptos.
Anyone who loves investing in speculative altcoins will feel limited by Kraken’s coin catalog.
Winner: Binance
Customer Service
One of my biggest pet peeves with spot crypto exchanges is the lack of quality customer support.
I’ve waited for weeks to get a response from some exchanges.
Cough, KuCoin, cough!
However, it appears Kraken has one of the best customer service departments in crypto.
Not only could you call Kraken directly, they also have a 24/7 live chat feature.
Even YouTube’s Coin Bureau can’t stop praising Kraken’s customer care division.
While Binance offers email customer support, my experience has been subpar.
As I wrote in my “KuCoin vs. Binance” post, I waited about 72 hours to hear back from a Binance employee.
While that wasn’t as bad as KuCoin, it’s still unacceptable for the world’s largest crypto exchange.
Hopefully, Binance will increase its customer service staff as it continues to grow.
In the meantime, I’ve got to give this category to Kraken.
Winner: Kraken
Trading Fees
Along with customer service, fees can be a real bummer on major crypto exchanges.
However, when comparing these two exchanges, it’s clear Binance has more ways for users to save.
Even without special discounts, Binance offers a flat 0.1 percent spot trading fee.
According to Kraken’s website, there’s now a 0.9 percent fee on spot trading for stable coins and a 1.5 percent fee on crypto or FX pairs.
If you upgrade to Kraken’s Pro trading platform, the fees are better—but still not as good as Binance.
Currently, Kraken Pro’s taker fees are 0.16 percent, and maker fees are 0.26 percent for purchases under $50,000.
To be fair, Kraken Pro’s fee structure is on a graded scale. So, as your total deposit increases, the fees decrease.
However, you need to trade over $250,001 for maker fees to reach 0.1 percent!
So, unless you’re a Bitcoin whale, Binance has a better fee structure.
Also, don’t forget that Binance offers users some hefty discounts for trading and holding Binance Coin (aka BNB).
People who use BNB will enjoy a sweet 25 percent cut in trading fees.
So, if your main goal is to avoid hefty fees, Binance is the cheaper option.
Winner: Binance
Passive Income
If you’re going to hold crypto long-term, you might as well earn some interest while waiting.
Luckily for you, Binance and Kraken offer ways to stake select cryptocurrencies.
Of course, since Binance has more cryptos than Kraken, it offers more opportunities to earn passive income.
However, Kraken also offers modest yields on fiat currencies like the Euro and USD.
So, if you’re sitting in cash on Kraken, you could earn a little interest before you make your big move.
Just know that you’ll need to “lock” certain cryptos on Binance to receive staking rewards.
This means you won’t be able to touch these cryptos within the agreed timeframe.
In the meantime, you will receive interest in whichever token you’re staking.
There are also a few flexible options on Binance that allow you to withdraw staked funds whenever you want to.
On Kraken, you can unstake your coins from the “Earn” feature at any time. However, since every blockchain works differently, you may not have access to those funds immediately.
Oh yeah, and don’t forget that Binance has many other ways to earn passive income on its Trust Wallet app and the Binance Smart Chain.
While Kraken has a solid Earn feature for those interested in staking, Binance’s larger size offers more staking options.
Therefore, I’ve got to award this category to Binance.
Winner: Binance
Pros & Cons Of Kraken vs. Binance
Kraken Pros
- Exceptional cold storage security standards.
- Highly rated customer support with 24/7 live chat.
- Easy for US citizens to use.
- Beginner-friendly user interface.
Kraken Cons
- Higher trading fees versus Binance.
- Not a massive selection of altcoins.
- No FDIC protection like Coinbase.
Binance Pros
- Lower transaction fees.
- Huge selection of alt coins.
- Integration with Binance Smart Chain and Trust Wallet.
- SAFU Fund for reimbursement.
Binance Cons
- Only Binance.US version available in the USA.
- Slow customer service.
- Intimidating user interface.
- Suffered a severe hack in 2019.
Kraken vs. Binance — Which Crypto Exchange Should You Choose?
Although my go-to exchange is Coinbase, I’d probably prefer using Kraken over Binance.
A large part of this has to do with ease of access.
Since I’m in the USA, it’s simpler to create an account with Kraken.
Also, I’m impressed with Kraken’s fantastic safety record, customer service offerings, and easy-to-navigate layout.
For beginner crypto investors in the USA, Kraken will be a more enjoyable and straightforward exchange to work with.
However, I understand you will have to pay more fees to use Kraken vs. Binance.
Also, although Binance.US doesn’t have all the coins on standard Binance, it’s still a well-respected subsidiary.
If you don’t mind the extra learning curve to trade on Binance’s complex screens, then Binance.US could save you money down the line.
It all depends on where you are and what you want out of a crypto exchange.
If you’re just going to invest in big-cap cryptos, Kraken is way easier to use in the USA.
However, advanced traders who want to save fees—or who love using the Binance Smart Chain—may get more out of Binance.US.
Both of these exchanges are fantastic options, but I feel most crypto investors will prefer using Kraken.
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