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KRAKEN

• Costs range from 0 0.5% to 0.26 Per trade, 3.75% + EUR0.25 for purchases with credit cards and 0.5 percent for online processing of banking
• Currencies: About 70
• Security 2FA Email confirmation of withdrawal Cold storage with air-gapped protection and strict surveillance. API key permission control SSL encryption
• Wallet: N/A
• Transactions that are supported: Buy, sell, send to, receive, exchange Margin trading, limitation orders market orders, limit stop market order for stop-loss futures trading market order, take profit and many more.
• Max. Daily Trading Amount: $100,000
• Mobile App: iOS and Android

Pros

• A new and less time-consuming verification process.

• 95 percent of assets are kept in cold storage

• Accessible to users of the 48 U.S. states

Cons

• U.S. users can't deposit or withdraw money via ACH

• For beginners, it is possible to experience a steep learning curve

• There is no hot wallet that can be used as a standalone unit.

BINANCE

• Charges 0.02 0.2% to 0.10 Trade and purchase charges of 1 of 3.5% to 4.5 percent on debit card purchases. Free SEPA Single Euro Payments Area (SEPA) Transfer up to $15 for each U.S. wire transfer
• Currencies: Over 500
• Security 2FA Verification, USD-insured by FDIC, management of devices address allowlisting Cold storage
• Wallet: N/A
• Transactions Supported: Limit order, market order, stop-limit order, trailing stop order, post only order, peer-to-peer trading, margin trading, one-cancels-the-other order, and more
• Max. Daily Trading Limits The limits differ depending on the currency purchased
• Mobile App: iOS and Android

Pros

• Trade fees that are low

• Accepts deposits made via ACH and debit cards

• A wide variety of coins

Cons

• There is less transparency regarding security measures

• The interface for users can be overwhelming to beginners.

• There are fewer options available to U.S. residents

Kraken vs. Binance: Features

Contrary to platforms such as Coinbase, Kraken and Binance offer those with a basic understanding of trading. They have advanced trading features that allow investors to place markets orders and stake crypto and perform a variety of other kinds of transactions. However, certain types of transactions like margin trading, don't work to U.S. users on Binance however, they are available on Kraken.

Additionally, there are major distinctions in Binance and the Binance and Binance.US websites. For instance, U.S. residents won't discover information on their Binance Visa Card or offer a rewards centre to earn crypto, or visit an overview of the Binance Academy at the Binance.US website. In contrast, Binance.US has been reduced to a website with a FAQ knowledge base as well as a crypto exchange. Both sites have advanced charting features similar to Kraken.

Comparatively, Kraken is a U.S.-based exchange that lets investors from both international as well as U.S. investors use the same platform. With global users able to access different types of transactions and currencies however, the platform is less restricted than Binance. Kraken provides the Kraken Terminal that has advanced charting capabilities for Kraken markets as well as a robust "Learn" section with videos instructional videos, tutorials, as well as podcasts.

Furthermore, Kraken offers a standalone platform named Cryptowatch. It's a top trading platform that provides real-time information and charts on more than 8,000 cryptocurrency markets.

Kraken vs. Binance: Currencies

Kraken provides 69 coins which include 3 stabilized coins : USD Coin (USDC), DAI (DAI) as well as Tether (USDT). It is accepted by seven fiat currencies, which include USD, EUR, CAD GBP, AUD JPY, and CHF. U.S. investors are limited to 52 coins.

Binance offers over 500 currencies that are available to international users and various stablecoins, including DAI Tether, DAI along with the Binance USD (BUSD). It also accepts 19 fiat currencies, which include USD as well as AUD, HKD EUR, GBP and INR. The only limitation is that U.S. residents are restricted only to only 47 altcoins and USD is the only fiat currency.

In addition, both exchanges have over 100 trading pairs and can support the most popular cryptocurrency including Ether (ETH), Cardano (ADA), Litecoin (LTC), Chainlink (LINK), Bitcoin Cash (BCH), Dogecoin (DOGE), and Monero (XMR). However there is only one exchange, Kraken. Kraken provides U.S. residents Polkadot (DOT).

Kraken vs. Binance: Security

Although both platforms comply with stringent U.S. standards for the know your customer ( KYC ) rule however, they approach security different. For example, Binance doesn't dedicate any space to revealing details about the security measures it has in place. The company states in one of its articles that "Binance only holds a small percentage of coins in its hot wallets," with the remainder stored in Cold stores. 3

However, Kraken stands out for its security measures, and is aiming to enhance security for the entire industry overall. Kraken holds 95percent of the deposits in air-gapped and geographically dispersed cold storage. Additionally, they conduct penetration testing, administer bugs bounty programs and go through a proof-of-reserves audit that is conducted by a third-party.

Additionally, remember that Kraken is operational since 2013 and hasn't yet been attacked. However, Kraken as well as Binance have both been subject to distributed denial of service (DDoS) attacks throughout the time.

However, Binance suffered a large-scale security breach in 2019 which led to the theft of more than $40 million in Bitcoin . 4 Recently Binance was notified that the Justice Department and the Internal Revenue service have announced that they are conducting an investigation into Binance for a shady business as reported by Bloomberg. 5 The news outlet also reported that a blockchain-based forensics company stated that "more funds tied to criminal activity flowed through Binance than any other crypto exchange." 5

While both platforms provide the two-factor authentication (2FA) as well as other typical safety measures Kraken distinguishes itself by its dedication to safety and transparency for the cryptocurrency market.

Kraken vs. Binance: Fees

Kraken as well as Binance both utilize Binance and Kraken both use the maker-taker fee structure, which allows less expensive fees than well-known platforms, such as Coinbase. On first glance, it's evident that the Kraken fees are greater than Binance as maker-taker costs between 0% and 0.26 percent, while Binance's fees range from zero to 0.10 percent.

A new trader who has a low volume of trading would have to pay an initial fee of 0.16 percent or a taking fee of 0.26 percent on Kraken. A similar investor would have to be charged a maker's fee, or a taking fee of 0.10 percent on Binance. In contrast, Binance offers a 25 percent discount on fees when you utilize Binance Coin (BNB) for charges, and having more BNB will also lower your charges.

However Kraken's fee schedule is easy to comprehend and understand while Binance is more complicated and is based on VIP level. It is important to note that the costs for Kraken Pro may be different than the ones listed below, so be sure to verify your Kraken fees plan directly.

Kraken vs. Binance: Ease of Use

The process of signing up is the same on both exchanges, with U.S. investors required to adhere to strict verification procedures. The difference is that Binance claims that its advanced verification (L2) could last up to 15 working days. However, numerous users have reported that it takes much longer. Contrary to Binance, Kraken provides clear timelines for different levels. All are in minutes and not days, with the exception of Pro levels, which can be as long as five days.

While Kraken and Binance concentrate on people with at least a basic understanding about investing and crypto Kraken's website and its exchange are more user-friendly. It's also easier to find and find help articles for Kraken. However for those who are novice to the world of investing, options for charting on both platforms may be overwhelming.

Kraken vs. Binance: Mobile App

Binance has a mobile app on its main site, as well as another one specifically for U.S. residents. Like its websites, new users might find it difficult getting the app to work at first. Overall, however its user interface (UI) is clear and user-friendly. But the Binance.US application is a little unstable, which can cause problems accessing the app. Its UI for Binance.US is also not as intuitive as the main website's app.

Kraken provides two mobile apps, Kraken and Kraken Pro. Both apps are highly rated from iOS users as well as Android users, and provide functions similar to Binance's web-based exchange. But like Binance, Kraken responds to the majority of feedback or feedback about their mobile applications and continuously improves the user interface and experience.

Kraken vs. Binance: Access

Kraken is accessible to everyone U.S. residents, except those who reside in Washington as well as New York. With Kraken, U.S. residents aren't able to trade Ripple's Ripple XRP can't deposit, hold or trade any of the following cryptocurrency :

• 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)

However, while U.S. residents can't buy ENJ MATIC MKR and ZRX through Kraken but it is permitted to purchase them on Binance. At present, residents of 43 states are able to use Binance.US. The states below can't access the platform:

• Connecticut
• Hawaii
• Idaho
• Louisiana
• New York
• Texas
• Vermont

However, the most significant difference in access is due to these exchanges. The Binance platform isn't in compliance with U.S. regulations which led Binance to prohibit the majority of U.S. residents from using the platform. The Binance.US platform has fewer options than the main site. On the other hand, anyone is able to access the Kraken exchange. Although U.S. users have fewer options than international customers however, the differences aren't quite so obvious.

Final Verdict

Both exchanges provide advanced trading options, low-cost charges, and educational resources. Users from all over the world appreciate the huge variety of cryptocurrency options offered by Binance. However, U.S. residents will be less pleased with the fewer options. Kraken is more transparent and security-focused services, and offers a good selection of currencies available to U.S. users, although there are fewer currencies as Binance do for international users.

Frequently Asked Questions

What Are Kraken and Binance?

Kraken as well as Binance are platforms for crypto exchange which allow investors to purchase exchange, sell and buy the stablecoins, cryptocurrencies and tokens. International users can take part in margin and futures trade on these platforms while U.S. residents can perform different types of transactions. The platform, however, Kraken supports margin trading for U.S. users, as well.

Both platforms provide advanced features that are perfect for investors who are active and want to keep track of the market and monitor the progress of their investment over time. Kraken and Binance also support stakes, which allows users to get rewards for holding diverse assets.

Are Kraken and Binance Trustworthy?

Kraken is a reliable exchange that is secure to use. Kraken is a security-focused company, and emphasizes security measures on its website as well as being one of the "first digital asset company in U.S. history to receive a bank charter recognized under federal and state law." Additionally Kraken has been in operation for a while and never yet been hacker-proofed.

The Binance.US website abides by the strictest U.S. regulations, but Binance has had a rather troubled history. It relocated its headquarters several times to locations that have favorable regulations. In the end, instead of increasing its security measures to comply with U.S. standards, it made it mandatory for U.S. residents to use an alternative, less secure platform. But, Binance has millions of users, even though it was compromised in the year 2019.

How Do Kraken and Binance Work?

The two exchanges Kraken and Binance provide fast verification methods at the entry-level levels, however the lower levels might not have a variety of choices for funding or trading, according to your location. Similar to other exchanges, U.S. residents will need to go through the verification process before trading. After you've been verified, it's pretty simple to transfer money using wire transfer to deposit funds into your account and begin trading.

Kraken and Binance offer many kinds of transactions, and those not familiar with investing might benefit from knowing about the different types of transactions before trying to make these. Additionally, in order to benefit the most from these platforms, it is important to understand how to use the charts. Also, for Kraken customers there is the Cryptowatch terminal can be a great bonus to keep track of your currencies that you've invested in several exchanges.

Who Should Use Kraken and Binance?

Anyone who isn't familiar with the terms of investing and cryptocurrency are likely to face a steep learning curve in both the platforms. However, Kraken offers a good-sized knowledge base that includes video tutorials and guides on cryptocurrency. Additionally, they're more responsive customers' inquiries than Binance.

Its Binance User Interface is more visually cluttered than Kraken's interface and the Binance.US platform isn't clear on investing for those who are new to the market. There's also a lack of transparency regarding fees and security. As such, novices may prefer to begin on a platform that is simpler and has less options, like the Coinbase .

Methodology

Kraken as well as Binance are similar in a variety of ways, however, there are differences. The first step was to evaluate both platforms by taking a look at the features available on their websites and mobile applications, such as self-help resources as well as advanced charting and ways to earn cryptocurrency. We then compared the supported cryptocurrency and fiat currencies that are available in the U.S. and international users. In the final analysis, we looked at the security strategies of each exchange and the total expenses associated with using the exchanges.