Binance Disadvantages. Kraken: Which crypto exchange is right for you?

Binance.US and Kraken are two of the most popular cryptocurrency exchanges and are known for having some of the lowest trading costs in the industry. It can be difficult to decide which exchange to choose, and it will depend on your unique needs, such as the coins you want to trade, the amount of customer support available, and how much you are willing to pay in fees.

In this article, we will refer to Binance.US – the US branch of the larger Binance organization – as Binance. Here’s how Binance and Kraken compare on some of the key factors for traders.

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Binance vs. Kraken: Costs

Trading costs can be significant on crypto exchanges, and fees can really increase for active traders. Discounts are usually offered based on your 30-day trading volume.

Binance and Kraken both use a maker-taker pricing structure, which is charged based on whether your order adds liquidity to the market (maker) or takes liquidity out of it (taker).

Here’s how each exchange is divided based on its fees:

Binance trading fees

Less than $ 50,000 0.10 percent 0.10 percent
$ 50,000 – $ 100,000 0.09 percent 0.09 percent
$ 100,000 – $ 500,000 0.08 percent 0.09 percent
$ 500,000 – $ 1 million 0.07 percent 0.08 percent
$ 1 million – $ 5 million 0.05 percent 0.07 percent
$ 5 million – $ 10 million 0.04 percent 0.06 percent
$ 10 million – $ 25 million 0 percent 0.06 percent
$ 25 million – $ 100 million 0 percent 0.05 percent
$ 100 million – $ 250 million 0 percent 0.04 percent
$ 250 million – $ 500 million 0 percent 0.03 percent
$ 500 million or more 0 percent 0.02 percent

Kraken trading fees

$ 0 – $ 50,000 0.16 percent 0.26 percent
$ 50.001 – $ 100,000 0.14 percent 0.24 percent
$ 100.001 – $ 250,000 0.12 percent 0.22 percent
$ 250,001 – $ 500,000 0.10 percent 0.20 percent
$ 500,001 – $ 1 million 0.08 percent 0.18 percent
$ 1,000,001- $ 2.5 million 0.06 percent 0.16 percent
$ 2,500,001 – $ 5 million 0.04 percent 0.14 percent
$ 5,000,001- $ 10 million 0.02 percent 0.12 percent
$ 10 million or more 0.00 percent 0.10 percent

While Kraken offers competitive trading fees, Binance has a clear advantage in this area, especially for receipt orders. In addition, if you use BNB, Binance’s internal currency, to pay trading fees, the fees will be reduced by a further 25%.

Here’s how it works: If you have executed trades worth $ 25,000 in the last 30 days and you want to place a new $ 10,000 trade, Kraken will charge you 0.16% ($ 16) for a maker order or 0, 26% ($ 26) for a buyer. order. Binance will charge 0.10% ($ 10) for both order types and reduce the fee to $ 7.50 if you pay with BNB.

Kraken takes a small lead on manufacturer orders if your 30-day trading volume is over $ 2.5 million. No swap orders for manufacturer orders when your 30-day average volume reaches $ 10 million. Binance charges less for receipt orders at each volume level.

Advantage: Binance. Unless you often trade a lot of money, Binance will be the best place to save on trading costs compared to Kraken.

Binance vs. Kraken: Supported cryptocurrencies

In terms of the number of coins available for trading on each exchange, Kraken has taken over here, with over 175 coins available from June 2022, compared to over 100 at Binance. But you should have no trouble finding the most popular coins in both exchanges.

If you really want to trade a lot of different coins, you might be better off with Kraken or another exchange like Coinbase, which provides access to 158 coins. But if you are just looking to trade with the major cryptocurrencies like Bitcoin and Ethereum, you should be fine with Binance or Kraken.

Advantage: crack

Binance vs. Kraken: Strike Rewards

Binance and Kraken both offer bets on their platforms. Stake rewards allow crypto investors to earn money to support the currency through the verification process. Stock exchanges deposit the income you have earned into your account after fees have been deducted. Neither Binance nor Kraken currently charges wagering fees.

Kraken currently offers 13-coin bets and plans to add more in the future, while Binance offers seven-coin bets. Kraken especially offers bets on Ethereum as opposed to Binance, so if you want to bet on Ethereum, one of the most popular cryptocurrencies, you will need to choose Kraken as your exchange.

Advantage: crack

Binance vs. Kraken: Deposit and withdrawal fees

Binance has the advantage here of not charging deposit or withdrawal fees on ACH transfers in US dollars. For bank transfers, Binance does not charge deposits, but charges $ 15 for withdrawals on domestic transfers. Kraken fees vary, but will range from free to $ 10 on deposits and $ 4 to $ 35 on payouts.

Advantage: Binance

Binance vs. Kraken: Customer support

Many crypto exchanges lack customer service, which is disappointing given their huge growth. Binance customers will only be able to submit support tickets when they have questions or issues. There is no phone, email or chat support.

Kraken differs in this area by offering hundreds of trained specialists to answer questions via chat 24 hours a day, seven days a week (even on holidays). Kraken also offers telephone support 12 hours a day, which is ideal for complex questions that are difficult to explain in writing.

Advantage: crack

At the end of the line

Binance has the cost advantage, which is the biggest concern for many crypto traders. Low trading costs helped Binance win the Bankrate Award for Best Crypto Exchange for Beginners.

But Kraken users will not be too far behind. The costs are competitive with other exchanges, and the exchange has an advantage in the number of available cryptocurrencies and its superior customer service offerings.

Ultimately, you will have to decide which features interest you the most before deciding which exchange to choose.

Editorial Disclaimer: All investors are advised to conduct their own independent study of investment strategies before making an investment decision. In addition, investors are warned that past performance for investment products does not guarantee future price increases.

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