Coinbase vs Kraken vs Binance: Features, Fees (Crypto Exchanges Compare 2021)


With the rise in technology, everything has been converted to digitalization. It does not matter if it's education, business or transaction; everything has been digitalized. As a result, cryptocurrency is all the rage these days. There have been many methods introduced for crypto in the recent past, and people are all here for it. However, if you want to know more about cryptocurrency exchanges, this article is for you.


What are Kraken and Binance?

Kraken was founded in 2011, and Binance was founded in 2017, and both are cryptocurrency exchanges. Some of the most exciting features of these exchanges include staking, spot margin and futures trading. In addition, you can connect with 3rd party applications to manipulate and place trade orders using API with these exchanges. Kraken and Binance are both secure ways of cryptocurrency and use various features like two-factor authentication, cold storage, and what not. A user-friendly interface is what makes these exchanges popular among users. Kraken supports more than 50 cryptocurrencies, while Binance supports a little over 150 cryptocurrencies. You can deposit or withdraw through various methods. We are going to learn about these cryptocurrency exchanges one by one in the following article.

Coinbase vs Kraken vs Binance Comparison

Features

Coinbase

Kraken

Binance

Beginner Friendly

Yes

No

Yes

Fees

Up to 3%

Low(0% to 0.26%)

Low(0.015% to 0.1%)

Security

Secure

High

Medium

Available Cryptocurrencies

Bitcoin, Ethereum (other trustworthy cryptocurrencies)

Bitcoin, Ethereum (33 total)

Bitcoin, Ethereum (175+ total)

On-site Wallet

Yes

Yes

Yes

Proprietary Token

-

No

Yes

Gold

No

No

No

FIAT Trading

Yes (USD)

Yes

Yes (stable coins only)

Withdrawal Method

BankTransfer, Wire Transfer

Cryptocurrency, Bank Transfer

Cryptocurrencies and Stablecoins

Deposit Method

Wire, Card, Bank Transfer

Bank Transfer, Cryptocurrency

Stable coins and Cryptocurrencies

Verification Requirement

Yes

Yes

Region Dependent


Coinbase

Coinbase started its operations in 2012 in California, USA. It is newer than Kraken but still one of the reliable sources of cryptocurrency exchange. In addition, it is known to be highly secure and provides you with the value of your money.


Kraken

Kraken is based in San Francisco, California. It was founded in July 2011 by Jesse Powell, and it is known to be the oldest method of cryptocurrency exchanges. There are more than 4 million users of Kraken all over the world.


Binance

Binance was first founded in July 2017 by Changpeng Zao (aka CZ) and is located in Malta. One of the most diverse and largest cryptocurrency exchanges in the world. It is known to be the platform with the most inexpensive rates and also is the fastest one. The engine used for trading can process more than 1400 thousand transactions in one second. More than 13.5 million users have access to Binance.

People who want to work in Cryptocurrency exchanges would like to know more about which platform is better suited for their needs. We are here to provide you with a feature by feature analysis of Kraken vs Binance. It will provide you with enough information to make an informed decision about using any of these platforms.

API in Kraken vs Binance

Kraken API enables you to place and manipulate order books, integrate with the trading terminal, and give information about private user data and market data.  Your assets or trading is managed by Binance API as it connects to the Binance servers using a third-party application with the help of programming languages like Python. Binance API can be used to automate your trading, and you can view your data or move, deposit your assets in the third party application. Python-Binance is the most widely used third-party library in Binance API.

Margin Trading in Kraken vs Binance

In margin trading, your current balance is used as collateral while trading through borrowed funds. It is a high-risk environment as loss and profit are both of high margin, so it is not recommended for beginners. One should always consider using risk mitigation tools before going for margin trading.

Kraken uses different grouping types and two types of position options. It offers different leverage levels of different cryptocurrencies depending on the base and quoted cryptocurrencies. Short or long positions can be opened or closed by using the settling commands or creating opposite positions. Kraken offers high liquidity as well as high margin limits. You can use advanced API access in Kraken, and the positions can easily be managed. It can be beneficial for you, and it will enhance your profits and improve your positions, and your earning potential can go up to five times as it offers 5x leverage.

On the other hand, Binance allows you to borrow funds to perform leverage trading on digital assets. You can use it in two different modes, which are isolated margin mode and cross margin mode. The short and long margin mode can be used according to the market's direction. Assets' price will decrease in a short position while assets' price increases in a long position. The assets will be used as collateral when a margin position is available.

Staking: Kraken vs Binance

You can stake your cryptocurrency and FIAT holdings in Kraken, and rewards can also be earned. The rewards can be weekly or bi-weekly, depending on the asset you stake. The un-staking of your assets is also unconditional. You can have both on-chain and off-chain staking. In addition, you will not have to have any bonding or waiting periods in Kraken to accept Ethereum (ETH).

On the other hand, Binance allows you to have both locked and flexible staking options. Flexible staking allows you to have your withdrawals without any lock-in periods. At the same time, locked staking has different days of lock-in periods ranging from 15 to 90 days. Therefore, there is more return in locked staking than locked staking.

Security Kraken vs Binance

Security is inevitable when it comes to any kind of online transaction, and cryptocurrency is no different. Therefore, it is a crucial step in choosing the cryptocurrency exchange of your choice. Kraken and Binance both offer high-security measures, but to give you a detailed account of the security of Kraken vs Binance, we have given a comparison below.

Kraken offers you a two-factor authentication (2FA Google Authentication and YubiKey) and is considered to be highly reliable. The 2FA prevents unauthorized users from getting access to your account and prevents your account from getting hacked or phishing. You are going to need e-mail confirmations for withdrawal. An extra layer of protection is provided by Kraken, which includes SIM swapping, SSL encryption, configurable account timeout and customizable API key permissions. Your assets will also be available offline for you, but these will be air-gapped by using Kraken because it keeps 95%of your assets in cold storage devices. You can also use personal identification, a master account lock and PGP e-mail encryption.

Binance has anti-phishing measures for you, and it allows you to set up anti-phishing codes so you have advanced security and your assets are protected. In addition, you will have other measures like SMS authentication, two-factor authentication (2FA) and e-mail address authentication. Binance also offers YubiKey (hardware device) and whitelist addresses. You will also have to enter KYC verification when you are setting up your account.

Futures Trading Kraken vs Binance

If you use Kraken for future trading, you can have trade derivatives on digital assets up to 50x leverage. In addition, you can use both long and short methods in order to gain profit or protection from potential losses. With Kraken, you are always prepared for the market, and it allows you to safeguard existing spot positions without the addition of more cryptocurrency.

If you are using Binance, you can go long and short with leverage to increase your profits and reduce risks. In addition, you can have many options in trading while using Binance like coin futures, USD-M Futures, Vanilla Options Contracts, and Leveraged Tokens.

Withdrawals and Deposits Kraken vs Binance

Kraken allowance of the limits of withdrawals and deposits depends upon the level of verification held by your Kraken account. You can also deposit or withdraw using any method like credit or debit card or even cash. Kraken also allows you to buy crypto using FIAT currencies, including US dollars (USD), Canadian Dollars (CAD), British Pound (GBP and Euros (EUR). Deposits in cash or debit cards are allowed only in CAD while in person. It usually takes 1-5 days to process the transaction through Kraken.

Binance allows the following different methods: bank transfer, P2P trading, cash balance or FIAT currency, external wallets, debit and credit cards, and even third-party payments through organizations like Banxa and Simplex. It accepts 65 FIAT currencies, including Euros (EUR), India Rupee (INR), US dollars (USD) and Canadian dollars (CAD).

Fees Kraken vs Binance

Kraken uses a maker-taker model, and the rate depends on the trading volume of the last thirty days, the volume generated in your instant purchase will not be included in your trading model.

 Binance also uses the same model, and the rate is dependent on the trading volume in the last thirty days plus the BNB Balance.


Cryptowatch in Kraken

An additional feature of Kraken is the crypto watch. In 2019, Kraken acquired a crypto watch that has premium trading facilities by providing you market data, charting of a little over 25 crypto exchanges.

Both of these cryptocurrency exchanges have their advantages and disadvantages, and we will look at these, one by one.

Kraken vs Binance Conclusion

Both of the exchanges have their own merits and demerits, and we are going to go through them one by one, so you can make an informed decision about these cryptocurrency exchanges.

Kraken vs Binance: In a Glance

Kraken

Binance

Pros

· The crypto watch platform used by Kraken allows you to trade over many exchanges.

· Kraken supports more than 50 cryptocurrencies.

· Kraken also supports FIAT.

· There is high liquidity as there’s high trading volume.

· Binance supports around 150 cryptocurrencies.

· You can access your account from the desktop as well as mobile because it is compatible with both.

Cons

· The customer support services of Kraken are limited.

· Binance future uses TestNet only.

· If you would like to stay anonymous, your KYC verification is considered negative.


These cryptocurrency exchanges are two great choices, and you can never go wrong with any of them. However, if you want to choose one, we think Binance is better than Kraken. It offers lower fees for spot trading, has a wider variety of cryptocurrencies to trade and accept debit and credit cards.