Kraken Vs Binance.US

Kraken Vs Binance.US

03:28 03/31/2021

Overview of Binance.US & Kraken

Kraken was founded in 2011 and is one of the top rated exchanges on the internet. Kraken’s goal is to provide a safe and secure exchange and provide knowledge to everyone both new and old to the crypto space. Binance.US was founded in 2017 and is a separate exchange from Binance built specifically for users in the United States to comply with different state regulations. Binance.US has the full support of Binance, including all of their security features. Binance.US offers fast and secure trading, staking, and an array of educational resources. Kraken also offers educational resources and took it a few steps above Binance.US by providing not only written articles but also videos and webinars as well as a searchable index.

Kraken’s content can be found quickly and efficiently. Chances are, with the structure of the content, you will find what you are looking for, as well as other articles you will find interesting that will educate you or help you connect the dots in your education. Kraken offers full support around the clock even on major holidays. Kraken takes pride in their level of support, and many consider this a prominent feature of the exchange. Binance.US has a support team but do not mention if it is 24 hour support. Binance.US frequently gets backed up in their support requests stating that certain types of support such as verification support can take up to 15 days to complete.

Binance.US has some robust security features and, as mentioned above, has full backing from Binance. Binance.US offers a secure URL check on their login page to remind you to double check and make sure that it is not a phishing site. Binance.US also offers multi-factor authentication (MFA, 2FA) which is a small part of security. Binance.US seemingly takes the non-disclosure route with security. Binance.US refuses to state the total condition of their security measures such as server security, physical monitoring or otherwise.

On the other hand, Kraken is proud of their security and wants to tell you how secure they are. One of their biggest security measures is moving 95% of all users' cryptocurrency to offline storage. This means when you make a trade, chances are you are using Krakens in-house funds which will then reflect on your account balance after the trade is processed. In case of any potential hacks related to theft, the thieves are stealing Krakens own coins while your coins are safe and offline.

Coin Support

Kraken and Binance.US both have about the same amount of coins available to trade. 55 coins vs. 52 respectively. There are a lot of coins to choose from and what's better are the trading pairs available. Trading pairs are two currencies that you can trade back and forth. In some cases this may be ETH/BTC where you can buy Ethereum with Bitcoin or sell Ethereum for Bitcoin. You can also find fiat based trading pairs as well such as BTC/USD where you can buy and sell Bitcoin with USD.

Both Binance.US and Kraken are constantly on the lookout for new coins to bring to their exchange. Sometimes a coin that is added to either exchange is one that people have been expecting though sometimes it almost seems like a random choice. This adds a little mystery to both of these exchanges. Both Kraken and Binance.US have the option to stake cryptocurrency though the coins are different per exchange.

Kraken

  • Cosmos (ATOM)
  • Ethereum (ETH)
  • Flow (FLOW)
  • Kava (KAVA)
  • Kusama (KSM)
  • Polkadot (DOT)
  • Tezos (XTZ)

Binance.US

  • Algorand (ALGO)
  • Cosmos (ATOM)
  • EOS (EOS)
  • Harmony (ONE)
  • Qtum (QTUM
  • Tezos (XTZ)
  • VeChain (VET)

Staking on either of these exchanges is a simple process. To find the updated return rate on these staking options click here for Binance.US or here for Kraken. In the next section we will talk about the different funding methods i.e. how to get money into these exchanges.

Funding Methods & Fees

Both Kraken and Binance.US have many funding methods available for use. Almost every exchange allows for funding with cryptocurrency, including Binance.US and Kraken. Simply buy cryptocurrency on another exchange or at a Bitcoin ATM and transfer it to your Kraken or Binance.US account (you will need to find your wallet addresses). If you do not have another exchange or cryptocurrency, there are several methods available to you.

With Kraken in order to deposit USD into your account you must first reach intermediate or pro level verification. Both of these levels of verification tell Kraken who you are, so they are able to comply with the U.S. Law (this is known as KYC - Know Your Customer).

Binance.US requires you to reach the third level of verification, “Fiat Account Verification” in order to deposit and withdraw fiat currency. Otherwise, both exchanges allow you to deposit and withdraw cryptocurrency. Kraken has a multitude of ways to deposit fiat currency once verified. It is important to note that all first time deposits will undergo a for 72 hours withdrawal hold. You can see Kraken’s deposit methods and fee structure here.

Binance.US makes it easy as a US resident to deposit fiat currency into your account, it does this by partnering with a secure service called Plaid. This service will link your Binance.US account to your bank account using your account number and routing number. To verify that everything is correct, Binance.US will send you two small payments, generally a few cents which you will verify the amounts with Binance.US to make sure everything is linked correctly. Funding your account by either domestic wire or ACH transfer does not carry any fees with Binance.US. Click here to read more about Binance.us funding methods for USD.

Kraken’s trading fees are a little on the higher end especially when compared with Binance.US with a maker fee between 0 and .16% and a taker fee between .10% to .26%. Binance.US fees are more reasonable with a maker and taker fee of 0.10%. These trading fees can be further reduced by using Binance Coin (BNB) for up to 25% off trading fees. This brings both maker and taker fees down to .075% which is considerably lower than Krakens.

Kraken’s staking fees on the other hand are very reasonable. Kraken does not collect any fees from staking with the only exception being Ethereum 2.0 staking. Kraken will require a 15% “Administrative fee” for using the ETH staking service. Binance.US also does not collect any fees from staking. On top of not collecting any fees, Binance.US offers, from time to time, additional rewards on specific coins in way of either a flat payout, or a temporary increase in APY. This may include other types of rewards in the future.

The Best Of Kraken

  • More trading options
  • Fewer public outages
  • 24 hour support, including major holidays
  • Extensive, and easy to search documentation
  • 95% of coins stored offline
  • Kraken has never been hacked

The Best Of Binance.US

  • Simple user interface
  • Easy funding methods.
  • Lower fees
  • Designed for users in the United States

Pick What Fits (Conclusions)

Picking what you want to use comes down to exactly what you are looking for, remember that you can always use both. If you sign up for Binance.US you can use Kraken’s educational content to learn even more about crypto and vice versa. Kraken has a few more coins to trade and both platforms have the same amount of coins available to stake. Binance.US is more secretive with their security measures while Kraken is more transparent with their security measures.

Hopefully this article helps you make an educated decision on which platform to use, the differences are small but can make a difference with ease of trading, staking and overall use. You can always sign up for both and test out each one individually and see what you like as well!

Ask us anything!

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