Choosing the right cryptocurrency exchange trading platform can be a challenging task. With the growing popularity of crypto, numerous platforms have emerged, making it difficult to distinguish between reputable ones and those that are not worth using. Unfortunately, there is a lack of resources providing helpful information on this matter.
Binance and Kraken are two platforms that have attracted millions of users and offer several benefits for traders. If you’re still undecided, these platforms should be at the top of your list. However, it’s important to note that each platform has its own advantages and disadvantages, and they differ in terms of the services they provide. Let’s delve deeper into these platforms and explore the pros and cons associated with each.
Binance, founded in 2017 by a developer with experience in high-frequency trading, currently holds the title of the largest exchange in the world in terms of daily trading volume. Despite its size, Binance stands out for its relatively low trading fees, ranging from 0% to 0.1%, thanks to its maker-taker fee structure. This is a significant advantage, especially for beginners. However, it’s worth mentioning that Binance has a steep learning curve for newcomers.
Another major advantage of Binance is its extensive selection of currencies. With over 500 coins available for trading, Binance offers one of the widest varieties in the market. However, it’s important to note that the platform has limited services for U.S. residents. While international users have access to the full range of currencies, Americans can only trade 47 of them. Additionally, Binance’s U.S. website offers fewer features compared to its international counterparts. Margin trading, rewards programs, and the Binance Academy are unavailable to U.S. users. This is unlikely to change soon as Binance has yet to acquire the U.S Money Service Businesses license. Nevertheless, Binance’s global presence allows them to prioritize other markets.
In terms of security, Binance experienced a significant breach in 2019. Although they have taken measures to prevent future incidents, their transparency regarding security measures remains a concern.
On the other hand, Kraken, founded in 2011, has been operating in the U.S. since its inception. While it may not have as many users as Binance, Kraken is still considered one of the top platforms for traders. Its initial success can be attributed to being selected as a bitcoin trading data provider for the Bloomberg Terminal, a leading data provider in the financial industry.
Kraken’s main advantage over Binance is its accessibility to American users. As a U.S.-based company, Kraken is available to all U.S. residents except those in New York and Washington. However, Kraken offers a smaller selection of currencies compared to Binance, with a total of 69, including seven fiat currencies. The trading fees on Kraken are higher, reaching up to 0.26%, but they are still lower than fees on lesser-known platforms. Kraken also provides a quick and easy verification process, well-designed mobile apps, and a strong focus on security.
In terms of customer service, Kraken falls short compared to Binance, which offers better support. However, Kraken’s commitment to enhancing security and adopting new technologies makes it a reliable platform.
Considering all factors, Binance seems to be the superior choice overall. Its wider range of currencies, lower fees, and discounts make it an attractive option. However, if you are trading in the U.S., Kraken may be more suitable due to Binance’s restrictions. Ultimately, your choice of platform will depend on your location, budget, and trading experience.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. The opinions expressed in this article are solely those of the author and do not reflect the views of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses incurred.
