Binance Vs Kraken: Quick Review Of Crypto Exchanges
Brief Introduction Of Binance And Kraken
Binance, a crypto exchange which needs no introduction because of its widespread usage amongst the crypto community. It was founded by Changpeng Zhao in 2017 and raised almost $15 million from its Initial Coin Offering(ICO) release. Binance offers a wide range of around 200 crypto coins and facilitates the traders of all major countries of the world (the US is an exceptional case). Being crypto to crypto exchange, you first need to buy coins from other exchanges to start your trade on the platform of Binance.But, Binance has an added advantage of fewer transaction fees and user-friendly interface with its mobile app also.
Kraken is older than Binance and was launched in 2011 by Jesse Powell, with the objective of a transparent trading platform based on blockchain technology. It is both crypto-crypto and fiat-crypto exchange; thereby, you can straightaway start trading from this exchange. It accounts for the significant trading volume from European traders. Experienced crypto traders prefer Kraken due to its variety of services provided including marginal trading and a dedicated platform for detailed analysis of market charts.
So, instead of new vs old, it would not be wrong to write Binance Vs Kraken in the present crypto market conditions.
Binance Vs Kraken: Rivals In Crypto Marketplace
To understand both the exchanges, we need to study some of the primary points of difference between them, which make them different from each other.
Basic Working
The first question that pops up in mind could be, how does Binance work? Or How do Kraken work?
Kraken is a crypto to crypto as well as fiat to crypto exchange. You can directly link your bank account for buying the crypto coins available on the platform. Further, you can trade or exchange the coins on the platform itself as it has plenty of options. With a user-friendly interface, Kraken has a variety of detailed charts on its dashboard to guide you in the trading of currencies. Two-factor authentication makes the network secured for its users. Unlike other exchanges, Kraken offers flat fees rather than a percentage on crypto purchases.
Binance, one of the financial unicorns in the crypto industry, is the crypto to crypto exchange. You can only initiate the trade after buying the coins from fiat to crypto exchanges like Coinmama,cec.io, Coinbase etc. and then depositing them into the account of Binance. Supporting almost 600 trading pairs with several crypto coins, Binance has become the top gainers in terms of trading volumes. Along with trading and exchanging facilities, Binance also offers the services of crypto wallets to store your private keys. It provides one of the lowest transaction fees in the crypto markets.
Security
Before starting to trade in different currencies or investing with various options, one question that needs to be responded- Is the exchange safe? In our case, Is Binance safe for trading? Or Is Kraken exchange safe and secured for trading? In this battle of Binance Vs Kraken, let us try to find out, Which one is safer?
As per the ICORating's exchange security audit, Kraken was ranked first in terms of most secure cryptocurrency exchange. Hot wallets or online wallets are considered riskier due to their proneness to cyberattacks, that's why Kraken holds 95% of its assets in cold or offline wallets. Security is one of the significant areas of focus for Kraken, and it implements strict surveillance all across the platform to monitor every single transaction taking place at their platform. Also, every user has to complete the process of two-factor authentication before starting the trade. Client-side security is assured by emailing confirmations of withdrawals, providing API key permission control, high-level SSL encryption and much more.
Binance brags about a high level of security but recently hacked in 2019. But overall, Binance has a strong network to assure the safety of the customers. Along with two-factor authentication, Binance encourages its customers to set up an anti-phishing code and whitelist addresses for security purposes. Binance proudly announced its state of the art artificial intelligence solutions to control risks as it deploys facial recognition and identity, cyber forensic investigations and analysis of big data to monitor and scan the activities taking place at their platform.
Both of the exchanges have excellent track records in terms of security and neither of them experienced any major security breach.
Brief Review
If we consider the significant factors related to both the exchanges, we can briefly review, which of the exchanges is better? And can find out, Is Kraken good exchange or Binance do the needful?
Kraken
Pros: User-friendly interface (still not for beginners!)
Highly secured network.
Low transaction fees.
Simple Verification.
Multiple crypto coins and trading pairs are available.
Cons: Mandatory verification (which may take even a few hours).
Only two languages are supported on a platform.
Binance
Pros: Two interfaces are available (beginner can choose basic one, and an expert can choose advanced version).
An artificial intelligence-based security system.
Transaction fees are meagre.
Around 600 trading pairs with 150 crypto coins are available to trade.
Cons: No support to fiat currencies.
After the brief Kraken cryptocurrency along with Binance exchange, the latter seems to be more potent in the battle of Binance Vs Kraken. But, it won't be correct to say that Kraken cannot be chosen as a crypto trading platform. Being the fiat to crypto exchange, Kraken has the added advantage over the Binance. So, nevertheless, after considering your requirements, choose the exchnage which fits you better to trade cryptocurrencies.
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