Binance and KuCoin and two of the largest global exchanges by trade volume. Both founded in 2017, Binance and KuCoin appear to have pursued similar objectives in the business, which has led both exchanges to the very top of the industry’s hierarchy.
What’s the difference between these two platforms, and how to decide which one to use? I’ve compared Binance vs. KuCoin extensively, considering a wide range of criteria. With any luck, you’ll be able to use this research to zero in on a trustworthy cryptocurrency exchange.
About the Exchanges
Binance
Binance, the largest and most well-known cryptocurrency exchange, provides an unprecedented variety of beginner and expert trading tools for users in every region of the world. With this exchange, crypto traders can trade a wide variety of cryptocurrencies and a huge assortment of fiat currencies.
To top it all off, the platform offers some of the most affordable trading fees on the market. Also, for those who would rather not disclose their identity when trading, Binance provides an anonymous trading alternative. Since Binance is committed to its users’ privacy, they will never be asked for any identifying information when depositing or withdrawing from their trading account.
KuCoin
KuCoin is among the leading social trading platforms that provide you with access to credible crypto information and the ability to communicate with over 10 million investors worldwide. KuCoin has been one of the most cost-effective cryptocurrency exchanges since it launched in 2017, catering to inexperienced and seasoned traders.
More savvy investors should know that KuCoin is not a regulated exchange because of its locations in Singapore, Hong Kong, and Seychelles. Namely, emerging crypto ventures can find a favorable financial environment in these jurisdictions since their financial restrictions are typically more lenient than those of the United States or Europe. As a result, trading platforms in such zones provide lower fees and a more comprehensive selection of micro-cap coins.
There are more than 200 jurisdictions currently supported by KuCoin’s global cryptocurrency trading platform. The exchange may look like it was designed for professionals, but it provides beginner-friendly options for fast and effortless cryptocurrency purchases.
Pros and Cons
In a nutshell, this is what makes Binance and KuCoin great, as well as what makes them less than great:
Binance Pros
- Wide selection of tradable coins and pairs;
- Option to trade futures, margin, and over-the-counter (OTC) with low trading fees;
- P2P marketplaces;
- Supports credit/debit card payments;
- Cold storage of user assets in an offline environment;
- Strong liquidity.
Binance Cons
- Regulatory compliance concerns in several jurisdictions;
- You can’t use PayPal to make payments;
- No demo account;
- Has a history of security breaches.
KuCoin Pros
- Compatible with more than 700 distinct cryptocurrencies and an equally impressive array of trading pairs;
- Provides access to margin trading and has some of the industry’s lowest trading fees;
- Allows for a wide variety of passive income sources;
- With a dedicated Fiat Account, you can make deposits in fiat currency round-the-clock.
KuCoin Cons
- Unregulated crypto market;
- No wire transfer option;
- A hacking event that led to a significant loss of digital assets.
Binance vs KuCoin: The Crypto Exchange Comparison
Opening an Account
The Binance mobile app and desktop client make signing up for an account easy by just providing your email address or phone number. If you want to make more frequent deposits and withdrawals of fiat currency into and out of your Binance account, you can go through the optional identification verification process.
Verifying your identity by selfie, government-issued ID, and account verification takes no more than a few minutes. The next step is to fund your account, so you can begin plotting your course of action in the cryptocurrency markets.
Unlike with Binance, verifying your identity via the KYC process is mandatory before creating a KuCoin account. Traders on KuCoin can verify their identities via government-issued photo IDs, passports, and utility bills showing their current addresses. Chamber of Commerce filings and notary public deeds are two ways to confirm the legitimacy of a company.
During account creation, you’ll also be asked for personal information, such as your complete name, address, phone number, and email address.
Main Features
The Binance exchange offers a sophisticated user interface, including comprehensive market charts that display the most recent price movements, an access to the resources traders need to implement their strategies and a view of their portfolio to analyze recent and past trades.
DeFi staking, liquidity farming, options trading, spot trading, margin trading, derivatives trading, crypto loans, swap farming, and more are all viable trading possibilities on the exchange.
While these choices are ideal for seasoned investors, they could be overwhelming for those just starting in cryptocurrency trading. The good news is that the interface can be toggled between its more basic “classic” mode, with the most fundamental trading functions, and its more sophisticated “advanced” mode, with the platform’s trading tools.
The KuCoin cryptocurrency exchange trades in over 50 different fiat currencies through its P2P (peer-to-peer) market and credit/debit card gateway. There is a wide variety of fiat currencies accepted, including Canadian Dollars, United States Dollars, Euros, British Pounds, and more.
In addition to peer-to-peer (P2P) cryptocurrency trades, KuCoin also offers a variety of other volatile trading products, such as derivatives, futures contracts, margin trading, leveraged tokens, trading bots, NFT trading, over-the-counter (OTC) trading desks, crypto loans, and a wide variety of other potential sources of passive income.
Supported Cryptocurrencies
It should be no surprise that Binance, the cryptocurrency exchange, is a global industry leader in liquidity. The site supports more than 350 digital currencies and over 1,000 transaction pairs.
Traders of all stripes will be able to find their preferred cryptocurrency, token, or stablecoin on this platform and then use it in conjunction with a large number of other trading pairings to devise an investing plan that works best for them.
KuCoin is a cryptocurrency exchange platform that competes favorably with Binance regarding the number of coins it supports. This exchange lists the most popular cryptocurrencies and provides access to some of the smaller coins that could be more suitable for beginners’ initial investments.
That is to say, the KuCoin platform supports over 700 different cryptocurrencies, including Bitcoin (BTC), so you’re bound to discover your crypto favorite among them. Ethereum (ETH), Dogecoin (DOGE), Cardano (ADA), Ripple (XRP), and a plethora of other cryptocurrencies are among the most actively traded on KuCoin.
Payment Methods
Deposits to Binance can be made in cryptocurrency or fiat currency, depending on the regulations in your place of residence.
You also have access to various payment options through this exchange, such as cryptocurrencies, debit cards/credit cards, bank transfers, and many more, which you can use to add funds to your balance. Funds can be deposited using any of the tradable cryptocurrencies on this exchange.
Moreover, deposits to Binance wallets can be made in several hundred different cryptocurrencies. The main benefit of making a cryptocurrency deposit on Binance is that, for transaction volumes of less than 2 BTC per day, no personal information is required during the registration procedure.
If, on the other hand, you plan to fund your Binance account with a debit/credit card or a bank transfer, please note that you will be required to go through the Know Your Customer (KYC) process.
Back to KuCoin now. KuCoin did not permit deposits of fiat money in your trading account for a long time because it is not a registered crypto trading market. Newcomers to the cryptocurrency market would have a more difficult time trading on KuCoin since they would need to use a fiat-gateway exchange, such as Binance, to convert their fiat currency into cryptocurrencies.
In 2019, KuCoin introduced Fiat Accounts by utilizing bank cards to make deposits. This move came as a response to the company’s awareness of the need to streamline the deposit process and of the best industry practices. To use a bank card for KuCoin trading, users must first complete KYC and due diligence processes.
Apart from credit/debit cards, this user-friendly service also offers various other payment methods for buying cryptocurrencies. Using the Fast Trade feature, you can buy your favorite cryptocurrency with a single click with a prepaid card, SEPA, PayPal, Simplex, or one of the other 70 accepted payment options. Users also have the option of making P2P trade payments via wire transfer.
Trading Fees and Limits
When measured against the industry’s standards, Binance comes in as one of the most competitively priced platforms available on the market. According to the company’s policies, the cost of spot trading is 0.1%, while the cost of purchasing and trading cryptocurrencies is 0.5%.
In addition, you will receive a discount of 25% on the fees associated with your transactions if you pay using BNB coins.
KuCoin’s maker/taker fee structure, on the other hand, implies that trading charges vary from 0.0125% to 0.1% across all tiers. You will receive a larger discount on your trading fees as you go up the tier ladder, directly proportional to the amount of liquidity you contribute to the marketplace.
With a 0.1% maker fee and 0.1% taker fee, this exchange has some of the lowest trading fees in the industry, with most rivals charging 0.5% or more for every deal.
Furthermore, the withdrawals from your KuCoin account will be reduced by the higher transaction fees incurred when purchasing cryptocurrency with a bank card. When the transaction is finalized, only then will you be billed. Please note that KuCoin is not responsible for any fees your credit card company may charge you for making an online or upfront payment.
Also, it’s good to know that KuCoin does not charge any fees for creating an account, but to begin trading, a minimum deposit of $5 is required.
How Safe Are Binance and KuCoin?
Binance takes the safety of its customers’ accounts and assets seriously. Therefore, it implements several safety measures across its platform and business.
To begin, 10% of all trading fees are placed in a SAFU (safeguarded asset fund) to protect customer funds. For additional convenience, Binance also has a security system that restricts access to your account from specific devices and websites.
In addition, all of your financial information is protected by a robust end-to-end encryption system, combined with Google Authenticator or SMS two-factor authentication (2FA) to further reduce the likelihood of fraudulent use.
On the downside, Binance has had several security breaches and is also grappling with regulatory concerns in various places, such as the United States, China, the United Kingdom, and Europe.
In comparison, KuCoin is committed to the user and system security despite operating as an unregulated exchange. To this end, the cryptocurrency venture adheres to the KuCoin AML and KYC verification standards, designed to combat fraudulent activity.
The platform employs user data encryption and mandatory two-factor authentication and supervision by the internal risk control department.
However, in September 2020, KuCoin made an official statement revealing that a large quantity of BTC and ETH tokens had been stolen from KuCoin’s hot wallets. There was a total withdrawal of almost $150 million worth of ERC20 tokens from the platform.
Accordingly, KuCoin promptly stopped all deposits and withdrawals, initiated an internal audit procedure, and promised to pay affected users from the exchange’s funds and insurance.
Customer Support
Binance’s support tickets, which can be submitted in 8 different languages, are the backbone of the company’s customer service department. Unfortunately, the largest exchange in the world does not provide any sort of real-time customer service. As daunting as it is to coordinate and provide service for a few million customers spread over a variety of time zones, the thought of having that many customers is much more daunting.
To make up for its subpar customer service, Binance offers a comprehensive knowledge base localized into 17 languages. As such, if you aren’t in a time-sensitive bind with any of the Binance trading procedures, it’s best to educate yourself on blockchain technology by finding your solution.
Should you at any time want assistance with any feature of the KuCoin trading platform or the signup procedure, a customer support staff is available 24/7 to assist you with any questions or concerns by email.
The exchange provides a frequently updated educational blog website, a live chat option, a complete help center with frequently asked questions covering all of the major trading functions, and a comprehensive help center.
Mobile Trading
The Binance mobile app, which is available for iOS and Android devices, enables users to trade Bitcoin as well as more than 350 other cryptocurrencies. Simply linking a debit or credit card to your account helps you make instant purchases and trades feasible in the cryptocurrency market. If there is no trading pair available, the Lite Mode of the program will allow you to switch between any two cryptocurrencies of your choosing.
There is a mobile app available if you want to use Kucoin on the go. Using this app, you’ll be able to carry out nearly all of the trading activities that are available on the Kucoin web platform. Through the use of this software, you are able to effortlessly trade coins, add or remove your holdings from the account, check your transaction history, and do much more. Plus, you can download the KuCoin app for free on your iOS or Android mobile device.
How Do Binance and KuCoin Compare to Other Crypto Exchanges
Kraken vs. Binance vs. KuCoin
Kraken is a great option if you don’t want to use Binance or KuCoin. The exchange’s top-tier security measures are another reason it could be a viable alternative to Binance for crypto traders who place a premium on safety and confidentiality.
Moreover, another reason why Kraken is my go-to recommendation for newbies is its convenient withdrawal options and helpful Live Chat assistance, neither of which are offered by KuCoin.
Namely, one of the most common complaints about KuCoin is that it doesn’t allow users to withdraw their funds in fiat currency. Withdrawals can only be made in the form of cryptocurrency, and the cost is fixed regardless of the type of coin being withdrawn.
In this regard, please note that Kraken charges a fixed fee to cover transaction costs whenever cryptocurrency is withdrawn from an account. This cost is similar to what you’d expect to pay at any other cryptocurrency exchange, as it varies depending on the coin you’re withdrawing.
Conclusion
Binance and KuCoin have many characteristics and functionalities in common with one another, including a broad range of cryptocurrencies, trading options, and volatile products. However, they also share the unfortunate experience of having their platforms hacked with little oversight from the financial authorities.
Basically, the low trading costs and the rich offer of trading options is what attracts many investors to Binance and KuCoin, despite the lack of regulatory compliance. Nonetheless, it could be more cost-effective in the long run to spend more for guaranteed security and streamlined operations when trading.
If you’ve already established yourself in the crypto market and have a certain amount of experience under your belt, both Binance and KuCoin are reliable trading platforms overall.