Cryptocurrency exchanges play an integral role in the cryptocurrency ecosystem, especially centralized cryptocurrency exchange platforms. Exchanges allow members of the cryptocurrency community to seamlessly shift between cryptocurrencies by connecting buyers and sellers on the platform. Using exchanges, people are also able to exchange between fiat currencies and cryptocurrencies - the most important role that centralized cryptocurrency exchanges play in the ecosystem as it allows people to enter and exit the cryptocurrency world. Exchange platforms also give users access to several decentralized finance, or DeFi, services. These are financial services that users can utilize to earn a passive income using their cryptocurrency holdings on the exchange platform. There are many exchange platforms across the globe for people to choose from. For this article, we will take a look at two of the biggest and most well-known centralized cryptocurrency exchanges: KuCoin and Binance, as well as compare the two exchange platforms and try to identify which platform is better. Get ready for KuCoin vs Binance!
Disclaimer: We want to emphasize that this is not financial advice. Cryptocurrencies operate in a volatile market, where values can drastically fluctuate in a blink of an eye. It is imperative to conduct thorough research and seek guidance from a qualified financial advisor before investing.
KuCoin is ranked number 27 on the list of the biggest cryptocurrency exchanges in the world in terms of the daily trading volume. Launched in September 2017, KuCoin has established itself as a popular trading platform in the cryptocurrency community because of its elite safety and security features, as well as its wide list of available cryptocurrency trading pairs and DeFi services on the platform.
Binance is the largest cryptocurrency exchange in terms of daily trading volume. Launched in July 2017, Binance is well-known for its phenomenally large list of cryptocurrency trading pairs and DeFi services. Binance also boasts one of the lowest trading fees in the cryptocurrency space - one of the main contributing factors to why it is the most popular cryptocurrency trading platform.
Both KuCoin and Binance are popular Asian-based exchanges that were both based in China. However, after the Chinese government cracked down on cryptocurrency and banned digital currency exchanges, they both moved to Hong Kong. Binance did however later move to Malta.
Both KuCoin and Binance fees start at 0.1%, and both exchanges offer lower fees as a trader or investor moves up trading tiers.
KuCoin has a very aggressive tier structure when it comes to their trading fees, offering very competitive trading fees for higher-tiered traders and investors on their platform. If you plan on trading large volumes and moving up trading tiers, then KuCoin is the best choice. KuCoin also offers dividends of 50% of the exchange earnings on its token.
Binance does not charge deposit fees and withdrawal fees depend on the asset. Fees on the platform are paid for using the Binance token. If you are a small individual trader and plan on remaining on lower tiers then Binance’s fee structure is better than KuCoin’s. Also, if you want to trade in the futures market then Binance is the clear winner. The platform also offers better taker fees than KuCoin.
Both platforms advertise that they give traders and investors access to hundreds of altcoins that are normally difficult to purchase. Therefore, both KuCoin and Binance have a wide array of available cryptocurrency trading pair choices for investors and traders to choose from.
Binance offers up to 242 altcoins, and KuCoin offers support for 179 altcoins. Even though Binance wins when looking at the trading volume on both platforms, it is unlikely that the average cryptocurrency trader and investor will find KuCoin’s selection lacking.
Binance also offers the ability to trade using its BNB token or Tether as the base currency. On the other hand, KuCoin enables users to trade with either its native token, Tether, NEO, or BTC Cash.
The ability to trade in other tokens makes KuCoin a popular choice for cryptocurrency traders and investors. However, Binance’s fee structure on trades made using its native BNB token is very competitive.
Two-factor authentication is available on both platforms, and both platforms have a good security history and have never been hacked.
Binance has had some problems with phishing attempts due to its large user base. However, this is not a reflection on the platform, and rather serves as a reminder to users to always double-check that they are visiting the correct website. It is important that if you as a user suspect a scam is taking place that you do not enter any information, such as your password, that can give the scammer access to your account. It is advised that users enable two-factor authentication every time they are given a chance. This way, users on both platforms can be protected.
KuCoin is known for its incredibly fast customer service, and also has a 24/7 telegram support chat with an exceptionally quick response rate.
On the other hand, Binance makes use of a ticketing system in their customer support. This means that there is a bit of a waiting time in response from the support team. Even with this being the case, Binance still does offer a customer service with response times quicker than many other cryptocurrency exchanges in the ecosystem.
Both KuCoin and Binance use the same business model and have an almost identical fee structure. The main differences between the two platforms are the range of assets available on each exchange platform, their levels of security, and their customer support. There are a few other slight differences between the two. A trader or investor might find that one exchange suits their needs better than the other exchange depending on what they prefer and what his or her needs are.
KuCoin offers its users automated trading and lending through its native free trading bot. Their bot can function in both the regular trading market and in the futures trading market. Having an automated trading bot means that users can put their cryptocurrency to work using KuCoin’s native trading bot. This trading bot then trades potential profit-making opportunities by trading based on hardcoded logic programmed into the bot. All the user has to do is allocate a percentage of their cryptocurrency holdings to the trading bot and the bot will take care of the rest - giving users the opportunity to earn with their holdings apart from the speculative investing in their holdings.
Binance on the other hand does not offer a free native trading bot, but does offer API support for third-party trading bots. This is one of the main differences between the two platforms.
KuCoin offers users a robust cryptocurrency lending platform and has created a marketplace that connects lenders and borrowers who agree on an interest rate and a duration. KuCoin maintains the marketplace, adding reliability and some level of regulation to the whole process.
Although Binance does offer a cryptocurrency lending platform, users can only lend from Binance itself and are not connected with lenders as is the case with KuCoin.
KuCoin vs Binance: Verdict
The answer to this question really depends on what the user’s needs are. Binance is a popular platform for small traders who do not intend on elevating up the trading tiers. Small traders on Binance are able to trade with very low fees and an additional 25% discount on the fees if they trade with Binance’s native BNB token. Their customer support is a bit slower than KuCoin, but the platform does offer one of the largest, if not the largest, range of cryptocurrency trading pairs. When it comes to deposits, Binance does also give users a bit more options in this regard when compared to KuCoin. Lastly, Binance offers the same amount of DeFi services on its platform than KuCoin does, but Binance does not include a free native cryptocurrency trading bot.
On the other hand, KuCoin is ideal for larger cryptocurrency traders and investors who intend on reaching higher trading tiers. Each tier comes with lower trading fees for the users. One thing that really sets KuCoin apart from Binance is its 24/7 customer support with very quick response times. Although there is not as many cryptocurrency trading pairs available on KuCoin as there
is on Binance, KuCoin does offer the same number of DeFi services to its users and offers a free native trading bot that users can use. When it comes to trading, users can use more cryptocurrencies as base currencies on KuCoin than they can on Binance.
Both platforms have a great security track record, and have not been hacked recently. Binance is however a target for phishing because of its large number of traders and high daily trading volume.
One important thing to take note of is that Binance is facing a lot of pressure from regulatory authorities from different parts of the world. This can be a serious problem for the exchange platform and may result in users’ funds being frozen while regulatory authorities investigate the platform and its users. Earlier it was mentioned that both KuCoin and Binance moved to Hong Kong after the crackdown on cryptocurrency in China, and that Binance then later moved to Malta. However, according to TheBlock, Binance is not incorporated in Malta but rather in some other, unknown location. This is just something to keep in mind when choosing between the two platforms.
What do you think? Which one do you like better? Let us know in the comment section below!