With cryptocurrencies continually gaining mass traction, between both the average joe or jane and the multi-billion dollar institutions, there is a renewed interest being put on the exchanges that facilitate all that buying, selling, and trading. As businesses have long compared the merits of selling their wares on Amazon or eBay, we've now come to a new era when the consumer will need to choose either Binance vs KuCoin. So, which one of these crypto-native marketplaces reign supreme?
Digital tokens have evolved a lot since their heyday. Now, we have complex instruments and products that exchanges need to dole out, such as derivatives in the form of futures contracts or leveraged cryptos. Then, there are other forms of financial offerings that cryptocurrencies helped to invent, like staking. Given how expansive the crypto-borne financial system has developed lately, exchanges like Binance and KuCoin need to expand beyond a simple peer-to-peer system.
Traders and investors also seek easier ways to get into cryptocurrencies from their fiat currencies. Could you simply swipe your credit card or use PayPal or Apple Pay to make the transaction happen? How much will it cost you in fees just to use them? Moreover, what are the extra perks that you get by signing up to either Binance or KuCoin, which are bonuses that you can't enjoy elsewhere? Well, read on our Binance vs KuCoin comparison to see which exchange offers the most for your money.
Binance vs KuCoin Comparison Table
|Supported Cryptos: 358||Supported Cryptos: 323|
|Fees: Low||Fees: Low|
|Software Support:Web Browser, Desktop Client (Windows, macOS, Linux), Mobile (iOS, Android)||Software Support: Web Browser, Mobile (iOS, Android)|
|Security: Good||Security: Good|
|Fiat Currency Support:Yes (Deposits And Withdrawals)||Fiat Currency Support: Yes (Only For Deposits)|
|Ease-of-Use: Complex||Ease-of-Use: Easy|
Binance vs KuCoin – Main Differences
In studying just the tiny bit of our Binance vs KuCoin review thus far, we can see that there are some subtle nuances that separate Binance vs KuCoin, even if they both offer a lot of services for traders and investors. To start, Binance is a much larger exchange since having a significantly greater number of users around the world, thus contributing to it a much higher trading overall trading volumes. However, KuCoin could be more attractive for many users owing to its overall lower platform fees.
What Is Binance?
Founded in 2017, Binance is by far the world's largest cryptocurrency exchange in terms of both userbases (upwards of 13-million users at the time of writing) and in daily volumes. It has become the de facto marketplace for many people globally to get into buying, selling, and exchanging digital assets.
They have since expanded rapidly in their offerings, such as providing investors and traders with highly complex and lucrative products or services and building up their ecosystem to complement the Binance exchange.
How Can You Invest and Trade With Binance?
Although not as extensive as some other exchanges, Binance does give its users a huge selection of markets beyond the spot market (i.e. peer-to-peer or order-book style buying and selling). Firstly, Binance has created a big basket of derivates for traders to choose from, such as futures. There are two, in particular, the USD-M and Coin-M Futures, which allow users to trade futures contracts that are margined with the US Dollar and cryptocurrencies, respectively, with up to 125x leverage.
For traders that want increased exposure without taking a huge amount of risk, then you can trade with Binance's leveraged tokens, where select cryptocurrencies have long and short options with up to 4x leverage that you can bet on, without risk of liquidation.
Regular margin trading with leverage is always a popular option, as well as a brand new addition as of our Binance vs KuCoin guide, which is stock tokens. These are regular stocks but tradeable with cryptocurrency pairs.
This should allow users to trade stocks, which include shares of companies such as Tesla, Microsoft, Apple, Coinbase, and MicroStrategy, without actually having to hold the underlying stock. Binance is also opening up its platform for newer, sometimes riskier investment products as well.
These can often be found with decentralized finance protocols, such as staking and yield farming, pooling your tokens into a liquidity pool, or acquire instant crypto-backed loans, among other lucrative options.
What Else Does Binance Offer?
For our Binance vs KuCoin comparison, it's worthwhile to look beyond what sort of basic trading these exchanges offer to its users but also to look at how being a part of the ecosystem can benefit them elsewhere, such as providing you with a top-notch crypto wallet.
For Binance, we'd be remiss if we didn't make mentions of their native tokens, BUSD and Binance Coin (BNB). Apart from adding to the basket of potential trading pairs, BUSD and BNB reward Binance's users a lot more utility.
Firstly, BUSD is a great USD-pegged stablecoin to transfer non-volatile value within Binance, without being incurred the oft high and volatile gas fees of stablecoins based on other blockchains. While we're here, it should be noted that Binance has its own blockchains, the Binance Chain and smart contracts-capable Binance Smart Chain (BSC). Both have placed themselves as strong rivals to Ethereum in terms of its rising adoption for the development of new dApps and smart contracts.
This has thus catapulted Binance's BNB tokens to new highs, now being the third-largest token by market capitalization, just behind Bitcoin and Ethereum. There's plenty of use cases of users to buy and keep BNB as well, such as how it can give you 25% discounts on your trading fees.
If you'd like to spend those BUSD, BNB, or other tokens, then Binance has partnered up with VISA to create a debit card with 8% cashback, no fees, and usable with more than 60-million merchants worldwide.
What Are The Deposit and Withdrawal Options on Binance?
We've hinted at more extensive options for you earlier on in our Binance vs KuCoin comparison table. We can see that Binance offers its users many deposit and withdrawal options other than funding your account with cryptocurrencies.
After all, having an easy and convenient fiat on- or off-ramp to switch your tokenized holdings with paper fiat currencies is always a great bonus. Popular options on Binance include being able to use your Mastercard or VISA credit or debit card.
Bank transfers or payment solutions like PayPal are also supported. It should be noted that different fiat currencies will have unique deposit and withdrawal options for each one. Binance does have a huge roster of fiat to choose from, which includes the US Dollar, Euro, British Pounds, Australian Dollars, Canadian dollars, and over 40 more.
This is impressive compared to most other crypto exchanges. Although, US-based customers have to choose the US-only Binance.US exchange.
How Much Are The Fees on Binance?
Now looking at the fees in our Binance vs KuCoin comparison, the precise breakdown can be found on Binance's website for each asset. Withdrawals will differ, though deposits are free for all.
As we highlighted in the aforementioned comparison table, it shows that Binance charges fairly low trading fees compared to other exchanges, given its immense size. However, you could get discounts on top of that, with 25% off for holding BNB tokens or another 20% discount for referral kickbacks.
Overall, we can conclude that Binance is a fantastic all-in-one platform that gives its users not only a massive number of trading pairs and seemingly endless volume to trade against but also an extremely diverse array of alternative markets and investment products. That's not to mention the supremely lucrative tokenomics of its native tokens and a hugely valuable ecosystem the be a part of. The only downside is that using Binance can be a bit daunting, especially for newcomers.
What Is KuCoin?
Also founded in 2017, the China-based KuCoin is one of the world's largest cryptocurrency exchanges, having accrued more than 8-million users worldwide. Despite not being as widely used as Binance, KuCoin is a very popular choice for traders and investors, claiming that one-in-four crypto users have chosen KuCoin. Some of its most widely known features and offerings might be similar to that found on Binance, KuCoin has its own set of unique features and a distinct ecosystem built for its users.
How Can You Trade and Invest With KuCoin?
As of this Binance vs KuCoin comparison, some of KuCoin's services are similar to Binance. On the surface, KuCoin offers the basic spot markets through a classic order book or a peer-to-peer style exchange. But as with Binance and many other exchanges, KuCoin is building new products to cater to the needs of traders and investors that seek more ways of monetizing their holdings.
KuCoin has two ways of interfacing with their futures markets, either a simpler Lite or a Pro version.
With the Pro version, users will have access to the full suite of trading tools, as well as up to 100x leverage. This goes for futures contracts that are margined in both individual (COIN) cryptocurrencies or USDT.
Regular margin trading is available with up to 10x leverage, while KuCoin also allows users to trade with leveraged tokens. The selection is smaller than Binance, but traders can bet long or short with up to 3x leverage without having significant risk exposure or the chances of liquidation.
KuCoin's USP is how traders can best maximize their profit potential thanks to native automated trading bot support. Binance could only give its API access to third-party bot programs, but on KuCoin, you can build your own bot from a selection of pre-done strategies such as following grid patterns and rebalancing your portfolio or make completely new ones. With up to 10 bots being supported at a time, you can trade with more than 100 different tokens automatically 24/7.
What Else Does KuCoin Offer?
So far, then, while KuCoin has its own distinct selection of services when looking at Binance vs. KuCoin. No tokenized stocks, but it does have built-in trading bot integration with more than 1.6-million individual bots worldwide. Aside from that, KuCoin mostly stays on track with somewhat mirroring Binance's offerings. On KuCoin, you can borrow or lend your otherwise idling assets to earn a passive income, or you might be interested in a large number of investment products.
These include investing in tokens with flexible locking periods with very high yields, staking, as well as other similarly attractive investments that you can earn from. As with Binance, KuCoin has joined many competing exchanges in building native utility cryptocurrencies that traders and users can leverage, either to earn additional perks and bonuses or discounts on top of their trading fees. Quite recently, KuCoin's KCS tokens are equivalent to Binance's BNB tokens in use.
On KuCoin, holders of its KCS tokens have several benefits apart from being able to claim lower trading fees by 20%. Some of its advantages include allowing KCS holders to earn dividend payments regularly as an incentive for sticking by the KuCoin exchange or take part in additional services that aren't given to non-holders, like transactional mining. Holders also get to vote on which new tokens get to list on KuCoin, otherwise known as an initial exchange offering (IEO).
What Are The Deposit and Withdrawal Options on Binance?
Not all exchanges are made equal as far as deposits and withdrawals go. Some marketplaces, for instance, accept deposits or withdrawals in cryptocurrencies only, while others may be highly restrictive in what ways you can put in and take out funds with. Thankfully, as we looked at earlier in our Binance vs. KuCoin comparison, KuCoin makes this process easier than others. It opens up to users a lot of variety when it comes to choosing how to deposit funds into their KuCoin account.
Once again, credit and debit cards (VISA or Mastercard) are one of the most popular choices for users across a wide range of different currencies to choose from. Otherwise, they could opt for a bank transfer through PayPal. Even Apple Pay is supported to make crypto purchases and immediate deposits a lot easier. Unfortunately, only deposits into KuCoin have fiat support, not withdrawals. Thus, you may need to rely on another exchange if you're looking for a fiat off-ramp.
How Much Are The Fees on KuCoin?
This is where KuCoin makes itself known in our Binance vs KuCoin comparison, as it charges one of the lowest fees of any exchange, and especially so compared to Binance. Deposits are free, and withdrawals will differ based on the crypto asset. But as far as trading fees go, KuCoin can sometimes cost you negative discounts even without KCS tokens (in other words, they give you money in return) for certain trading, though this depends on which membership level you occupy.
Summarising our thoughts on KuCoin, we can distinguish more easily now the differences between it and its rivals. But what KuCoin lacks in terms of sheer trading volume or the diversity of products and services that it provides it claws back points for just how cheap it costs to trade on it.
On top of the extra discounts and earnings, thanks to holding KCS tokens, you could even get them to pay you just to trade. The only big downside is that users can't withdraw from KuCoin with fiat currencies.
Binance vs KuCoin – Conclusion
Now, it comes time for our Binance vs KuCoin comparison to find an absolute champion from two behemoths amongst exchanges. Which one comes out on top, Binance or KuCoin? Given what we've learned so far, there are many reasons to justify us giving the crown over to Binance.
As a trader and investor, there are a lot of ways that you can bet and invest into making a living, all complemented with a huge diversity of different cryptocurrencies and trading pairs to play around with.
From predicting the future price of a token to trading stocks, Binance has no shortage of things you can do and earn from. Even for casual users that couldn't care less about all that, the Binance ecosystem as a whole is very inviting. Imagine being able to invest in BNB tokens and let that ride to the moon, or actually putting your cryptocurrencies to use with a debit card that you can swipe and use with millions of shops around the world. Despite this, however, KuCoin isn't far behind.
We do regret the fact that KuCoin doesn't have a way for users to withdraw into their fiat-only bank accounts, as its current setup can be a deal-breaker for some people. But as a whole, there's a lot to be said about what KuCoin has been able to achieve and give back to you. There are no fewer ways to make money than Binance, and KuCoin has native automated trading bot support to take the stress of playing the market away from you. In short, you get a lot for your money with either exchange.