If you are not new to the world of cryptocurrency, you probably know about crypto trading platforms. These are exchange platforms where crypto enthusiasts meet to buy and sell cryptocurrencies.
In this article, we’ll understand what crypto exchange is and take a look at the key differences between several trading platforms.
What Is Crypto Exchange?
In short, this is a digital platform where people trade in cryptocurrency – digital money. As in traditional currency exchanges, the participant’s task is to make a profit: buy at a lower price and sell at a higher price.
Exchanges can only deal with transactions with different types of cryptocurrencies (Bitcoin, Ethereum, Litecoin, and others) or exchange digital money for world currencies (dollars, euros, and so on.) And also combine both directions.
Crypto Exchange Platforms: Kraken vs. Binance
Currently, two of the most well-known crypto exchange platforms are Kraken and Binance. Both platforms have built a large online community and provide their members with an opportunity to buy and sell cryptocurrencies safely. To help you understand which platform may work for you best, we’ll take a look at how they work, as well as their pros and cons.
Kraken is a popular cryptocurrency exchange known to experienced traders and newcomers in the field. Over the past few years, the company has acquired a couple of small projects that provide exchange services. This significantly increased the company’s influence and popularity of the site in European countries.
Pros of Kraken
Kraken has earned the trust of users by maintaining the highest level of data protection. Since its inception, the name of the exchange has never appeared in any scandals related to theft or hacking.
Availability of Margin Trading
This is an important point for those who care about getting the maximum profit from transactions. The main thing is not to forget about the risks and take a balanced approach to transactions using leverage.
High Level of Security
The Kraken platform uses two-factor authentication (2FA) to ensure maximum protection of user data. Also, it allows you to connect a Master Key or PGP Key for additional protection of your transactions.
Cons of Kraken
When choosing an exchange, the size of the exchange commission is one of the most critical points since your daily earnings on the exchange will depend on the commission. The fees for deposits and withdrawals on Kraken are slightly higher than on alternative exchanges.
Be sure to keep in mind that registering on Kraken is not enough to start trading or fund your deposit. The verification process on Kraken consists of five, not the easiest, levels and to fully work with the service. You need to go through at least one of them. Without verification, users are given limited access – only viewing charts and transaction history is possible.
Binance is an exchange platform for trading Bitcoin cryptocurrency and other digital coins. It started to work in early 2017 but has already become very popular. Binance is now in the TOP 3 exchanges in terms of the daily trading volume. Low fees of Binance and quick transactions are some of the reasons for this success.
Pros of Binance
Support of Multiple Currencies
A vast selection of currencies provides a high level of liquidity and attracts users of rare altcoins to the site.
Binance is a powerful trading platform with the technical ability to process thousands of transactions every second.
Loyal commissions, the ability to save money with BNB tokens.
Cons of Binance
Lack of Fiat Money
Unlike several other platforms, Binance doesn’t support fiat money and is a platform exclusively for cryptocurrencies.
While both platforms adhere to Know Your Customer (KYC) standards and try to make the trading process as secure as possible, there is always a risk involved with trading cryptocurrencies. Make sure to consider this and conduct a risk analysis before making a final decision.
When choosing a cryptocurrency exchange, consider how long ago it was founded. Older exchanges usually have a good reputation and, in fact, also prove to be more reliable. So perhaps you should opt for an older exchange. At the same time, exchanges that were founded not so long ago maybe more technologically advanced.