Over time, both Kucoin and Binance have rapidly grown to be among the leading exchanges in today’s crypto industry. The remarkable feats recorded so far by these two exchanges in recent times usually ferment a series of comparison debates among their respective users. Interestingly, this article intends to engage readers in the comparative analysis involving Kucoin vs Binance. Without a doubt, the two crypto trading platforms are leading forces in the crypto sphere and have gained users’ trust and loyalty worldwide. Notably, both exchanges, have continued to be on top of their game in availing best of services to customers. Worth noting that the Kucoin vs Binance debate aims to fully analyze the nitty-gritty of both exchanges. Meanwhile, with this article, a thorough evaluation of the background, strengths, weaknesses, and structures of these exchanges will be done.
Nevertheless, it is imperative for every investor, trader, and other concerned body to embrace this content without sentiments. This is not financial advice or an attempt to place one above the other. Therefore, every financial decision lies solely on the investor and not the responsibility of the author.
Background checks on Binance and Kucoin
To better appraise the Kucoin vs Binance, it is essential to examine their notable backgrounds. Starting with Binance, the crypto exchange started operations in 2017 firstly in China with its headquarters there as well. Later, it moved its base away from China owing to the stiff regulation by the Chinese government. Changpeng Zhao is the founder and CEO of Binance with its headquarters in Cayman Island.
Like other crypto exchanges, Binance runs to avails numerous crypto offerings, including trading, listing, fundraising, and de-listing or withdrawal of cryptocurrencies. In recent time, the crypto exchange has grown to become the largest exchange in the world in terms of daily trading volume of cryptocurrencies.
Amidst the prevailing market conditions, Binance has continued to soar in its quest to secure a global presence. The crypto exchange, in recent times, engaged in numerous partnerships to improve and expand the reach of its product offerings. Occasioned by its partnership with other actors, it unveiled a special entry into the world of NFT. Recently, the crypto exchange initiated an NFT package with Primeira Liga Champions, FC Porto. Binance also made the headlines a few months ago after partnering popular world class player, Cristiano Ronaldo to boost the popularity of crypto and NFT.
Remarkably, the exchange, in its quest for expansion has continued to secure regulatory approvals of countries across the globe. As of now, Binance, according to CoinMarketCap, ranks among the top two cryptocurrency exchanges in the world.
For the purpose of this Kucoin vs Binance debate, it is also necessary to appraise the former. Just like Binance, Kucoin runs as a cryptocurrency exchange, offering digital asset services to its users. It began operations in 2017 after it was launched by Michael Gan. With headquarters in Seychelles, KuCoin offers spot trading, margin trading, P2P fiat trading, futures trading, staking, and provides loans to its users.
Currently, Kucoin serves about 20 million crypto users in more than 200 countries across the globe. Notably, it also enjoys a trading volume of over $2 trillion. Today, the exchange has developed one of the biggest crypto communities in the world, having enjoyed over 1 million community members. At the moment, it ranks amidst the top five crypto exchanges in the world, according to CoinMarketCap.
Despite the prevailing crypto winter, the exchange has continued to expand the reach of its products. More so, it has consistently banked on its cordial relationship with numerous crypto ventures to raise funds. Just a few months ago, it earned a strategic contract from Susquehanna International Group (SIG) to aid blockchain integration and KCS & KCC ecosystem building. Through the partnership, it raised about $10 million investment.
Also, in May, the exchange raised over $150 million in a pre-series B funding. As reported, the funding round was led by Jump Crypto. The funding takes its overall investments to $170 million. Now, Kucoin is accelerating efforts towards boosting its platform infrastructure and product lineup.
Kucoin vs Binance: Friendliness to traders with less experience
Further, in the comparison of KuCoin vs Binance, there are emerging controversies about which is more easier to use. KuCoin has a user-friendly interface that’s easy for newbies, to some extent, the crypto exchange is a bit similar to Binance. Likewise, it provides promo and discounts for users, and it supports early users with varieties of cryptocurrency assets. However, KuCoin doesn’t have enough features to help beginners compared to Binance.
Binance is attractive to new users and professional traders. The cryptocurrency exchange has two versions, Lite and Professional. The Lite version is specially designed for traders who are not really conversant with cryptocurrency. Overall, Binance has friendly features for newbies, and it has customer care guidelines that provide support for them as well. Additionally, Binance gives new users special discounts to encourage them to use the platform.
In this aspect, Binance comes out on top, far above KuCoin. Its flexibility to accommodate new traders is top-notch compared to the latter. It is safe to say that Binance Is more friendly to beginners than KuCoin.
Number of tokens they support
It’s worth noting that traders pick cryptocurrency exchanges to use due to the kind of trading tokens they offer. Having a variety of assets on a cryptocurrency exchange gives traders the privilege to explore. However, KuCoin and Binance support token varieties like Bitcoin, Polkadot, Binance Coin, DogeChain, Shiba Inu, and Ethereum.
It shouldn’t come as a surprise that despite being a bigger cryptocurrency exchange than KuCoin in terms of trading volume, Binance supports fewer token. Currently, KuCoin supports more than 751 coins, while Binance supports a fewer 385. Binance’s listing of few crypto assets coincides with the cryptocurrency exchange strict criteria for listing emerging projects. In this aspect of the comparison of KuCoin vs Binance, KuCoin comes out top over Binance.
KuCoin and Binance both have a reputable track record against cyber attacks. The two cryptocurrency exchange has never been hacked, thus earning the tag of being “safe and secure.” In terms of verification, both KuCoin and Binance use two-factor authentication via the Google Authentication app or through SMS.
Meanwhile, KuCoin edges a little bit above Binance in this aspect of their comparison. The former mandates users to set up a separate password for trading, which is missing from Binance. The password is a different security mechanism aside from the usual login information. KuCoin mandates that users provide this password before initiating trades or withdrawing assets on its platform. Worth noting that most of the security questions asked by the two platforms while setting up an account on them come in conformity with KYC regulations.
Also, the two cryptocurrency exchanges withstood the difficult crypto winter in ensuring that users’ funds remained safe. During the bear market, the cryptocurrency space witnessed how many firms and cryptocurrency exchange plunge into crisis. However, the two cryptocurrency exchange held their ground and protect users’ assets. In this aspect of the KuCoin Vs Binance comparison, the contest is even between them.
Kucoin vs Binance: Performance
Without much deliberation, Binance will definitely top KuCoin in this aspect. Binance is widely rated highly in the cryptocurrency space above its peers. This is due to the enormous daily trading volume that usually takes place on the platform. According to data from the market, as of press time Binance trading volume in the last 24 hours is worth $17,719,969,234. While KuCoin recorded $2,862,523,569.
In addition, Binance weekly visits average 16,330,422 and KuCoin’s weekly visit is at 2,013,193. Nonetheless, the two cryptocurrency exchange supports the same amount of Fiats, about 48 each. In the cryptocurrency space, Binance has a strong influence, much more than KuCoin. The crypto exchange is frontier in the course of ensuring good regulations for the cryptocurrency space. This influence also extends to ensuring a safer crypto space. In the past, Binance has led the charge for recovering stolen funds from the crypto space.
Though, it’s understandable that KuCoin is just finding its feet in the crypto space. Nevertheless, one must be fair to commend its effort for keeping up within that short period of time. So in terms of performance, Binance is the bigger cryptocurrency exchange.
Kucoin vs Binance: Customers Support
Every cryptocurrency exchange needs a platform to communicate from time to time with its users. The essence of this platform cannot be overemphasized because it fast-tracks the swift resolution of any emerging mixup. Both KuCoin and Binance have this platform and it help be helpful In engaging their users.
The two cryptocurrency exchanges have an active customer support features that are backed by emails and online chat. They both have customer support teams that work 24 hours. In this aspect, Binance seats above KuCoin because it has a Phone and Telegram services, and KuCoin doesn’t have any. As a matter of fact, Binance seems to be ahead of every other crypto exchanges in terms of the immediate, fast and consistent supports it offers to its heterogeneous users.
Withdrawal and deposit fees on Binance and Kucoin
A comparison of the withdrawal and deposit fees is another basis for this Kucoin vs Binance debate. In Kucoin, fees incurred on withdrawals depends on the token and network. Meanwhile, users incur a fee of about 5% on crypto purchases with credit or debit card. Notably, Kucoin charges no fees for SEPA bank deposits, and does not support fiat withdrawals.
Binance, on the other hand, charges no fees for crypto deposits. But for fiat deposit, the exchange charges about 1.8% to 3.5% depending on the method and currency. More so, users usually incur withdrawal fees which is usually determined by the coin and network. Unlike Kucoin, Binance supports fiat withdrawals. Users incur either a flat or percentage fee and this is determined by the method used and currency. Meanwhile, the exchange charges low withdrawal fees for fiat withdrawals, ranging between 0.05% for Euro withdraws done using Etana.
Kucoin vs Binance: Futures
Examining the futures market of Kucoin vs Binance is essential in this debate. For Binance, it launched its futures market in 2020. This futures market paves the way for investors to trade crypto derivatives for dozens of perpetual contracts for different assets. Binance futures became widely used when it allowed the leverage up to 125x. Today, it has been reduced to just 50x.
As for Kucoin futures, it allows traders to trade numerous margined contracts for popular cryptocurrencies. It avails at least 100x leverage. According to findings, the Kucoin futures platform runs in two categories, namely Lite and Pro versions. The lite version is meant for beginners who are not fully familiar with the technicalities. The pro version is for veteran traders, possessing all necessary features.
At the moment, KuCoin, like every other crypto exchange, is working to close the dominance gap by Binance. It’s important to acknowledge that KuCoin is gradually closing on the gap. However, it doesn’t look like the crypto exchange will overtake Binance very soon. This is because one of Binance’s foremost policies is aimed at facilitating expansion into numerous countries and regions. Without a doubt, the cryptocurrency space can attest that Binance is doing well in that regard.
While KuCoin is working to catch up with Binance, other cryptocurrency exchanges are forcing their way into the mix. Before now, KuCoin owns the 3rd spot as the largest cryptocurrency exchange. Lately, the likes of FTX and Kraken have pushed KuCoin down the mix to 5th. Now, the cryptocurrency exchange is not only struggling to meet up with Binance. KuCoin is fighting tirelessly to stay ahead of the competition. Surprisingly, Binance’s offshoot in the US, Binance U.S, is currently behind KuCoin and threatening to overtake it.
Lastly, it’s well-known that Binance remains the biggest among its peers. Notwithstanding, each investor must decide which is best for their preference. On this note, it will be unfair to write one cryptocurrency exchange off while trying to exalt the other. Each cryptocurrency exchange has its strengths and weaknesses. So, investors must decide the one that suits them most.
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