Binance vs KuCoin is one of the main comparisons that we can make between cryptocurrency exchanges. Both of them are very popular platforms to trade virtual currencies and get access to different market solutions. Over the last few years, Binance vs KuCoin have been strong competitors trying to offer more trading pairs and services to crypto investors in the market.
Thanks to the expansion of the crypto industry, both platforms ended up offering some of the most advanced and unique solutions for users. Nowadays, both exchanges are at the forefront of crypto innovation and adoption. These two platforms continue to onboard new users on a regular basis, making the whole experience even better.
In this guide, we are going to compare both cryptocurrency exchanges: Binance vs KuCoin. This will let you have an idea of what to expect from both crypto trading platforms. Additionally, we will compare some of the most important parameters in order for you to decide which crypto trading platform is better.
What is a Cryptocurrency Exchange?
Cryptocurrency exchanges are some of the most influential platforms in the cryptocurrency industry. Without crypto trading platforms (exchanges) there will be no crypto industry as we know it today. Basically, a cryptocurrency exchange is a platform that lets you trade virtual currencies. You can not only trade digital assets but you are also able to trade different virtual currencies using a crypto trading platform.
With the expansion of the cryptocurrency market, we have seen exchanges adding new features and solutions for both traders and investors. Additionally, they have also played a key role in making it possible for investors to enter the market.
Therefore, you would not only be able to buy and sell virtual currencies, but you will also have the possibility to deposit funds (in local currency in some cases) and get exposure to different solutions and services. Some of these services and solutions include lending, borrowing and getting access to different blockchain networks, among other things.
Furthermore, cryptocurrency exchanges have also added different and more advanced trading solutions such as derivatives trading. That means that users can not only trade in the spot market but they can also use derivatives such as futures, options and perpetual contracts to get additional and more advanced solutions in the crypto space.
KuCoin and Binance have been among the leading platforms in the market. They have both offered multiple services and become clear leaders in the crypto industry. These two crypto exchanges are now offering some of the most advanced and compliant solutions to investors in the crypto space.
What is Binance?
Binance, as you might already know, is the largest and most popular virtual currency trading platform in the world. This exchange was launched in 2017 as an Initial Coin Offering (ICO) and it was able to fastly become one of the largest in terms of the trading volume. The platform was, in the beginning, offering only crypto trading solutions. That means that investors could not deposit fiat currencies to buy Bitcoin and other digital assets (it was a crypto-to-crypto trading platform).
However, as time passed, Binance realized that there was a clear need to offer better solutions to investors. This is why they added many different fiat on-ramp solutions for investors to deposit funds and be able to purchase the virtual currencies they wanted. Nowadays, they are now supporting a wide range of payment methods.
Binance is, therefore, among the most popular exchanges due to a large number of crypto solutions offered. Indeed, when the exchange was released to the market, the goal was to list a large number of ICO tokens in order for risk investors to get access to the latest digital assets in the world.
If you want to know more about Binance, check our detailed guide.
This was a completely different approach compared to the one taken by Coinbase or other crypto trading platforms. Due to this reason, a large number of investors purchased Bitcoin and virtual currencies using Coinbase and other crypto on-ramp platforms to later send the funds to Binance and get access to some of the newest tokens in the crypto industry.
After several years of operating in the market, Binance decided to launch new solutions and services for clients. For example, they are now offering users the possibility to buy and sell crypto contracts rather than just trading in the spot market. Moreover, it has created its own virtual currency called Binance Coin (BNB), which is among the top 5 largest in the crypto market.
Considering that there was a need to use reliable decentralized finance (DeFi) platforms, Binance launched the Binance Smart Chain (BSC) blockchain network. Thanks to it, investors can get access to a wide range of DeFi platforms and protocols using the BNB virtual currency.
Other services added by Binance include lending, borrowing, a launchpad to get access to the latest Initial Exchange Offerings (IEOs) and many other things.
What is KuCoin?
KuCoin is another popular cryptocurrency exchange that started as a competitor to Binance due to different reasons. This platform worked as a place for investors to purchase different tokens (it also had a wide range of virtual currencies supported). Indeed, some of the tokens offered by this platform were not available on Binance. This shows that there were some investors that preferred to use KuCoin rather than Binance.
At the same time, this platform offered solutions that did not require KYC checks. That means that users could use all the services offered by the platform without having to share private information. Most cryptocurrency exchanges required users to share an ID, a selfie, and many other requirements such as name, surname and even address.
Therefore, KuCoin was a great alternative to Binance when it comes to services and solutions offered. Over time, KuCoin added new coins and new fiat on-ramp solutions for users to buy and sell virtual currencies. Despite the fact that the exchange is requiring users to complete a KYC validation, their processes are much less intrusive than those of Binance or other cryptocurrency exchanges.
This shows that KuCoin has a strong focus on privacy. At the same time, KuCoin is now offering many other services such as derivatives, lending, borrowing and more. For example, the platform has released its own virtual currency called KuCoin Token (KCS), which is now one of the largest exchange tokens in the market.
Binance vs KuCoin
It is now time to make a comparison between these two exchanges by taking into consideration different parameters. This would help us understand which are the main differences between these two cryptocurrency trading platforms.
Fees are very important and are one of the main parameters that investors compare when using a cryptocurrency exchange. KuCoin seems to be the winner compared to Binance when it comes to fees.
If you are a large trader or you want to perform day trading activities, then KuCoin has better fees (lower). This is also one of the reasons why KuCoin has a very large trading volume for many cryptocurrency pairs.
Both exchanges are currently offering discounts for fees using their local digital asset. If you hold KCS or BNB you will get a discounted rate to trade virtual currencies.
Both exchanges have improved their customer service over time. These platforms encounter many issues when it comes to offering solutions to clients. While in the past it was very difficult to receive a solution or answer to your problem, it is now easier and faster to contact their customer support teams.
One of the things that you should take into consideration is that the issues faced by crypto exchanges were related to the fact that a large number of investors entered the market in a very short period of time. Therefore, the exchanges were not prepared to support them as they expected. Nowadays, you can experience enhanced services when it comes to customer support.
KuCoin is now offering and supporting 660 different virtual currencies. This is 68% more digital currencies than Binance. Binance is currently offering 391 virtual currencies to investors. Therefore, we see that KuCoin is a clear winner in terms of cryptos supported. If you want to trade smaller coins or get access to tokens that are not available on Binance, then KuCoin is a great choice.
One thing to take into consideration is that Binance has 1664 markets compared to 1229 offered by KuCoin. That means that Binance has a much larger variety of trading pairs than the one you can find using KuCoin. It is up to you if you prefer more trading pairs or a larger number of tokens.
When it comes to the trading volume, Binance is currently the leader with $11.2 billion in trading volume in the last 24 hours. This is the largest trading volume for a cryptocurrency exchange in the world, showing that Binance is a clear leader in terms of the trading volume.
Now, KuCoin is also a very large cryptocurrency exchange with a trading volume of $1.56 billion in the last 24 hours. It surpasses exchanges such as Coinbase Exchange, Kraken, or Gate.io, among others.
Both cryptocurrency trading platforms are already supporting a wide range of payment methods to trade virtual currencies. These payment methods include debit and credit cards and even bank transfers, depending on your jurisdiction and bank. Therefore, it became very easy to send funds to these platforms and start trading virtual currencies.
Payment methods are very important, therefore, when searching for a cryptocurrency exchange, you should make sure that they have the payment options that you need or that you would like to use to deposit funds.
KuCoin currently has a withdrawal fee of 0.0005 BTC ($19.57) while Binance has a withdrawal fee of 0.00059 BTC ($23.10). Hence, it is still cheaper to withdraw funds from KuCoin than from Binance. Nonetheless, these are very high fees for small investors and retail users in some countries.
Other crypto exchanges have been working in order to reduce withdrawal fees. Unfortunately, just a few trading platforms have no fees at all. At the moment, both Binance and KuCoin are offering quite standard trading fees for investors.
Final Words about Binance vs KuCoin
This Binance vs KuCoin exchange comparison has discussed many different aspects related to the services offered by each of them. We know that these are among the most popular cryptocurrency exchanges, which makes both of them great options for investors that want to have access to the cryptocurrency market.
There is no clear winner, but Binance has a larger trading volume, which could provide large traders with better liquidity to handle larger trades.