INTRODUCTION

In the world of cryptocurrency trading, choosing the right exchange is one of the steps you take to achieve success through trading.

Binance and KuCoin are two big forces in the crypto exchange market. In this article, I’ll be diving into a detailed comparison of both exchanges so you can choose the one that matches your trading preference.

YEAR OF INVENTION

With the idea of creating a trading platform that is independent of fiat currencies, Binance was founded by Changpeng Zhao in June 2017.

In 2011, the founders of KuCoin, Eric Don and Micheal Gan started research on Blockchain technology and built the technical architecture of the KuCoin platform in the year 2013. In November 2017, the KuCoin platform was formally launched.

FEATURES AND SERVICES

Here we are! We’ll be comparing the amazing features of these platforms and of course, you have the decision to make on the one you’ll be going for. Here is a detailed list of services and features Binance and KuCoin has to offer.

1. RANGE OF CRYPTOCURRENCIES SUPPORTED IN BINANCE AND KUCOIN.
According to the trader's union, KuCoin has 700 supported coins while Binance has 396 supported coins.
This entails that with the KuCoin platform, you have access to a wide variety of cryptocurrencies of your choice while in the Binance ecosystem, you have access to limited but quality cryptocurrencies at your disposal.

2. TRADING OPTIONS

Trading options in the crypto ecosystem refers to the strategies used by traders and investors to buy and sell cryptocurrencies. Trading options may differ from exchange to exchange. I’ve compiled a list of trading options that Binance and KuCoin support respectively.

• Spot Trading: This is a process of buying and selling of cryptocurrencies at current market prices. This is a preferred strategy for beginners and the good news is that both Binance and KuCoin support the strategy.
• Futures trading is when traders or investors agree to buy or sell an asset at a speculated price and future date. With this strategy, they’re able to trade by predicting the price of a coin or pair of coins without owning it. This feature Is available in Binance & KuCoin exchanges.
• Options trading: This strategy provides the right but not the obligation to buy or sell an underlying asset at a specific price within a fixed time frame. This feature is available only on Binance.
• Margin trading: This strategy allows traders and investors to borrow funds to add to their trading position after a scrupulous analysis of the coins or tokens they are interested in. This feature is available on Binance and KuCoin

3. SECURITY: No one will ever wish for a loss of his/her assets from a crypto exchange. It’s such a disheartening experience. Binance and KuCoin have taken impressive steps to level up their security systems. Below is an overview of them.

• Two-Factor Authentication: Two-factor authentication (2FA) is a security mechanism with multiple layers that is implemented to confirm a user’s identity before allowing access to a system. Binance and KuCoin have integrated this feature into their security system to protect their user’s funds.
• Cold wallets: This is a secure method of storing cryptocurrencies offline., i.e., the wallets are not connected to the internet. There are 3 types of cold wallets: paper, sound, and hardware wallets. This feature is also found in both Binance and KuCoin exchanges.
• Encryption: This is a process of converting clear information or plain text into unreadable text known as cipher text. This is to prevent penetrations from unauthorized entities. This feature has been integrated into the Binance and KuCoin exchanges.
• User Education: This is a process where exchanges through their academy, enlightening their users on the best ways to assist them in securing their assets. This includes; reporting a suspected login, not sharing your passwords with anyone, and other security measures a user can apply to keep his/her asset safe. Luckily, Binance and KuCoin have an academy where the whole concept of cryptocurrency is being explained there.

4. FEES: The concept of fees is a crucial factor to consider while choosing a crypto exchange. They can affect the profitability of a trader. Below is a comparison of Binance and KuCoin transactional fees.

• Trading Fees: These are charges you pay when you execute a trade. These charges vary from exchange. Binance charges a trading fee of 0.1% for both makers and takers while KuCoin’s trading fee ranges from 0.1% to 0.05% for makers and 0.1% to 0.06% for takers.
• Withdrawal Fees: These are charges you pay when you withdraw your funds from the crypto exchange to your external wallet. Both exchanges charge different withdrawal fees for different cryptocurrencies. For example, the withdrawal fee for Bitcoin on Binance is 0.0005 BTC, while the withdrawal fee for Bitcoin on KuCoin is 0.0004 BTC.
• Deposit Fees: Deposit fees are charges you pay when depositing funds from your external wallet to the crypto exchange. There are no deposit fees on Binance and KuCoin.

5. CUSTOMER SUPPORT: The effectiveness of the customer support of an exchange is basically what all users yearn for. Binance and KuCoin are platforms that prioritize customer service. Below are similarities and differences in the way they operate.

• Both Binance and KuCoin have a support center on their platforms respectively.
• Users could submit support tickets to report issues and seek assistance in both exchanges.
• Both Binance and KuCoin have a knowledge base and FAQ sections for users.
• Binance has 24/7 customer support same as KuCoin.

TO CONCLUDE:

Binance and KuCoin are on the list of leading cryptocurrency exchanges on the planet. They provide incredible services and solve a good number of problems in the Blockchain ecosystem. User’s preferences differ. So, it’s advisable to choose the one that works well for you.

Thanks for reading!