Kraken and KuCoin are two popular exchanges that make a perfect starting point for newbies wanting to try crypto trading and are also good platforms for experienced traders.
The choice between these two is personal as every trader has specific preferences. However, for those stuck between the two, the best way to decide which one to use is by understanding the key areas where the two differ.
KuCoin Vs Kraken Overview
|📖 AML & KYC||Yes||Yes|
|💰 Supported Coins||28||122|
|🚀 Maximum Leverage||20X||8X|
|⚖️ Taker Fees (Futures Market)||0.05%||0.060%|
|⚖️ Maker Fees (Futures Market)||0.02%||0.020%|
|🔧 Withdrawal Fees||Yes, varies blockchain to blockchain||Yes, varies blockchain to blockchain|
|➡️ Deposit Fees||0||0|
|📱 Mobile App||Yes||Yes|
|📝 Demo Account||Yes||No|
|💳 Spot Trading||Yes||Yes|
|📈 Futures & Margin Trading||Yes||Yes|
|🎁 Joining Bonus||N/A||N/A|
Kraken is a remarkable crypto exchange given that it is one of the few registered and licensed to operate in the USA, where there are super strict crypto regulations. The company is also one of the oldest crypto exchanges globally, as it has been in operation since 2011.
Kraken allows crypto traders to spot trade with margin and provides other products like futures, staking, and forex trading.
KuCoin is one of the largest exchanges globally, and according to information on their website, the company has more than 10 million investors. Also, the exchange is available in more than 205 countries.
The KuCoin crypto exchange has been live since 2017, and over the years, they have added more products to cater to different traders. As a trader on the platform, you can do spot trading, P2P trading, or invest in one of the many derivatives contracts.
KuCoin vs. Kraken: Supported Cryptocurrencies
KuCoin supports more cryptocurrencies than a majority of crypto exchanges out there. The exchange has a catalogue of more than 500 tradable coins that allows traders to form hundreds of trading pairs.
Besides offering many coins, KuCoin also does a good blend of traditional coins and tokens and some less known ones. Better still, the company is constantly updating its coin offering by adding new assets with good potential and removing the underperforming ones.
Kraken does not offer as many coins as KuCoin, but they still provide enough to form dozens of trading pairs. Currently, there are over 50 cryptocurrencies on the platform that traders can trade or stake to earn interest. Moreover, the exchange also supports 7 fiat currencies that traders can stake on to earn interest.
KuCoin vs. Kraken: Trading Fees
Both KuCoin and Kraken charge relatively low trading fees. They also use a tiered system that ensures that trades that transact more on the platform pay lower fees than the low-volume traders.
KuCoin trader fees start at 0.1% for both the maker and taker fees. However, the exchange also allows traders to lower their costs further by paying with KCS, the exchange’s native token. If you pay fees with KCS, you get a 20% discount meaning your new maker and taker fees will be just 0.08. Here is an overview of the KuCoin trading fees.
Traders on the KuCoin platform wanting to buy crypto using fiat currency can expect to pay anything from 3% to 12% in transaction fees depending on the method you use.
Kraken trading fees start at 0.16% and 0.26% maker and taker fees, respectively, for the low volume traders with a monthly trade volume of under $50,000. The charges get lower as you transact more on the platform. For example, traders with a 30-day trading volume of over $10 million will not pay any maker fees, and their taker fees will be 0.10%.
Here is an overview of Kraken’s tiered trading fees structure:
KuCoin vs. Kraken: Account Funding Methods
There are several account funding methods for Kraken and KuCoin users, so you should not have difficulties adding funds to your account.
KuCoin does not accept direct fiat currency deposits into your account as they do not have a wallet for fiat. However, you can still use fiat to buy crypto via third-party apps. For example, you can use a Visa card to buy crypto directly without pre-funding your account. KuCoin supports over 28 fiat currencies, so you can be sure at least one will work for you.
Overall, the KuCoin platform will allow you to fund your account using PayPal, Skrill, SEPA, Apple Pay, and Google Pay.
Kraken is a more convenient platform for account funding as they make both crypto and fiat deposits super easy. The exchange supports seven fiat currencies: USD, AUD, CAD, EUR, JPY, CHF, GBP, and Euro.
Traders using the Kraken exchange can fund their accounts using channels like Bank and Wire transfer, SWIFT, Fedwire, SEPA, Apple Pay, Google Pay, and Debit/Credit card. However, some of these funding methods, like debit/credit cards, are unavailable for some countries.
KuCoin vs. Kraken Liquidation Mechanism
Like other exchanges that allow traders to open leveraged positions, KuCoin and Kraken have liquidation mechanisms in place to protect both the traders and the business from massive losses.
With KuCoin, the liquidation mechanism will take over from the trading engine that manages your position when your debt ratio crosses the 97% liquidation line. Once your maintenance margin level is at this point, measures are taken to close down the position to settle any outstanding debts before going bankrupt.
The liquidation mechanism is slightly different for Kraken. Although the liquidation will also happen when your position gets to the maintenance margin level, the exchange can liquidate it when the margin is between 40% and 80%.
Kraken also supports partial liquidation to help restore the margin to the required position without closing the entire position. However, once the margin level is at 40%, liquidation is mandatory for the position as trying to restore it is untenable.
Opening Account & Account Limits
Opening an account on most crypto exchanges is often straightforward, and it should only take a few minutes. However, as a trader, you should know the exact process and the account limits you get once you have the account to ensure a smooth process.
KuCoin pegs their account limits on your verification levels. Although KYC verification is not mandatory on the platform, failing to verify your identity limits you to a maximum withdrawal of 1 BTC per day.
Traders with the KYC1 verification level can only withdraw up to 1 BTC per day. However, these traders can trade more on the platform as their daily trade limit increases to $2,000. KYC2 traders can withdraw up to 200 BTC, while institutional KYC verification has a 500 BTC daily withdrawal limit.
How to Open a KuCoin Account?
- Go to the KuCoin homepage and click “Sign Up
- Fill out the form with your email or phone number and request a code
- Enter the code and create a password
- Agree to the terms and finish the signup
Account limits on the Kraken platform also depend on your verification status. However, the exchange does not have any daily or monthly deposit limits regardless of your verification level, so you can add as many assets to your account as you wish.
Starters on the platform yet to do any verification can withdraw a maximum of $5,000. At the same time, Intermediate-level traders have a $500,000 limit, and Pro traders can withdraw up to $10 million every day.
How to Open a Kraken Account
- Click “Create Account” on the Kraken homepage
- Add your email, username, and password
- Agree to terms
- Click the “Create Account” button at the bottom to complete the process.
KuCoin vs. Kraken: Ease of Use & Interface
Ease of use can be quite subjective because what one trader finds a breeze to use might be complicated for someone new on the platform. That said, both Kraken and KuCoin have some highly intuitive interfaces that most traders seem to figure out in just a few trading sessions.
Kraken takes things a notch higher by including customizable panels in the interface. The traders can move around the panels to different locations on the interface to create a more custom interface layout that is even easier to use. Additionally, all the essential things traders need when trading, like charts and indicators, are just one click away.
The KuCoin interface has an excellent outlay that should make things easy to locate for traders. The company also provides some clear usage directions for traders just starting. However, some of the functions, like Fast Pay, seem a little confusing at first, but you should figure them out after a few trading sessions.
KuCoin vs. Kraken: Security Features
Security has been a top priority for crypto exchanges over the years, and most are using increasingly advanced security features to keep user funds safe.
Kraken operates in one of the strictest crypto regulation environments, and so it has to use highly advanced security features to keep up with the regulations. These features include user account security protocols like KYC verification, 2FA, IP whitelisting, and configurable account timeout. Additionally, the exchange also uses SSL encryption and real-time monitoring.
KuCoin uses most of the security features you get on Kraken, including multifactor authentication and KYC verification. However, the exchange also has others, like having a separate password for crypto trading.
KuCoin vs. Kraken: Customer Support
If you have an issue with your account or want clarification on something, KuCoin and Kraken have excellent customer support that will resolve your query super-fast.
KuCoin allows you to contact customer support 24/7. They have an online chat with highly advanced bots to take you through your query and provide possible solutions. Also, you can contact the company via email and wait for a response or go through the rich material on the help centre to get a solution for your issues.
Kraken offers 24/7 live chat with a global team that can resolve your specific solution regardless of your location. The company pairs this with an extensive support centre that provides support through phone calls and email tickets.
- Is KuCoin a safe exchange?
KuCoin is one of the safest exchanges globally, given its highly advanced security features. Although the exchange was hacked in 2020, they managed to recover most of the assets and return them to the users. Since then, the company has adapted even more advanced security systems to make the platform almost impenetrable.
- Is Kraken a safe exchange?
Kraken has never been hacked despite being around for over a decade. The high-security level that combines multiple security protocols and constant platform monitoring is largely responsible for this.
Other things that should give traders confidence that Kraken is safe are that they store 95% of the assets in offline cold storage and are based in the USA under FinCEN regulation.
There is no doubt that Kraken and KuCoin are two of the best exchanges you can use regardless of your location. Ultimately the choice between the two will largely depend on your preferences as each has something that gives it an edge.
Kraken scores well regarding ease of use, customer support, and security, while KuCoin is almost unbeatable for coin offerings and products.
Therefore, to make an informed choice, you have to consider what you value most in an exchange and pick the company that performs best in that aspect.