Binance vs KuCoin (Trading Fees, Futures)
By reading the article “Binance vs KuCoin” published in Adaas Investment Magazine, you will get acquainted with the Binance and KuCoin exchanges and the differences between them in general. This level of familiarity can be enough when you need educational information about this topic.
Table of Contents
Introducing Binance Exchange
Chang Peng Zhao, known to most traders and investors in the cryptocurrency market as CZ, introduced Binance Exchange after the initial public offering of BNB cryptocurrency in 2017.
The exchange had its headquarters in China, which left the country after blocking transactions, and is one of the biggest competitors of KuCoin and Binance. The native token of the Binance platform is the BNB cryptocurrency, which has been developed under the Binance Chain and Binance Smart Chain blockchains, and you can see its current price below.
Introducing KuCoin Exchange
KuCoin Exchange was founded in 2017 by Michael Gan and Eric Don. They have chosen their slogan “People’s Exchange” to express the simplicity and publicity of the KuCoin cryptocurrency services platform.
The founders of this exchange have already gained successful experiences in iBoxPAY and AntFinancial. This has helped them put KuCoin Exchange in the top 10 cryptocurrency exchanges and attract more than 6 million users.
The native KuCoin exchange token is called KCS, which was developed under the Ethereum blockchain with the ERC-20 standard. Also, the current price of this token has been prepared for you.
Compare fees Binance & KuCoin
Fees start at 0.1% in Binance and KuCoin exchanges, but there are differences that can be very important for some users.
To better and faster understand the process fee comparison in Binance and KuCoin exchanges, the following table has been prepared for you:
|Trading||starts from 0.1%||starts from 0.1%|
|Deposit||up to 4% for Fiat||Does not support Fiat|
|Withdrawal||Is variable||Is variable|
|Wire Transfer||$15 per U.S. wire transfer||N/A|
Binance Exchange is one of the cheapest exchanges providing cryptocurrency services internationally. Although US citizens pay a relatively higher fee at Binance US, it is generally much cheaper to use Binance than other exchanges.
If you are a small trader with low transaction volume and traffic, Binance Exchange offers a better fee structure and can also be a better choice.
The trading fee in the Binance exchange starts from 0.1% and if BNB token is used to pay the fees, it includes 25% discount in commissions, which reduces the commission up to 0.075% and makes Binance the cheapest exchange.
To study how to calculate the fee for cryptocurrency trades in the Binance exchange and also to apply discounts on commissions, please visit the guide published on the official website of Binance through the following link.
Binance Exchange does not charge a fee to the user for depositing cryptocurrency to this exchange, but the fees for withdrawing from this exchange will be variable.
The exchange also charges a different fee for depositing Fiat currencies, depending on the deposit method. Sometimes Binance Exchange does not charge any fee for Fiat currency deposit for the user, but on the other hand, it may receive up to 4% of the total deposit amount as a fee. The best way is to use the official guide of Binance exchange, the link of which has been placed for you.
As mentioned earlier, the fee for withdrawing cryptocurrency and Fiat currency from the Binance exchange varies. When withdrawing cryptocurrency from your account at Binance Exchange, the desired blockchain fee plus Binance Exchange fee will be calculated for you.
How to calculate the fee for withdrawing Fiat currency from Binance exchange is different from withdrawing cryptocurrency and depends entirely on the country and Fiat currency. For example, for Australian citizens who request Australian dollar withdrawal by bank transfer, there is no fee for this request but for the British pound, a fee of up to 1% will be charged.
KuCoin Exchange is also trying to be one of the cheapest platforms providing cryptocurrency services. In the following, we have prepared fees for different processes for you.
If you are a professional trader with high transaction volume and traffic, KuCoin Exchange offers a better fee structure and can also be a better choice.
At KuCoin Exchange for cryptocurrency transactions with each other, a fee of up to 0.1% is provided for users. But you should keep in mind that this fee is not calculated for trading cryptocurrency with Fiat currency.
For example, if you want to trade Ethereum cryptocurrency with Fiat Dollar Currency, a fee of between 3% and 12% will be charged to you.
KuCoin Exchange does not support Fiat currency deposits. But if you want to buy cryptocurrency with Fiat currency, your commission will be calculated instantly and directly and your purchase will be done with a commission between 3% and 12% of the total transaction amount.
But the positive thing that KuCoin Exchange, like Binance Exchange, offers is the deposit of cryptocurrency without receiving any fee from its users.
Just as KuCoin does not support Fiat currency deposits, so does Fiat currency withdrawals!
To withdraw cryptocurrency from an account at KuCoin Exchange, users are required to pay a blockchain fee plus the fee provided by KuCoin Exchange. Also, fees for different cry[ptocurrencies are variable.
Security at KuCoin & Binance
KuCoin and Binance exchanges strive to provide maximum security for their users. When an exchange gains a reputation like the Binance exchange, many cyber-attackers and sometimes rivals seek to carry out malicious processes and infiltrate these platforms.
In general, Binance Exchange has a better reputation for providing security to its users than KuCoin Exchange. Features such as obtaining ISO27001 certification for Binance Exchange are considered a positive point for security.
It is worth noting that Binance Exchange was attacked by hackers on May 7, 2019, and nearly 7,000 bitcoins were stolen. Also in October 2021, the price of Bitcoin suddenly fell from $60,000 to $8,000 at Binance US for 20 seconds.
The KuCoin Exchange also came under cyber attack in 2020 and nearly $150 million was stolen from the exchange. The important point is that all losses are covered by KuCoin Exchange, like Binance Exchange, whose users have not suffered any financial losses.
In both KuCoin and Binance exchanges, it is possible to enable two-step authentication by sending an SMS to the verified number or using the Google Authenticator application. Also, in order to invest large sums of money, users need to do their authentication process with official documents in the both exchanges.
Cryptocurrency Address White List
One of the features of Both exchanges is the ability to restrict cryptocurrency withdrawal addresses. Thus, withdrawals are made only to addresses selected by the user and no other addresses are supported.
Both exchanges offer a built-in wallet to hold users’ Cryptocurrencies. These wallets are sufficiently secure, but the users’ assets are under the control of the exchange, and they have provided a so-called custodial wallet for their users.
Store users’ assets offline
The assets in both exchanges are stored and protected offline in hardware wallets. This feature keeps digital assets out of the reach of hackers and increases the security of users’ assets.
If your assets are in US dollars up to $250,000, your account will be covered by FDIC insurance by Binance. But the important point is the lack of support for crypto assets in this insurance.
Cryptocurrencies and fiat currencies
Both KuCoin and Binance exchanges are known for offering a wide range of cryptocurrency trading pairs. In this way, they are expected to simplify the difficult trading conditions of some rare cryptocurrencies for their users.
Binance Exchange provides more than 270 cryptocurrencies for its users’ trades, while KuCoin Exchange has participated in this competition by offering more than 170 cryptocurrencies.
However, this numerical gap between the cryptocurrencies offered by Binance and KuCoin exchanges has not prevented many users from trading lesser-known cryptocurrencies at KuCoin Exchange!
As you read in the fee comparison section, Binance Exchange supports the deposit and withdrawal of Fiat currencies, and its services will vary according to the laws of different countries. But at the same time, KuCoin Exchange has announced that it does not support the deposit and withdrawal of Fiat currency in this exchange, which is a negative advantage for this popular exchange.
Features of Binance and KuCoin
Both exchanges offer a variety of features such as easy trading, sufficient security to protect their users’ information and assets. In the following, we have compiled the most important features that are unique to each platform for you to make your decisions with full awareness.
Users eligible to use Binance Exchange are provided with the following features that are not available to Binance US Exchange users in the United States, except in the states of Connecticut, Hawaii, New York, Texas, Vermont, Idaho, and Louisiana.
- Highly professional trading tools Such as Futures trading
- Development features for developers such as APIs
- Types of ordering models
- Supports a large number of cryptocurrencies
- P2P trades and futures and margins
- Make money through cryptocurrency staking
- Binance Debit card (Like Visa) with 8% cashback
KuCoin Exchange is also known as one of the major competitors of Binance Exchange by offering a wide range of services based on cryptocurrency. KuCoin exchange users benefit from the following features:
- Free trading bots
- Ability to copy trading robots for free
- Earn automatic profit through HODL KCS token
- Possibility of lending cryptocurrency to other traders
- Ability to get loans for cryptocurrency transactions
- Futures, Spot and P2P trades
- Types of trading ordering models
Finally, considering the features offered by the two important exchanges KuCoin and Binance, it is easy to understand that if you are a large-scale cryptocurrency market investor and you are looking for many features in the cryptocurrency market, KuCoin Exchange is the better choice for you.
On the other hand, if you are a small trader or you are looking for maximum security for your assets or the activity of KuCoin Exchange in your country is restricted or banned, Binance Exchange, one of the largest exchanges providing cryptocurrency services, can be a suitable choice for you.
The end words
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CZ introduced Binance Exchange after the initial public offering of BNB cryptocurrency in 2017.