ALL you need to know about KuCoin vs. Binance Exchange: fees, security, features, customer services
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The cryptocurrency market is attracting more and more people to invest. However, choosing a suitable exchange is a question of newbies. Currently, two cryptocurrency exchanges are of great interest to many people: KuCoin and Binance. The following article reviews the two exchanges, KuCoin vs Binance, regarding reputation and transaction fees to help users easily make the most suitable choice.
Overview of KuCoin and Binance
KuCoin and Binance are two cryptocurrency exchanges that were both launched in 2017. Both of these exchanges are based in China at the time of launch. Binance and KuCoin allow users to easily open accounts to trade and buy hundreds of different cryptocurrencies in real-time. The trading markets of Binance and KuCoin are also quite similar, including P2P, Futures, Margin, etc. Both these exchanges have similar transaction fees, starting from 0.1 % and decreasing as users increase transaction volume.
What is KuCoin?
KuCoin is a cryptocurrency exchange founded in 2017 in China. Later, KuCoin’s headquarters was moved to Hong Kong and located in Seychelles.
The CEO of the KuCoin exchange is Michael Gan – an expert on the Ant Financial project (Alibaba). He and a team of experienced experts founded KuCoin.
KuCoin only allows trading of one cryptocurrency for another. At this exchange, users cannot trade coins with fiat currencies. So users cannot pay via bank account.
KuCoin exchange owns its cryptocurrency, Kucoin Shares (KCS). If users use KCS to pay fees, it will reduce the transaction fee.
KuCoin has several disadvantages that are often mentioned: high fees for buying cryptocurrencies with fiat money (from 3-12%). In addition, KuCoin does not allow users to withdraw fiat money, and the customer support service is not appreciated. There is no live chat on KuCoin.
What is Binance?
Binance is one of the few exchanges currently having the most significant daily trading volume globally and over 13 million users. CEO Chengpeng Zhao founded Binance in 2017 in Shanghai, China. Now, Binance is the leading multi-featured and flexible exchange with various markets, including coin-coin trading, coin-to-fiat trading, and different investment, savings, NFTs, or Futures, Margin…
Binance is famous for its cheap transaction fees from just 0.1%. In addition, if using the exchange’s cryptocurrency, BNB, the transaction fee is reduced to only 0.05%.
* See more: The complete guide Binance from a to z
The downside of Binance exchange is that the customer support service is quite limited through opening a support ticket on the homepage, so the response is slower than the live-chat channels. In addition, Binance is heavily restricted to US residents. Americans can only use Binance through Binance.US.
Comparison of trading fees of KuCoin and Binance exchange
Binance has a transaction fee from 0.1% and 25% off if using the BNB token or BUSD to pay the fee. Therefore, the user’s transaction fee is only 0.075% – this is a meager fee compared to other cryptocurrency exchanges. In addition, if trading in high volume, users can also reduce trading fees on Binance by decreasing level, from only 0.01%.
Like Binance, the transaction fee on KuCoin is also from 0.1%, and users get a reduced fee when paying with KCS tokens. However, the discount at KuCoin exchange is only from 20%, equivalent to 0.08%. Like Binance, KuCoin also classifies users by trading volume to decrease transaction fees, with fees starting from 0.02%.
Deposit fees on KuCoin vs Binance
Binance allows users to deposit fiat money into their accounts. Binance deposit fees apply depending on deposit unit and deposit method.
KuCoin does not support depositing Fiat money into accounts. Users can purchase crypto with fiat currency and pay fees at the transaction time. Prices range from 3% (pay via SEPA) to 12% (pay with Visa / Mastercard or Apple Pay using Simplex payment channel).
Both KuCoin and Binance are free to deposit crypto.
Compare withdrawal fees on KuCoin exchange vs Binance
Like depositing, Binance applies a fiat withdrawal fee depending on the currency and payment method. Cryptocurrency withdrawal fees on Binance also rely on each cryptocurrency.
KuCoin does not allow fiat withdrawals from the exchange. And like Binance, cryptocurrency withdrawal fees on KuCoin depend on the cryptocurrency the user chooses.
Types of assets traded on KuCoin vs Binance
Both Binance and KuCoin are well-known exchanges that offer hundreds of different altcoins. Binance has nearly 250 altcoins, and KuCoin has about 200 altcoins.
Binance users can trade through the intermediary token BNB or USDT. Meanwhile, KuCoin allows users to trade with KCS, USDT, NEO, or BTC Cash.
KuCoin is more competitive in intermediary tokens, but Binance’s transaction fees are higher.
Features of Binance vs KuCoin
Binance and KuCoin are both known as cross-functional exchanges and often exceed the needs of investors new to the crypto market.
Besides centralized trading, Binance is famous for additional features such as staking, NFT market, margin trading, futures trading, investment, savings, staking…
In addition, Binance also developed a Visa card associated with Binance that allows users to pay and use the services of 60 million merchants globally. This card is free to issue, has no management or purchase fees, and can get up to 8% cashback. It is one of the rare, outstanding advantages of Binance compared to other cryptocurrency exchanges.
KuCoin, in addition to the regular trading feature, also has additional features such as crypto lending, trading bot, margin trading, futures trading. The trading bot feature is free, and users can track the best-performing bots and allow their settings to be copied.
KuCoin also allows users to save crypto and get interested in the exchange by buying and holding KCS and get automatic interest every day (APR up to 22%). Besides, users on KuCoin can also lend cryptocurrency for a term of 7, 14, or 28 days and receive daily interest.
Compare the security level of Binance vs KuCoin.
Binance stores customer crypto assets in cold storage and provides many advanced security features for Binance accounts such as 2FA, withdrawal address management, account access device management, etc. In 2019, Binance was hacked, causing more than 40 million dollars in damage. After that, they compensated the customer for the loss, and four months later, they received the ISO 27001 certificate after passing the strict conditions of information security management.
* See more: The complete guide Binance from a to z
Like Binance, KuCoin exchange also applies many security features for customers, such as multi-level encryption, multi-factor authentication, or micro-wallet. Besides, KuCoin exchange also has a department to monitor customers’ daily transactions. In 2020, KuCoin was hacked and $150 million in damage. After that, KuCoin recovered most of the money. The rest they compensated customers.
Both Binance and KuCoin are rated as safe and transparent cryptocurrency exchanges.
Customer service Binance vs KuCoin.
Neither KuCoin nor Binance has live chat customer support. It is a significant drawback with both decks. However, KuCoin supports customers via telegram 24 hours with a reasonably fast response rate. And Binance uses a customer support system through ticketing. While Binance’s response speed may not be instantaneous, it is handled quite conveniently for customers and is rated better than many other crypto exchanges.
In general, Binance and KuCoin are two multi-functional cryptocurrency exchanges operating reputable and transparent. However, Binance is more famous with more than 13 million people, while KuCoin has over 1 million customers. Binance has the upper hand after using discount rates in transaction fees.
The only thing that sets Kucoin apart from Binance is probably the free trading bot feature and crypto lending platform that is more active between lenders and borrowers. Meanwhile, Binance only allows users to lend to the Binance exchange itself.
Read more: Binance