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Best Binance Alternative [2022] | Crypto Exchange Comparison

Justinas
Baltrusaitis
6 months ago
27 mins read

Binance is a leading cryptocurrency exchange offering one of the most comprehensive product lists of any digital asset trading platform. Despite Binance’s wide array of products, there’re some spots where it comes up short, and its competitors shine. This guide looks into some of these areas and highlights four of the best Binance alternatives to consider if these factors are important to you.

Introduction

Binance, a cryptocurrency exchange launched in China back in 2017, was founded by Changpeng Zhao, who is more popularly known as CZ (his initials). CZ previously worked for Blockchain.info and as the CTO for the OKCoin crypto trading platform. The exchange was launched through an initial coin offering (ICO), a rather ubiquitous fundraising method for blockchain projects at the time.

Despite its relatively recent entrance into the crypto exchange scene, Binance has managed to capture a majority of the market share. The platform now reports more than $2 Billion in daily trading volume consistently, with these figures rising during peak seasons or periods of high volatility.

Binance has faced ever-increasing restrictive regulatory policies from its launch date, and to avoid them, the exchange’s management opted to leverage regulatory arbitrage. From its initial Hong Kong headquarters, it moved to Japan, then to Malta. As of 2021, the company has no headquarters, and the public is unaware of its officially registered public offices.

Expectedly, this situation has not boarded with some regulators who have officially banned the operation of Binance within their jurisdictions. Some of the countries that banned Binance include Singapore, Japan, Malaysia, and the United States.

Regarding the US, Binance has launched a more regulatory compliant subsidiary dubbed Binance America (Binance.US), which operates in more than forty states and offers limited features compared to globally-available Binance.com.

If you reside in one of these places where you are unable to access Binance.com, or you are not entirely satisfied with Binance’s service, you may want to consider a worthy alternative. Below, we will consider the four best Binance alternatives, including Coinbase, Kraken, Uphold, and KuCoin.

You will learn why they are highly recommended and how well they compare against Binance, from the features they offer their users to their regulatory compliance and accessibility globally. Binance may have a more exhaustive feature list, but it falls short in the compliance department, and therefore, most of its alternatives will be platforms that are accessible in highly regulated regions.

Before we consider the Binance alternatives, let’s first go over some of its selling points and the drawbacks to using the leading crypto trading platform. With this information, it will be easier to compare against its competitors and objectively decide on which exchange better serves your needs.

Binance features

  • Brokerage service – Binance users are able to buy, sell and convert amongst multiple cryptocurrencies (over 300, at the time of writing). Initially, Binance never supported fiat currencies such as USD, Euro, or the GBP. However, now with the integration of multiple conventional currencies, users can buy or sell crypto to and from bank accounts, using payment cards or through third-party channels effortlessly.
  • Trading service – unlike most of the alternatives provided on this list, Binance supports different trading functions such as margin, derivatives, spot, leveraged tokens, peer-to-peer (P2P), and OTC (over-the-counter) trading. Its users have access to hundreds of altcoins across most of these trading verticals.
  • Staking & Mining – for those that would love to contribute towards the development and security of their favorite projects or would love to earn from their idle tokens, Binance offers a way to stake or mine through staking and mining pools, respectively. Some of the supported coins and tokens offer attractive returns.
  • Yield farming, savings, lending – all these are passive forms of earning extra tokens on the platform. Savings and lending services enable users to lend and borrow amongst one another at affordable rates. Check out our detailed Binance crypto loans guide for more information.
  • Storage – with Binance, users are encouraged to store their crypto assets within their accounts because they have the most utility on the web wallet than if they are withdrawn to an offline location. However, if the users prefer, the exchange also operates a standalone mobile hot wallet called Trust Wallet that is fully integrated with the Binance ecosystem.
  • Binance Pay – the exchange enables its users, both individuals, and merchants, to send and receive crypto within the Binance ecosystem at no cost. Even non-Binance users can receive crypto payments, but they will have to register for an account to redeem the funds.
  • Binance Visa Card – payment cards are still convenient financial tools to shop and access funds globally, and Binance has partnered with global payment company Visa to develop a crypto debit card. With the Binance Visa Card, users are able to spend crypto assets within their accounts cheaply and effortlessly wherever Visa cards are accepted worldwide.
  • Binance Coin (BNB) – nowadays, there are several crypto trading platforms with native tokens, but the concept was popularized by Binance with its BNB coin. Exchange users can take advantage of the perks of holding BNB to claim trading fee discounts and lend the coin for interest, among several other uses.
  • Binance Chain (BC) & Smart Chain (BSC) – Binance operates two independent blockchain networks it uses to complement its vast ecosystem. The BC network is used to support the Binance decentralized exchange (DEX), while the BSC is a fully-fledged network that mimics Ethereum’s smart contract functionality.
  • Binance Launchpad – the launchpad is a section of the Binance website on which new blockchain projects are introduced and offered to potential investors. This model of fundraising is called initial exchange offering (IEO), made popular by Binance exchange when ICO faced public and regulatory backlash in 2017/8. So far, more than 50 projects have successfully been launched through the Launchpad.
  • Binance NFT – Binance launched the non-fungible token marketplace in the third quarter of 2021 to take advantage of the NFT hype. The platform allows Binance users to create, buy, sell and trade rare art created on the Binance Smart Chain and Ethereum.
  • Binance Academy – this section of Binance’s website holds informative, educative, and entertaining content on the vast blockchain space ideal for beginners and experts alike seeking to expand their understanding of cryptocurrencies.

The list above is not conclusive as Binance has lots more features, but we have highlighted some of the more popular. You can visit Binance to find out the complete list of products and services the exchange has to offer to its users.

Binance Drawbacks

Binance exchange may be the largest crypto trading platform, but it is not a perfect option for crypto investors. It has several drawbacks that make it less ideal for lots of people and institutions. Some of these demerits include:

  • Its lack of corporate transparency – Binance has a shady corporate structure which lessens its trustworthiness, especially towards regulators. It is the reason why Binance has been banned from operating in several jurisdictions such as Singapore and Malaysia.
  • Non-adherence to regulations – in some highly regulated regions such as the United States and China, Binance was unable to comply with KYC and related policies forcing it to cease operations. For US residents, the exchange has launched a local subsidiary that operates in a majority of the US states and adheres to stringent regulations. However, Binance.US lacks most of the features available on the international version (Binance.com).
  • Unintuitive user interface – most crypto beginners will find Binance’s user interface overwhelming because the exchange offers several options to all its users. Compared to other exchanges with a more intuitive platform such as Coinbase, Binance is a far cry to most newbies. However, the exchange offers a stripped-down version of its interface on the mobile interface dubbed Binance Lite that is easier to interact with.
  • Lacks FDIC insurance – the international version of Binance does not insure USD deposits as it does with its US-based subsidiary. Some of its other competitors provide this feature making them more trustworthy and dependable.

Best Binance alternatives

Overview

Binance provides several options to its users, which makes it harder to recommend any of its other competitors. However, given that it has some drawbacks that may affect some potential users, it is important to consider some other available options.

To be considered a worthy Binance alternative, a crypto trading platform needs to offer what Binance does not. Since the Binance product list is pretty comprehensive, we have to look elsewhere, such as availability, security, or user experience.

Most of the recommendations in this section are cryptocurrency exchanges that shine in these areas where Binance comes up short. Additionally, some of them offer most of the highly demanded features offered by Binance. Therefore, if a user opts for one of these Binance alternatives, they may not be missing out on a whole lot.

Binance Vs. Coinbase

Coinbase is a US-registered and regulated cryptocurrency exchange that launched back in 2012. It is one of the most recognized trading platforms with a long history of providing crypto-related services. The exchange now offers services to individuals and institutions alike.

In 2021, after nine years in operation, Coinbase finally debuted on the public marketplace, listing its shares on the NASDAQ stock exchange, becoming the first crypto exchange to do so.

Coinbase features

When it comes to features offered, Coinbase is extremely generous despite the highly restrictive regulations it has to comply with within the United States. Compared with the US available Binance.US exchange, Coinbase users enjoy more options, including accessibility in more US states, support for more crypto assets, and payment methods.

  • Brokerage services – Coinbase was originally created as a crypto brokerage service provider enabling its users to buy, sell and exchange their assets easily. This service has been maintained and improved to accommodate transactions through a wider array of payment options that include PayPal. Institutional clients are offered the same services through the Coinbase Prime product.
  • Trading services – Coinbase has separated its user interface to cater to two different clientele. The main platform dubbed Coinbase.com is geared towards offering brokerage services, while the other, dubbed Coinbase Pro, is geared towards more advanced crypto investors. The Pro platform is ideal for active traders who require sophisticated tools such as charting software, limit orders, and access to the order book. Transaction fees on the Pro platform are also very competitive.
  • Coinbase Commerce – the Commerce feature offered by Coinbase enables merchants to accept cryptocurrency payments online on websites, web apps, mobile apps, and offline through integrated checkouts. The service currently has inbuilt integration with leading e-commerce platforms such as Shopify and WooCommerce.
  • Coinbase Earn – blockchain newcomers are able to learn about crypto projects and be rewarded in tokens of the same project they learn about. This is a great way to incentivize individuals to invest the time to learn about a new topic.
  • Coinbase Wallet – similar to Binance’s Trust Wallet, the Coinbase Wallet is a standalone mobile and web wallet that can be used outside the Coinbase platform. It can store most of the available cryptocurrencies, interact with decentralized applications (dApps) and store Ethereum-based NFTs. The wallet inherits the intuitive user interface implemented on the Coinbase consumer interface, making the wallet ideal for beginners.
  • Staking pool – staking is becoming more popular as more blockchain projects embrace the environmentally-friendly consensus mechanism. Coinbase is keen to buck the trend as it launched a staking pool which currently supports staking of at least six digital assets, including Tezos (XTZ), Cosmos (ATOM), Algorand (ALGO), and Ethereum 2.0 (ETH2).
  • Coinbase Card – Coinbase has also partnered with Visa to create a crypto-compatible payment card that is acceptable across millions of merchant shops and ATMs globally. The card uses crypto assets on a user’s Coinbase consumer account.

Coinbase pricing and trading fees

Coinbase charges brokerage fees on a per transaction flat rate combined with a percentage of the transaction value. However, the exchange shifts to a maker/taker pricing model on the professionally-focused Coinbase Pro platform.

To buy, sell and convert cryptocurrencies on Coinbase.com, the exchange will charge between $0.99 for transactions valued below $10 and $2.99 for transactions not exceeding $200. Anything above $200 will attract a variable fee of 1.49% for standard payment methods and 3.99% for payment cards.

Wire transfers attract a $10 and $25 deposit and withdrawal fee, respectively. PayPal transactions are charged at the rate of 2.5%.

Staking services are some of the most expensive on Coinbase, with commission fees as high as 25%.

Coinbase Security

Coinbase enjoys a long history of lack of security incidents except for one that happened between April and May and was reported in October 2021. In this isolated incident, scammers employed elaborate phishing schemes against Coinbase users, managing to breach the accounts of at least 6,000 users.

Besides the incident highlighted above, Coinbase has had no other publicly reported incident making it a relatively secure platform. The company insures all USD deposits through the FDIC (Federal Deposit Insurance Corporation) to the tune of $250,000.

Other security measures put in place to safeguard systems & accounts include:

  • KYC verification;
  • Safe asset storage with up to 98% of customer assets stored in cold wallets;
  • Data encryption using the robust AES-256 encryption standard;
  • Multi-factor authentication (2FA) for secure login.

Coinbase Pros and Cons

Pros
  • Highly regulated;
  • The user interface is intuitive to use, especially for beginners;
  • USD deposits are insured with the FDIC;
  • Available across all US states;
  • Supports more crypto assets than Binance’s US subsidiary Binance.US;
  • The exchange supports multiple payment methods, including PayPal.
Cons
  • The exchange offers fewer crypto services than Binance.com;
  • Its brokerage and staking fees are steep, and especially compared to Binance, it’s very costly;
  • Coinbase has a narrower coverage outside the US and offers even fewer services to global residents;
  • Supports a tiny fraction of the crypto assets available with Binance.

Binance Vs. Uphold

Uphold is not a fully-fledged cryptocurrency trading platform with all the bells and whistles desired by professional crypto investors. The exchange provides brokerage services for a wide range of assets, including both traditional and digital financial institutions.

It provides the necessary tools ideal for a conservative investor looking for exposure to multiple asset classes, which include precious metals, crypto, stocks, and fiat currencies. Additionally, the process involved in switching between the various assets is smooth, effortless, and intuitive.

The reason why one may compare Uphold to Binance, despite their vast differences, is that, unlike Binance that focuses purely on cryptocurrency, Uphold is more diverse. Traditional investors that are used to buying conventional assets such as gold, silver, and stocks may be looking to expand their investment portfolio into digital assets without giving up the current portfolio.

Uphold makes it possible to buy, sell and trade amongst diverse assets such as gold and Bitcoin within the same account easily and cost-effectively.

Uphold features

  • Brokerage services – Uphold makes it easy for investors to buy, sell, and exchange between a variety of different assets, including cryptocurrencies, precious metals, US-based stocks, and national currencies. Users have access to over 70 crypto assets, including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP).

Currently, the precious metals supported on Uphold are Gold, silver, Platinum, and Palladium. The exchange also gives investors exposure to more than 27 fiat currencies, including USD, EURO, and the GBP.

Uphold also offers custom environmental assets ideal for investors interested in helping combat climate change by investing in carbon credit tokens minted by the exchange. There are two such assets available to investors: UPCO2 and Bitcoin Zero (BTC0).

  • Staking – decentralized blockchain projects rely on consensus mechanisms to propagate the network and decide on governance decisions. Staking is one of the more common forms of achieving consensus that is rising in popularity. Uphold enables users to participate in staking activities for Polkadot (DOT) and Ethereum 2.0 (ETH2). Cardano (ADA), Cosmos (ATOM), and Solana (SOL) will be added in the future.
  • Uphold debit card – the Uphold payment card has been developed in partnership with MasterCard enabling the exchange’s users to spend assets in their accounts in millions of merchant points and ATMs worldwide.
  • Limit orders – Uphold allows its users to set up self-executing transactions at predetermined price points. The trades are executed through the limit order feature. Essentially, if you want to buy or sell an asset at a given price, you set up the trade, and as soon as the price is hit, the order will execute, and the assets will be deposited or withdrawn to or from your account automatically.
  • AutoPilot trading – this is a neat feature through which Uphold users can automatically invest in their favorite assets. This feature makes it easy to execute the DCA (dollar-cost averaging) investment technique effortlessly. Investors can set up a regular trade to occur at a predetermined date and time.

Uphold Pricing & Fees

Uphold does not charge a flat rate on its services, nor does it charge a commission. Instead, it includes a spread cost on each transaction. It’s worth noting that spreads vary depending on the asset and the region in which the trader resides.

Cryptocurrency transactions attract a typical spread between 0.8 and 1.2% for leading assets such as Bitcoin (BTC) and Ethereum (ETH) for traders in the US and Europe. Outside these regions and for small assets, that figure rises to a high of 1.8% or higher, especially in times of extreme market volatility.

Precious metals, national currencies, and stock trades have a spread rate of 3%, 0.2%, and 1%, respectively.

Note: For a detailed breakdown of Uphold fees, check out our comprehensive ‘Uphold Trading Fees’ guide.

Uphold Security

Security is an important consideration for any online platform, especially a value transfer exchange, and luckily Uphold pays close attention to the safety of its systems. Here are some measures it has implemented to help protect its own and users’ assets:

  • Encrypting data using sophisticated algorithms;
  • Routinely auditing account and security systems to keep up with modern safety standards;
  • Maintaining active surveillance of crucial infrastructure such as data servers;
  • Performing appropriate due diligence checks on contractors and other third-party service providers with extra attention towards those that deal in sensitive information;
  • Training employees on how to maintain high-security hygiene standards;
  • Running a bug bounty program to incentivize independent security systems analytics to poke holes in the Uphold security infrastructure.

Uphold users are also provided with tools to protect their accounts at all times, including:

  • Verifying their identities (KYC provisions);
  • Multi-factor authentication through SMS, Email and authentication apps;
  • Using secure internet connections through SSL.

Uphold Pros and Cons

Pros
  • The exchange is highly regulated, complying with FinCEN regulations in the US and the FCA’s in the UK;
  • Uphold offers several different products, including cryptocurrencies, precious metals, US stocks, and national currencies;
  • It has automated trading through the AutoPilot feature allows users to automate their investment activities;
  • The platform is highly secure with robust security processes to protect users;
  • The exchange has a simple and easy-to-use interface;
  • Investment minimum of $1 for any asset desired thanks to fractional ownership;
  • The platform allows for direct trading amongst different assets.
Cons
  • Low liquidity assets are charged higher spreads making it expensive to invest in them;
  • Compared to Binance, Uphold only supports a fraction of the available assets;
  • Staking is only available for two assets so far, and the feature has currently been enabled for a select number of Uphold users;
  • Professional traders may find Uphold lacking in the features department as it lacks things like charting tools, the order book, and a wider variety of order types.

Binance Vs. KuCoin

KuCoin is a Singapore-based cryptocurrency exchange that is more similar to Binance than most of the alternatives listed here. It has the most feature-packed service that competes with what Binance has to offer and charges extremely low trading fees. Its history dates back to 2013, making it one of the oldest existing crypto trading platforms.

KuCoin features

  • Crypto brokerage  – KuCoin enables its users to buy and sell digital assets effortlessly through payment cards, bank transfers on the P2P platform, and third-party service providers such as Banxa and Simplex.
  • Crypto trading – users on KuCoin have access to various trading options, including spot, margin, futures, and leveraged tokens. There is even an integrated trading bot to automate trading activities.
  • KuCoin Earn – KuCoin exchange provides several avenues for its users to earn extra income from their digital assets, such as lending, staking, promotions, and savings. There are 15 assets supported on the staking platform, including Cardano (ADA), Polkadot (DOT), and Chainlink (LINK).
  • KuCoin mining pool – the mining pool service enables users to contribute their hash rate towards mining particular coins for a profit. KuCoin supports three coins within its mining pool service: Bitcoin, Bitcoin Cash (BCH), and Ethereum (ETH).
  • KuCoin Shares (KCS) – KCS is KuCoin’s answer to Binance’s BNB token, a utility token used across the expansive Binance ecosystem. KCS is also used within the KuCoin ecosystem in a similar way, but it is especially used to claim discounts and invest in new blockchain projects through the Spotlight service.
  • KuCoin Spotlight – new blockchain projects can be launched through the KuCoin Spotlight thanks to the initial exchange offering (IEO) trend that was ignited by the launch of the Binance Launchpad platform. Interested individuals are invited to invest in these new projects in exchange for new tokens that can potentially rise in value once the project goes live.
  • KuCoin indices – the exchange aggregates various data points to provide more accurate pricing for its assets to active traders that also dabble in arbitrage activities. The KuCoin indices collect data from multiple competing exchanges, including Coinbase, Binance, Bitstamp, and Gemini, for four main crypto assets: BTC, ETH, XRP, and Litecoin (LTC).

KuCoin Pricing and fees

Like Binance, KuCoin fees are extremely competitive in the marketplace. Unlike Coinbase or Uphold, KuCoin uses a maker/taker pricing model where the higher an individual’s trading volume, the lower they will pay.

The fees are currently set at a high of 0.1% for both makers and takers and a low of 0% for makers, and 0.05% for takers. Larger traders can get rebates on their trading volume upto 0.005%/0.025% for makers/takers, respectively.

Using KCS to pay for trading fees entitles the trader to a 20% discount on the already low fees.

Note: Read our detailed ‘KuCoin Fees Explained’ guide for a detailed analysis of the KuCoin fee schedule.

KuCoin Security

KuCoin exchange has taken several measures to ensure that its systems and customer assets are safe. Here are some of those that have been revealed to the public:

  • The platform uses multi-factor authentication;
  • Users are encouraged to create strong passwords;
  • KuCoin uses micro-withdrawal wallets to provide extra anonymity and safety whilst withdrawing assets from the platform;
  • The exchange has adopted a multi-layered encryption system to safeguard customer data and wallet details;
  • KuCoin holds a majority of its assets in cold storage (although it does not reveal the percentage of assets in cold and hot wallets);
  • There is a dedicated risk control, and mitigation department in KuCoin tasked with analyzing security risks and implementing appropriate measures.

Despite the robust security measures put in place, KuCoin suffered a security breach in September 2020 that saw the exchange lose $280 million to a hacker. However, according to an official announcement, the exchange managed to recover at least 80% of these funds.

Note: Check out our review of the KuCoin security infrastructure, where we discuss in detail how the exchange adheres to various financial regulations and safeguards its users’ assets.

KuCoin Pros and Cons

Pros
  • Ideal for professional traders where it offers tools such as charting software, limit order types, margin and derivatives trading at a very low fee;
  • Available to investors in most countries except the highly regulated regions such as the US and UK;
  • Offers several services from trading, staking, mining, investing, savings and lending;
  • It supports several altcoins, almost as many as Binance does.
Cons
  • Binance still offers more services at even lower prices in most of them than KuCoin;
  • The exchange has a history of getting hacked;
  • KuCoin is not as highly regulated as, say, Coinbase, which limits its geographical reach. For instance, it is not licensed to operate in the United States.

Binance Vs. Kraken

Kraken is among the oldest cryptocurrency exchanges in the market, with its history dating back to 2011. However, the platform was formally launched in 2013 following two years of development.

Based in San Francisco, California, Kraken is a highly regulated crypto trading platform available across most restrictive regions such as the United States, Japan, and Australia.

As one of the best Binance alternatives, Kraken has a lot to offer its current and potential users. Here are some of the services available on the Kraken exchange.

Kraken features

Kraken may have begun as a cryptocurrency brokerage service provider allowing its users to buy, sell and trade digital assets, but over time it has morphed into a more rounded company. It initially evolved to provide a wholesome trading experience ideal for newcomers and pro traders as well. Now, there are all sorts of services that are related to cryptocurrency investment. They include:

  • Crypto brokerage – at its heart, Kraken is still a crypto broker where users can buy and sell their favorite cryptocurrencies. The exchange supports a wide variety of fiat payment methods and fiat currencies.
  • Crypto trading – Kraken has a wide range of trading options to cover most investors, including spot, margin, crypto futures, and over-the-counter (OTC) trading.
  • Crypto staking – staking is a common passive income channel that Kraken users get to enjoy with support for some of the most common and profitable assets, including Ethereum 2.0 (ETH2), Cardano (ADA), Polkadot (DOT), Kusama (KSM), and Solana (SOL).
  • Cryptowatch & Kraken Terminal – the latter is a suite of trading tools used by pro traders such as OHLC charts, charting tools, depth charts, etc., while the former is a data aggregator that pulls market pricing for various from more than 25 competing trading places into a single interface. The tool has access to more than 4,000 crypto markets.
  • Kraken apps – Kraken exchange has opted to segregate its mobile apps to represent the different sections of its platform. There are three apps available for download: the Invest App for brokerage needs such as buying, selling, and trading digital assets; Pro App for advanced crypto trading functionalities such as getting access to charting tools, the depth chart and order book, etc. while the Futures app is used for trading crypto futures.
  • Knowledgebase – akin to Binance’s Academy or Coinbase Learn, the Kraken Knowledgebase is an archive of learning material on everything to do with cryptocurrencies. Beginners can use the knowledgebase to get access to cryptocurrency guides, podcasts, webinar recordings, and complementary videos.

Kraken pricing and fees

Transaction fees on the Kraken platform are lower than most leading exchanges such as Coinbase. Some of its services are free, such as staking, meaning the rewards from staking are fully paid to the stakeholders.

The fee schedule differentiates between the brokerage and trading services where it is cheaper on the latter than it is in the former. The exchange charges 3.75% + €0.25 for credit card payments and 1.7% + $0.10 for bank and wire transfers.

When it comes to trading fees, Kraken uses the maker/taker pricing model where the fees rate shifts according to which side of the trade the investor falls and their prior 30-day trading volume. The highest rate that the exchange charges is 0.16% for low volume takers, and the lowest rate is zero for the high-volume makers.

Note: For a complete breakdown of the Kraken fee schedule, check out our ‘Kraken Fees & Pricing’ guide.

Kraken Security

Even though it is often advised that online users should take full responsibility for the safety of their assets, platforms also play a huge role in ensuring that their users have all the security tools necessary to keep themselves secure. The exchanges also have to ensure that their systems are safe to use and that their customers’ assets are kept secure at all times.

Kraken is one of the few crypto exchanges that have a proven record of maintaining the highest standards of safety and security. Some of the things it has done to ensure that include:

  • Keeping a majority of user assets (95%) in cold storage;
  • Encrypting customer data and account information;
  • Using company-owned servers as opposed to using third-party or cloud-based servers enabling them to have complete control over the infrastructure;
  • Performing regular security audits on the platform’s security infrastructure.

Tools available to Kraken users to secure their accounts include:

  • Multi-factor authentication;
  • Global Settings Lock (GSL) and the Master Key;
  • Use of PGP for email privacy;
  • Restricted email functionalities;
  • Data encryption in transit mode; etc

Note: Read our detailed Kraken safety guide for more details on how the exchange approaches the security issue.

Kraken Pros and Cons

Pros
  • Kraken is a highly secure platform with zero security incidents reported despite its decade-long history;
  • Fees on the trading platform are competitive even though Binance could be cheaper in most instances;
  • Staking is free on Kraken;
  • The exchange is highly regulated, making it accessible in most restrictive markets such as the US, Europe, and Asia;
  • Supports multiple cryptocurrencies for trading and other crypto-related services such as staking;
  • Kraken caters to newcomers as well as experts with its intuitive user interface and segregation of mobile apps depending on usage.
Cons
  • Its adherences to global financial regulations mean that it cannot support most of the cryptocurrencies in the market;
  • Kraken fees are higher than on Binance;
  • Compared to Binance, Kraken supports fewer coins on its staking service;
  • Leveraged trades on Kraken are limited to a 5X multiple, while Binance supports up to 20X leverage.

Final thoughts

Binance is a highly competitive crypto trading platform and one of the leading in several aspects, including trading volume, supported assets, and accessibility. It was difficult coming up with a list of the best Binance alternatives, but we believe that the four options provided above are worthy of your consideration.

Three of them – Coinbase, Kraken, and Uphold are US-based, making them a great alternative to the US-based Binance subsidiary. KuCoin might not be available in the United States like Binance.com, but it offers most of the services that can be gotten with Binance, and it is supported in some regions that Binance is not, such as Singapore.

Binance may be one of the best cryptocurrency trading platforms in many respects, but if you need an alternative, the four platforms highlighted above will probably be your best short.

Are you a crypto beginner? Read our comprehensive ‘Best Cryptocurrency Trading Platforms‘ guide to learn more on how to properly choose you first digital asset exchange.

Frequently Asked Questions on Binance Alternatives

What is Binance?

Binance is the largest cryptocurrency exchange by trading volume. It was created in 2017 by Changpeng Zhao (CZ) and company, initially based in Hong Kong but later shifting its headquarters to Japan then Malta. The exchange offers several crypto-related services, including trading, staking, mining, early-stage investing, savings, storage, and lending.

Why is Binance banned in the US?

Binance is banned in the US and a few other jurisdictions because it is not compliant with some financial regulations.

Is Binance good for beginners?

Binance offers a variety of services and products that may easily inundate a crypto beginner. If you are starting out and looking for a great crypto exchange, you should consider some of the other Binance alternatives, such as Coinbase, which is highly regulated and has an intuitive user interface.

Which is the best Binance alternative?

Binance has several alternatives, and they each shine in different places. The decision to choose between the four Binance alternatives offered above is highly subjective, and we invite you to read through all the options and pick out whichever of the four suits your particular needs.

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Justinas Baltrusaitis
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Justin crafts insightful data-driven stories on finance, banking, and digital assets. His reports were cited by many influential outlets globally like Forbes, Financial Times, CNBC, Bloomberg, Business Insider, Nasdaq.com, Investing.com, Reuters, among others.

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