Kucoin or Kraken, which one should you choose for your cryptocurrency trading? The number of crypto exchange platforms can be overwhelming. Both Kucoin and Kraken are among the top ten list of crypto exchanges.
They both have strong credibility, a great user base, and both are providing facilitation for bot trading with their APIs.
That is why you might be wondering which one is better? That is where you will need to have the right details.
You will be able to compare these platforms by understanding the answers to these questions.
- Should you use Kucoin or Kraken as a beginner trader?
- What are the features of both Kraken and Kucoin?
- How do these platforms work?
- Is there any fee involved in the platforms?
- Advantages and disadvantages of these platforms
- Are Kucoin and Kraken both locations independent?
- Which one should you choose?
But why would you want to choose between both of these exchanges? What do they offer to you that the traditional markets don’t? How are they special over others? Well, let’s find out! As you go through these details, you can find out which one works best for your specific purposes.
🕰️ Then Vs. Now
A few years ago, investment options were limited to purchasing traditional assets. Their mainly targeted assets were real estate, stocks, and bonds. Cryptocurrency has joined the investment industry and it is now growing exponentially. Although the market is volatile, there is still some increase in the number of people investing in crypto.
The cryptocurrency industry reached one high point in January 2016. After its rise, so many people started trading through cryptocurrency. Due to its rising number of traders, crypto enthusiasts have worked their best on making trading as simple as possible.
Individuals do notice that the digital asset sector sees more high points over the years and so it is a compelling place to look at from an investing standpoint.
The simplicity of cryptocurrency trading implies how convenient or easy it is to use for any level trader. Different crypto exchange trades have been built to make trading as simple and as smooth as possible. All trading platforms have their features. We are going to talk about the features of Kucoin and Kraken.
⌛ Reputation and Time in Business
Kraken came about in 2011 and the firm has been able to stay around for quite some time now. The firm has been able to last and stay solvent for at least a decade. It shows that there is progress and that it has a strong reputation.
What is great about Kraken is that it has been able to provide services to a wide variety of people around the world. It is one exchange that is listed on the Bloomberg terminal. It has even purchased other entities like Coinsetter in the past as well.
Then people are aware that Kraken has purchased another entity, Cryptowatch, in the past as well. These two acquisitions showed that it has established itself in the digital asset industry.
At one point, Kraken was letting over 30,000 people register on its site regularly. Think about that! The firm saw such a rush of users at least daily at one point. The digital asset firm is worth at least $10 billion at the last valuation.
The firm is also present in over 160 countries. But there are states in the US where you can’t use the platform at all. The states include Hawaii, New York, Texas, Vermont, Louisiana, Idaho, and Connecticut. Countries like Iraq and Iran do not support Kraken.
How about Kucoin? Kucoin is a firm that was launched after 2016, it came about in early 2017.
Kucoin is present in Europe, Asia, and North America. Kucoin has formed local communities in South Korea, Japan, Italy, Spain, Russia, Turkey, and other regions.
Kucoin is a firm that is based in Seychelles and is also present in many different countries around the world. The firm is present in at least 180 countries and is trusted by many people. There has been some negative sentiment around Kucoin at one point because of friction in navigating the system.
More users have complained because of issues with customer service at peak points and up to peak times. It is not licensed in the United States of America. Generally, people have a decent experience on Kucoin.
At the time of this writing, many people appreciate Kraken and what it does for the industry with its various initiatives and focus on customers. There are a wide variety of actions you can take on Kraken and you can expect overall better customer service and a great experience on this exchange.
As it stands, it has been able to retain its status as a premium exchange when many entities have come and gone. It seems to be very stable, proper, and effective.
🤖 Trading Bot Support via API
Kraken has traditional API support and integrations for bots. These automations certainly can improve the quality of life for traders. Further, we can see that they seek to prioritize safety by ensuring that you don’t share specific credentials with the bots.
Kucoin provides the API for the third-party bot tools and has its own internal bots, so this firm does bot trading a little differently. You can go directly to their site and set up bots accordingly. Kucoin has support for several strategies that range from DCA to Smart Rebalance.
When you are looking at convenience, Kucoin may have a little more convenience here because it looks like they have these bots ready to go within their platform. All you have to do is become a user by registering and then setting it up accordingly.
⚙️ Trading Modes and Features
Both of these entities will have a little variation in their trading modes and features. We can see the differences between them by looking at the offerings.
Features of Kucoin
We can understand Kucoin by looking at its specific features and what they mean to the user.
Good trading engine
The engine that runs Kucoin can handle all the buy and sell transaction services daily. There is an exchange called white label cryptocurrency. This white label cryptocurrency allows you to exchange popular coins and you can also add new ones regularly.
It offers
- Spot
- Margin
- Bot trading.
KCS
The Kucoin has its very own cryptocurrency called KCS. This cryptocurrency provides the owner with daily tips to hold the coin. It has lower trading and withdrawal fees. People who own KCS are qualified to earn rewards.
Customization
The Kucoin platform has a feature that allows you to edit the system according to your preference. You can customize the automation, custom reporting, and unique features on the platform. You can make the platform serve you with the best practices.
Security management
Any type of investment you make needs to be secure enough. The kucoin platform has a security team dedicated to the security of your investment. The team reviews your account regularly and they close security gaps that occur in the process of trading. The security management service protects your portfolio, Identity, and account.
High liquidity
High liquidity means transaction processes are accelerated. This feature will help you make your trades faster. It doesn’t limit the amount of trading and growth you need to sustain your cryptocurrency.
Many Opt-Ins
Kucoin lets you start trading with Fast trade, P2P, Third Party, Deposit Fiat.
Additional
There are various ways to earn on Kucoin by staking, conducting cloud mining, or through other activities.
Features of Kraken
Now, let us take a look at the features present within Kraken.
Strong security approach
This feature is a feature every type of investment has. You can’t go wrong with having security for your investment. The security team works on preventing identity theft and any form of cyberattacks on traders.
Ease of trade
When you are in an industry that changes every minute, standing out becomes a target for your platform. Your platform needs to be easy to trade for new and existing users. The high liquidity of the platform makes your trading experience fast and smooth.
It offers
- Spot
- Margin
- Futures
- OTC
- Staking
- Trading Bot Support
- Mobile
Low fees
Kraken is known for having the lowest fees. The fees for the platform can be as low as 0%. This welcomes traders to trade more. And the platform is designed to reward you when you trade more.
24/7 customer support
Any platform that gets designed aims in being as simple and easy to understand as possible. Because these platforms are used daily by millions of people. And all those millions of people don’t know how the platform operates. Having a team dedicated to supporting traders is a plus. You can reach out to the support team via live chat for assistance.
Funding options
When you are a trader you fund your account. But sometimes supporting your account is not easy on every cryptocurrency exchange platform. But Kraken has designed a simple way for traders to fund their accounts. Kraken takes the top spot by providing crypto funding options with low processing times.
🦾 In-house Automation
When it comes to in-house automation for robots, it does seem like only Kucoin has moved forward with that option. Kraken has made it to where they have their API open so that it simplifies the process for them. While this is not a significant deal, one can see that Kucoin has sought to offer direct automation by providing its in-house bots.
These are two different ways to do it and it doesn’t detract from the user experience too significantly. Kucoin merely offers both options, trade on Kucoin with internal strategies or via your supported bot platform.
💸 Trading and Withdrawal Fees
It is always a fantastic idea to look at overall fees when choosing your digital asset entities. Let us take a look at the differences between Kraken and Kucoin in this regard.
Fees Related to KuCoin
Kucoin has a different fee structure than Kraken. Kucoin uses a leveling system to categorize its user. Kucoin has levels starting from 1-12. Kucoin users that are at the higher level pay lower trading fees. And users at the lower level pay higher trading fees.
Your trading level is calculated based on your 30-day average trading volume and KCS holdings. Each level has its requirements you need to fulfill. A level is calculated every 24 hrs at 00:00 AM (UTC+8). If you meet all the requirements a level puts at 00:00 AM, you will acquire a new level.
KCD holding is calculated based on how much you trade in a day. If you trade more, you will hold more KCS.
Let’s look at the trading fee of a user that is on level zero and another user who is on level twelve.
A trader who is at level zero doesn’t have any KCS holding and has an average 30-day trading volume less than or equivalent to 50 BTC.
The trading fee for both maker and taker is 0.1% on each transaction. This fee will decrease to 0.08% when the KCS fee is enabled. This is because there is a 20% discount.
200 BTC is the amount limit for trades from levels 1-4.
To acquire the 12th level, you need to have 150,000 KCS holding or a 30-day average trading volume of 80,000 BTC.
The maker and taker fees at the 12th level will be negative 0.005% and 0.025% respectively.
The daily withdrawal limit for this account will be 3,000 BTC.
Withdrawal Fees
Kucoin has varying fees based on the type of asset and the withdrawal.
Fees Related to Kraken
Kraken users use either the Kraken or Kraken pro service of the platform. Kraken charges fees on a per-trade basis. This means that you are charged when your order is executed.
The fee ranges from 0% up to 0.26% of the total value of your order. This depends on the currency you are using to trade and your 30-day trading volume which is calculated in USD.
Fiat deposit methods are free but the maximum fee is US$10. There is a minimum amount of withdrawal you can make for both crypto and fiat currencies. When you buy a cryptocurrency using a stable coin, you are charged a 1.5% trading fee.
When you buy a stable coin with fiat or another stable coin, you get charged 0.9%.
The Kraken pro version gives discounts on maker and taker fees decrease as their 30-day trading volume increases. It starts at 0.16% for makers and 0.26% for takers. The lowest is at 0% for makers and 0.10% for takers considering enough capital is traded during the 30-day time.
Withdrawal fees
One can view the Kraken fee schedule here to have an in-depth view of what it looks like. It is fairly standard and Kraken is not known for charging onerous fees when it comes to withdrawals.
📊 Trading Pairs and Volumes
Kucoin ranks higher than Kraken when it comes to volume. That could mean several things. The first is that there could be more demand for Kucoin over Kraken. The second is that it could have a broader user base that likes to use it despite its customer service issues. Kucoin is among the top ten when it comes to volume.
Kraken is within the top fifteen when it comes to volume.
Kucoin has over 600 cryptocurrencies on offer while Kraken has around 100 pairs on offer.
This is a highly important point to keep in mind while comparing the two.
👩💻 Customer Support
In general, cryptocurrency exchanges have not been known for their wonderful customer service. As the years go by, different entities are getting better. This is because there may not be as much massive influx into these types of entities.
They can handle the volume better. Kraken has been known for getting better but Kucoin has had a generally negative reputation for not being up to par with customer service.
The firm has the potential to get better over time and one may see reviews to see the progress with regard to customer service from Kucoin.
👍 Pros and Cons of Each Exchange
Let us take a look at some of the benefits and negatives of each exchange.
Pros of using Kucoin
- You have a wide selection of cryptocurrencies
- It has low fees
- You can earn interest in crypto
- It has advanced trading options for experienced traders
The Cons of using Kucoin
- It has poor user reviews
- It is not licensed in the US
- Difficult to navigate for new crypto users
- Fiat trading pairs and bank deposits are not available
Now, let us take a look at Kraken!
Pros of using Kraken
- It supports more than 120 coins
- It has a simple interface even crypto beginners can use easily
- You can trade easily at market rates
- It has various trading modes
- It is a very professional exchange
The Cons of using Kraken
- You pay higher fees when you are not using the Kraken pro
- It is not suitable for beginners
- You have a limited starter account
- There is no tax support
- You experience slow account funding
📢 Which one is better? Kucoin or Kraken?
It is hard to say one is better than the other because a lot of factors contribute to the performance of a platform.
In general, we see that users appreciate Kraken because of the fact that it is reliable and has generally modest reviews.
The experience level of crypto investors is also one factor. New users need a simple user experience whereas experienced investors prefer advanced features. This affects the user reviews on the platform.
But at the end of the day, you pick your preferred platform based on your judgment and approach.
The number of cryptocurrency exchange platforms has nearly reached 600. The number of exchange platforms may confuse you if you are a beginner crypto investor. When it comes to both Kraken and Kucoin, they may be a bit complex for new users. But they still have great advantages.
When choosing a platform as a beginner crypto trader, it’s best to choose the ones which have a simple trading process and low risk.