Both Binance and Kucoin represent an innovative exchange strategy that is in many ways disrupting the “traditional” exchange model. Both exchanges achieved explosive growth due to the fact that they have their own exchange coin.
And this coin offers investors passive dividends for holding it or enables discounts when trading on the platform, so trading fees are lower. As the number of investors grows, so does the reward.
The advantages of both platforms are that fees are low and that the platform is lightning fast. These advantages are enough to sway any type of trader as they are the primary concerns. Both exchanges support USDT tether trading pairs.
Binance was originally located in China but had to move its headquarters to Hong Kong due to regulatory concerns. China is known to rapidly change its policies in relation to cryptocurrency which can render it impossible to maintain a successful business.
Chinese businesses generally have the advantage of lower fees with higher levels of risk. Binance charges a tiny .1% on all trades which can be reduced to .05% when using their special token, the BNB. Binance is not exactly beginner friendly but is geared towards serious traders concerned primarily with speed and fees.
It experienced such explosive growth that it had to stop taking on new users in order to scale properly. No ID is required to sign up to Binance and deposits are free. In terms of withdrawal fees, this depends on the particular cryptocurrency used, and there is a minimum withdrawal fee.
In January 2018, Binance went through an upgrade which resulted in downtime for its website. Many though the exchange had been hacked but this was not the case and it was soon up and running. These occurrences are quite common in the cryptocurrency world and are usually not a cause for concern.
Kucoin is now located in Hong Kong, after leaving China, much like Binance. Kucoin is brand new, only going live in September 2017 but attracted nearly 200,000 users in as little as three months, a phenomenal achievement.
Kucoin offers shares in its platform and its token is the KCS. What is great about Kucoin is that is pays dividends on its shares in the form of various cryptocurrencies, 70 at the time of this writing.
So you are paid in a diverse array of assets in a great industry. Some of these coins are going to explode. Many of the rarer coins are available on Kucoin. Kucoin charge a .1% fee for their trades.
It is free to deposit funds. Kucoin offers 24/7 customer support and often posts coin pairs before they hit other large exchanges. This means you can actually invest in ICO coins that are brand new and gain exposure to the market before anybody else, often at a far lower price.
Like Binance, withdrawal fees depend on the particular cryptocurrency but are generally very low with a minimum amount. While Kucoin offers low fees in general, some coins, for some reason, are extremely expensive.
Binance v Kucoin
Both platforms are super cheap and quick, the two most important components in trading. They are radically different from all other exchanges. Withdrawals and deposits are nearly instant, but this is mainly because currency deposits are not allowed, only cryptocurrency.
Both platforms offer a wide variety of trading pairs. Binance offers 242 trading pairs right now and Kucoin offers 179. Kucoin offers Bitcoin Cash and Neo which can be of interest to many investors.
Both Kucoin and Binance seem to be secure right now. Both use Two Factor Authentication and there have been no reports of hacks so far, though both are very new.
There are a number of phishing accounts in operation for Binance and this is something to be aware of. Only login to the actual official site and do not click links from forums. Google Binance or Kucoin and the first link will be the official one.
In terms of customer support, Kucoin is miles ahead of Binance and even further ahead of the other exchanges, which can best be described as terrible. Kucoin’s Telegraph chat are very fast, and issues get resolved quite quickly.
This is in stark contrast to exchanges such as Kraken and Coinbase where simple issues such as a locked account can take weeks to get a response. The support is available 24/7.
This reason alone is enough to join the exchange, as customer service is nearly non-existent on all other exchanges. Kucoin is also a little easier to navigate and is a better option for beginners.
In terms of trading fees, Binance is a little better, as they can be reduced to .05%. There is some controversy about how much of a discount is available using Kucoin.
But generally speaking, Kucoin is a better investment right now. It has far more upside potential given that it is newer, and the dividend system is superior as you get paid 50% of fees back in a diverse portfolio of cryptocurrencies.
Binance v Kucoin Summary
Both of these platforms are revolutionary in the cryptocurrency exchange market. Kucoin is a better investment right now as its customer support actually works and it has more growth potential than Binance.
Judging by the growth of Binance, Kucoin is soon going to explode even further. Its simply a better investment right now, though in terms of actually trading cryptocurrencies, which is what an exchange does, they are the same.
Both platforms are fast and cheap and are far superior to other exchanges. In terms of security, asset availability, speed and fees they are practically the same. Neither exchange offers the ability to deposit fiat, so you will have to work out a way to buy crypto somewhere else as cheap as possible before depositing on the platform.
But bear in mind that things move very quickly in the cryptocurrency world. While Binance and Kucoin are excellent exchanges right now, it is very possible they they could be hacked tomorrow, or a regulation could wipe them out.
And the marketing model of these exchanges has been subject to scrutiny and criticism, with many pointing out parallels between these marketing models and traditional pyramid schemes. In the cryptocurrency world, you need to perform your own due diligence.