Kraken Vs. Binance both use the maker-taker fee structure, offering much lower fees than other popular platforms such as Coinbase. At first …
A brief history of cryptocurrency
Bitcoin was the first cryptocurrency to be widely adopted, and is the most popular in the industry. Bitcoin is mined by companies for a reward in the form of new tokens. The process by which cryptocurrencies are mined is called “mining” and some coins are more sought after than others. …
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Related News When is it worth to add a cryptocurrency to your portfolio? After the massive sell-off in cryptocurrency on Friday, things are looking shaky for Bitcoin, Ethereum and Litecoin. But is there still any value left for investors who can look past today’s volatility? Over the last three weeks, many experts and analysts have said to stay away from this market.
The differences between Kraken Vs. Binance
The team behind Kraken, for example, is “very committed to its community,” noted Caroline Lin, Kraken’s Head of Communications. The Kraken team also doesn’t stand out as the most progressive in terms of changing to new payment methods.
“With all due respect to the Kraken team, the average bitcoin exchange is changing their fees to support new payment methods because they don’t have to think about the day to day user,” Lin explained.
Kraken, on the other hand, has been evolving its platform since the beginning. Back in January 2014, for example, when bitcoin was trading at just a shade over $30, the Kraken exchange charged a steep flat fee of $5.00 on every trade, regardless of the size.
Fees, withdrawals, and deposits for Kraken
Kraken offers bitcoin-to-coinbase (BTC/COINB) transfers with standard 3.99% (fee and minimum transfer amount) or 5.99% (fee and minimum transfer amount) fee, depending on the amount sent.
The maximum bitcoin fee to get your coin into Coinbase is 4.99% (fee and minimum amount) or 9.99% (fee and minimum amount) if you’re sending the coin using the API. You’ll also need to pay an additional credit card fee, like any other credit card, with all your Coinbase purchases, which can range from $2 to $5 or more.
Note that Coinbase charges a 2.9% flat fee when a user goes “over the limit” and pays a double charge (more on this below). On top of this, if you don’t buy enough to hit the $2,000 limit to send a coin to Coinbase, you’ll pay a 5.99% fee as well.
Fees, withdrawals, and deposits for Binance
Blockchain and cryptocurrency news anchor Riccardo Spagni recently wrote an article about how the makers and takers fee structure at Kraken works. In the article, he compares this structure to how things work at Binance. While many services on the market today use the maker fee structure, Kraken and Binance are the only major platforms using it.
Advantages of a maker-taker structure Kraken and Binance use a maker fee structure because it offers many advantages over traditional peer-to-peer trading. Investors are making the decision about how much they want to pay in fees for the transaction.
The creators of the coin are making a decision about how much they want to charge for transactions, and that leads to a more stable coin ecosystem. Rewards of long-term investing.
With the upcoming battle between Binance and Kraken, traders should be aware of the significant technical differences between the two exchanges and their fees in order to be able to make the most informed decision.
My personal recommendation is to use both exchanges for a small percentage of your trades, but I would encourage traders to carefully investigate the service offered by both Binance and Kraken before making any important trade. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.