Kucoin vs. Binance: What’s the Difference?

Updated on January 7, 2024

At a Glance

  • Kucoin and Binance are cryptocurrency exchanges with a wide range of altcoins and comparable fee structures.
  • Kucoin offers aggressive tiered fees and dividends, while Binance has no deposit fees and better taker fees for futures trading.
  • Both platforms have extensive asset choices and strong security measures.
  • Kucoin provides faster customer service, automated trading, and a robust lending platform, while Binance supports third-party trading bots and provides lending directly from the platform.

Cryptocurrency is a very appealing investment because there is such a wide variety of available strategies. Are you going to buy and hold? Are you interested in crypto lending? Is margin trading for you? 

Depending on your trading strategy, you will need certain features from your crypto exchange. With so many exchanges out there, how do you choose which one is right for you?

Kucoin and Binance are two well-established crypto exchanges. Even though they use a similar business strategy and have a similar fee structure there are slight differences between the platforms. You will most probably find either Kucoin or Binance will suit your specific needs slightly better.

Below we dive deeper into the details of Kucoin vs Binance so you can see which exchange will be the best choice for you. 

Kucoin vs. Binance Overview

Both Kucoin and Binance have a similar business strategy. They are cryptocurrency exchanges that offer access to hundreds of altcoins that are otherwise hard to purchase. They have a similar fee structure, starting at 0.1% and reducing this fee as you move up the trading tiers.

Kucoin vs Binance each have a native cryptocurrency and users are rewarded for holding this coin. They also provide similar services, including a futures market, crypto lending, a P2P marketplace, trading bots, and margin trading.

Kucoin vs. Binance

Now, let’s take a look at the differences between these two crypto exchange platforms.

What is Kucoin?

Kucoin is based in Hong Kong. Originally from China, the crypto exchange had to move after the government crackdown on cryptocurrencies.

Kucoin’s business model centers around having a wide variety of crypto assets that you can use. With a good safety record and a competitive fee structure, it is a solid option if you are looking for a crypto exchange to use.

What is Binance?

Binance is based in Hong Kong. Its business model is very similar to Kucoin, providing access and easy trading across a multitude of crypto assets.

For the lower membership tiers, Binance does not require an ID. If you don’t need to access the higher level of membership, you can maintain your anonymity on Binance.

With over 13 million users, Binance is a very popular cryptocurrency exchange platform. 

What’s the Difference?

Kucoin and Binance use a similar business strategy and have a similar fee structure. Most traders would find the range of assets, level of security, and customer support services comparable between the two platforms.

There are however slight differences between the platforms, and you might find either Kucoin or Binance will suit your needs slightly better.

Fees Comparison

Kucoin and Binance fees both start at 0.1%. This fee percentage decreases as you move up to a higher trading tier.

KuCoin Fees

Kucoin has a more aggressive tier structure, with very competitive fees for higher-tiered users. If you are going to trade large volumes and level up through the tiers, Kucoin is a clear winner. Kucoin also offers dividends of 50% of the exchange earnings on its token.

Binance Fees

Binance offers no deposit fees and withdrawal fees depend on the asset. The Binance token is used to pay for fees on the platform. If you think you are going to be a small trader and remain at the low tiers, Binance’s fee structure is better than Kucoin’s.

If you are going to use the futures market, Binance is a clear winner. It has a better taker fee than Kucoin. 

Assets Comparison

Both platforms advertise access to hundreds of altcoins that are otherwise hard to purchase. It should therefore come as no surprise that both Kucoin and Binance have a wide choice of assets.

Binance offers up to 242 altcoins. Kucoin supports 179 altcoins. Although Binance wins through sheer volume, it is unlikely that the average crypto trader will find Kucoin’s selection lacking.

When trading, Binance offers the ability to trade through its token and Tether. Kucoin offers trading with its token and Tether, but also NEO and BTC Cash.

The ability to trade in other tokens makes Kucoin more flexible. But Binance’s fee structure on trades made with its token is competitive. 

When comparing assets, you should consider your trading style and choose the platform that matches your needs.

Authentication Comparison

Both platforms support two-factor authentication. They have a good security history and have never been hacked.

Binance, with its larger user base, has reported several phishing attempts. This is not a reflection on the platform. Rather, it is a reminder to users to always double-check that they are visiting the right website. Do not enter your password and information if you suspect a scam. Make sure you enable two-factor authentication every time you are given the chance to.

Customer Service Comparison

Kucoin has incredibly fast customer service. There’s a 24-hour telegram support chat with a quick response rate.

Binance offers customer service through tickets. Although there is a longer waiting time with tickets, the customer service you receive from Binance is still better than most other crypto exchanges.

The real differentiating factor between Kucoin and Binance is how Kucoin has automated trading and lending. Kucoin offers all its users a free trading bot. The bot functions across the regular trading market and on the futures market. 

Although Binance does support third-party trading bots,  it does not offer a native, free bot.

Kucoin also has a more robust crypto lending platform. It has created a marketplace that connects lenders and borrowers who agree on an interest rate and a time. Kucoin ensures the marketplace, adding reliability and some level of regulation to the process. 

While Binance does offer crypto lending, you can only lend from Binance itself.

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Final Thoughts

Kucoin and Binance are two well-established crypto exchanges. They use a similar business strategy and have a similar fee structure. Most traders would find the range of assets, level of security, and customer support services comparable between the two platforms.

There are slight differences between the platforms, and you might find either Kucoin or Binance will suit your needs slightly better.

When Binance is the Better Choice

If you have an interest in obscure altcoins, Binance might be better for you. They offer more crypto assets than Kucoin does. If you are going to be a small volume trader, Binance’s fee structure is more competitive. 

When KuCoin is the Better Choice

On the flip side, if you are going to trade large volumes and level up through the tiers, Kucoin is a clear winner. If automated customer service and trading bots are your thing, Kucoin is a good fit.  If you don’t mind waiting for a real person to reply to your service ticket, Binance is for you. If your strategy trading depends on crypto lending, Kucoin’s lending marketplace will be a differentiating factor. Remember, no matter which exchange you choose, you still pay tax on your cryptocurrency gains

There’s no clear winner between these two exchanges. They are both really good and reliable platforms. You should look at the interface of both and see what seems better for you.

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Frequently Asked Questions (FAQ)

Is Kucoin or Binance better for trading cryptocurrencies?

Kucoin and Binance are both popular cryptocurrency exchanges, but the better option depends on various factors such as trading fees, available cryptocurrencies, and user interface. It is recommended to compare the features and services of both platforms to determine which one suits your trading needs.

What are the fees for trading on Kucoin and Binance?

The trading fees on Kucoin and Binance can vary depending on factors such as trading volume and membership levels. It is advisable to check the fee structure on their respective websites for the most accurate and up-to-date information.

Are Kucoin and Binance secure platforms?

Kucoin and Binance prioritize the security of user funds and employ various measures such as two-factor authentication (2FA) and cold storage for cryptocurrencies. Both platforms have also not experienced major security breaches in the past. However, it is always recommended to practice good security habits and conduct thorough research before using any cryptocurrency exchange.

Can I buy cryptocurrencies with fiat currency on Kucoin and Binance?

Both Kucoin and Binance offer the option to buy cryptocurrencies with fiat currency. However, the availability of fiat trading pairs may vary depending on your location and the specific regulations in place.

Do Kucoin and Binance have mobile apps?

Yes, both Kucoin and Binance have mobile apps available for iOS and Android devices. These apps provide convenient access to trading and account management features on the go.

Are there any restrictions on using Kucoin and Binance?

Kucoin and Binance have certain restrictions in place, which may include limitations on user locations, KYC (Know Your Customer) requirements, and trading restrictions for specific cryptocurrencies. It is important to review the terms of service and any applicable regulations before using these platforms.

Can I stake my cryptocurrencies on Kucoin and Binance?

Yes, both Kucoin and Binance offer staking services for selected cryptocurrencies. Staking allows users to earn additional rewards by holding and participating in the network consensus of certain cryptocurrencies.

How can I contact customer support on Kucoin and Binance?

Both Kucoin and Binance have customer support channels available on their respective websites. These channels may include live chat, email support, and an FAQ section to assist users with their inquiries.

Are there any deposit or withdrawal limits on Kucoin and Binance?

Kucoin and Binance may have deposit and withdrawal limits in place, which can vary depending on factors such as account verification levels and cryptocurrency type. It is advisable to review the specific limits on their websites or reach out to customer support for more information.

Can I use Kucoin and Binance for margin trading?

Yes, both Kucoin and Binance provide margin trading services, allowing users to trade cryptocurrencies with borrowed funds. However, margin trading involves additional risks, and it is important to understand the terms and risks associated with margin trading before engaging in it.

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Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.