Binance vs Bittrex vs Kraken [Cryptocurrency Exchange Comparison]
The crypto world is evolving. Simply throwing money at the market won’t make you rich anymore, and the discipline and maturity that this evolution demands from investors is a good sign for the growth of cryptocurrency.
In more mature markets, like the stock market, a lot of value is gained from how one trades, not just what they trade. In the world of cryptocurrencies, this comes in the form of exchanges. Three of the largest cryptocurrency exchanges around are Binance, Bittrex, and Kraken. Each of them have their pros and cons, and understanding them is one major factor in making the most out of your cryptocurrency investment.
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Binance is the largest cryptocurrency exchange platform in the world, and it deals with over 100 different cryptocurrencies. In addition to this, Binance offers fantastic education on blockchain and cryptocurrencies, scientific research, and even a cryptocurrency charity.
But being the biggest crypto exchange platform in the world comes with its downsides. On May 7, 2019, Binance was the victim of a devastating cyber attack. Around $40 million USD worth of Bitcoin was stolen, completely undetected by the security measures Binance had in place. This attack brought into question just how secure the platform is, with some believing that if hackers were able to completely bypass Binance’s security once, they would be able to do it again, even if Binance strengthened security. Binance pledged to reimburse impacted customers. Fortunately for Binance, this event looks like a mere speedbump, as the ripple effect from this story was rather minimal.
Despite this event, Binance is still a fantastic exchange and looks to be one of the premier cryptocurrency exchanges for a long time.
Pros: Largest cryptocurrency exchange, proven track record.
Cons: Possible dangerous security breaches on the horizon.
In stark contrast, Bittrex boasts an excellent security track record, emphasizing their commitment to security throughout their website. They describe themselves as the “premier U.S.-based blockchain trading platform,” and their longevity in the game (founded in 2014) is proof that they have real staying power.
One of Bittrex’s strengths is the detail and precision they bring to the table. Their markets page has extensive listings and allows for in-depth and detailed comparisons between two cryptocurrencies, or a cryptocurrency and a fiat currency. What Bittrex hangs their hat on is their platform’s ease of use. Experienced and inexperienced crypto traders can easily navigate Bittrex. As a cryptocurrency exchange that is slightly smaller than Binance, they have the luxury of focusing on improving their product, which should be a very attractive trait if you’re willing to stray from Binance.
One major issue with Bittrex, however, is their legal status. As a US-based company, some financial regulations prohibit it from being used in New York State. However, traders have full access to trading with Binance, as they are a foreign company. Regulations are something that the blockchain industry as a whole has had to overcome for years, and unfortunately Bittrex is a victim of this.
Pros: Easy to use, user-focused, and secure.
Cons: Regulations impact ability to use it.
Lastly, we have Kraken, one of the oldest cryptocurrency exchanges around. Kraken’s most impressive quality is that they handle the most Euros, arguably making them the largest cryptocurrency exchange in all of Europe. Kraken is based out of San Francisco, and unlike Bittrex, you can use it in New York State.
Kraken is excellent for very experienced traders. It has a plethora of trading features, including margin trading. Experienced traders also love Kraken due to their streamlined interface, cutting out a lot of the frills that some experienced traders do not like.
Kraken was involved in a lot of the cleanup work following the Mt. Gox liquidation, and benefited greatly as a result. More recently, Kraken raised over $100 million USD, showing that despite being founded in 2011, Kraken has some fantastic staying power, and investors recognize that it is sure to stick around for a long time.
Pros: Fantastic for experienced traders, somehow constantly on the rise.
Cons: Can be somewhat difficult for newer traders to use.
Once you figure out which exchange is right for you, you’ll need to figure out which cryptocurrencies are right for you, which you can do here.
Which exchange should I use?
This is an important question that you should ask yourself, but ultimately there is no easy answer. Different exchanges have different strengths and weaknesses, and understanding them will allow you to select a cryptocurrency exchange that is the best fit for you.
RoninAi allows investors to trade based on Ai-calculated signals. In the future, RoninAi is looking to partner with exchanges to allow for increased liquidity for lesser commission for RoninAi subscribers. Learn more here.