The two most popular Asian exchanges are Binance and KuCoin and both were based in China. After Chinese government banned digital currency exchanges, they both moved to Hong Kong, while Binance later on moved on to Malta even though current reports from TheBlock claim that Binance is not incorporated there but rather on some other, hitherto unknown location (if anywhere).
In this article we will try to present both exchanges’ advantages and disadvantages, head to head, to give you idea which one could suite you more.
Binance (Binary + Finance = Binance) is purely crypto exchange. This means you cannot trade fiat currencies such as EUR, USD or GBP. According to their white paper, Binance matching engine is capable of sustaining 1,400,000 orders / second, making Binance one of the fastest exchanges in the market today.
In January’s Binance Weekly Report total registered users surged through the 5.8 Million mark.
Due to the large number of accounts, Binance had to temporarily stop new sign-ups. Binance re-opened limited user registrations on Jan. 8,2018. To ensure performance for their existing users, only a limited number of new registrations will be allowed each day. Registration open times will vary from day to day, without prior announcement.
Binance User Interface
There are two types of User Interfaces on Binance, basic and advanced. In the basic version of UI, you can see currency pairs trading, graphs and charts, trade history and order book.
In the advance version, you can also see currency pairs, open orders, trade history, but the advanced version offers more-in-depth technical analysis of crypto assets value over time.
Binance Fee Structure
Binance’s fee structure is divided into three categories:
- Fee for trading:
– 0.1% trading fee
– If you own BNB, Binance will use your BNB to pay for transaction fees as default. A 50% discount is applied, when using BNB to pay transaction fees, which is 0.05%.
- Fee for deposit is zero.
- Fee for Withdrawal: For each coin there is minimum amount required for withdrawal and different fee applies. For instance, minimum withdrawal amount for Bitcoin (BTC) is 0.002 and transaction fee is 0.001 BTC. Or minimum withdrawal amount for NEO is 1 and fee is equal to zero. Also withdrawal fee for GAS is zero. The withdrawal fee are adjusted according to the blockchain conditions on regular basis.
In February 2018, Binance announced that they want to show their gratitude for users’ unwavering support throughout the upgrade process and Binance will provide all users with a 70% discount on trading fees (0.03% on all trades, 0.015% with BNB) from 2018/02/09 to 2018/02/24 00:00 AM (UTC).
Binance Trading Volume
According to the web site CoinMarketCap, at the moment of writing, Binance was ranked at number one with daily trading volume of $2,290,506,152. More than 20% of trading volume was related to Bitcoin versus USDT. Second most traded currency pair on Binance was Etherem/ Bitcoin with more than 6% of trading volume.
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There is total of 267 currency pairs traded on Binance at the moment.
Binance Coin (BNB)
Initially, total supply of BNB was 200,000,000 coins. Binance will use 20% of profits, each quarter to buy back BNB and destroy them, until they buy 50% of all the BNB (100 million) back. All buy-back transactions will be announced on the blockchain. Binance will eventually destroy 100 million BNB, leaving 100 million BNB remaining.
Make sure to check comparisons we made between some of the most known exchanges:
- Coinbase vs Bitstamp
- Changelly vs Shapeshift
- Coinbase vs Coinmama
- Xapo vs Coinbase
- GDAX vs Gemini
- Changelly vs Coinbase
- Coinbase vs Bittrex
- Poloniex vs GDAX
- Poloniex vs Bittrex
- Coinbase vs Kraken
- GDAX vs Coinbase
- Gemini vs Coinbase
According to their web site, Kucoin was founded by a group of blockchain enthusiasts who had proved themselves in industry giants like Ant Financial and GF Securities and aims at providing users digital asset transaction and exchange services which are even more safe and convenient, integrating premium assets worldwide, and constructing state of the art transaction platform.
The team behind KuCoin has launched the Kucoin Bonus Plan, multiple additional currencies, and mobile apps for both Android and iOS since the launch of platform.
KuCoin User Interface
After you have chosen currency pair to trade, the trading screen opens up. At the trading screen you can view the usual candles, order book, trade history and can then buy or sell the selected currencies. When you first enter this screen you will be prompted for your Google Authenticator code before being able to trade, this can be a little annoying but does add an extra layer of security to the site and we highly recommend it.
KuCoin Fee Structure
KuCoin’s fee structure is divided into three categories:
- Trading fees: 0.1% (KuCoin charge from the asset you bought)
- Deposit fees: zero.
- Withdrawal fees: For each crypto asset different fee applies. For instance, BTC withdrawal fee is fee is 0.001 BTC. While withdrawing NEO is free. Also withdrawal fee for GAS is zero. Note: If the amount of your withdraw proposal is less than CUREENT FEE * 100000, then this withdrawal will be processed automatically, usually takes seconds to complete. For example, withdraw fee of BTC is 0.0005, so if your withdraw less than 0.0005*100000=50 BTC, your request get fulfilled in a flash.
KuCoin Trading Volume
KuCoin is ranked at place 26 based on daily trading volume. Daily trading volume is $70,845,587 where more than 6 percent goes to trading currency pair ETH/BTC. Second most traded currency pair is XRB/BTC taking more than 5 percent of trading volume.
There is total of 253 currency pairs traded on KuCoin at the moment.
KuCoin Shares (KCS)
Kucoin Shares or KCS for short, is the token issued by Kucoin Cryptocurrency Exchange Platform with total supply of 200 million. After buy-back disposal, it will be a constant – 100 million. At least 10% of the KuCoin’s net profit will be applied to the buy-back of KCS every quarter. The KCS retrieved through buy-back will be destroyed immediately. The process will continue until 100 million KCS are destroyed.
As a decentralized cryptocurrency issued on the basis of Ethereum, also a standard ERC 20 token based on Ethereum blockchain, KCS supports all the Ethereum wallets.
Kucoin has established an incentive bonus, which equals to 50% of the total trading fees charged by the platform, to users who hold KCS in their accounts. According to KuCoin’s white paper „To obtain the daily bonus, users would need to deposit their KCS into Kucoin Platform. Then the platform will conduct accounting and award bonus based on to the KCS holdings in user’s account at 0:00 (UTC+8) that day and all the trading fees charged to the platform on the previous day. Then the bonus gained by users will directly put to their Kucoin accounts in the corresponding currency. For instance, If ETH-BTC cryptocurrency pair rate is 0.063 on the platform and the daily exchange volume is 30,000 BTC; based on the 0.1% rate from each side, the platform shall charge 30 BTC and 476 ETH as trading fees. The bonus for every 10,000 holdings would be 10,000 by 100,000,000 (0.01%). So that the daily bonus from this very cryptocurrency pair is 0.003 BTC and 0.0476 ETH (1 BTC and 17 ETH annually).“
After going through specific parts of two ex-China based exchanges, we can see the pros and cons of both. They are both purely crypto exchanges, meaning they do not accept fiat currencies. But they both support USDT (Tether trading pairs).
When it comes to User Interface, Binance has two versions, basic and advanced. They are both great looking and slick, offering views of trade history, order book, currency pairs. The advanced version offers more-in-depth technical analysis of crypto assets value over time.
KuCoin’s User Interface is also great. They improved it at the end of 2017, but you can still change UI to the old version on their web site.
The fee structure of both exchanges are similar, transaction fee is 0.1%, deposit is free. On the withdrawal side, Binance requires a certain minimum amount for withdrawal, while KuCoin does not.
Binance also offers 50% discount of transaction fee, if you use their token for paying the fees.
Looking at the daily trading volume, Binance is the clear winner. Binance is the number one in trading in the crypto world. On the other side, KuCoin occupies 26th place based on daily trading volume.
Binance is supporting 267 trading pairs compared to KuCoin’s 253 trading pairs. But KuCoin is fast in supporting new and exciting coins adding space to trading opportunities for its users.
Both exchanges are great, they are very popular and fast growing with great user interfaces. Both support massive number of crypto assets and have great or good daily trading volumes.
So if you are looking for greater liquidity pool, you should go with Binance, but if your are looking for new and exciting crypto assets than go for KuCoin.
We suggest you use both of these great exchanges.
If you are not fond of neither of these exchanges, here is a list of potential alternatives: Coinbase, Cex.io, PrimeXBT, PrimeBit, Deribit, Coinbase Pro, Coinmama, Changelly, Bitpanda, Bitfinex, Kraken, Bittrex, Bitstamp.
In case you want to compare Binance with other exchanges, have a look at our guides where we do just that:
- Coinbase vs Binance
- Binance vs Bittrex
- BitMex vs Binance
- Binance vs Coinmama
- Binance vs Coinbase Pro
- Binance vs eToro
- Binance vs Bitpanda
- Binance vs Binance US
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