Binance against KuCoin. New crypto investors should avoid both.

Jamie Larson

• 3 min read
Binance against KuCoin. New crypto investors should avoid both.
Don't open a crypto account with KuCoin or Binance.US.

There are better options than these exchanges for buying and investing in popular cryptocurrencies, especially for beginners. KuCoin and Binance.US aren't as simple and user-friendly as Coinbase, eToro, or Gemini.

KuCoin's learning curve is severe. Binance.US has lower fees than other mainstream exchanges, but experts say the extra fees are worth the added security. Binance.US has regulatory difficulties investors should avoid.

KUCOIN to BINANCE.US

Pros

  • Large selection of coins
  • Free USDT upon signup
  • Advanced trading options, including margin
  • KCS fee discount; low fees; BNB trading charge discount; tax statement site; identity verification

Cons

  • Not licensed or regulated in the US
  • You may need crypto to use KuCoin
  • Difficult to navigate for beginners
  • Poor TrustPilot reviews
  • Not available in Hawaii, Idaho, New York, Texas, or Vermont
  • Limited customer service
  • History of regulatory issues
  • Security information not readily available

Security

KuCoin boasts it has the "most sophisticated security technology and maintenance team" and is constantly improving its security measures to protect user funds and accounts. The site provides information on how to secure your account, including two-factor authentication and IP restriction.

KuCoin did well when hacked. In 2020, hackers stole customers' private keys and sold $250 million in crypto on decentralized markets. KuCoin claims law police and insurance covered the theft. KuCoin also made precautions to prevent a repetition. Coinbase and Crypto.com also suffered attacks and refunded users and tightened security.

Binance.homepage US's mentions best security practices, but provides few details. Binance.US is a DBA of BAM Trading Services, Binance.U.S. US's partner registered with FinCEN. The larger Binance paid consumer losses from security breaches in the past, but this isn't guaranteed for Binance.US.

Binance.US is being investigated by the SEC for ties to the global company's CEO and two trading firms that use the platform. Binance.US licensed trademarks, software, and wallet technology from the larger company, a representative told us after our original 2021 assessment.

KuCoin and Binance.US didn't respond to our requests for comment and information. If KuCoin or Binance.US responds, we'll update.

You may do better with a US-based exchange that is more transparent about its security.

Cryptocurrencies

KuCoin and Binance provide 600+ cryptocurrencies.
US exchanges provide more than 80 cryptocurrencies, a rather low number.

KuCoin (KCS) and Binance.US (BNB) offer native currency to reduce trading fees. BNB has a greater market cap than KCS and could be a superior investment on its own. Holding BNB is enough to get a fee discount. You must pay using KCS to get the discount.

You must convert U.S. fiat currency to Tether (USDT) to utilize it on KuCoin. Tether denotes U.S. dollar exchange values.

KuCoin and Binance fees.

US fees are graded maker/taker. When an order isn't immediately completed, the maker contributes liquidity to the exchange. A taker is someone whose order is instantly matched. Each rung has larger taker fees than maker fees. And Binance. Higher monthly trading volume lowers US fees.

But KuCoin's fees aren't as low as Binance. US's. As a BNB holder, you'll get a 25% fee savings, compared to 20% for KCS users.

US charges 0.10 percent, while KuCoin charges up to 0.3 percent, depending on asset class and tier.

KuCoin offers a range of crypto-related products. This includes margin trading, which uses borrowed cash, and a raffle for extra coins. You can earn income by lending crypto to platform investors. KuCoin's trading bot automates trades, including dollar-cost averaging and buy-low, sell-high trades.

Using U.S. fiat dollars on KuCoin can be challenging. Unregulated, it's riskier. Fast Buy lets you buy Tether (USDT), Bitcoin (BTC), Ethereum (ETH), and PaxGold (PAX). Verify your identification to attach your bank card. Then you can use fiat money to buy supported cryptocurrency coins for trading. It's a roundabout method to utilize U.S. fiat currency on KuCoin, but U.S. residents still can't register.

Binance.US offers extensive tools for active traders, including real-time charting and an over-the-counter trading gateway. Binance.US has a tax interface to help you report bitcoin earnings to the IRS. (A crypto portfolio tracker may also be helpful.) The broader Binance offers cryptocurrency and blockchain-related information and tools.

KuCoin or Binance.US?

We recommend Coinbase, Gemini, and eToro. KuCoin and Binance.US are best for intermediate to advanced cryptocurrency users and have accessibility and regulation difficulties.

ADVICE

Choose a cryptocurrency exchange by fees, security, and aims.

If you want U.S.-based regulation, Binance.US is your best bet. Hawaii, Idaho, New York, Texas, and Vermont don't have Binance.US. KuCoin offers options for expanding your crypto portfolio if you're interested in investing.