Binance vs. Kucoin: What Works Better For Canadians?
Binance was founded in 2017 and is based in Malta. It averages $2 billion in daily volume and executes 1.4 million transactions per second. Canadians can purchase and trade hundreds of different coins with advanced order types.
Kucoin is a sort of Canadian-friendly cryptocurrency exchange that offers peer-to-peer crypto trades, lending, and futures trading. Kucoin is suitable for more advanced traders looking for advanced charting and order types. Kucoin has 8 million global users.
400+ including BTC, ETH, XRP, DOGE
0.1% to 0.02% buy fee depending on VIP level
- Low maker/taker trading fees ( 0.005%/0.025% to 0.1%/0.1% for class A coins)
- Free deposits
- Variable withdrawal fees
- KCS holders get 20% discount on trading fees
- Good for Canadians looking to buy and trade altcoins
- DEX/P2P trading
- Advanced order types
- Margin trading
- Derivatives and futures trading
- Stock token trading
- 400+ coins
- Low fees
- Simple or advanced interface
- Low fees
- Wide range of altcoins available
- Advanced order types
- Crypto lending
- Futures trading
- Fast crypto purchases
- Peer to peer exchange
- Anonymous trading
- No Interac e-Transfer
- Not available in Ontario
- Platform is confusing for beginners
- No fiat to crypto pairs
- Must buy USDT to trade
- Previously hacked
- Not compliant in Ontario (but you can still use it though)
Methods to buy
Credit/debit, SWIFT bank transfer with USD
- Credit/debit card
- Third party Bank transfer
2FA, crypto address whitelisting, Trust Wallet partnership, KYC verification process
- $275 million stolen in 2020 hack
- 2FA available
Binance vs. Kucoin: Mobile and Desktop Trading
Binance has a rating of 4.6 stars on the Apple App Store with 22,000 ratings. On Google Play, it has 4.5 stars with 271,000 ratings.
Binance’s app allows its users to switch between the Lite and Pro interfaces making it suitable for both beginners and experienced traders.
Binance Lite App for begginer users
Binance App for advanced users
Binance’s app interface also closely resembles its desktop counterpart, though, at first glance, it does not seem as user-friendly and intuitive as Coinbase. Binance offers its users multiple ways to purchase crypto depending on the type of trade you want. On its desktop platform, you can select “Convert” for a quick debit or credit purchase, or “Classic” or “Advanced” for more trading types.
Kucoin is slightly different than your average crypto exchange. You won’t be able to deposit Canadian dollars directly. You’ll have to go through a third-party such as Banxa to deposit fiat. Kucoin does, however, accept credit and debit card payments, but you’ll need to check if your Canadian bank allows crypto transactions.
There are no fiat to crypto pairs, so you cannot buy bitcoin or other crypto directly with your dollars. You’ll need to first purchase Tether USDT on Kucoin and then trade that for the crypto you want.
The Kucoin exchange can be quite confusing for beginners.
Kucoin desktop interface
Kucoin app interface
Kucoin app interface while trading
There are advanced charting and order types available, plus you can trade on margin and trade futures contracts if you wish.
To buy USDT quickly, go up to the top menu and select the “Fast Buy” option. Here, you can purchase USDT using your credit or debit card or via the P2P exchange, or via a third party transfer. Once you have your USDT, then you can trade it on the Kucoin exchange under “spot trading”. Select the trading pair e.g. USDT/BTC and then choose your order type e.g. market order.
The Kucoin app has a 3.7-star rating from over 2,000 reviews on the Apple App Store and a 2.7-star rating from over 12,000 reviews on Google Play. Many people complain that the app crashes or that there are certain features lacking such as the ability to filter order history by trading pair.
Kucoin’s app is a bit more simple than its desktop exchange but it’s still confusing for beginners. There are lots of features, tabs, and menus. Buying USDT is easy since you do not need to verify your account. Simply sign up with an email and you can buy crypto in seconds using your credit or debit card under the Fast trade option. From there though, you will need to navigate to the spot trading page and select the trading pair you want.
Both Binance and Kucoin offer world-class security meaning your coins are in relatively safe hands. Both exchanges offer two-factor authentication, so you can prevent unauthorized access to your account.
Binance also offers crypto address whitelisting, which means you can select which addresses can withdraw your cryptocurrency. Whitelisting helps prevent your funds from being transferred to an address you don’t recognize.
In 2020, $275 million worth of crypto was stolen from Kucoin by North Korean hackers. Later, $200 million of the stolen funds was recovered. Still, it doesn’t bode well for Kucoin. If you have funds on the exchange, it’s best to move them to a private crypto wallet.
There is very little information on Kucoin’s website regarding its security measures, so trade with care. You can, however, set up Google Authenticator for two-factor authentication.
Regulatory Compliance in Canada
To sign up and start trading on Kucoin you only need to provide your email address. There is a daily limit to how much you can withdraw (1 BTC or 400 CAD) but you do not need to verify your account unless you want to get higher withdrawal limits. This poses the question how compliant Kucoin is. It is not easy to find compliance information on Kucoin’s website, but a press release from June, 2020 announced Kucoin was partnering with Chainalysis to help prevent money laundering and fraud on its platform.
In June, 2021, the Ontario Securities Commission stated that Kucoin and Binance was illegally offering its residents securities and derivatives trading, but Kucoin did not respond to this. Binance faced the same allegation and has since ceased operations in Ontario.
Canadian residents can use both Binance (except Ontario residents) and Kucoin to their full capacity whether it’s a simple buy order at market price or a more advanced order type. Bear in mind, neither platform allows Interac e-Transfer to deposit Canadian dollars to your account. Instead, you will have to use a debit or credit card or a SWIFT transfer with USD on Binance or Kucoin. Both Visa and Mastercard are accepted on Binance.
Both Binance and Kucoin offer helpful FAQs and online ticketing service for their customers. Both offer 24/7 support and a live chat option. Neither exchange offers a phone support service.
Both Binance and Kucoin are great cryptocurrency exchanges for Canadians that offer a wide selection of coins. However, Binance is more popular among Canadians for several reasons (except for the ones who live in Ontario). If you’re mostly interested in trading altcoins then Binance is the clear winner, especially because it has some of the lowest fees of any exchange and Binance is safer. If you hold Binance’s own coin Binance coin (BNB) fees are even lower. Once you become more experienced with trading cryptocurrency, you might be tempted by Binance’s advanced trading orders. You can sign up for Binance here.