Reviews of Kraken, Binance and Whaleclub exchanges

When I'm buying cryptocurrencies I switch between 3 different exchanges, depending on what currency I'm selling, what I'm buying, and for how long I intend to hold it. There is a need for multiple because each is good for a different purpose, strong and weak in different areas, and different exchanges deal in different currencies and tokens. I think many people also treat their exchange as their digital currency wallet, especially if they trade frequently. Using multiple exchanges means you don't keep all your funds in one basket, so spreading your risk around instead of putting all your faith in one centralised exchange.

Kraken

To borrow Changpeng Zhao's (Binance CEO) terminology, we might call Kraken a "Crypto Exchange 1.0", which he defines as an exchange which allows trading between cryptocurrencies and fiat currencies. Because of their links with fiat, these exchanges necessarily have some connection with the banking system. They will have their own bank account which you fund using bank transfer, which they will then credit to your exchange account. You can then use this account to swap fiat for crypto. Because of these links to banking, their security requirements are usually stricter, requiring KYC identity verification for new traders.

I actually hate Kraken. It's painfully slow, often with timeout errors. The trading platform itself always returns generic API errors when trying to place buy or sell orders, and on top of that there's slippage. Fees are also too high for my liking, with 0.16% Maker and 0.26% Taker fees.

So why do I use it? Unfortunately, it's my only link to the fiat world, and thus the entry portal through which all physical money must pass before getting translated into scrumptious bytes and delectable 1s and 0s - Smack smack - I can almost taste those delicious bits right now!

I know there are other "1.0" exchanges, but Coinbase wasn't available for my location. And since Kraken is one of the largest exchanges, as well as US based, it at least has an element of trust and prestige (or so I thought, perhaps misguidedly). Because of the fees and general torture of its trading platform, I reserve Kraken strictly for those initial Fiat-Crypto swaps, then from here I send my crypto out on the four winds. Fly! Fly my beauties! You're free!

Binance (Affiliate link)

Binance is a 2.0 exchange, defined as dedicated purely to crypto-crypto swaps, with no fiat currency/crypto trading pairs on the platform. Being separated from banking infrastructure means regulation is easier for 2.0 exchanges, and that helps keep fees down (0.10%, with the option to discount even lower - more on this in a moment). As this exchange is based in China, it's a good place to go for Chinese tokens, and in fact it was my desire to trade NEO that initially attracted me to Binance, as they are one of the exchanges which pays out NEO GAS to holders of NEO.

Using the Binance trading platform coming from Kraken is like how I imagine it would be to drive a Porche after having just stepped out of a Robin Reliant. It's smooth, has very fast servers, and trades are executed quickly. You just get the overall feeling of efficiency and precision. The front end of Binance itself, the account area, trade history, etc. is on the sparse side, and I would like some convenience features, like being able to see the amount of each coin I hold at a glance on my dashboard. However, since it's a new exchange I'm confident such features will come in time, and I'm glad they are prioritising the trading platform.

The final but important point worth mentioning is Binance has its own token, the BNB, which can be bought and then used to pay for trading fees. Doing so nets you a 50% discount on the fee. Besides this tangible use case, Changpeng Zhao has stated that Binance will carry out buy backs of BNB using company profits and burning those BNB afterwards, thus increasing the token's scarcity and value. Thus, holding BNB gives you a small stake in the company, and personally I see Binance well placed to be one of the big players in the Asian crypto-exchange market. THIS IS MY OPINION AND NOT INVESTING ADVICE.

Whaleclub (Affiliate link)

This is a different sort of beast to either of the previous exchanges. Whaleclub's territory is the spot trading market. You're not really trading one currency for another currency on Whaleclub, rather you are using Bitcoin to bet on the movements of currency pairs. This is not a platform for buying and holding investments for long-term growth: it's for day trading and trying to profit from the downswings as equally as the upswings. Cryptocurrencies are volatile and tend to make big movements compared to fiat, so spot trading of crypto can be an attractive proposition. Whaleclub does also allow trading fiat pairs as well, so you can play the forex market using your Bitcoin if you so wish.

I'm a big fan of the platform; it's extremely responsive. Since it's not an order-book exchange it's even faster than Binance: buy and sell positions are executed the exact second you click, with zero slippage and no partial fulfilment of orders. The UI is clean, simple and easy to navigate, thus well suited for newbies. There is even a simple tutorial to get to grips with the interface, and the all-important demo account for risk-free practice. There are no fees as such, instead, Whaleclub makes money from the spreads, which admittedly can be quite high for Crypto due to its volatility. Also be aware of leverage fees charged on the hour for open positions (around 2% when trading crypto, 0.05% for forex); Whaleclub is definitely best kept for short-term trades.

One of my favourite features worth mentioning is the chat room: though I lurk 99% of the time, it's always lively and gives a feeling of participating in the cryptocurrency community. I see Whaleclub as a good place to idle even if I'm not trading, just to keep an eye on the latest movements of BTC or ETH and see what latest crypto hot-topic has got people talking.

So, if you're tired of just playing the long game with crypto and holding on to them through the good times and the bad, and instead you see opportunity in profiting from all movements, then Whaleclub might just be for you. Of course, be aware of the risks inherent, especially if trading on leverage, yadda yadda. You can open a demo account quickly and painlessly through the following link: https://whaleclub.co/join/jsVrrf

Please note the links I'm placing to Whaleclub will give you a 30% deposit bonus as well as generating a small commission for me. Happy trading!