In the crypto space, Kraken and Coinbase have emerged as the top go-to exchange platforms for both seasoned investors and newcomers. Both enable the users to buy crypto using fiat, and trade crypto too. While both players come with their unique traits, choosing the right one may become challenging.
This article covers a deep analysis of Coinbase and Kraken, comparing and contrasting them to help you find the right choice of exchange platform for your needs and goals.
Kraken - The Trustworthy Trailblazer in the Crypto World
Kraken was established in 2011. It holds a strong reputation with a team that has been the early adopters of the industry since the early days of Bitcoin. It is widely preferred and is a reliable crypto exchange with no records of spam or breaches. The platform is available for US users and has a vast range of supported crypto to buy and trade.
Pros and Cons
Secure and reliable exchange platform
Charges lower fees compared to others
Has a higher deposit and withdrawal limit
Supports a wide range of currencies and assets
Has a longer verification time for account creation
Has a complex user interface that may be tough to navigate for beginners
Coinbase - Pioneering Accessibility in the Crypto World
Coinbase is one of the oldest cryptocurrency exchanges available in the industry. It offers a user-friendly brokerage model for buying and selling crypto, making it ideal for beginners as well as experienced crypto investors. The platform also provides easy funding options, making it a preferable option.
Pros and Cons
Offers an easy and intuitive user experience
Provides easy funding options
Accepts a vast set of currencies
Has limited coin acceptance
Charges comparatively higher fees
Security
Security is the key factor to consider when choosing any exchange in the crypto space. Both Kraken and Coinbase are widely renowned for their security assurance.
They assure added security with the following features, common in both:
Both platforms utilize security keys for authenticating login and generating one-time passcodes for the devices the user logs in through.
PGP encryption is available in both for secure online communications regarding crypto trades and other matters.
Kraken as well as Coinbase also integrate two-factor authentication (2FA) that are required during withdrawals and transfers. This assures an enhanced security for the users’ accounts and funds.
Both platforms have support for authenticator apps like Google Authenticator for 2FA.
Here are some key differences between the two in terms of security considerations:
Kraken: Kraken stores 95% of assets in air-gapped cold storage. It also employs strict surveillance and integrates multiple checkpoints to ensure the signup process is strong and false-proof.
Coinbase: Coinbase stores 98% of deposits in offline, geographically distributed cold storage. It also adds insurance from the Federal Deposit Insurance Corporation (FDIC) of up to $250,000 of an individual’s USD cash balances in case of any breaches.
Supported Currencies
Major fiat currencies for on-ramp and off-ramp are supported by both Kraken and Coinbase. This list includes: USD, EUR, CAD, AUD, GBP, CHF, and JPY.
However, there are some differences in terms of the supported cryptocurrencies by both exchanges. It is as follows:
Coinbase: Supports 120+ cryptocurrencies
Kraken: Supports 95+ cryptocurrencies
Availability
Coinbase: Coinbase is accessible to around 100 countries but excludes access to Hawaii residents.
Kraken: Kraken is available across 176 nations, excluding New York and Washington.
Trading Fees
Here’s what the trading fees look like for Coinbase vs Kraken:
Coinbase:
Coinbase has a spread fee structure. It charges approximately 0.5% of each transaction for buying and selling crypto.
Kraken:
Kraken has a varying structure for the regular users and the Kraken Pro users. Here’s what it looks like:
Kraken’s “Instant Buy” charges a fee of 0.9% for stablecoins and 1.5% for other cryptocurrencies. There is also an added fee applicable for credit or debit card transactions.
Kraken Pro offers lower fees. It charges a 0.16% maker fee and a 0.26% taker fee for trades of $50,000 or less. It also varies according to the users’ last 30 days of activity.
Additional Features
Kraken: It introduces Cryptowatch, a trading terminal analyzing 2,000+ cryptocurrency markets. It allows traders to monitor price movements and market trends, and set alerts. Upgrading this service also offers users more timely notifications.
Coinbase: It provides users with a hot wallet for depositing, storing, and withdrawing currency. This is accessible to users beyond the Coinbase platform, making it convenient for those dealing with various fiat and cryptocurrencies.
Mobile Apps & Margin Trading
Both exchanges support highly rated mobile applications, mirroring the features available on their web browsers.
Now talking about margin trading, Coinbase introduced margin trading in early 2020, with 3x leverage, but disabled it by November 2020. On the other hand, Kraken currently supports margin trading with up to 5x leverage.
Customer Service
Coinbase and Kraken offer global customer service around the clock through live chat. Furthermore, during peak trading times, support availability may vary, and wait times could increase. Both exchanges provide comprehensive help center guides and Q&A sections too.
User Experience
In terms of the user experience, Coinbase and Kraken vary significantly. Here are the key differences:
Coinbase: Coinbase offers a seamless user experience with a quicker sign-up process and account linking. It utilizes Plaid’s data transfer network to make this process quicker and easier. Furthermore, it also integrates a user-friendly search bar that facilitates easy access to all platform features. The users can also set up automated cryptocurrency purchases effortlessly.
Kraken: Kraken offers a more intricate user experience. It also ensures a quicker initial verification for account creation. However, the advanced verification may take several days. Furthermore, this exchange platform also charges comparatively higher trading fees for the basic version.
Kraken vs. Coinbase: Summarizing Key Differences
Now, let’s look at the major differences between Kraken and Coinbase.
Factor
Kraken
Coinbase
Key Features
Low fees
Strong security protections
Easy to use for beginners
Integrates PayPal for withdraw or sell
Fees
0% to 0.26% per trade
3.75% + €0.25 for credit card purchases
0.5% plus 0.9% or 1.5% for ACH purchases
0.50% per trade maker-taker
3.99% for credit card purchases
1.49% for Coinbase USD wallet or bank account purchases
Both Kraken as well as Coinbase offers reliable and secure cryptocurrency exchanges with diverse features. However, there are also certain distinctions based on fees, portfolio options, account perks, and more.
Kraken might be the preferred choice for those prioritizing lower fees and access to features like futures trading. On the other hand, Coinbase is beginner-friendly with learning rewards and user-friendly interfaces. Coinbase also supports more cryptocurrencies and is available across more countries as compared to Kraken.
Finally, the choice between the two exchanges depends on the individual’s specific goals and preferences.
Frequently Asked Questions (FAQs)
1. Which one is better, Coinbase & Kraken?
Both Coinbase & Kraken stand as reputable crypto exchange platforms. The choice of the best one depends on the user's needs and goals. Above is a detailed overview of the key differences between the two to help you pick the right one as per your preferences.
2. Is Kraken Safe?
Yes, Kraken utilizes robust security features that make it a safe exchange platform.
3. Is Coinbase Safe?
Yes, Coinbase also utilizes robust security features that make it a safe exchange platform.
Over the past 6 years, Tanya has gained extensive experience as a content creator in emerging technologies like cryptocurrency, blockchain, NFTs, DAOs, and the Metaverse. With a versatile writing style, she has simplified blockchain complexities for many. Whether diving into technical details, exploring crypto adoption, or linking blockchain to nature, she strives for excellence. Recognized in the industry, she specializes in creating unique, reliable content through meticulous research.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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