Coinbase vs Kraken: Which Exchange to Choose in 2024?

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.

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.

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.

Kraken vs. Coinbase: Which is the best option?

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.