Kraken and the Coinbase are the most well-liked cryptocurrency exchanges in the market, but they are not the same. Both exchanges offer different advantages and disadvantages. This blog is a Kraken vs Coinbase knockout, which will look at these exchanges and how they differ.
Jesse Powell started Kraken in 2011 to assist displaced consumers due to the Mt. Gox exchange hack, which cost investors over $450 million in Bitcoin. In 2013, Kraken emerged as one of the most popular exchanges for trading Bitcoin, and they have since added more than 50 cryptocurrencies to its platform.
In 2012, Brian Armstrong and Fred Ehrsam established Coinbase. With support for the most well-known cryptocurrencies available, it has grown to be the most well-liked central exchange in the United States. In addition, investors may now buy cryptocurrency using a credit card, thanks to the user-friendly software.
Their capacity for trading is the primary distinction between the platforms. Despite being a direct exchange for converting fiat (national currency) into cryptocurrencies, Coinbase doesn’t provide many sophisticated trading possibilities. Kraken, however, is a crypto-first exchange and provides various trading options, such as limit orders, futures trading, and margin trading.
Kraken vs Coinbase: Overview
What Is Kraken?
Kraken is a U.S.-based bank, and cryptocurrency exchange co-founded in 2011 by Jesse Powell and is renowned for its cutting-edge trading tools.
In terms of volume, it is also the second-largest cryptocurrency exchange platform in the world, and it provides services to more than 170 nations and 48 US states. The average daily trading volume on Kraken is $900 million.
Kraken’s essential exchange is user-friendly for beginners, while its more sophisticated platform, Kraken Pro, is appealing. Low fees, numerous order types, and comprehensive trading tools are all included with Kraken Pro.
What Is Coinbase?
Brian Armstrong created Coinbase in 2012. You can purchase cryptocurrencies through this cryptocurrency exchange using a bank account, credit card, or debit card. Overall, it’s one of the most user-friendly exchangers for beginners.
Over 150 well-known cryptocurrencies are supported by Coinbase, the biggest cryptocurrency exchange in the US. Additionally, it offers crypto rewards cards and staking rewards.
Coinbase, like Kraken, offers both Coinbase and Coinbase Pro as exchange options. Coinbase Pro aims to attract more experienced investors, even though its platform is best known for being user-friendly and suitable for novice cryptocurrency traders. The costs are also reduced (trading fees and other transactions).
Check our Another Review of Coinbase vs BlockFi.
Kraken vs Coinbase: Ease of Use
Kraken, which offers sophisticated customers more options than Coinbase for buying, selling, and trading cryptocurrency, is geared toward more seasoned traders.
Due to Kraken’s archaic user interface, crypto newbies could feel disoriented when trying to complete their first trade.
For sophisticated users, options, futures trading, and access to margin trading are all available through Kraken.
You can open a free Kraken account using your email address and password. After confirming your email address, you must use two-factor authentication to secure your account.
You must complete advanced verification to deposit money, which entails providing a photo of your photo ID, evidence of your address, and your Social Security number.
You can fund your account with an ACH, wire transfer, digital wallet, or both.
A user’s email address and password are required to register for Coinbase. In addition, you will need to upload a photo of your government-issued photo ID to the app or website before you may purchase or sell cryptocurrency. Once authenticated, you can instantly start buying cryptocurrency by connecting a bank account or credit card.
Kraken vs Coinbase: Unique Features
Users of Kraken have access to the margin trading option with a leverage of roughly five times. Additionally, it provides staking, OTC trading, and futures trading. Spot trading, crypto-to-crypto, and fiat-to-crypto transactions are additional transaction types.
Users of Kraken are entitled to a free service called Cryptowatch. On more than 2,000 cryptocurrency markets, it enables investors to establish price alerts and track market trends and price changes. Additionally, you can trade in several markets and employ various analysis tools.
Excellent Staking Rewards
One of the most acceptable rates on an exchange is what Kraken offers, which allows you to earn up to 23 per cent. Additionally, you can stake 16 assets with it.
Personal Crypto Wallet
Coinbase customers and non-Coinbase traders have access to a hot wallet through Coinbase. This wallet is more versatile than Kraken’s, as you can deposit, withdraw, and store cryptocurrency.
Users can spend US dollars or any other asset in their Coinbase portfolio using the Coinbase Card. With the Coinbase Card, a Visa debit card, you can gain cryptocurrency incentives for your purchases.
Users can set up notifications for price changes on any currency or trade pair they are interested in using Coinbase’s watch list tool. Users receive push notifications about pricing changes on their mobile devices.
On the Coinbase website and mobile application, users may increase their understanding of cryptocurrencies by learning more about them. Coinbase provides a knowledge hub related to crypto.
Users of Coinbase can earn free cryptocurrency by finishing brief instructional modules. With Coinbase Earn and learning about cryptocurrencies facility earning cryptocurrency seems easy.
Kraken vs Coinbase: Security
Strong, multi-layer security protections are available on Kraken and Coinbase, including two-factor authentication (2FA), security keys, authenticator apps, and respectable privacy (PGP).
Each platform has solid security measures in place to safeguard investors’ assets.
While Coinbase retains 98% of deposits in multiple offline cold storage sites, Kraken holds 95% of all assets in cold storage.
One notable distinction is that Kraken does not offer FDIC insurance, but the money in your Coinbase account does. That is because Kraken claims it has large capital reserves and is not subject to the insolvency risks that FDIC insurance protects against. However, it is still true that Coinbase offers more levels of protection than Kraken.
Kraken vs Coinbase: Supported Cryptocurrencies and Fiat Currencies
On Kraken, cryptocurrency buyers can purchase over 100 different cryptocurrencies. The extensive list includes well-known cryptocurrencies like
- Shiba Inu
Compared to Coinbase, Kraken only supports a handful of the 150+ coins. But you’ll find all the significant cryptocurrencies on both, with Coinbase having a minor advantage for less well-known altcoins.
You can invest in cryptocurrencies directly through either of the exchanges’ platforms using a linked bank account, credit card, or debit card. It speeds up and simplifies transactions, no matter which cryptocurrency exchange you select.
Seven fiat currency alternatives are supported by Kraken: USD, EUR, GBP, CAD, JPY, CHF, and AUD. However, there aren’t many fiat money options available on Coinbase. Only USD, EUR, and GBP are available on the crypto exchange, making it difficult for consumers worldwide to rapidly purchase and sell crypto on the platform.
Kraken vs Coinbase: Fees
The fees for purchasing cryptocurrencies are relatively expensive on Coinbase and Kraken. Each exchange levies a transaction fee and a cost determined by the mode of payment. These can quickly mount up.
Each purchase transaction is subject to a 2% fee on both platforms.
Additionally, they impose additional costs according to the account used for the transaction.
According to the type of account, below is how Kraken and Coinbase charge fees:
|ACCOUNT||KRAKEN FEES||COINBASE FEES|
|Instant Card Withdrawal||N/A||Up to 1.5% of a transaction with a minimum fee of $0.55|
|Credit/Debit Card Buy||3.75% + €0.25 fee (not available in the US)||3.99%|
|Wallet||1.5% fee for any other crypto; 0.9% fee for stablecoins and FX pairs||1.49%|
|Wire Transfer||Deposits – Free to $10
Withdrawals – $4 – $35
|$10 ($25 outgoing)|
|ACH Transfer||Purchases by ACH are charged 1.7% + $0.10||Free|
Kraken vs Coinbase: Crypto Rewards
Kraken and Coinbase allow you to stake cryptocurrency to receive passive benefits. However, Kraken unquestionably outperforms Coinbase in the field of cryptocurrency payouts. With Kraken, you may stake 16 different cryptocurrencies to earn up to 23% APY. In contrast, Coinbase only supports six assets and offers up to 5% APY.
Here is a comparison of staking payouts between Coinbase and Kraken:
|Asset||Kraken APY||Coinbase APY|
|Cardano||4% – 6%||2.6%|
|Ethereum||4% – 7%||3.675%|
Overall, Kraken is the clear victor because it supports more assets and has more excellent staking rates than Coinbase. With free cryptocurrency payouts through Coinbase Earn, Coinbase somewhat redeems itself but falls short of staking.
Just keep in mind that BlockFi and Nexo, two crypto loan sites, offer even more cryptocurrencies and can provide better rates than Kraken.
Kraken vs Coinbase: Access
Kraken and Coinbase are accessible internationally, with Kraken currently available in many nations than Coinbase. Over 170 countries accept Kraken, compared to a little over 100 for Coinbase.
Kraken, on the other hand, is only accessible in 48 states. In contrast, Coinbase is available in all 50 states in the U.S. Kraken is making a concerted effort to abide by Washington and New York state regulatory regulations to obtain permission.
Kraken vs Coinbase: Currencies
Both Coinbase and Kraken have equal access to the most popular cryptocurrencies available. However, Kraken does provide a few more. On its exchange, Kraken presently has 56 cryptocurrencies, compared to Coinbase’s 56. Every exchange continuously expands the list of listed cryptocurrencies.
You may buy cryptocurrencies on both sites in dollar quantities, which enables you to acquire individual coins in small sums. Orders on Coinbase must be at least $2. The minimum purchase value at Kraken gets calculated using the native token. For instance, 0.0002 Bitcoin is the minimum purchasing value for Bitcoin (BTC). Therefore, if Bitcoin costs $60,000, you may buy one for as low as $12.
Major currencies including Bitcoin, Ethereum, Uniswap, Cardano, Chainlink, and Compound are supported by both systems.
The similarities between Coinbase and Kraken are numerous. For instance, both are U.S.-based businesses, provide a selection of the best cryptocurrencies on the market, and are safe exchanges for cryptocurrencies.
For aggressive crypto traders, Kraken offers some of the lowest fees available. Moreover, because complex limit orders, futures, and even margin trading are available to advanced users, they will feel right at home utilising Kraken’s trading tools.
Due to its simplistic layout and outstanding mobile app, Coinbase is the platform newbies can use quickly. Your digital monies are always kept in a secure location, while buying and selling cryptocurrencies on Coinbase merely requires a few clicks.
It is recommended that users utilise a hardware wallet or an upcoming cryptocurrency exchange with a greater security level, like XBO.
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Whatever platform you choose, remember that cryptocurrency investing is entirely speculative, so never risk more than you are ready to lose.