Kraken Vs Coinbase

About Kraken

Kraken is an American company founded in San Francisco back in 2011. This crypto exchange had a steady rise and currently has offices worldwide.

It currently has customers in more than 185 countries and distinguishes itself for its crypto trading prices which are considered competitive in the current market.

Kraken started as one of the first Bitcoin exchange platforms but currently supports more than 90 coins you can buy, sell, or trade at some of the most advantageous prices. Kraken is one of the most popular exchange platforms among novice and experienced crypto investors for all these reasons.

About Coinbase

What started in 2012 as a marketplace for users looking to buy and sell Bitcoin, is now one of the biggest fintech companies in the world. Coinbase has a unique offering of unique cryptocurrencies and ascended to one of the most popular exchange platforms anyone can find online.

Operating in more than 100 countries and with a quarterly $327 billion in trades, the sheer amount of money circulating through this platform is eye-catching.

Coinbase does not have a single headquarters, being decentralized. Its security is top-notch, and its ease of use is among the best in the game. If you're looking for a reputable brand to follow through with your intentions of buying, selling, and trading cryptocurrency, you can't go wrong by choosing Coinbase.

Kraken vs Coinbase: Fees

Let's start by analyzing the fees. Coinbase's fees can't match Kraken's, which are among the lowest you can find anywhere.

Kraken sets its fee structure according to your 30-day transaction amount. The more you trade, the lower Kraken's commission will be. The maker-taker structure starts out with 0.16% (maker) and 0.26% (taker) in the lowest tier, while the highest tier has 0% (maker) and 0.10% (taker) fees.

Coinbase, on the other hand, has a more expensive structure. For instance, a $1000 trade would have a commission of $5 in Coinbase (which translates to a 0.5% fee), while that same trade would have cost $2.60 in Kraken (0.26%).

When it comes to deposits and withdrawals, once again, the services have different structures.

Kraken allows you to make free deposits depending on the method through which you fund your account. For each currency, several supported methods are commission-free, while other methods can cost you up to $10/deposit. For withdrawals, the cheapest fee is $4, which can go up to $35, depending on your withdrawal method.

Coinbase does not support free deposits, charging you a flat fee of 10$ for each deposit. As far as withdrawals, the flat fee is $25.

Kraken vs Coinbase: Available Coins

These platforms are notorious for offering an array of cryptocurrencies. Coinbase has over 120, while Kraken has nearly 100. The fiat currencies you can top-up your account with are similar in both cases: USD, EUR, CAD, AUD, CHF, JPY.

The most popular cryptocurrencies in the market today are available on both platforms (Bitcoin, Ethereum, Litecoin, etc.). Still, if you're looking for a specific coin, your best bet is to access each website and confirm they offer what you're looking for.

Crypto Wallet

The main difference between Kraken vs Coinbase wallets is that the latter provides a hot wallet where you'll receive, deposit, or withdraw crypto from. The big plus is that you don't even have to be a Coinbase user to access that hot wallet.

Kraken's wallet is a standard digital wallet that allows you to store coins between your trades. Kraken does not provide a personal wallet like Coinbase.

Security

Security is perhaps the most important aspect to consider when selecting your exchange platform. Security is a crucial feature for any online service, and both Kraken and Coinbase will give you peace of mind.

Both exchanges store more than 95% of their assets offline in cold storage and implement safety measures to safeguard your funds, including two-factor authentication, Pretty Good Privacy (PGP), and security keys.

If you're a US trader, you'll be happy to know that Coinbase also has insurance covered by the FDIC that covers up to $250,000 in cash balance.

Ease of Use

This category is paramount, especially if you're a beginner and have zero experience in what concerns exchange platforms. In the Coinbase vs Kraken conversation, it's safe to say that both platforms rank among the best platforms for novice investors, but there is still a gap between the two.

Kraken is a step behind Coinbase in user-friendliness. While the security features are fundamental to someone trading large sums, they can be discouraging for beginner investors looking for a quick start.

Coinbase, however, is more user-friendly even during the registration process. It lets its new users get going by providing a phone number alone. With Coinbase, you can get started on your first trade within minutes of creating your account.

Other Features

One feature that puts Kraken ahead of Coinbase when it comes to holding crypto is staking. Kraken's staking feature allows you to gain up to 20% interest on the crypto you hold in your wallet (depending on the currency).

Coinbase Pro is one notable feature that allows you to access lower fees and more trade types within the app. Every user can upgrade free of charge and take advantage of a maker-taker commission structure that is beneficial for everyone.

Conclusion

Deciding between exchange platforms is a personal decision that needs to consider your own needs.

Kraken and Coinbase have their strengths and weaknesses, but both platforms cover the fundamentals of what a good crypto exchange platform should be.

At the end of the day, if you need help deciding between Coinbase vs Kraken, simply access our crypto exchange comparison tool. Just answer a few simple questions, and we'll present you the platform that will feel like it was tailor-made for you and your intentions as an investor. Try it now!