Alex Manea
If you're looking to start investing in crypto on either of these exchange services, keep reading and find out what makes eToro or Kraken the right choice for you.
When selecting the right online crypto exchange platform, you must consider a few factors that might point you in the right direction.
Whether it's fees, ease of use, or security, the process of deciding between Kraken vs eToro must cover the focal points of what makes these platforms so appealing for beginner and seasoned investors.
Launched in 2011 in San Francisco, Kraken is a crypto exchange platform where users can trade the world's leading cryptocurrencies.
Kraken established its trading operations in 2013, and in 2014 its popularity skyrocketed. That year, Bloomberg asked Kraken to provide the Bitcoin market data to its own platform. Once Kraken partnered with Bloomberg, consumers started taking Kraken seriously, and its reputation increased tenfold.
Since the partnership with Bloomberg, Kraken continued launching different crypto coins and new tools to their website, contributing to a rise in users and funding. Nowadays, Kraken is one of the market-leading exchange platforms.
eToro was founded in 2007 as mainly a Forex trading platform. Since then, most of the features and tools have been adapted, and eToro has become one of the world's most popular crypto trading platforms.
eToro USA LLC does not offer CFDs, only real Crypto assets available.
With more than 17 million users spread throughout more than 100 countries, eToro's popularity doesn't go unnoticed.
eToro has plans to go public, and its current valuation sits at more than $10 billion. For these reasons, and every other aspect we'll touch on through this article, you're guaranteed a high-quality experience when you create an account and start trading with eToro.
The difference in the commission between both platforms starts right off at the fee structure.
eToro opts for a spread-based fee that changes according to the market fluctuation, while Kraken implemented a maker-taker structure.
Between eToro and Kraken, the first charges higher fees overall. eToro's fees, like we previously mentioned, change according to the market and range between 0.75% and 2.9%. Kraken, however, takes advantage of its maker-taker structure, with fees ranging between 0 and 0.26% in most trades, according to the amount invested.
When it comes to deposits and withdrawals, eToro is not exactly cheap. The fee for each deposit varies according to the currency you're injecting into your account. The withdrawal commission is zero in the US, but you will incur a flat $5 fee if you're based anywhere else.
Kraken charges a 0.5% fee for bank transfer deposits, and it even offers some free methods. Choosing the right funding method is key, especially when you consider the commission for topping up your account using, for instance, a credit card: 3.75%.
When it comes to the number of crypto assets available, eToro is a few steps behind Kraken. While both platforms provide the main cryptocurrencies in the market, including BTC, ETH, LTC, and XRP, eToro's current total number of assets is 31, while Kraken boasts 97.
eToro provides a standard digital crypto wallet where users can store their funds safely. The platform also allows you to transfer crypto funds to an external digital wallet, although it must be noted that it's a one-way street since funds can't be transferred back into your eToro account.
Kraken clearly states that it is an exchange service, not a wallet service. For that reason, they don't provide a hot wallet. The platform simply allows you to store funds safely between trades.
Making sure the online exchange platform you select is a trustworthy company is one of the most critical steps in the decision-making process. Both eToro and Kraken follow the regulations set by the top-tier authorities in each country they operate in.
eToro operates under the rules set by CySEC (Cyprus), FCA (UK), and ASIC (Australia), while Kraken follows the legal requirements from the country where they operate. These include the FinCEN (USA), FINTRAC (Canada), FSA (Japan), among a few other reputable authorities.
eToro and Kraken both offer desktop and mobile apps that pride themselves on being user-friendly and intuitive. In the ease of use category, there isn't much of a gap.
However, if we put both platforms under the microscope, we have to give the edge to eToro. When compared to Kraken, beginner investors will be provided with a much quicker start. The added security features and extra necessary steps to create an account might feel complicated to someone who has never accessed such platforms.
eToro has a smoother interface that can feel easier to get into in the eyes of a novice investor. The mobile app is simple enough to replicate the web experience right at your fingertips.
Kraken includes staking in its crypto offering. With this feature, you can receive a percentage of your crypto holdings in your Kraken wallet. Depending on the currency you own, the interest rate can be as high as 20%.
eToro's main differentiator is the social trading function it offers. It's a great way to copy the experienced investors and start your investment endeavors with added confidence.
You can't go wrong by picking one of the platforms over the other. What makes eToro and Kraken two of the most popular exchange platforms in the world today is the fact that they score points across the categories we touched on in this article.
Deciding between the two will come down to personal preference and investment intentions. Carefully selecting the platform that will grant you the best bang for your buck will turn out to make a difference in the short and long term.
If you still can't decide between Kraken vs eToro, simply access our crypto exchange comparison tool below. Just answer a few simple questions and we will show you the best crypto exchange platform for you.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
