- >Best Crypto Exchanges
- >Kraken vs Coinbase 2024
So, you’re ready to buy your first Bitcoin. Where should you make that initial purchase? For many newcomers to cryptocurrency, choosing the right crypto exchange is key to a seamless experience. In this guide, we compare Kraken vs. Coinbase comparison. These are two of the oldest, most trusted exchanges on the market, so let’s take a look at the pros and cons of these two cryptocurrency platforms.
Kraken vs Coinbase Compared
- Beginner-friendly UI make it easy to make quick buys
- One of the oldest and most reliable exchanges
- Earn $200 in free crypto after completing sign-up process. Terms apply.
- Variety of products including exchange, staking, wallet
- Advanced Trading options for experienced traders
- Exceptionally secure exchange with proof of reserves
- Supports many different funding options
- Accepts users from across the globe including USA and Canada
- Very high trading volume
Kraken Quick Overview
Kraken is one of the most trusted exchanges on the market, and many early Bitcoin users actually work at the platform today. Although the company behind the platform was founded all the way back in 2011, the exchange has never faced a serious security incident. To learn more check out our comprehensive Kraken review.
Kraken Pros & Cons
Pros
One of the best safety and security record of any exchange on the market
Strong liquidity
Cryptowatch platform allows users to trade across other exchanges
Lower fees than Coinbase
Cons
Not the simplest user interface for those who want simple “buy” and “sell” buttons
Mobile app unavailable
Coinbase Quick Overview
Coinbase is another one of the oldest cryptocurrency exchanges in existence, and it was the first platform to offer an easy-to-use brokerage-esque model for allowing users to buy and sell Bitcoin. To learn more about the exchange be sure to check out our in-depth Coinbase review.
Coinbase Pros & Cons
Pros
Simple and easy to use interface
Has different options for users depending on their level of trading expertise
Diverse options for fiat deposits and withdrawals
High liquidity
Cons
Platform has struggled keeping up with high trade volume, as recently as March 2020
Base version of the platform has higher fees than Pro version
Beginner Friendly
For a beginner, Coinbase will probably be a much better option than Kraken. However, this should not be viewed as a complete negative for Kraken, as the reality is that Coinbase simply caters to people who are new to the cryptocurrency space. Both platforms offer advanced trading platforms; however, Coinbase also offers the base brokerage platform that has been the staple of its product offerings since it first launched in 2012. This sort of interface is perfect for new Bitcoin and cryptocurrency users, although it does come with higher fees.
Trust & Security
Coinbase and Kraken are both some of the most trusted cryptocurrency exchanges in the market. Kraken has exposed more security threats than being exploited by one. Their devotion to maintain and uphold the security of their users has always been a priority, and they have done a great job building trust within their users. Although there are no publicly-known instances of Coinbase being hacked, they did face a situation during the creation of Ethereum Classic where they were originally not going to support the legacy chain on the advice of the Ethereum Foundation, which created a situation where they were effectively operating on a fractional reserve basis for a short period of time.
In terms of relationships with regulators, Coinbase likely comes out on top in a head-to-head match up with Kraken.
Fees
For a fee comparison, it’s only fair to compare Kraken to Coinbase Pro, as these are the two most similar versions of each platform. The fee structures for each platform are the same in that users with larger 30-day trading volumes will gain access to lower fees.
Generally speaking, Kraken has lower fees than Coinbase Pro. For example, someone making $25,000 worth of trades in a period of 30 days will pay 0.16% maker fees on Kraken and 0.35% maker fees on Coinbase Pro. Both Coinbase Pro and Kraken offer much lower fees than Coinbase’s base platform aimed at new users.
Sign-Up Process
If you are looking to purchase a relatively small amount of cryptocurrency without going through the hassle of a full personal information verification process, then Coinbase will be a better option than Kraken. On Coinbase, you are able to purchase up to $9,000 worth of cryptocurrency with nothing more than the verification of your phone number. With Kraken, you’re unable to deposit or withdraw fiat currency to and from the platform without going through a rather extensive verification process.
Available Cryptocurrencies
Kraken has a total number of 33 cryptocurrencies available for trade, while Coinbase has 28. It should be noted that there are differences between the cryptocurrencies that are available on Coinbase vs Coinbase Pro. While Kraken has more cryptocurrencies that can be traded on its platform, it’s important to think about which cryptocurrencies you specifically want to trade before you join an exchange. An exchange having the coins you desire is more important than the number of different coins that are available for trade.
Stand Out Features
Kraken offers an additional trading platform, known as Cryptowatch, which allows users to trade on multiple exchanges. In fact, Coinbase Pro is one of the exchanges that Cryptowatch traders can trade on via the web-based portal. In addition to Coinbase Pro and Kraken, Cryptowatch users can also trade on other exchanges like Bitfinex, Bitstamp, Poloniex, Bittrex, Binance, and HitBTC via their account API keys.
Coinbase’s key stand out feature is the version of the exchange platform that was launched in 2012, which makes it easy for anyone to buy, store, and sell their Bitcoin. Yes, it has higher fees than Kraken or even Coinbase Pro. That said, there’s no replacement for the level of simplicity that comes with Coinbase’s base brokerage platform.
CryptoVantage Verdict: Coinbase is Better for Beginners
At the end of the day, choosing between Kraken vs Coinbase comes down to the individual user’s needs. Coinbase will be the proper solution for someone who is completely new to the world of cryptocurrencies, while Kraken will be a better offering than Coinbase Pro for traders who want to gain access to enhanced features and lower fees. The stand out features offered by each of these two platforms really tell the whole story in terms of who should be using which exchange.
Frequently Asked Questions
Both Kraken and Coinbase are highly secure cryptocurrency exchanges, but there are differences in their security features and practices. Kraken is known for its extensive security protocols, including cold storage and advanced encryption, while Coinbase also offers robust security measures like insurance against breaches and secure storage. Comparing these features can help determine which is safer for your needs.
Kraken and Coinbase differ in several key areas such as fee structure, available cryptocurrencies, user interface, and features like staking and margin trading. Understanding these differences can help you choose the exchange that better suits your trading style and needs.
Some users prefer Kraken due to its lower fees, advanced trading options, and a wider range of supported cryptocurrencies. Additionally, Kraken’s reputation for security and its commitment to privacy appeal to more experienced traders.
Generally, Kraken offers lower trading fees compared to Coinbase, especially for high-volume traders. However, the fee structure can vary based on factors like transaction size, payment method, and whether you’re trading on the spot market or using advanced trading options.
Coinbase is often considered more user-friendly, especially for beginners, due to its simple interface and easy onboarding process. Kraken, on the other hand, may be more complex but offers more features and customization options for experienced traders.
Both Kraken and Coinbase offer customer support, but their quality and availability can differ. Kraken is praised for its responsive and knowledgeable support team, especially for more technical inquiries, while Coinbase offers a comprehensive help center and live chat for quick assistance.
Both Kraken and Coinbase are trusted by millions of users worldwide and have strong track records in the industry. Kraken is known for its robust security measures, and Coinbase is publicly traded, which adds an additional layer of transparency and trust. Evaluating their security practices and reputation can help you decide if they are suitable for handling large amounts of cryptocurrency.
