Kraken and Coinbase are two cryptocurrency exchanges that provide the ability to offer access to some of the most widespread cryptocurrencies out there. In this article, we will compare Kraken vs Coinbase, explore their main features, and discuss their pros and cons.
Kraken is a United States-based cryptocurrency exchange and bank that was founded in 2011. The exchange provides cryptocurrency-to-fiat money trading options as well as price data to Bloomberg Terminal. Kraken became one of the top coveted exchanges for trading Bitcoin in 2013. Since then, the platform has garnered over 50 cryptocurrencies in their exchange.
Coinbase Global, Inc., better known as just Coinbase, is an American company that also runs a cryptocurrency exchange platform. Coinbase does not hold a physical headquarter as it operates remote-first. After its launch in 2012, Coinbase became a popular asset to centralized exchange in the U.S., sustaining top cryptocurrencies on the market. It’s the first cryptocurrency-related legal entity in history to go public on the U.S stock market.
The study of Kraken vs. Coinbase has been long-awaited by many investors in order to determine the best platform for their financial status. Both platforms hold high standards of engagement and are intended to assist their customers in securely accessing, buying, and trading within the cryptocurrency world—a world that can be rather intimidating. The key difference between the two lies in their trading options. Coinbase can be viewed as more of a limited approach as it only offers exchange fiat for cryptocurrency. This means that it does not truly hold more advanced trading options. On the other hand, Kraken is seen as a “crypto-first” exchange and administers many types of trading. Their spectrum is broad and it can go as far as to offer margin trading, futures trading, and limit orders.
Before jumping headfirst into their features, characteristics, and components, let’s look at a quick overview of what Kraken and Coinbase’s pros and cons may be.
- Low trading fees
- A wide variety of trading options
- Around-the-clock live chat support
- Beginner-friendly interface perfectly fit for new users
- Supports trading in six different fiat currencies
- Slow verification process of new users, based on customer complaints
- No tax support
- Does not operate in some states and countries
- Extends access to more than 50 cryptocurrencies
- Low minimum to fund account
- Cryptocurrency is insured in the event of website hacking
- Simple user interface
- High fees when not using Coinbase Pro
- User is not in control of wallet keys
- Does not have a wide variety of trading options
Kraken vs. Coinbase: Main Differences
While both may present a rather interesting approach to cryptocurrency, there is no doubt that they hold a rather unique approach and differences. In this section, we will discuss:
- User Interface
User Interface: Kraken vs Coinbase
Kraken is made for more active traders and a user base. It gives a wider variety of trading options fit for experienced traders to buy, sell, and trade in crypto. This is a definite plus over Coinbase, as it gives broader access.
Although the Kraken interface is easy for first-time users, its outdated platform may feel a bit more confusing to execute their first trades. However, expert traders have the ability to push off plenty of trades from future trading to easy access to margin trading.
To start off your Kraken experience, you can easily create a free account using your email address and a password. From there on, all that is left to do is verify your email address and secure your account with two-factor authentication. Additionally, in order to successfully deposit funds, you will have to delve into more advanced verification, including a picture of your photo ID, proof of residence, and Social Security number. Keep in mind that this is true of all cryptocurrency exchange companies to add a level of authentication for both party protection. After that, you can deposit funds to your account via a digital wallet, ACH, or wire transfer.
Signing up for Coinbase is the same as Kraken; you only need an email address and password. Similarly, before jumping into trading, you will have to verify your identity by uploading a government-issued photo ID to the app or website. After completing this crucial step, you can connect a bank account or credit card to promptly starting buying or selling crypto.
Features: Kraken vs Coinbase
Kraken and Coinbase grant users various methods to buy and sell crypto; however, they go about their operations in rather distinct manners. Although they do share a comprehensive combination of features, each platform offers unique features that make them special in their own way.
Kraken offers a wide variety of trade options and types. Their options include:
- Limit order
- Market order
- Account Management
- Settle position order
- Stop limit order
- Stop market order
- Trailing stop order
- Time in Force Limit orders
- Margin trading
- Futures trading
Kraken allows users to turn on a key feature known as “Advanced Markets View.” This will help you view live order book transactions and charts with multiple indicator overlays, and build a watchlist.
Kraken also allows access to their API keys, allowing third-party apps to combine with Kraken.
Coinbase is not just all trade; it also offers a wide range of educational options to help its users perform better trades. From tips and tutorials to Crypto basics and market updates, the crypto trader will feel fully equipped to take on the market. Users can enjoy short videos where they can learn about cryptocurrency and become more familiar with the system. Moreover, users can benefit from bonus crypto after completing quizzes.
News: Kraken vs Coinbase
The Coinbase website and mobile app provide up-to-date news articles from many resources. This adds to the learning experiences and provides a new level of authenticity to the platform.
If you want to stay on top of the current price fluctuations, you can create a watchlist to track any large drops or increases in the prices with Coinbase.
Kraken and Coinbase both hold comparable access to the best cryptocurrencies, while Kraken offers a bit more than Coinbase.
Kraken currently offers 72 cryptocurrencies on its exchange platform while Coinbase offers 50. Both platforms allow users to conduct their buy-and-sell operations for cryptocurrency in dollar amounts.
Coinbase instills a $2 minimum order, while Kraken imposes a crypto-to-crypto minimum equivalent value of $1. Both platforms approve major currencies such as Bitcoin, Ethereum, Uniswap, Cardano, Chainlink, and Compound. To explore more currencies on Kraken, you can review their supported cryptocurrencies.
Coinbase vs. Kraken Fees
Both Kraken and Coinbase hold a rather high rate of fees for buying cryptocurrency. However, Kraken still falls below Coinbase, making it a much more desirable option.
Both platforms impose a percentage fee per purchase transaction. Moreover, they charge additional fees based on the account used in the transaction.
Keep in mind that Kraken calculates transaction fees according to the volume that the users trade in a 30-day period. Fees are charged on a per-trade basis and calculated with regard to volume. Here is a breakdown of the fees by Kraken:
- Transactions $0 to $50,000 pay a 0.16% maker fee or a 0.26% taker fee
- Transactions $50,001 to $100,00 pay a 0.14% maker fee or a 0.24% taker fee
- Transactions $100,001 to $250,000 pay a 0.12% maker fee or a 0.22% taker fee
- Transactions $250,001 to $500,000 pay a 0.10% maker fee or a 0.20% taker fee
- Transactions $500,001 to $1,000,000 pay a 0.08% maker fee or a 0.18% taker fee
- Transactions $1,000,001 to $2,500,000 pay a 0.06% maker fee or a 0.16% taker fee
- Transactions $2,500,001 to $5,000,000 pay a 0.04% maker fee or a 0.14% taker fee
- Transactions over $5,000,001 to $10,000,000 pay a 0.02% maker fee and a 0.12% taker fee
- Transactions over $10,000,000 pay a 0% maker fee and a 0.10% taker fee
Meanwhile, the Coinbase fees are as follows:
- 0.50% per trade
- Additional 1.49% for bank account or Coinbase Wallet purchases
- Additional 3.99% for debit or credit card purchases
- $10 deposit
- $25 withdrawal fee for wire transfers
So, when it comes to comparing Coinbase vs Kraken fees, it is obvious that Kraken holds a much lower fee rate.
Transfer Coinbase To Kraken
If you have Bitcoin in your Coinbase Pro wallet, you can easily transfer it to your Kraken account. Follow the steps below to transfer Coinbase to Kraken.
- Log in to Coinbase and on the Dashboard bar, click into “Accounts”.
- Select the cryptocurrency to send from your wallets.
- Input the address found in your Kraken Account.
- Provide your Kraken Deposit Address.
From there on, every tab is fill-and-go to complete the process.
Which One To Choose
Both Kraken and Coinbase offer undeniable similarities throughout the process. However, on some level, they do present vast differences that can help you make a decision.
Kraken vs Coinbase similarities are highly visible: both companies are U.S.-based, both present a respectable variety of the top cryptocurrencies available (although Kraken offers more), and both are extremely secure exchanges to buy, sell, and, trade crypto.
On the other hand, Kraken is known for its lower fees. For users looking to actively make trades, Kraken is offering a wide variety of options with some of the lowest prices. From limit orders to margin trading, experienced users will be ready and armed to take over the market.
Coinbase offers a much simpler approach and is fit for beginners in cryptocurrency. Its minimalist design, interface, and usage are the perfect initiatives for an easy and all-inclusive crypto experience. Buying and selling with Coinbase is done with just a few clicks, and your digital funds are safely stored.
After this careful study of Kraken vs Coinbase, it is your choice to make as to which platform fits your needs more.
Rafayel Begoyan is a marketing specialist, AI enthusiast, and crypto enthusiast with a passion for leveraging cutting-edge technology to drive business growth. He has been fascinated by the potential of blockchain and cryptocurrencies to revolutionize traditional finance and is continuously exploring new ways to incorporate them into marketing initiatives. As an avid learner and advocate for AI and crypto, Rafayel stays up-to-date on the latest trends and innovations in both fields.