Kraken vs. Coinbase are the two top competitors in the crypto buy, sell, and exchange platforms list. They allow more than 50 CryptoCurrency assets around the globe for its traders. You can buy your favorite cryptocurrencies with the help of fiat money, i.e., USD, Euro & many more.
On top of these, these platforms also allow you to earn maximum interest rewards for holding your assets for a set period. In crypto trading, it is known as Staking. If you are a beginner and don’t know much about these platforms, then don’t worry.
In this context, we will highlight the comparison, interest rate, rewards, pros, cons, and all other essential things of Kraken and Coinbase platforms. After reading the entire content thoroughly, you can become a master of both trading platforms. So, let’s start.
Kraken Vs. Coinbase: Overview
If you want to enter the crypto industry with a medium or significant investment, then learning these platforms’ basics methods & tactics is essential. Without a basic understanding of features, fees, currencies, transaction limits, and other things, you can’t become an expert.
Kraken
Kraken, founded in 2011, is one of the best trading platforms that provide buy, sell and exchange services of cryptocurrencies. Its exchange system has more than 50 cryptocurrencies, including the most popular ones like Bitcoin, Dogecoin, and Ethereum.
When it comes to the coverage area, you will find the services of Kraken in more than 200 countries worldwide. It offers three major trading options: margin trading, OTC (over the counter), and fiat to crypto transactions.
It is best for beginners because it is a low-fee service platform with multiple options. You can enjoy low & high volume, day or long term trading on it. Other than these, there are many other great features of the Kraken platform that you will learn in the latter part of this content.
Coinbase
Most U.S.-based traders find Coinbase very useful because of its user-friendly interface and option of playing big. It offers buying and selling and exchange services, stake, asset storage, crypto rewards, and much more.
Likewise, there are 50 cryptocurrencies assets in Coinbase, including the most popular ones like Litecoin, Bitcoin, Ethereum, and Dogecoin. But it doesn’t offer the features of future trading and margin accounts.
Although the fee of Coinbase is more than the Kraken, still most U.S. people love to use the Coinbase trading platform. They also love the digital wallet system and funding option of Coinbase.
How It Works
As Coinbase and Kraken are trading platforms, therefore, their basic functionality is similar. Both platforms allow the users to send, receive, buy, sell and exchange their assets. But their account setting up, adding funds, and verification methods are different.
Coinbase
If you are willing to make an account on the Coinbase trading platform, you need to visit the website and choose “Create an account.” Fill in your email address and set up a 2FA process. After this, upload your identification documents on their portal.
After verifying your documents, Coinbase will send you an email with “Verification Successfully Done” as a subject. Login to your account and add a payment method for buying and selling crypto assets. After depositing funds, you can start trading without any other verification.
Kraken
Kraken account creation is similar to Coinbase. But you might face difficulty while adding your payment methods and verification processes. It offers four account verifications, i.e., starter, intermediate, express, and pro level.
Applying for the Pro and Intermediate Account requires verifications for “opening a new bank account.” When it comes to the deposit methods, all new fiat deposits need a 72-hour withdrawal hold time. Sadly, their mobile app isn’t available in the U.S. region.
Comparison of Kraken Vs. Coinbase
As Kraken and Coinbase are two world-famous cryptocurrency trading platforms from two different developers, there are similarities and dissimilarities. This section will compare the Kraken vs. Coinbase staking, fees chart, availability, & other things.
Platforms
There are mobile apps for both platforms. You can create an account from the website as well as from the mobile apps. When it comes to trading, you will find a user-friendly interface for both apps.
For users’ convenience, the price chart and other price indicators are also available in apps. Both platforms have android and iOS apps. You can download them for free from their official sites as well as from the respective store.
Availability
Kraken offers its trading services in almost 176 countries around the globe. But its app is currently not available in the U.S. region, i.e., Washington and New York. Other than Kraken, Coinbase is present in more than 100 countries around the globe.
Both platforms have variable functions depending upon your location. Coinbase services are also not available to Hawaii residents. If you want to use it, then you need to take the help of a VPN. If not, then use BlockFi.
Minimum Balance Requirements
If you are going with the Kraken, you need to maintain a minimum of $10 for buying. Yes, you can’t buy crypto-assets for less than $10. In some cases, a purchase of less than $10 will work.
When it comes to Coinbase, you will be happy to know that you can make purchases worth even $2. Yes, unlike the Kraken, there is no limit of $10. So, most of the beginners who are in the learning phase prefer Coinbase on this basis. You can select as per your needs.
Trading Fees
There is a significant difference between Kraken and Coinbase fee charts. Kraken is almost a fee-free platform. In contrast to this, there is a considerable fee on every transaction of Coinbase. Let’s have a look at the in-depth trading fees of both platforms.
The Kraken trading fee varies from 0% to 0.26%. Yes, you heard that right. It is very reasonable and within the limits of every beginner trader. With such a minimum fee, don’t be afraid of investing in this app.
When it comes to Kraken vs. Coinbase fees, you will always find Coinbase expensive. There is a 0.50% spread for all kinds of buy and sell transactions. You can say its fee is double that of Kraken. Also, there is a transaction fee on every transaction. It is usually $0.99 to $2.99.
If you are a Coinbase Pro user, then you can enjoy the perk of fewer transaction charges. There will be only a 0.50% spread for all kinds of buy and sell transactions on a pro account. So, convert your account now to Pro if you want to save your $0.99 to $2.99 fee.
Safety
When it comes to security, you will be happy to know that both platforms are very secure. Since their official launch, no one has ever hacked these platforms and are using bounty programs. With such programs, they always try to make their platforms more secure than before.
Coinbase is an FDIC Insured trading platform, whereas Kraken isn’t. So, this is the primary security difference between these two great trading platforms. When it comes to private keys, then the users don’t have complete control over them.
Pros of Kraken and Coinbase
Here in this section, we will present some of the pros of both trading platforms. You can select according to your desired needs. Let’s have a look at them.
Kraken
- It is a secure and reliable trading platform.
- There is less transaction fee in Kraken.
- You can set a high trade limit on it.
- It has more than 50 cryptocurrency assets.
- You will also get support for some fiat currencies.
Coinbase
- You can buy, sell and exchange more than 50 cryptocurrencies.
- All of its funding options are straightforward.
- It also accepts some fiat currencies.
- Coinbase has Android and iOS apps for its users.
- It has a great user experience.
Cons of Kraken and Coinbase
These trading apps have some cons as well. Please have a look at them before creating an account.
Kraken
- All functions are not available to United States users.
- The long and hectic verification process
- Not a user-friendly interface.
Coinbase
- Not available in all parts of the world.
- There is a high transaction fee.
- It does not support all coins.
Frequently Asked Questions (FAQs)
Is Kraken better than Coinbase?
Kraken is better than Coinbase when it comes to the trading fee, security. But it is not perfect when compared with the Coinbase mobile app and fiat currencies.
Is Kraken as safe as Coinbase?
Yes, Kraken is as safe as Coinbase. It has been in the market since 2011. From then to now, they have resolved hundreds of bugs and have made one of the safest trading apps in the market.
Can Kraken be trusted?
Yes, you can use Kraken as your most trustable trading platform. You can buy, sell and exchange cryptocurrencies when needed. It also gives a high trade limit.
Has Coinbase been hacked?
Till now, there are no reports of accounts being hacked. Some of the users reported issues related to account banning and account takeovers. But all of them happened because of breathing terms and conditions.
What is the safest crypto exchange?
There are several crypto exchange platforms in the world. But not all of them are best because of security, exchange rates, mobile apps, and others. Coinbase is one of the safest and easiest trading platforms to buy, sell and exchange cryptocurrencies.
Should I use Coinbase?
Yes, you can use a Coinbase account as it is one of the best trading platforms for buying, selling, and exchanging cryptocurrencies in the world. It also has a mobile app with an easy verification system. Its security is top class.
Final Comments: Kraken Vs. Coinbase
When it comes to Kraken vs. Coinbase, you will find positive points on both platforms. We have tried our best to show you their comparison, features, and other things in a very straightforward way. Now, it’s up to you which one you want to select.
If we would recommend any of these two platforms, you should go for Coinbase. However, if you are not satisfied with them, compare BlockFi with Coinbase and you may decide. So, that’s all from our side so far.
Which platform would you use and why, and are you using any of them? Let us know in the comments section.
