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A Detailed Comparison Between Coinbase and Kraken

Coinbase and Kraken are two US-based cryptocurrency brokers with huge market shares. Both exchanges have their headquarters in San Francisco, catering to the needs of traders all across the world. Both Coinbase and Kraken have established themselves in the crypto market, and both are recommended options for buying crypto coins. With so many things in common, traders are often confused about which exchange to go with- this article will help you with this dilemma.

Coinbase Vs. Kraken

Here is a detailed comparison between two of the largest cryptocurrency exchanges of the world, Coinbase, and Kraken. Have a look.

1. User Interface

According to Coinbase reviews, the interface is more user-friendly, and therefore, it is more suitable for beginner traders, but at the same time, experienced traders may find the platform too basic. Click here to know more about Coinbase crypto exchange. On the other hand, Kraken comes with more sophisticated features that are preferred by experienced traders but found difficult by beginners. Therefore, it is ultimately the customers’ preferences that will win.

2. Security

Both Coinbase and Kraken are highly secure exchanges that keep almost 95% of their clients’ assets in cold storage that contribute to greater security. Both provide top-notch web security, DoS attack security, etc. For balances up to $250,000, Coinbase is a better option as it provides FDIC insurance to its clients. However, for higher balances, clients prefer Kraken. 

3. Fees

Coinbase, like most other platforms, charges a percentage-based fee for deposits which is 1.49% for a bank transfer and 3.99% for a debit or credit card, and zero fees for ACH transfers. At Kraken, there is a flat fee of $5 charged for depositing fiat currency on the exchange, be it through bank transfers, debit or credit cards, or ACH transfers.

4. Deposit and Withdrawal Methods

Users can deposit funds on Coinbase using any of the available options that include debit/credit cards or bank transfers. There are also various withdrawal options like PayPal, bank transfers, and cryptocurrencies.

At Kraken, deposit and withdrawal options are rather stringent; customers are only allowed to deposit or withdraw funds via bank transfers, cryptocurrencies, Wire transfer, Osko, SWIFT, and SEPA.  Debit or credit cards can’t be used at Kraken.

5. Trading Liquidity

The maker-taker fee structure at Kraken offers greater trading liquidity to customers than Coinbase.

6. Supported Fiat

Coinbase supports leading fiat currencies like USD, GBP, CAD, EUR, MXN, CZK, DKK, HRK, CLP, BGN, among 10 others, whereas Kraken supports only a handful like USD, EUR, CAD, CHF, GBP, JPY, and AUD.

7. Supported Pairs

Kraken supports around 138 cryptocurrency pairs, whereas at Coinbase, there are only 15 supported pairs available. Therefore, Coinbase is recommended if the trader has just started his crypto trading journey. Otherwise, Kraken is probably the next best choice.

Advantages of Coinbase Over Kraken

For beginners, Coinbase is the most recommended cryptocurrency exchange since it has a user-friendly and safe crypto trading platform. Coinbase supports more fiat currencies than Kraken and also accepts deposits via debit or credit cards which is not possible at Kraken. With customer support, Coinbase has received better rankings from users for having their issues solved within a maximum of 24 hours. 

Kraken’s customers have often reported about the delays they face in getting their accounts verified on the platform.

Advantages of Kraken Over Coinbase

The trading fee at Kraken is strategically simplified by implementing a maker-taker fee structure that depends on trade volumes executed by a trader over the last 30 days. This customized fee structure enables customers to drive maximum liquidity from the market. When it comes to trading fees, Kraken has the upper hand with a maximum of 0.26%, whereas Coinbase trading fees begin at 0.50%.

Final Thoughts

With its hassle-free and intuitive interface, Coinbase is best suited for first-time crypto investors. Coinbase makes it simple for beginners to buy their first digital currency. Coinbase is an ideal tool for new crypto investors who may not have any other investment experience. While the standard platform is overpriced, its features, like its Learn program and the ability to easily set up recurring purchases, provide the inexperienced with a clear path to becoming invested and actually understanding cryptocurrency.

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