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Transferable to your own wallet
Self-custody of cryptocurrencies plays an important role for many users who want to manage their cryptocurrencies and thus their "private keys" themselves and not leave them in the hands of the exchange. Most exchanges offer the option of sending the purchased cryptocurrencies to their own wallet.
Deposit protection is a safeguard for the assets of users of a stock exchange or broker, which is intended to protect investors in the event of insolvency or a high loss due to a hacker attack. Service providers based in Germany are legally obliged to provide deposit protection of €100,000. In some cases, international exchanges have a special insurance policy that covers a certain portion of the assets instead of a deposit guarantee.
The overall rating is the average of our individual ratings. Our ratings do not constitute investment advice, but merely our personal opinion. You are welcome to use them as rough indicators and additional perspective. In the dynamic and fast-growing crypto sector, parameters can often change from one day to the next, so we cannot guarantee that the rating data is up to date. Therefore, please never use our ratings as an isolated basis for decision-making and not as a substitute for your own research.
This rating describes our personal assessment of the user-friendliness of the product. How easy is the onboarding process? How modern is the user interface and is it easy to use? Are all the important functions quick and easy to find? We ask ourselves all these questions in order to give a personal rating from 1 to 10 points.
This rating describes our assessment of the fee structure of a stock exchange or broker. It is not only the amount of fees that can differ, but also the type of fees. The most common type of fees for crypto exchanges are the "maker/taker" fees or spreads. In some cases, there are also hidden fees that are not recognizable to users at first glance.
For products or services in the crypto space, trust and security should be the biggest factors in the selection process. Since we could not seriously evaluate the technical security of a platform or product, we analyze publicly available factors such as security features, location, regulation, certifications, audits, team/company, general reputation and, of course, track record.
Crypto doesn't have to be cryptic. Especially for beginners, the first contact with the crypto world can be overwhelming. With this rating, we give our assessment of how easy it is for beginners to find their way around: from the onboarding process to using the most important functions.
Customer support is an important factor for many users. A long wait or no response at all in the event of problems can be frustrating, especially when it comes to sensitive topics such as finances. With this rating, we give our assessment of the quality of customer support. In order to provide as balanced an assessment as possible, we also include user opinions from other platforms in our evaluation.
Some exchanges and brokers are regulated by financial supervisory authorities in certain countries/states. This often entails strict financial regulatory requirements and compliance requirements to which the company must adhere. Regulatory clarity can contribute to greater transparency and thus also greater trustworthiness.
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Coinbase vs Kraken in comparison
Overview
Kraken stands out as one of the premier cryptocurrency exchanges in the United States, established in 2011. It's recognized for its competitive fees and a robust level of trustworthiness, anchored by its lengthy history and compliance with U.S. regulatory standards. Since 2020, Kraken has enhanced its offerings with a banking license.
- Very easy to use
- Beginner friendly
- Listed company
- Coinbase Pro for trading
- Slightly higher fees
- High reputation and trust
- Banking license
- Low fees
- Operation could be easier
- Higher fees for purchases in the app
Features Comparison
- Cryptocurrencies
- Cryptocurrencies
- Derivatives
1.49
%
2.00%
2.00%
₿
0.000079
0.26
%
0.26%
0.16%
₿
0.0002
220
+
$
2
185
+
$
1
Exchange Rating
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Functions
- Spot, futures trading options
- Coinbase Card
- Coinbase Wallet
- Margin trading with up to 10x leverage
- Copy trading
Company Details
Our Review
Coinbase is a highly secure and user-friendly platform, making it ideal for beginners. However, its higher fees and complex fee structure can be a drawback, particularly for those seeking cost-effective trading. The platform offers a broad range of cryptocurrencies and services, but customer support has received mixed reviews. Overall, Coinbase is a solid choice for those prioritizing security and ease of use, but it may not be the best option for cost-conscious traders.
Kraken is a top choice for security-conscious traders, offering advanced features like futures and margin trading. Its robust regulatory compliance and strong security measures make it highly trusted in the industry. While fees are competitive, the platform can be complex for beginners, and customer support experiences vary. Overall, Kraken is well-suited for experienced traders who prioritize security and advanced trading options, but newer users may face a learning curve.
Coinbase vs Kraken: Features, Fees & More (2024)
If you’re stuck on Coinbase vs Kraken when choosing a cryptocurrency exchange, this direct comparison aims to clarify. We’ll dissect key differences across fees, user experience, security, and customer service. Expect a no-frills breakdown that respects your need for clear, actionable information, walking you through each element to support your decision.
Key Takeaways
- Coinbase and Kraken are both US-based cryptocurrency exchanges, with Coinbase known for its user-friendly platform for beginners and Kraken recognized for its advanced security and trading features for experienced traders.
- While Coinbase offers over 210 cryptocurrencies and is favored for its diverse asset selection, Kraken generally has lower trading, deposit, and withdrawal fees, making it more cost-effective for users.
- Both exchanges provide robust security measures, with Coinbase offering additional services like the Vault for long-term storage and insured customer funds, while Kraken focuses on heavy offline asset protection and has a dedicated Security Operations Center.
Overview of Coinbase and Kraken
Coinbase and Kraken are ranked among the world’s top cryptocurrency exchanges, originating from the United States. They both provide distinctive advantages to their users and deliver a variety of services that range from simple purchase and sale transactions of crypto assets to sophisticated trading functionalities designed for more experienced users. It is crucial to grasp the distinct characteristics offered by each exchange because your experience with crypto trading could be greatly influenced by selecting one over the other.
We shall delve into an in-depth analysis of what each platform has to offer.
Coinbase
Launched in 2012 by Brian Armstrong, Coinbase rapidly became popular due to its user-friendly interface and goal of demystifying the complex cryptocurrency market. With a significant $150,000 backing from Y Combinator’s startup incubator program, it has expanded to serve more than one million users with an emphasis on making trading accessible for newcomers.
Coinbase provides an extensive array of services such as providing individual coinbase wallet options and enabling seamless conversions between fiat currency and cryptocurrencies like bitcoin cash. These offerings ensure that even those new to digital currencies can trade with ease.
Kraken
Conversely, founded by Jesse Powell in 2011, Kraken asserts its commitment to security within the realm of cryptocurrency transactions. The inception of Kraken was a direct response to the rampant security breaches that troubled the crypto community at large. It is designed with experienced traders in mind and provides sophisticated trading options like leveraged margin trading.
As it evolved over time, Kraken has emerged as a formidable choice for cryptocurrency enthusiasts who seek an extensive selection of digital currencies along with strong safety protocols accessible through their accounts on the kraken cryptocurrency exchange.
Comparing Features: Coinbase vs Kraken
Regarding their functionalities, Coinbase and Kraken each present distinct capabilities to users. A notable aspect of Coinbase is its distinctive program known as Coinbase Earn. This feature incentivizes users by giving them cryptocurrency rewards when they engage in educational activities about various cryptocurrencies. Conversely, Kraken offers an opportunity for Futures Trading that permits traders to make predictions on the potential price movements of cryptocurrencies.
We will delve into the particular features provided by each platform in greater detail.
Supported Cryptocurrencies
Traders looking to broaden their investment scope often consider the range of available cryptocurrencies pivotal. Coinbase boasts a significant advantage in this area, offering access to over 210 different cryptocurrencies, which is particularly attractive for traders interested in diversifying with numerous altcoins. Conversely, while Kraken also presents an impressive portfolio with almost 200 cryptocurrencies on offer, it’s important to highlight that around 40 of these are not open for trading by US-based investors.
In essence, both Coinbase and Kraken serve as comprehensive platforms that support an extensive variety of cryptocurrency assets within their exchange infrastructure. This includes categories such as smart contract-enabled cryptos, gaming and metaverse tokens (reflecting the latest trends), decentralized finance (DeFi) projects along with earning opportunities through crypto rewards—and they facilitate transactions involving traditional fiat currencies too.
Trading Tools and Platforms
In the realm of sophisticated trading platforms, Coinbase Advanced Trade and Kraken Pro are at the forefront. With its transition from Coinbase Pro, Coinbase Advanced Trade enhances the experience by offering advanced staking rewards and complex trading instruments for seasoned traders.
Kraken distinguishes itself among exchanges with its professional-level Cryptowatch terminal that presents live crypto market data and robust trade execution capabilities. For those who engage in frequent trading activities, both of these cutting-edge platforms may lead to savings through potentially lower trading fees when compared to less specialized services.
Analyzing Fees: Coinbase vs Kraken
It’s crucial to assess the fee framework when selecting a cryptocurrency exchange, since trading fees greatly affect your profits. Each platform enforces charges for trading, depositing, and withdrawing funds in distinct manners.
In our analysis, we will scrutinize the specific fee structures of Coinbase as well as Kraken.
Trading Fees
If you engage in frequent high-volume trading, it’s crucial to be mindful of how trading fees can diminish your returns. In this realm, Kraken excels by offering competitively low trading fees that vary between 0% and 0.26% for each transaction—a stark contrast to Coinbase’s higher cap of up to 0.50%. Specifically within the ambit of Kraken Pro transactions, they apply a modest maker fee of 0.16%, whereas the taker fee is set at 0.26% for trades not exceeding $50,000 in value. It should be noted though that Kraken’s standard version imposes heftier trading fees which might dissuade novices looking for a more straightforward fee setup.
Deposit and Withdrawal Fees
Kraken is at the forefront with its competitive pricing structure for both deposit and withdrawal fees. A charge of 3.75% plus a $0.25 additional cost is applied by Kraken for deposits executed with a debit card, in contrast to Coinbase, which levies up to 3.99% for deposits through the same payment method.
As for fund withdrawals, while Coinbase calculates its fee based on an estimated network transaction fee, transferring funds via Kraken continues to be economically advantageous despite these incurred costs.
Ease of Use: Coinbase vs Kraken
The user experience can heavily impact the decision when selecting a cryptocurrency exchange. Coinbase is recognized for its user interface that caters to novices, while Kraken appeals to more seasoned traders through its intricate interface and sophisticated trading features.
Both Coinbase and Kraken offer solid platforms, but they differ markedly in their usability.
Coinbase's User Experience
For novices venturing into the realm of cryptocurrency, Coinbase stands out as a prime choice thanks to its intuitive interface. It boasts several attributes such as:
- An uncomplicated design
- A user-engaging trading platform
- An efficient registration procedure
- A self-managed wallet application
- Informative educational resources
These characteristics facilitate seamless exploration and interaction within the crypto marketplace, delivering an all-inclusive experience for traders.
Individuals seeking elevated services have access to Coinbase One—a membership that provides transactions in cryptocurrencies without any fees attached.
Kraken's User Experience
Kraken, while designed with experienced traders in mind, offers a sophisticated platform that may be daunting for novices lacking cryptocurrency experience. The robust features provided by Kraken, including the advanced Kraken Pro, which boasts low fees and comprehensive trading tools, render it an attractive option for those desiring a more complex trading environment.
Security Measures: Coinbase vs Kraken
In the realm of cryptocurrencies, safeguarding assets and information is paramount. Both Coinbase and Kraken have taken rigorous steps to ensure the safety of their users’ holdings and personal details.
We are set to scrutinize each platform’s security measures in depth.
Coinbase's Security Protocols
Coinbase implements stringent security protocols, including two-factor authentication and the use of AES-256 encryption to secure wallet keys. The Coinbase Vault service offers extra protective measures specifically designed for the prolonged safeguarding of digital currencies. Coinbase provides insurance coverage for customer assets, which are maintained either in distinct custodial bank accounts or U.S. Treasury securities.
To maintain a safe trading space for its users, Coinbase has committed a specialized team focused solely on advancing the platform’s security infrastructure. This team works relentlessly to bolster protection against threats and ensure that traders operate in an environment with robust security defenses.
Kraken's Security Protocols
Kraken prioritizes the safeguarding of your assets and personal information with multiple security protocols including:
- Utilizing cold storage for 95% of all deposits, which ensures they are not connected to the internet and reduces vulnerability to online threats
- Encasing their systems within fortified cages for added protection
- Implementing sophisticated encryption techniques to secure user data
- Providing an option for two-factor authentication as an additional layer of account security
- Operating a Security Operations Center specifically tasked with detecting and mitigating any unusual or potentially malicious activity
It’s important to recognize that even with these stringent precautions in place, storing cryptocurrencies on such platforms over extended periods is discouraged if you intend to sell crypto at some point.
Customer Support: Comparing Coinbase and Kraken
Customer support is crucial in shaping the trading experience, and both Kraken and Coinbase provide extensive customer service options. There have been instances where users encounter difficulties obtaining satisfactory help despite these services.
Each platform’s customer support offerings will be examined to understand what they provide for their users.
Coinbase's Customer Support
Coinbase offers 24/7 customer support to its users. The team is accessible through a chatbot, phone, and email for any problems related to their accounts. Adhering to stringent security measures, Coinbase’s personnel are committed never to request passwords, two-factor authentication codes, access to emails, or funds when assisting with support-related matters.
Kraken's Customer Support
Kraken, like Coinbase, provides round-the-clock customer service. To handle customer issues promptly and effectively, the platform employs a ticket escalation system. While it is not specified which methods are used for support, Kraken’s dedication to resolving client concerns swiftly underscores its focus on delivering excellent customer satisfaction.
Summary
Upon examining the characteristics, cost structure, usability, security protocols, and client service of both platforms, it becomes evident that Coinbase and Kraken each provide a solid framework for trading in cryptocurrencies. Notably, Coinbase is distinguished by its intuitive design and instructional resources—qualities that render it particularly appealing to novice users. Conversely, Kraken appeals to seasoned traders with its sophisticated trade features and more economical fees. It’s important to recognize that your optimal platform selection should align with your specific trading requirements and inclinations.
Frequently Asked Questions
Which one is better, Coinbase or Kraken?
Opt for Coinbase over Kraken to benefit from a superior user experience, underscored by its higher overall rating of 9.4 versus Kraken’s lower score of 7.1. Coinbase pros include a user-friendly interface ideal for new users and advanced investors, and features like the Coinbase card for fiat to crypto transactions and the ability to set price alerts on mobile devices. Kraken pros include low fees, secure cages for cold storage, and a personal wallet service, catering to both crypto traders and investors.
Is there a better platform than Coinbase?
Certainly, alternative platforms such as Binance, eToro, and Gemini present a variety of choices for engaging in cryptocurrency transactions, enabling different routes to buy and trade an array of cryptocurrencies. These platforms offer different benefits, including lower transaction fees, OTC trading, and earn crypto rewards, making them some of the best exchanges for crypto traders.
Are Kraken fees high?
The charges imposed by Kraken for trading vary between 0% and 0.26%, contingent upon the specific cryptocurrency and trading volume, positioning its fees on the lower end within the industry spectrum. This offers an advantage for those looking for low fees in their transactions.
Is Kraken the safest exchange?
Indeed, Kraken is regarded as one of the largest and most secure exchanges given its robust security measures, such as authenticator apps and cold storage, and reputation for trustworthiness. It has also maintained an impeccable record with no breaches to date, making it a safe choice for crypto investors.
Can U.S. residents use Kraken or Coinbase?
Certainly, residents of the United States are able to utilize Kraken as well as Coinbase, albeit with some geographic restrictions. Both platforms offer bank account linking, debit card options, and crypto wallet services, ensuring a comprehensive service for crypto traders. Coinbase Pro and Kraken cater to advanced investors with features like market trends analysis and price alerts, although Kraken charges may apply differently based on the account and transaction type.
About the author
At Exchange Flow, Ethan is recognized as the resident crypto expert. With 10+years of experience navigating the waters of global crypto exchanges, Ethan is a trusted voice in the ever-evolving world of digital currencies. He tests and scrutinizes exchanges so you don’t have to, offering reviews and articles that newbies and seasoned traders alike find invaluable. When he’s not coding, Ethan likes to travel and play retro games. He uses his crypto earnings to fund his trip around the globe.
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