As you step into the Crypto world, we have prepared a nice article for you to decide where to start your transactions. This time, we compared the most popular crypto exchanges recently: Kraken vs Coinbase. If you’re stuck too, be sure to check out this article before you start. Only in this way you can make profitable investments in the crypto world. If you’re ready, let’s start.
Summary of the Comparison: Kraken vs Coinbase
- Summary of the Comparison: Kraken vs Coinbase
- Getting Started
- For Beginners
- Services and Products
- Fee and the Other Expenses
- User Reviews
- In Short
- How to Choose: Kraken vs Coinbase
Coinbase is one of the oldest and most popular platforms in the cryptocurrency market. Based in the United States, the service is renowned for its reliability and ease of use. On the other hand, Kraken is also one of the oldest and reputable trading platforms on the market. Over the years, it has managed to establish itself among the benchmark exchanges. A place that it has acquired by offering services intended for both amateurs and experienced traders. The exchange enjoys an excellent reputation in terms of security and cost, and its fees are among the lowest in the market.
Kraken is a pioneer in the cryptocurrency platform market and now occupies a leadership position. According to its directors, it would even be the leader in terms of volume on the Euro/Bitcoin pair. Founded in 2011 in San Francisco with a capital of 1.5 million dollars, the platform aimed to compete with Mt. Gox, the market leader at the time.
Following the fall of its competitor, Kraken went through several successive fundraising events until the last one in February 2019 with the obtaining of an additional $100 million from Digital Currency Group and Hummingbird Ventures. At the same time, the experience accumulated since its launch has enabled it to adapt its offer to meet the needs of novices and experienced traders. Kraken is controlled by the US regulatory authorities. The platform is also distinguished by its high level of security and transparency, in particular thanks to regular reserve audits.
With 20 million customers and extensive experience in the cryptocurrency market, Coinbase is one of the most important platforms in the market. Established in 2012 in San Francisco, the exchange is subject to United States laws and regulatory agencies.
As such, it guarantees the security of the funds invested, but it also ensures their origin and use. Your account will be frozen if you make a cryptocurrency transfer with a questionable site, especially on the darknet or with an online casino. The service is renowned for its simplicity which makes it a key player to start in cryptocurrency.
Kraken: Not too Easy for Beginners
Kraken offers an interface that tries to adapt to the level of its users but suffers from ergonomics that can be confusing for beginners. To place an order, three modes are possible: simple, intermediate, and advanced. The options available vary depending on the level selected. You can take a position for a given price or place a more complex order with leverage (up to x5), over a time interval and with closing conditions.
These forms are nevertheless impractical to use, the price detail of a pair of assets is only visible by launching the “Kraken Pro” graphic view. It offers a complete view of the price, of the order book, and offers analysis tools. It also allows you to place an order with a form that offers options similar to the intermediary mode of the site. Finally, the service is available in the form of a mobile application for iOS and Android to provide the same services as on the web version.
Coinbase: An ideal platform for getting started
Coinbase has a particularly easy-to-use interface. This is also one of the keys to its success. The home screen gives an overview of the price of the main cryptocurrencies over the last 24 hours. On an asset’s page, a simple graph shows the price over a given period, and a news feed lists the latest articles published about it. To buy, sell or convert a cryptocurrency, all you have to do is complete a simple and intuitive form. The operation is quick, but is carried out at market price. You cannot take a position on a buy or sell price.
The exchange platform also offers two mobile applications available on iOS and Android: Coinbase and Wallet. Coinbase uses the design and ergonomics of the website to provide the same services. The wallet is a wallet that allows you to store cryptocurrencies outside the platform. It supports many cryptocurrencies, but a few assets available on the website are missing, including EOS, Dash, and Zcash.
To attract new customers and support beginners, the platform recently launched an original program. Regularly, Coinbase launches a campaign dedicated to a cryptocurrency to present its operation and its strengths. Members are invited to view a video tutorial followed by a multiple-choice question. If answered correctly, the exchange offers a few dollars in the cryptocurrency associated with the campaign.
Services and Products
Kraken: An extensive range of services
Kraken allows entry into the cryptocurrency market by offering the buying and selling of assets against fiat currencies (USD, EUR, GBP, and CAD) only by wire transfer. The platform supports around thirty of the most popular cryptocurrencies (Bitcoin, Ethereum, EOS, Litecoin, Ripple, Nano, etc.), but also more confidential projects such as Melon or Gnosis.
Most can be exchanged for dollars, euros, Bitcoin, or Ethereum. The platform makes it possible to place simple orders at the market price, but also offers to take more complex positions, in particular with a leverage effect of up to x5 or by entering into a forward contract.
Coinbase: A complete and secure offer
Coinbase makes it possible to buy and sell cryptocurrencies for euros, as well as to convert them securely. It also offers the possibility of receiving or sending cryptocurrencies to other wallets. The platform currently supports 17 of the most popular cryptocurrencies, including Bitcoin Ethereum, Ripple, Litecoin, EOS, Stellar Lumens, etc. The service does not offer trading functionality but offers a simple solution to trade at market price. The platform accepts credit and debit cards, wire transfers, as well as PayPal, but only for withdrawals.
The platform offers a very good level of security. Access to your account and transactions can be protected by two-factor authentication, as well as an email confirmation. Only 2% of customer funds are stored online, the remaining 98% are stored cold and spread across multiple media kept in vaults. Coinbase also offers a safe deposit box service which provides an additional level of security. If you place your cryptocurrencies there, their withdrawal is subject to additional checks. There is even an option to involve multiple users in the transaction validation process.
Fee and the Other Expenses
Kraken: Fees among the lowest on the market
The fees are among the lowest in the market and are a major asset for the most active traders. Depositing by wire transfer is free, and transaction fees vary between 0.16% and 0.26% depending on the transaction volume. Withdrawing fiat currency is virtually free with a fee of fewer than ten cents. Finally, when it comes to depositing and withdrawing cryptocurrency, the fees vary depending on the asset but are still very reasonable.
Coinbase: More Expensive
Its fees are slightly above average and vary by currency. In euros, the fees for a purchase or sale transaction are 1.49% and 3.99% for purchases by credit card. Deposit by wire transfer is free, but withdrawal is charged at 0.15%.
In eight years of existence and more than 4 million customers, Kraken has demonstrated the seriousness and efficiency of its services. Based in the United States, Kraken is controlled by the American regulatory authorities and undergoes regular audits to ensure its safety. It offers pretty much everything one would expect from an exchange, namely buying, selling, and trading cryptocurrency, as well as the service that made it popular, depositing, and withdrawing from. fiat currency.
Probably the most suitable platform for beginners, ensuring both a high level of security and great ease of use. Its safe service protects your funds from the risk of piracy to keep them in the medium or long term. Its interface speaks for itself, all the services offered are clearly identified on the home page, and their operation is crystal clear. Its costs are quite reasonable and are within the market average.
Kraken has a very comprehensive user interface that strives to be accessible to as many people as possible. Users who have already gained a little experience on other platforms will have no trouble taking advantage of it. However, its handling can be problematic for a neophyte. Its trading view provides all the tools necessary to carry out the technical analysis of a stock, and allows you to place basic orders, but also to take more complex positions. The exchange platform is also among the most economical with fees among the lowest on the market.
Coinbase only offers a fairly limited selection of the most popular cryptocurrencies. The platform gives you control over your assets, it allows the withdrawal and deposit of cryptocurrencies that are stored on other exchanges or on your personal wallet. More experienced users will nevertheless regret the lack of tools to conduct a technical analysis or simply take a position on a stock. Buy and sell orders are executed almost instantly, but only at market price.
How to Choose: Kraken vs Coinbase
We have provided you a detailed analysis of two popular crypto exchanges. Now, you can choose your side among the competition of Kraken vs Coinbase or you can open two different accounts in both of them because they all have their own advantages and less desirable features.
However, do not forget to check our ranking on the best crypto exchanges. As including various factors and dynamics, the ranking will give you an overview of the top crypto exchanges.