Crypto

Kraken vs. Coinbase: Which Should You Use?

Ever wondered about the difference between Kraken vs Coinbase? If yes, keep reading through this article to know more and also know which one you are expected to use.

Interestingly, the top 10 cryptocurrency exchanges by trading volume, including Kraken and Coinbase, it has a lot to offer to cryptocurrency investors

We compare all aspects of Kraken with Coinbase, including security, fees, available cryptocurrencies, and more. Find out how these two well-known exchangers compare and which one might be the most suitable for you.

Kraken vs. Coinbase: Fees

Even though their fees are fairly comparable, Kraken comes out somewhat ahead of Coinbase. This is a result of its cheaper trading fees as well as the fact that its charge structure is openly published. 

If you’re new to investing in cryptocurrencies, you’ll save money on trading costs the sooner you become acquainted with the sophisticated platforms. 

The pro platforms (Kraken Pro and Advanced Trade) are substantially less expensive to utilize, especially if you can make a fee-free deposit. We compared the pro and basic solutions side by side for the sake of fairness.

Kraken Instant Buy vs. Coinbase

The Instant Buy function on Kraken is very similar to the free exchange on Coinbase. For inexperienced cryptocurrency investors, in particular, both platforms make it relatively simple to acquire or sell cryptocurrency. 

On both platforms, it would cost at least $1.50 in fees to purchase $100 worth of Bitcoin (BTC), with Coinbase charging more.

  • Buying or selling cryptocurrency on Kraken costs 1.5%, whereas stablecoins cost 0.9%. Depending on the payment method you choose, there can be extra charges.
  • On purchases or sales under $205, Coinbase charges between $0.99 and $2.99 in addition to a variable spread. On larger transactions, a 1.5% fee plus the spread is added. Depending on your modes of payment, such as using PayPal or a debit card, there can be extra costs.

Kraken Pro vs. Coinbase Advanced Trade

Both platforms include class maker/taker fees that are lower for investors who engage in more trading.

  • For low-volume trades, the highest maker/taker fees on Kraken Pro are 0.26% / 0.16%. On the other hand, for investors that trade more than $10 million each month, this cost is decreased to 0.00% or 0.10%.
  • For low-volume traders, the highest maker/taker fees on Coinbase Advanced Trade are 0.60% / 0.40%. For top-level investors who transact $500 million in transactions each month, this cost is decreased to 0.05% / 0.00%.

Consider your usage of the platform, including how you wish to deposit money, how frequently you will buy and sell, and how you might withdraw your funds, before looking at the costs on cryptocurrency exchanges. 

Both services provide free methods for money deposits. The majority of bank transfers to Kraken and Coinbase are free, depending on the nation you are in. 

However, using your debit card can result in additional costs. While Coinbase charges up to 3.99% for debit card purchases, Kraken charges 3.75% + 0.25c for debit card payments.

Kraken vs. Coinbase: Cryptos Available

kraken vs coinbase

You may purchase popular cryptocurrencies like Bitcoin, Ethereum (ETH), or Cardano (ADA) on both Coinbase and Kraken. Both include numerous minor coins and tokens in addition to nearly all of the top 20 cryptocurrencies by market cap. 

Both platforms offer a sizable selection of decentralized finance cryptos, smart contract cryptos, gaming and metaverse tokens, and other types of crypto.

With more than 210 cryptocurrencies, the bulk of which are accessible to American investors, Coinbase has the advantage in terms of numbers. On Kraken, approximately 200 cryptocurrencies are listed. 

About 40 of them, though, are not open to American investors. While some Coinbase cryptos aren’t accessible to New Yorkers and Kraken doesn’t operate in either Washington state or New York, Coinbase still has an advantage in this area. Therefore, Hawaii cannot access Coinbase.

Kraken vs. Coinbase: Wallets

For cryptocurrency investors who wish to keep their funds safe and under their control, crypto wallets are essential. People worry that if they leave their cryptocurrency on the exchange they purchased it on, they would suffer if the exchange is hacked or their account is frozen. 

Kraken and Coinbase view external wallets differently:

  • Although it doesn’t have its own wallet, Kraken actively encourages users to use third-party wallet providers.
  • Even non-Coinbase customers can use Coinbase’s hot wallet. The cryptocurrency exchange collaborates with additional wallet providers.

Any ERC-20 token, which are digital currencies created on the Ethereum network, can be stored in the well-known Coinbase Wallet together with Bitcoin, Bitcoin Cash (BCH), Litecoin (LTC), Ripple (XRP), Stellar Lumens (XLM), and Dogecoin (DOGE). 

Also, the Coinbase wallet allows non-fungible tokens, so you can store other types of cryptocurrency in addition to coins (NFTs).

On its website, Kraken makes it very clear that it is an exchange and not a wallet service. Since you can’t transfer cryptocurrency between Kraken accounts, it promotes the idea that it should only be used for trading cryptocurrency, not for storing it. 

The exchange Kraken regularly evaluates hardware wallets to assist its users in finding the best alternatives, and you can withdraw money from a Kraken account to a third-party wallet. 

Kraken vs. Coinbase: Security

Security is a crucial factor for all cryptocurrency traders. There have been enough well-publicized breaches of cryptocurrency exchanges to bring this issue to everyone’s attention. 

Coinbase and Kraken take security seriously is a good thing. Here are some noteworthy significant areas:

Cold storage: The majority of the assets on both platforms are kept in cold storage offline, making it more difficult for hackers to access them. Kraken also claims that its servers are housed in fortified cages guarded by armed guards.

User-level protection: Both platforms provide a variety of user precautions, including enhanced withdrawal security and multi-factor authentication.

Insurance: Where the two platforms diverge is in this area. Kraken lacks third-party insurance since it insists that it is an exchange rather than a place to keep your valuables. 

In contrast, Coinbase asserts that it has insurance against crime, including theft and security breaches, and that it will make every effort to replace damages resulting from a covered event.

Bug bounty: Both exchanges take part in bug bounty schemes that pay good hackers for spotting security holes.

Cryptocurrency exchanges are not as secure as, say, a bank account in terms of security. The FDIC insurance kicks in for up to $250,000 per qualified account in the case of bank failure. 

Cryptocurrency is an exception to this. However, U.S. residents who hold cash on Coinbase (not cryptocurrency) are covered by the FDIC.

Conclusion

It is right to say that the well-known and reputable trading platforms for digital currencies are Kraken and Coinbase. 

In reality, there isn’t much to differentiate them as they both offer comparable cost structures, a ton of training materials for novice investors, and comparable selections of cryptocurrency. The easiest strategy to choose the exchange that is suitable for you is to think about your usage. 

Consider whether you want to keep your assets on the exchange or in your personal wallet, as well as how frequently you want to trade. By doing so, you can compare prices and register with the trading platform that provides the services you require.

FAQs

Should I Switch From Coinbase to Kraken?

On a brighter side, Kraken is more better for traders looking for lower fees

Yes, it does.

Kraken has never been hacked, this will means that it can be trusted.

Yes, there is and it is high fee on simple trade and staking.

No, it isn’t. Binance is.

Binance and Kraken is better than Coinbase.

Yes, you can.

Sure, you can but ensure you don’t put all of it.

Within two business days.

Yes, Kraken reports to the IRS.

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