Cryptocurrency is a hot commodity these days, and there are many different ways to invest in it.
The best way for some people may be through a crypto-exchange platform. Kraken and Coinbase are two of the most popular platforms out there, but which one is better?
For users who want more information on these two trading platforms before making their decision, this article will provide you with all the details you need to make an informed choice about your investment strategy.
Let’s get started:
Kraken Vs. Coinbase: Which is Best for You?
We are going to have a look at whether Kraken or Coinbase is the best for you. If you are interested in other investing platforms then you could check out platforms such as Robinhood, M1 Finance, Fundrise, or Betterment.
The Quick Skinny of Kraken Vs. Coinbase
The U.S. has seen a rise in the number of cryptocurrency exchanges and trading platforms over the last few years, with Coinbase and Kraken being two of the most popular options for users to choose from when trying to buy or sell Bitcoin or other cryptocurrencies.
While these two companies are often compared, here is what you need to know about the best crypto-exchange platforms and which one will be best suited to your needs.
Kraken is a digital asset exchange based out of San Francisco that allows users to trade between fiat currencies, as well as for cryptocurrencies like Bitcoin or Ethereum.
The company’s founder, Jesse Powell, claims that the goal of Kraken is to become the largest crypto-exchange in the world and the platform was created out of a need for an exchange that had more advanced features than Mt. Gox, at the time.
Kraken is relatively new to the crypto-exchange market, having been launched in 2011 and now has over 300 employees located around the globe who are committed to providing users with a secure and user-friendly experience.
The exchange has offices in the U.S., Canada, Europe, and Japan with popular coins like Bitcoin, Ethereum, Litecoin, Monero, or Zcash all available on the platform.
Coinbase is another popular cryptocurrency exchange available to users anywhere in the world that allows them to buy and sell Bitcoin, Ethereum, Litecoin, and Gemini (the digital currency exchange that is owned by the company).
The Coinbase exchange was founded in 2012 and has since become the largest cryptocurrency exchange in North America.
The company has begun offering an online wallet system that allows users to securely store their cryptocurrency holdings and has also added a feature that allows merchants to easily accept Bitcoin as payment for goods or services.
Kraken Features & Details
Firstly, we will look at the features and details that Kraken offer:
Availability & Usage
Kraken is a global cryptocurrency exchange that was founded in 2011 and is based out of San Francisco, California.
The company’s goal is to become the largest digital currency exchange in the world by allowing users to trade between fiat currencies (USD, EUR, JPY) and cryptocurrencies like Bitcoin or Ethereum.
Kraken has over 300 employees located around the globe to provide a secure and user-friendly experience. Kraken is available in the U.S., Canada, Europe & Japan with top coins like Bitcoin, Ethereum, Litecoin, and Monero all available on the platform.
Kraken has put a lot of effort into ensuring that its platform is secure and safe for users, going so far as to require all new accounts to go through an extra verification process.
The Kraken exchange has implemented two-factor authentication meaning that each time a user logs into their account, they are required to enter both their password as well as a 6-digit code that is generated by the two-factor app, Authy.
Kraken also offers a PGP encryption key for users who want to take additional security measures while logging into their accounts.
Kraken is one of the cheapest cryptocurrency exchanges available to users around the world and offers some of the lowest fees out of all digital currency platforms.
The company charges a taker fee which means that each time Kraken fills an order, it will cost 0.26%-0.16% based on the volume traded or $0.
Kraken supports the largest number of cryptocurrencies out of all digital currency exchanges available to users around the world.
The platform currently supports 13 different fiat currencies including USD, CAD, EUR, GBP, and JPY, and allows users to trade between them while offering support for 32 different crypto-currencies.
Kraken provides margin trading to retail investors that allows them to trade with leverage.
The company has implemented a proprietary system called “Cross-Margin” which allows users to set their own leverage and also take short positions on any digital currency available on the platform.
Kraken is one of the few digital currency exchanges that allows users to store cryptocurrencies on an exchange.
The company offers a web wallet that allows users to easily deposit and withdraw funds as well as a cold storage wallet that can be used by those who want even more security for their crypto-currency holdings.
Kraken goes above and beyond what most crypto-currency exchanges offer in terms of customer service.
The company has a ticketing system that allows users to easily submit tickets for any issue they might be experiencing at the click of a button. Kraken also offers phone support for those who prefer to talk to someone for help with their account.
Coinbase Features & Details
Now, we will be looking at the features and details that Coinbase offers:
Availability & Usage
Coinbase is based out of San Francisco, California, and has built a reputation as one of the easiest platforms on which to buy and sell digital currency.
Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam and within three years became the largest Bitcoin exchange in the world with over 1 million customers using its platform.
The company now offers its services in over 30 countries and has thousands of merchants who accept digital currency payments through Coinbase Commerce.
The platform is trusted by millions of people from around the world and offers support for Bitcoin, Ethereum & Litecoin.
Coinbase has built a reputation for itself by being one of the most secure exchanges available to users around the world.
They offer two-factor authentication and ask users to safely store their digital currency in either an online or offline wallet.
Coinbase also allows users to add extra layers of security by connecting their wallets through Google Authenticator or setting up a password for login.
Coinbase charges a 1% flat fee for all purchases made using a credit card and also charges variable fees based on the size of each transaction.
Depending on the payment method used, Coinbase will charge between 3.99%-3.7% in transfer fees.
They also offer discounts to those who use their platform regularly as customers who trade on Coinbase Pro pay a fee of just 0.25%.
Coinbase has also recently introduced low-cost withdrawals to certain countries including Canada, Hong Kong, Singapore, and the United Kingdom.
Coinbase supports Bitcoin, Ethereum & Litecoin and allows users to easily purchase them using a credit card or by sending funds from their bank account.
Coinbase also offers an exchange platform where Bitcoin, Ethereum & Litecoin can be exchanged for one another or used to purchase goods and services directly from merchants through Coinbase Commerce.
Coinbase only offers margin trading for Bitcoin, Ethereum & Litecoin. The company provides its users with access to the GDAX platform which allows them to either buy or sell with leverage.
GDAX offers users a 3-3.5x leverage limit that can be increased on a case-by-case basis if they provide the exchange with acceptable collateral.
Coinbase provides all of its users with a web wallet that can be used to store cryptocurrencies and also offers an offline storage solution called Coinbase Vault.
Coinbase provides customer support through its online ticketing system. Users can choose to submit a ticket for any issues they might be experiencing and will receive an email once their request has been addressed by the company.
Coinbase also offers phone support for customers who prefer to communicate via that medium.
Kraken Vs. Coinbase: Key Differences
Coinbase is considered to be the largest cryptocurrency exchange in the world but despite its popularity, many users have voiced complaints about the platform.
Kraken has a systems security that is obviously lacking with Coinbase and while neither company will admit this fact, you can find countless reports online from customers who say they’ve lost their funds as a result of hacking or malfunction of the exchange itself.
Kraken offers its users much more than the Coinbase platform does and provides services not available on other exchanges such as margin trading, trading, and advanced order types and also offers the use of a dark pool for all customers who prefer anonymity in their trades.
Kraken has built an extensive reputation among customers as being a legitimate platform and is trusted by many users who prefer to trade on it.
Kraken has much lower fees than Coinbase and also offers a hosted wallet service that gives all of its users an opportunity to benefit from their expertise in the field.
The fact that Kraken provides users with the ability to place orders and trade on margin is a big reason why many people prefer to use this platform because it allows them to have more control over their trades.
FAQ: Crypto Exchanges
We’re sure that you have some more questions that are more specific to Kraken vs. Coinbase with crypto trading, so in this section, we will try to cover any potential questions that you may have.
What is a cryptocurrency exchange?
Kraken and Coinbase stand out the most for most traders for obtaining and trading crypto assets.
A cryptocurrency exchange platform is an online marketplace where people can buy, sell, trade, or store crypto assets.
They are also referred to as digital currency exchanges and are designed for users who want to exchange one cryptocurrency for another, or buy/sell goods and services directly using their digital currency holdings.
Popular examples of a crypto-exchange platform include Coinbase, Bitstamp, Kraken, and Huobi.
Are all crypto exchanges created equal?
No! There are a number of factors that make some platforms more popular than others among users such as security measures and the number of supported coins that can be traded on them.
It is important for consumers to do their research and only use reputed companies when choosing to give a crypto-exchange platform their business.
Why should I use a cryptocurrency exchange?
It may seem like it would be easier to just keep your cryptocurrency holdings but there are benefits that come along with using an online exchange such as convenience, privacy, access to new coins, and no worries about your computer being hacked.
Also, the fees charged by a crypto-exchange platform are usually much lower than if you were to handle the transaction yourself.
Is there anything I can’t do with a crypto exchange?
They’re only as good as their list of supported coins and although many companies support many different types they all have their preferences when it comes to which currencies are traded on their platform.
How do I fund my new cryptocurrency exchange account?
The first step after you register for a cryptocurrency exchange is funding your account so that you can make trades.
This can be done by linking your bank account or credit card to your crypto-exchange account and converting your fiat currency to the digital currency supported by that particular platform.
How do I make trades on a cryptocurrency exchange?
After you log in to your exchange account, you will be able to see all available coins which can be traded for other digital currencies or fiat money.
You may also see a list of different trading pairs which you can select from in order to begin a trade.
Have I paid too much for my cryptocurrencies?
The truth is that most people probably over-pay when they first buy their digital currencies online because there are so many options and they seem all very similar.
It really comes down to choosing a reputable site and doing as much research on the platform as possible.
There are many horror stories about people who get scammed buying cryptocurrency online but just remember that you should never have to pay anyone any money upfront when purchasing goods or services with a credit card or other payment method.
If this happens, simply contact your bank or credit card provider so that they can issue you a chargeback.
Is it safe to use my credit card for crypto purchases?
The fact that some exchanges require you to go through lengthy verification processes and make users enter their personal information may scare off many potential customers but the reality is that these security measures are there for a reason.
That said, it’s important to take steps to protect your information and identity online.
What are the top crypto exchanges?
The best way to find out which crypto-exchange platform is right for you would be to do some research on those that support the coins you want to trade in, their fees, and their reputation among users (if any).
If you can’t seem to find what you’re looking for, feel free to check out the list below of reputable crypto-exchange platforms. We’ve examined these sites so that you don’t have to and can simply pick the one that’s right for your needs.
OKCoin OKCoin is a global digital currency service provider based in San Francisco, California with an office in Beijing. OKCoin’s mission is to spread the Bitcoin and digital currency trading culture across the world.
Kraken is a US-based prominent bitcoin exchange operating in Canada, the EU, Japan, and the US. Residents of China can use BTCC (both are exchanges). See: Use your USD (or other) account to buy and sell bitcoin on Kraken.
Coinbase ( Global ) Coinbase is a digital currency exchange headquartered in San Francisco, California.
They broker exchanges of Bitcoin (₿), Bitcoin Cash, Ethereum (Ξ), Litecoin (Ł), and other digital assets with fiat currencies in 32 countries, and bitcoin transactions and storage in 190 countries worldwide.
Kraken has been around longer than Coinbase, but they both seem to have their share of problems with customer service issues as well as other concerns like payment methods not being accepted on certain sites or withdrawal limits imposed by some exchanges.
Both Kraken and Coinbase have similar structures for trading fees on their cryptocurrency, but Kraken notably has better fees for traders with fewer crypto assets.
The bottom line is that no matter what exchange you choose, research thoroughly before making any decisions about where to buy cryptocurrency online because it’s important that people feel safe buying digital currency from reputable providers only!