Coinbase and Kraken are two of the top 10 cryptocurrency exchanges regarding trade volume, offering unique products for beginners and experienced crypto traders. Both trading platforms offer feature-rich trading tools but carry slight differences that can change the overall trading experience. In this Kraken and Coinbase reviews, we will compare the 2 to decide which offers better overall features that benefit traders of all types.
Kraken vs Coinbase: Fee Structure:
With the Instant Buy feature on Kraken that allows traders to purchase cryptocurrencies quickly, they are charged an exchange fee of 1.5% for altcoins and cryptocurrencies and 0.9% for stablecoins. Users making payments with debit or credit cards need to pay additional charges. Opting for Kraken Pro lowers the fees, charging 0.16% and 0.26% for maker and taker fees, respectively. This is applied to trades of less than $50,000 based on the activities within the past 30 days.
Coinbase, on the other hand, offers a nebulous fee and payment structure that involves spreads. It roughly equals around 0.5% for every transaction that involves buying and selling cryptocurrencies. However, the fees reduce as the monthly trading volume goes up. Users on Coinbase Advanced Trade need to pay 0.6% and 0.4% for maker and taker fees, respectively, which also reduce as the trading volume increases.
Traders who wish to save money on trade fees can get better deals working with Kraken and Coinbase, as their fees are slower than the industry average.
Features of Kraken and Coinbase:
| Kraken | Coinbase | |
| Minimum deposit | $0 | Nil |
| Negative Balance Protection | Yes | N/A |
| Trading platform | Proprietary platform and others | Proprietary platform and other Web-based platforms |
| Crypto trading | Yes | Yes |
| Deposit fees | Yes | N/A |
| Withdrawal fees | Yes | N/A |
Coinbase vs Kraken: Security:
Cryptocurrency trading platforms are notorious for experiencing frequent hacking incidents, making safety a paramount concern among traders who have difficulty deciding which crypto exchange to choose.
Coinbase uses a two-factor authentication method to protect users on the platform but has been subject to many hacks. Hackers stole funds from almost 6,000 users from Coinbase in 2021, and several unauthorized parties exposed a major flaw in the platform’s account recovery process.
However, Kraken has never experienced a major hack, although some users have reported losses due to fraud on various online forums. Kraken servers are secured under 24×7 surveillance by video monitors and armed guards. Additionally, the standard two-factor authentication is also employed for encrypting data transfer.
While Coinbase stores around 98% of its client funds in cold storage, Kraken deploys industry-level security measures, infrastructure, and customer support available 24×7. Furthermore, traders can verify their assets through proof of reserves using Merkle Tree.
Overall, both exchanges are well-respected and trustworthy. Still, Kraken is a little higher than Coinbase in terms of security, as the latter reported many significant hacks in its operation history.
Who should use Kraken?
Based on our Kraken review, Kraken is one of the world’s oldest and largest crypto exchanges. It has been consistently tagged as one of the best platforms to trade crypto online due to its excellent service, versatile funding options, rigorous security measures, and low fees. Whether traders are crypto beginners or advanced, Kraken offers every user the power to chart their financial journey. The crypto exchange has many crypto pairs for traders to invest in various features and tools to leverage as they grow their investment portfolio. From OTC trading to personalized account management, Kraken has become a premier crypto investment solution for institutions of different types and sizes. The platform also offers competitive pricing and exceptional liquidity for all financial markets so traders can confidently and quickly achieve their investment goals.
Who should use Coinbase?
Coinbase is a more beginner-friendly platform for selling and buying cryptocurrencies. It offers a low account minimum, along with a dedicated dashboard. Traders can also take advantage of the integrated wallet available on the platform to store the cryptocurrencies. Overall, Coinbase is the best choice for novice crypto investors as the basic platform charges lower fees than what they would pay for Kraken’s Instant Buy feature.
According to this Coinbase review, the platform also helps beginners learn about the cryptocurrency market by offering excellent educational resources, including online courses that earn them free crypto tokens as they are completed. Coinbase is also better for those who plan to spend their cryptocurrency or transfer their funds to others versus those who wish to use crypto only as a form of investment.
Coinbase vs Kraken: The Final Verdict
In conclusion, Coinbase and Kraken have established popular digital currency platforms for crypto trading. In truth, there are not many differences between the two as both share a similar fee structure, an abundance of educational materials for beginners, and similar lists of supported cryptocurrencies.
The most effective way to determine which platform suits a trader is to consider how they want to use it. For instance, traders must consider if they wish to keep their assets on the trading platform or digital wallets and how often they plan to participate in crypto trading. Doing this will help them weigh the benefits and costs and register with the platform that offers whatever services they need.
In terms of transaction fees, Kraken is slightly ahead of Coinbase. It also has more tokens available for high-rate staking than Coinbase. However, Coinbase stands out for its beginner-friendly interface, making it a popular choice among novice crypto investors. It also has more methods to deposit funds in cryptocurrencies.
Additionally, traders not ready to use a hardware wallet will certainly appreciate the proprietary Coinbase Wallet function. Hence, while Coinbase might be better for beginners in crypto trading, Kraken is substantially better for genuine crypto traders looking for lower fees, more advanced trading features, a better global reach, and a suitable trading environment.