So, you are looking forward to choosing one of the best exchange and stuck between two choices Kraken vs Coinbase? Seems like a challenging task because both of them offers excellent services and have a reputation in the market. Today, we are going to help you by providing a comparison between Kraken vs Coinbase. After reading this guide, you would be able to decide which cryptocurrency exchange best fits your needs.
So, Let’s get started with the comparison between the two largest cryptocurrency exchange Kraken and Coinbase.
Kraken vs Coinbase: Introduction
Kraken was created in 2011 in the aftermaths of Mt Gox to provide crypto space with a secure exchange. Jesse Powell, who is the founder of Kraken, once worked in Mt Gox, which was the largest cryptocurrency exchange of the time. As you all have heard Mt Gox suffered that major hack in crypto history and went bankrupt. Learning from the mistakes of Mt Gox, Jesse Powell decided to create Kraken, an exchange with exceptional security that everyone can trust. It seems like Powell has done a pretty decent job because the exchange has not been hacked since its launch. Apart from being one of the most secure crypto exchange, Kraken is the only exchange to offer a large number of fiat-to-crypto trades. So, if you are interested in purchasing cryptocurrencies using fiat currency, Kraken is going to be your best bet.
While Kraken aimed at Security, Coinbase was created to be the most intuitive exchange in the crypto space. Since its launch in 2012 till 2014, the exchange already attracted more than a million users to its platform. Coinbase partnered with many of the big brands like Dell, Paypal and Time Inc and continued to grow. Coinbase indeed is the easiest to use platform for buying, selling and trading cryptocurrencies. It enabled newbies to trade in crypto without much fuss and confusion.
Now, as both of the exchanges provide pretty good services, it could be tough to pick one out of them. However, if you would highlight your priorities as if you want an easy-to-use platform or want to trade using fiat currency, etc., you can come to a decision quickly. Keep reading and find out which exchange is best for you.
How Kraken and Coinbase are different?
Both the platfrom differs in the term that Kraken is made more experienced traders in mind as it offers services like Margin trading and the ability to short cryptocurrencies. Without a doubt, Kraken allows you to make more profits from your cryptocurrencies, but it is not the beginner’s cup of tea. Leveraged trading and shorting cryptocurrencies are risky, and without proper knowledge of the market, you are only going to lose the battle.
Coinbase is totally different from Kraken in this aspect. It doesn’t provide any advanced features like Leveraged trading that could confuse beginners. Its user interface is straightforward, and anyone without much knowledge of crypto trading can trade on its platform.
On Coinbase you just need to mention how much Bitcoin or altcoins you are willing to buy and the platfrom will make the trade for you. Your order would be placed, and you’ll receive it in your wallet.
Which One Is Easy To Use?
It’s an easy question. Kraken provides many advanced trading features, so it has a pretty complicated interface. But if you have experience in trading or you are a seasonal trader, you wouldn’t take much time to grasp the platform. However, we do not recommend newbies to use Kraken exchange because it would take days just to under the platform entirely.
For beginners, Coinbase is a blessing as it is really easy to understand and simple to use. Forget about days; you won’t even have to waste a few hours in understanding its platform.
Whereas in Kraken, it takes a lot of steps and time even to make a purchase. First, you would need to verify your account, then deposit fiat currency which nearly takes up to five days to be processed entirely and then you can exchange the fiat currency deposited into your account for crypto of your choice.
Kraken vs Coinbase; which is safer
When it comes to safety, we found both the platforms doing well. As said above, Kraken’s aim was security when it was created in the first place while Coinbase’s goal was to provide users with an automatic exchange. However, this doesn’t make Coinbase insecure because from where we see both exchanges offer the same level of security. This doesn’t mean that you don’t need to be aware of scams. No cryptocurrency exchange is entirely secure, and you never know what happens when. While you are hoping for the best, we recommend you to take some security measures yourself despite what exchange you are using. By safety measures, we mean not storing your crypto assets in the exchange wallet and following the guidelines as recommended by the platform.
Cryptocurrencies and payment methods supported
There’s not much difference in the supported cryptocurrencies of both the platforms. Although, the winner here is Kraken not only in terms of supported cryptocurrencies but also because of more fiat-to-crypto trading pairs. Both exchanges allow you to deposit fiat currency and then exchange it for crypto. The payment methods supported on Kraken for deposits are bank transfer and cryptocurrencies and Credit card and cryptocurrencies for Coinbase. When it comes to withdrawal Coinbase, along with bank transfers and cryptocurrencies, Coinbase also lets you withdraw your funds into Paypal.
You can’t actually judge these two exchange by comparing the fee structure because both the platforms offer different services thus have differences in fee too. If you still compare the trading fees of Kraken is much less than that of Coinbase, but you should not forget the extra benefits you are getting on Coinbase. The trading fee on Kraken is less than 0.36% while the fee on Coinbse for bank transfers and debit cards are relatively high. However, it’s not the fault of the exchange but the charges by card companies itself. Moreover, comfortability has its own price. You can expect an exchange to provide you with such amazing services without paying for it.
So now you’ve seen the differences between Kraken vs Coinbase. Which exchange is good at what and lacks at what. We hope you’ve got to a decision and ready to trade. If not and in case if you are still confused, we suggest you check out our guide about the top cryptocurrency exchanges worldwide. Compare all the aspects of the top crypto exchanges and take your time in choosing the best cryptocurrency exchange for yourself.
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