This guide will help you understand the differences between Kraken and Coinbase. It is important to know the pros and cons of both exchanges so that you can make an informed decision about which one is best for you.
The kraken vs coinbase pro is a comparison guide that will help you decide which cryptocurrency exchange to use in 2021.
In their own way, both Kraken and Coinbase are great exchanges. While their exchange features, currencies provided, and deposit methods cater to totally different markets, let’s compare Kraken vs Coinbase to see which one is most convenient for you.
They also operate at opposite ends of the spectrum within the ecosystem, such as beginner vs professional, investor versus trader, and ETF versus futures.
Because of their status as exchanges in the United States, both of these exchanges are the pinnacle of trustworthy third parties.
Both Kraken and Coinbase have very strict verification procedures that go against the crypto ethos’s goal. For US residents, Coinbase offers FDIC protection while Kraken offers margin trading.
Comparison between Kraken and Coinbase
The first step in comparing Kraken vs Coinbase is to get to know each other, so let’s take a deeper look at each to learn more about the differences.
What exactly is Kraken?
Jesse Powell established Kraken, a cryptocurrency exchange, in July 2011. Jesse Powell had worked at Mt. Gox and believed he could do better, which he did, since Kraken has never been hacked since its start. The headquarters of Kraken are in San Francisco, California.
Trading data from Kraken was the first to be presented on a Bloomberg Terminal. Kraken is also the Tokyo Government’s designated Trustee and the Fidor Bank, which is regulated by the BaFin in Germany.
Kraken was one of the first exchanges to provide leveraged margin and to pass a cryptographically verified proof-of-reserves audit.
Blockchain Capital, Digital Currency Group, Hummingbird Ventures, Money Partners Group, and SBI Investment are among Kraken’s investors.
What exactly is Coinbase?
Coinbase is a cryptocurrency exchange established by Brian Armstrong and Fred Ehrsam in June 2012. Coinbase set out to challenge Mt. Gox’s 30-million-user supremacy, and they succeeded. The headquarters of Coinbase are in San Francisco, California.
Coinbase has completed a significant amount of regulatory compliance in order to register as a Money Services Business with FinCEN, and it complies with the Bank Secrecy Act, the USA Patriot Act, and other state money transfer rules and regulations.
Coinbase’s online cryptocurrency is guaranteed by a Lloyd’s of London syndicate. Insurance provided by the Federal Deposit Insurance Corporation covers USD wallet holdings in the United States up to $250,000.
Fred Wilson, Andreessen Horowitz, Union Square Ventures (USV), Ribbit Capital, Draper Fisher Jurvetson (DFJ), the New York Stock Exchange (NYSE), USAA, and a number of banks are among Coinbase’s investors.
Reviews of Kraken and Coinbase
Review of the Kraken
By design, Kraken is difficult to operate. The security measures that have been put in to compel user security have caused some initial misunderstanding.
Kraken is well-known for failing to react to tickets, user complaints, and other problems. They’ve put in a lot of effort, and their latest statistics indicate that they’ve made progress.
If the bitcoin market is in a downturn, you may short it on Kraken. This, in my view, is the single most essential characteristic required to consistently trade a market.
Pros of the Kraken
- Low fees
- There are a lot of cryptocurrencies and trading pairs to choose from.
- The EUR markets have the most liquidity.
- It has never been hacked.
- Trading on margin
Cons of the Kraken
- It’s tough to get used to the user interface.
- The verification process takes longer.
- When the market is volatile, there are problems with the servers.
Review of Coinbase
Coinbase is a very user-friendly platform. Mom and Pop investors may now diversify their assets with ease thanks to this design.
Coinbase provides phone and email assistance. Right now, phone support is a dying customer. This feature makes it simple for both young and elderly individuals to trust the service. The notion of conversing with a person rather than a machine relaxes people, and Coinbase has nailed it.
For some investors, FDIC protection is essential, but not being allowed to short is a reasonable trade-off. When you go to sleep every night knowing that hackers are probing everything searching for a vulnerability, knowing that your money are still yours and no third party has the authority to claim them is just wonderful.
Pros of Coinbase
- Purchase now while funds are available.
- Bank transfers, credit cards, and debit cards are all acceptable methods of payment.
- For beginners, it’s simple to use.
- 98 percent of cold storage is done offsite.
- Complies with a number of federal rules in the United States.
- FDIC insurance
Cons of Coinbase
- Fees that be too high
- Due to human mistake, user wallets have security problems.
- Monitoring and reporting to different government entities in the United States
Fees for Kraken
Kraken has a reputation for being a less expensive exchange than Coinbase. It all comes down to how you utilize the exchange. Users of Kraken transact many times each month, on average, initiating and completing numerous transactions in different currencies. The trading volume strategy is very profitable.
To trade successfully, Kraken costs must be examined and understood. For a skilled trader or investor, the levels available may make all the difference in the monthly bottom line. When trading expenses are not taken into account, they may have a huge impact on a user’s trading balance.
To do an international bank transaction, you may need to go into your bank, depending on your region. This means they’ll interrogate you about why you’re doing it, where the money came from, and levy taxes to get the money back into your account.
Fees on Coinbase
When compared to Kraken, Coinbase has the reputation of being the more costly exchange. This is summed up by the kind of exchange Coinbase provides: straightforward, user-friendly, and tailored to Mom and Pop crypto aficionados.
This exchange’s widespread appeal as a first point of contact attracts a large number of buy-and-hold investors. Their users may buy once a month and sell just as often. Coinbase’s bottom line benefits greatly from this user-based volume strategy.
To invest effectively, Coinbase costs, like Kraken fees, must be understood. These costs are set in stone and may rapidly deplete your operating capital. The tiny dealer or investor must carefully examine every deals.
Coinbase costs are high because they accept a variety of payment methods, including crypto debit cards, credit cards, and wire transfers. International banking is not inexpensive, but it is quite successful in regulating and securing lawful transactions.
While international bank transfers may be inconvenient, certain sacrifices must be made for the sake of safety and security.
Trust and Safety
Is Kraken a dangerous creature?
Kraken is the safest exchange thus far, having never been hacked. This isn’t by chance; it’s by design. Engineers at Kraken have taken the effort to create a system that works and is, for the most part, useful.
Automatic signing out is inconvenient, but it is a security feature that reflects how we should handle logged-in sites.
2FA, or two-factor authentication, is another fantastic feature. To utilize the service, you’ll need two factors/things. In this situation, you must first log in as usual. Second, for the site in question, you give a code produced by Google Authenticator on your phone. Each code is created in real-time for your login and the site; outdated codes will not work, and random codes will not work either.
The Global Settings Lock is another fantastic feature. IP addresses that aren’t connected with the account are blocked by this function.
This may be spoofed/made to seem as though a different address is being used than the real originating address, allowing someone in the United States to appear to be computing from Austria over the internet. This would have to be a targeted assault, and most likely the fault of the user. This has nothing to do with Kraken at all.
Is Coinbase a secure platform?
While some Coinbase users have been compromised, the platform itself is safe and secure. They have a huge pool, and 98% of their clients’ bitcoin is stored in cold storage wallets. These offline wallets in cold storage are stored in secure vaults and safety deposit boxes all around the globe.
Coinbase employs two-factor authentication through SMS. Coinbase will send you a text message with a phone number that you must enter once you’ve entered your login information. This is secure until your personal information is discovered on the internet and you disclose your crypto hobbies. Google Authenticator is another option.
Conclusion: Kraken vs. Coinbase
When comparing Kraken and Coinbase, it’s important to remember that they cater to two very distinct audiences. Eating a steak with a knife and fork is an analogy.
Investors (fork) and traders (knife) approach the purchase of cryptocurrency in different ways. Both must carry out the identical cryptocurrency purchasing transaction (eating the steak).
Kraken is for the more experienced trader who wants to engage in active trading. As a result, it offers more trading pairs and lower costs, allowing for more purchases and sells. You may also short (sell early and purchase later) cryptocurrencies on Kraken, which helps to keep the market balanced.
Coinbase is a lot easier to utilize. Coinbase offers a fantastic tool that enables customers to buy cryptocurrency while waiting for a bank transfer to clear. Coinbase was created to allow conventional investors to participate in cryptocurrency, and they did an excellent job of it, driving the price up.
Finally, the answer to the question, “Which is better: Kraken or Coinbase?” relies on the user’s skill level and the investor’s goals.
Also see: How to Move Bitcoin from Coinbase to Kraken
The kraken vs coinbase vs binance reddit is a comparison of the three cryptocurrency exchanges. Kraken, Coinbase and Binanace are all popular options for cryptocurrency trading.
Frequently Asked Questions
What is better Kraken or Coinbase?
Kraken is a cryptocurrency exchange and Coinbase is a cryptocurrency wallet.
Is Kraken as safe as Coinbase?
Kraken is a lot safer than Coinbase because it does not allow for people to deposit money without proper identification.
Is Kraken a good crypto exchange?
Kraken is a great crypto exchange, but it is not the best.
- kraken vs coinbase pro fees
- kraken vs coinbase vs binance
- kraken vs kraken pro crypto
- kraken fees
- kraken vs binance