January 20

Kraken VS Coinbase – Which Crypto Exchange Is Better?

0  comments

Both Coinbase and Kraken are big exchanges in the cryptocurrency world, both are US based and and both have huge market share. They also both are recommended in our top 5 exchanges for US customers. We have compared these two brokers in four main categories:

Some key details when comparing Coinbase to Kraken

Feature

Kraken

Coinbase

Supported Cryptocurrencies

BTC, ETH, XRP, BCH, EOS, LTC, ADA, XLM, BAT, ETC & 40+ more

ATOM, BAT, BTC, BCH, XRP, DAI, DASH, EOS, ETH, ETC & 20+ more

Supported fiat

USD, EUR, GBP, JPY, CAD, CHF, AUD

USD, EUR, GBP, CAD, MXN, HRK, CZK, DKK, CLP, BGN & 10+ more

Mobile app available

Yes

Yes

Deposit Methods

Bank transfer (ACH),Credit card,Debit card,Bank transfer (SEPA),Wire transfer 

Bank transfer, Cryptocurrency, SWIFT, Wire transfer, Osko, SEPA

Main location

San Francisco, USA

San Francisco, USA

Supported Pairs

138

15

Web Address

Fees (when buying crypto assets from fiat currencies)

Kraken: Kraken charges a fee of $5 USD when you deposit your fiat currency on their platform. This is unlike most of their competitors who charge a percentage based fee. This is great for large depositors.

Coinbase: For a bank transfers coinbase charge 1.49%, for debit or credit cards this fee increases to 3.99%. However if you are able to do an ACH trasfer then you get charged no fees.

Fee Type

Kraken

Coinbase

Bank Trasnfer

Flat $5 fee

1.49%

Debit/Credit Cards

Flat $5 fee

3.99%

ACH Transfer

Flat $5 fee

Free

Winner: Depends on the amount you want to deposit, if you want to deposit less than $250 then I recommend Coinbase, for larger amounts Kraken would be best, you will get better long term value.

User interface (ease of use)

Header

Kraken

Coinbase

Signing up score

9.5

9.5

Buying Crypto score

8.5

9.5

Winner: For beginners, Coinbase definitely wins, they have strategically made the process as easy as possible from start to finish. However if you're experienced in the crypto industry you might find it too basic and slow and Kraken offer some more sophisticated options. So for beginners choose Coinbase, for experienced traders use Kraken.

Security

Both exchanges score very highly in this category, in the ICO ratings security Audit they ranked Kraken and number 1 most secure exchange with an over all score of A and Coinbase Pro at A-. Here is the difference security aspects they looked at:

Security Feature

Kraken

Coinbase

User Account Security

4/4

4/4

Registrar and Domain Security

3.5/4

2.5/4

Web Security

9/10

8/10

DoS attack protection

1/1

1/1

Score

A

A-

Its worth noting that both exchanges keep 95%+ of their assets in air-gapped cold storage.

Winner: Kraken edges ahead in security features but Coinbase provides FDIC-backed insurance for USD balances up to $250,000 so if you have a balance of less than that with Coinbase you're totally safe (for me, this is more important than security features). So if your investments are below quarter of a million then I suggest Coinbase, if you're going for more than that, choose Kraken.

Trading Fees

These are different from the fees covered earlier, those fees are just for depositing your money into the platform, these are the fees you will incur every time you place a trade.

Kraken: Typically platforms inside the US have higher trading fees then ones from outside but Kraken have done well here and stayed aligned with the world average.

As you can see the max is 0.26%.

Coinbase Pro: Coinbase has a much large fee structure:

Coinbase fees start at 0.50%, this is pretty high compared to Kraken.

Winner: Kraken is the clear winner when it comes to trading fees, Coinbase Pro does not compete here.

Overall winner of Coinbase vs Kraken?

The winner is Kraken

  • Low fiat to crypto fees
  • Rated #1 secure exchange in the world
  • Low trading fees

It was neck and neck until the end but Kraken pulled ahead in the trading fees section and that gives them the victory. Despite Coinbase having expensive trading fees they still offer a great service to their customers and are not to be written off, I still recommend them to beginners due to their ease of use. To read more about each of these exchanges I have written and in depth look at each of their offerings in my Kraken review article and my Coinbase review breakdown.

To read our privacy policy click on this page.


Tags


You may also like

How to buy bitcoin in Australia in 2021

Kraken vs Gemini | A Comparison of these Crypto Exchanges

Leave a Reply

Your email address will not be published. Required fields are marked *

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}