Kraken and Coinbase are two of the most high-profile crypto exchange platforms in the world. Each allows you to buy various currencies using fiat money (U.S. dollars or Euro for example) and is geared toward experienced and novice investors. Both high- and low-volume traders enjoy Kraken’s low-fee services and high trading limits. New investors based in the United States appreciate the convenience of Coinbase’s digital wallet and funding options. Unlike Kraken, Coinbase caters to U.S.-based traders, and you can learn more about this platform by reading our in-depth Coinbase review. In this article, we weigh the pros and cons of Kraken and Coinbase and explore their distinctive features, security, fees, ease of use, and more. While both platforms offer appealing elements like mobile apps and 24/7 customer service, each has advantages that will appeal to different investors. Kraken offers flat purchasing fees, which is an excellent benefit for lower-volume traders. Coinbase provides easy funding options like PayPal and debit cards, ideal for U.S. traders. On Nov. 21, 2023, the Securities and Exchange Commission (SEC) sued Kraken for allegedly violating multiple infractions. Kraken is accused of commingling customer funds with company funds and operating an unregistered securities exchange, clearing agency, dealer, and broker. Both allegations may impact the operation of the cryptocurrency exchange and its customers' investments. To go with the lawsuit, on Feb. 9, 2023, Kraken agreed to pay $30 million in fines and closed its staking operation to settle with the SEC. However, Kraken is allowed to continue its staking process through its subsidiary for non-U.S. clients. Pros Secure and reliable Low fees High deposit and withdrawal limits Accepts some fiat currency Cons Many options not available to U.S. users Long verification times Possibly challenging user interface Pros Excellent user experience Easy funding options Fiat currencies accepted Cons Not available in all countries Some coins aren’t accepted High fees Kraken vs. Coinbase Kraken vs. Coinbase At a Glance Features Currencies Security Fees Ease of Use Final Verdict Methodology Each cryptocurrency exchange caters to industry investors and first-timers alike. Still, Kraken offers features ideal for worldwide investors or U.S. traders who don’t mind giving up convenience for lower fees and additional services. Coinbase’s digital options facilitate processes for U.S. investors. With both Kraken and Coinbase, you’ll get: Kraken offers Cryptowatch, a trading terminal that analyzes and generates data on over 2,000 cryptocurrency markets. The free service allows traders to monitor price movements and market trends across various platforms and set price alerts. Investors can upgrade this service by paying one credit per alert for more timely notice. Coinbase has an added feature, as well. They provide users with a hot wallet they can use to deposit, store, and withdraw currency. You don’t need to be a Coinbase user to use the wallet, making it ideal for traders that transfer between various fiat currencies and cryptocurrencies. Kraken offers clients a digital wallet to store coins between purchases but does not provide a personal wallet service. Both exchanges support USD, EUR, CAD, AUD, GBP, CHF, and JPY fiat currencies. Coinbase has over 120 cryptocurrencies available for trade, while Kraken has 97. Each provider offers different choices, so users looking for something specific can search both to find what they want. For instance, Kraken offers Flow (FLOW) and Icon (ICX). You can trade Filecoin (FIL) and Yearn Finance (YFI) on Coinbase but not Tron (TRX) or Siacoin (SC). In addition to Bitcoin, the most popular cryptocurrencies supported by Kraken and Coinbase include: Security measures are crucial when considering which exchange to use. Both platforms have solid security track records, and neither has had any significant breaches. Kraken stores 95% of its assets in guarded air-gapped cold storage and has strict surveillance across the entire platform and multiple checkpoints throughout the signup process. Coinbase keeps 98% of deposits in offline, geographically distributed cold storage. The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 of an individual’s USD cash balances, a plus for U.S. traders. On the user side, Kraken and Coinbase offer these multi-layered security features: One significant divide between Kraken and Coinbase comes in the form of transaction fee structures. Kraken's maker-taker fees are amongst the lowest in the industry. Coinbase's maker-taker fees are nearly double, maxing out at 0.50% vs. Kraken's 0.26%. Kraken calculates transaction fees according to the volume you trade in a 30-day rolling period. The fee schedule includes: Coinbase's maker-taker schedule is considerably more expensive topping out at 0.50%. For example, a $1000 trade would cost $5 dollars with Coinbase. The same trade would cost $2.60 with Kraken, charged at 0.26%. The user experience for Kraken and Coinbase ranks high. They both provide a reliable experience on desktops and mobile devices. Kraken’s stringent security measures are a bonus for large-sum investors, but the added precautions can be trying for users who want to start trading quickly. Coinbase offers a quick startup process and keeps trading features and funding options simple, allowing inexperienced investors to trade right away. Coinbase enables new users to start trading with only a phone number verification. With added verification steps users can unlock higher account levels and limits. While both Coinbase and Kraken are highly trusted cryptocurrency exchange platforms, Coinbase's benefits are more specific to U.S. traders, while Kraken is the best for international traders overall. It has some of the lowest fees in the industry and offers robust security for users. Additionally, the platform offers support for customers in 190 countries, whereas Coinbase is available in a little more than 100. However, as a result of a 2023 settlement with the U.S. Securities and Exchange Commission, Kraken is ending staking services to U.S. clients. Therefore, U.S. traders will need to look to other platforms, such as Coinbase, for those services. We compared Kraken and Coinbase side-by-side to uncover the overall cost of trading on the platform, including deposit and withdrawal fees, while considering supported fiat currencies. For both platforms, we looked at multi-layer security options and past incidences of security breaches. We also reviewed transaction types and how options differ for people living in different locations. Furthermore, we explored the quantity and popularity of supported cryptocurrencies while giving points for advanced features, such as offering a digital wallet or market watch tools. Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Kraken. "Kraken to end on-chain staking services for U.S. clients." Kraken. "Margin Trading." Coinbase. "Margin Trading Is Now Available on Coinbase Pro." Coinbase. "A Behind the Scenes Look at the Biggest (and Quietest) Crypto Transfer on Record." Coinbase. "How Is Coinbase Insured?" Federal Deposit Insurance Corporation. "Deposit Insurance FAQs." Kraken. "Fee Schedule."Kraken
Coinbase
At a Glance
Kraken Coinbase Main platform features Low fees, strong security protections, and more currency options Easy to use for beginners and can use PayPal to withdraw or sell Fees 0% to 0.26% per trade, 3.75% + €0.25 for credit card purchases, and 1.7% + $0.10 for online banking processing 0.50% per trade, 3.99% for credit card purchases, and 1.49% for Coinbase wallet or bank account purchases Number of cryptocurrencies supported 97 120+ Security features 2FA withdrawal email confirmation, air-gapped cold storage, strict surveillance, precise API key permission control, SSL encryption Two-step verification, biometric fingerprint logins, insurance in the event Coinbase is breached, FDIC-insured USD balances, AES-256 encryption for digital wallets Types of transactions supported Buy, sell, send, receive, exchange, futures trading, and Cryptowatch Buy, sell, send, receive, and exchange Maximum deposit and withdrawal amount $100,000 $25,000 Kraken vs. Coinbase: Features
Kraken vs. Coinbase: Currencies
Kraken vs. Coinbase: Security
Kraken vs. Coinbase: Fees
Kraken Coinbase Bank account $0 to $10 1.49% Wallet Free 1.49% Debit/credit cards 3.75% + €0.25 3.99% ACH transfer 0.50% + 0.9% to 1.5% Free Wire transfer Free to $10 deposit, $4 to $35 withdrawal $10 deposit, $25 withdrawal Crypto conversion Volume based 0.50% Purchases 0% to 0.26% 0% to 0.50% Trades 0% to 0.26% based on rolling 30-day volume 0% to 0.50% Extra fees None May Apply Kraken vs. Coinbase: Ease of Use
Final Verdict
Methodology
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FAQs
Kraken vs. Coinbase: Which Should You Choose? ›
Final Verdict. While both Coinbase and Kraken are highly trusted cryptocurrency exchange platforms, Coinbase's benefits are more specific to U.S. traders, while Kraken is the best for international traders overall.
What is safer, Kraken or Coinbase? ›Kraken is best suited for advanced traders looking for a robust and feature-rich trading environment. At the same time, Coinbase is ideal for general retail investors seeking a secure, compliant, and user-friendly platform.
Should you use Kraken? ›Overall, Kraken is an excellent choice for cryptocurrency trading and investing. Make sure you understand all costs and risks involved and take steps to secure your account with two-factor authentication.
Does Kraken charge a withdrawal fee? ›Kraken withdrawal fees for fiat usually range from free to 35 worth of the fiat currency in question, while crypto withdrawal fees all depend on the crypto asset you want to withdraw; Kraken trading fees are usually based on the maker / taker fee structure and differ depending on the trading method.
Is Kraken risky? ›Is Kraken Safe to Buy Crypto? Kraken is a regulated exchange in the U.S. and other countries, so it is safer to buy crypto using its services than it is on non-regulated exchanges. Still, there are no 100% safe crypto services.
Is it safe to leave crypto on Kraken? ›Established in 2013, Kraken offers strong security and protection for your crypto investments. Cold wallets: 95 percent of Kraken's crypto funds are stored in cold wallets, safe and out of reach of hackers. Server security: Kraken servers are in cages, physically monitored by security cameras and guards 24/7.
What is the number 1 app to buy crypto? ›Coinbase is the world's most trusted cryptocurrency exchange to securely buy, sell, trade, store, and stake crypto.
What is the best crypto buying platform for beginners? ›Coinbase stands out as an exemplary entry point for beginners in crypto. It simplifies the process to buy or sell digital assets through an intuitive interface. The platform is designed with the beginner in mind, offering a secure environment for investing.
What is the disadvantage of Kraken? ›Kraken's Disadvantages
For traders choosing to use Instant Buy, the platform charges 1.5% on all trading pairs and 0.9% if the user wants to trade stablecoins. Investors should tread cautiously with even simple crypto trading on Kraken or any other platform.
User security features and education: With two-factor authentication, secure emails, real-time monitoring, and security locks, Kraken does a lot to help users keep their accounts secure. On top of which, it supplements its security by teaching users how to protect their accounts.
Is Kraken legit in the USA? ›
Final Verdict
While both Coinbase and Kraken are highly trusted cryptocurrency exchange platforms, Coinbase's benefits are more specific to U.S. traders, while Kraken is the best for international traders overall.
Kraken vs Coinbase cryptocurrency exchange overall score comparison reveals that Kraken has a higher overall score of 9.6, while Coinbase gathered an overall score of 9.1. If we look at the ease of use, it's clear that in this Kraken vs Coinbase comparison, Kraken has better & smoother user experience than Coinbase.
Why is it so hard to withdraw from Kraken? ›You may receive an error message or not be able to withdraw for the following reasons: The amount is below the minimum withdrawal amount listed. This amount cannot exceed your account balance. Invalid Password / Permission Denied error.
Why is my Kraken fee so high? ›Fees may differ depending on the selected payment method (e.g. account balance, card, ACH). Spreads may be determined based on a combination of factors, including market conditions, asset, order size, type of trade, participation in Kraken's VIP program, and trading and custodial activity.
What is the safest crypto trading platform? ›According to CER. live, some of the most secure crypto exchanges include Crypto.com, Kraken, Binance, and Coinbase.
What is the safest platform to store cryptocurrency? ›Arguably, the safest way to store crypto is a hardware wallet. But as Marie explains, the effectiveness of cold storage depends on its careful use. “Hardware wallets are physical devices that securely store the private keys to your cryptocurrency addresses offline.
Is Kraken allowed in the USA? ›We welcome clients from all over the world, with a few specific exceptions due to international and local financial & cryptocurrency regulations. Depending on your verified residency, you may have certain restrictions on your account. Refer to our Terms of Service for complete information on our eligibility criteria.