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Cryptocurrency trading is something that’s both popular and exciting. Because the crypto market is far more volatile than the traditional stock market or even fiat currencies, there’s the potential to earn a lot of money quickly. If you’re choosing a crypto trading platform, you may be comparing Kraken vs. Coinbase before you make your first crypto trade.
Choosing the right cryptocurrency exchange is essential. Things like fees, available cryptocurrencies, and other features may all play into your decision. Some exchanges charge more than others and offer advanced trading features, and some are transparent about their fees while others aren’t. The best way to make sure you’re getting value for your money is to consider all options along with your personal preferences and risk tolerance.
In this review, we’ll compare Coinbase vs. Kraken to help you make an informed decision about which crypto exchange is best for you.
Pro Tip:
Sign up for Coinbase One Today and Receive $50 in Free BTC after your First Trade!
Kraken vs Coinbase – Overview
To compare Coinbase vs Kraken, let’s start with a quick overview of each, so you can understand what they offer.
Kraken
Kraken is a United States-based cryptocurrency exchange that’s headquartered in San Francisco. It got its start in 2011 and is one of the oldest crypto exchanges in the world.
In 2014, Kraken became the first Bitcoin exchange to be listed on Bloomberg Terminal. As of 2024, the company is worth more than $2 billion.
Traders can buy and sell 311 cryptocurrencies on Kraken as of the time we’re writing this review. Some of the features that set Kraken apart include 24/7 customer service, state-of-the-art security, margin trading, and advanced analytics to help users utilize advanced trading features.
Coinbase
Coinbase got its start in 2012 and is a publicly-traded company. Like Kraken, it’s one of the older crypto trading platforms.
Coinbase is larger than Kraken with a market cap of just over $78 billion. The company offers users the ability to buy, trade or convert more than 240 digital assets and 300 trading pairs.
Coinbase’s unique features include state-of-the-art security with insurance to protect some of users’ assets, cold storage, cryptocurrency staking, and free sending of crypto assets between Coinbase users.
Kraken vs Coinbase – Trading and Withdrawal Fees
Every crypto trading platform charges fees, so here’s our take on both Coinbase and Kraken fees.
Kraken Fees
Kraken charges fees for a variety of activities, including trading and withdrawal fees. Here’s how they break down.
Transaction fees range from 0.0001% up to 0.40% depending on the asset being traded and the amount of the transaction
Margin fees: 0.02%
ACH and CBIT withdrawals are free
Wire withdrawal fees range from $4 to $35
There may be fees charged for some coins that aren’t charged for others. You can get a complete overview of Kraken’s fees on their fee schedule page, and that may be helpful when deciding which platform to use.
Coinbase Fees
Now, let’s look at Coinbase vs Kraken cryptocurrency exchanges and fees. Here are some of the key fees charged by Coinbase.
Transaction fees vary based on transaction amount, location, and other factors and are disclosed before the transaction is complete; most are between 0.05% and 0.6%
35% commission for staking
ACH withdrawals are free
Wire withdrawal fee is $15
Coinbase wins in our comparison of Kraken vs Coinbase withdrawal fees, since its wire transfers are significantly less expensive overall.
We would like it if Coinbase had more transparency about its trading fees, but both Kraken and Coinbase have complex fee structures. The complexity is baked into crypto trading since there are so many different assets to trade.
Pro Tip:
Sign up for Coinbase One Today and Receive $50 in Free BTC after your First Trade!
Kraken vs Coinbase – Features
The features offered by Kraken and Coinbase illustrate some important differences between the two platforms.
Read the next section to learn about additional features that come with premium subscriptions. We feel that while Kraken has higher maximums for withdrawals and more room for possible complex trading strategies, Coinbase has more trading options, including coins and trading pairs, and has purchased insurance to protect users’ assets, making it the more feature-rich choice.
Kraken Pro vs Coinbase Advanced Trade
Kraken Pro and Coinbase Advanced Trade are elevated versions of each platform’s basic model.
Kraken Pro is not a premium subscription. It doesn’t cost anything to become a Pro user, but there are some security hoops to jump through. For example, you’ll need to enable 2FA and provide a photo ID. It may take up to 3 days to be approved as a Kraken Pro user.
The primary benefits of becoming a Pro user are that you’ll qualify for higher daily transaction and withdrawal maximums and lower trading fees.
Coinbase Advanced Trade is like Kraken Pro in that there is no subscription fee and users can take advantage of lower rates. Both use a maker-taker model. Coinbase Advanced offers 0% fees for 22 stable pairs.
Advanced Trade users who transfer assets from another platform can provide proof of their trading volume to qualify for 0% fees on most trades. The one downside here is that you’ll need $500,000 in monthly trading volume to qualify for the lowest rates, something most people outside of advanced traders may have lying around in order to achieve lower fees.
We should add here that Coinbase also offers Coinbase One, a premium service that costs $29.99 per month and offers boosted staking rewards, priority support, and 0% trading fees.
Coinbase vs Kraken: Which Exchange is Better for You?
When comparing Kraken vs Coinbase, which cryptocurrency exchange is better for you? We believe that the simple user interface on Coinbase, plus the higher number of coins available for trading and the insurance to protect traders, makes it the best choice for beginners that are looking for alternative investments to traditional fiat currencies.
Advanced traders may prefer the higher daily trading, margin trading, and withdrawal limits they’ll find on Kraken.
Both platforms offer a lot in the way of user security, trading options, customer support, and relatively low trading costs. Both companies have good customer service. We would give Coinbase a slight edge based on its user interface.
Pro Tip:
Sign up for Coinbase One Today and Receive $50 in Free BTC after your First Trade!
Conclusion
The key differences between Kraken and Coinbase are in the user experience and in the number of cryptocurrencies available to trade. We would give Coinbase the edge on UX because its platform is beginner-friendly and easy to navigate. Kraken offers more crypto coins, but both offer a huge selection.
While both Kraken and Coinbase are regulated by many institutions such as FinCen and OFAC, it’s important that they largely adhere to local policies and are not registered with the SEC.
As we stated above, we’d recommend a Coinbase wallet for beginners and advanced investors may prefer Kraken for its high trading maximums, advanced features, and sometimes lower fees.
To compare Coinbase to another popular crypto platform, read ROBINHOOD VS COINBASE or ETORO VS COINBASE!
FAQs
There are a lot of variables and Kraken is more transparent with its fees. Based on our experience, Kraken’s fees are slightly lower, particularly at high volumes.
Coinbase has a simple and intuitive interface that we think outperforms Kraken’s more complicated interface.
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