Kraken vs. Coinbase (2024)

Our comparison of Kraken vs. Coinbase offers a deep dive into the pros, cons and features of these two leading U.S. cryptocurrency exchanges.

Both platforms offer a rich set of features. Kraken offers lower fees for pro traders but has some geographic restrictions within the U.S. Coinbase’s platform is easiest to use for new investors, but trading fees are generally higher.

Kraken vs. Coinbase: Key Similarities

There are more than a few key similarities between Kraken and Coinbase.

Both exchanges charge higher fees than many of their competitors. Each platform supports a basic trading platform designed for novices, charging higher fees than their trading interface for experienced traders.

Kraken Pro offers advanced features, and Coinbase’s comparable product, Coinbase Advanced Trade, supports a bevy of sophisticated trading tools.

While trading is cheaper on the pro versions of Kraken and Coinbase, users seeking the lowest-fee crypto exchange are better off checking out Binance.US.

When it comes to customer support, both Kraken and Coinbase shine. The two exchanges offer 24/7 live chat and phone support, an important option for cryptocurrency traders of all experience levels.

Email, search and a library of help topics are available on each platform. Coinbase and Kraken also comply with the KYC, or Know Your Customer requirements. Procedures within the financial services industry that help to verify the customer and help tackle money laundering.

Advanced Trading Platform

If you’re interested in more serious crypto investing, Kraken and Coinbase each offer advanced trading platforms. These platforms go far beyond the capabilities of basic exchanges.

Through Kraken Pro, you can access candlestick charts, more research, and a wider range of trade order types like take profit and stop loss.

Coinbase Advanced Trade also offers advanced charting capabilities with more information as well as more order types.

Staking

If you are holding cryptocurrency, staking is a way to earn money off these coins. Certain cryptocurrencies, like Ethereum (ETH) and Cardano (ADA), rely on investors to temporarily lock up their coins to help run their blockchains through a system called proof-of-stake. In exchange, these investors get a percentage of their stack back in crypto as a reward.

Coinbase and Kraken both allow staking, with similar options available and reward rates. You can compare the two based on which coin you’d like to stake to see which one suits you best in terms of coin availability and annual percentage yield (APY).

Customer Support

Kraken and Coinbase offer excellent customer service. They each have a 24/7 phone line, live chat, and email support.

Geographical Restrictions

Kraken and Coinbase are not available nationwide. Kraken is unavailable in New York or Washington, and Coinbase is unavailable in Hawaii.

Kraken vs. Coinbase: Differences

As you compare Kraken and Coinbase, keep in mind these two companies have some considerable differences in their users.

Trading Fees

The basic Coinbase platform has a nebulous fee structure with “spread fees.” But it roughly equates to about 0.5% of each transaction to buy and sell crypto.

Fees go down as your monthly trading volume goes up. Coinbase Advanced Trade starts by charging maker and taker fees of 0.6% and 0.4%, respectively, which also go down as your trading volume goes up.

With Kraken’s “Instant Buy,” which allows you to buy crypto quickly, the exchange charges a fee of 0.9% for stablecoins and 1.5% for other cryptos. If you use a credit or debit card, additional fees apply.

If you opt for Kraken Pro, the fees are lower. Kraken charges a 0.16% maker fee and a 0.26% taker fee for trades of $50,000 or less based on your activity within the last 30 days.

If saving money on trading fees is a top priority, you could potentially get an even better deal working with Binance.US. Their fees are even lower than the best options at Kraken and Coinbase.

Security

Crypto platforms are notorious for suffering from spectacular hacking incidents, making security a paramount concern when deciding which crypto exchange to choose.

Coinbase offers two-factor authentication for security. While Coinbase has beefed up its security protocols, it has been subject to several hacks. In 2021, hackers stole from at least 6,000 Coinbase customers. Unauthorized parties exposed a flaw in the company’s account recovery process.

While Kraken has never had a major hack, some users report losses due to hacks on online forums. At Kraken, servers are in secure cages under 24/7 surveillance by armed guards and video monitors. Two-factor authentication is standard, as is encrypted data transfer.

User Experience

Coinbase offers a seamless user experience, with a speedy sign-up process and account linking through Plaid’s data transfer network.

The search bar enables easy access to all platform features. Buying and selling on the platform is straightforward, and automatic cryptocurrency purchases can also be set up.

Kraken has a more complex user experience. On the plus side, the starter verification level is quick and easy, although this client will pay higher trading fees for the barebones version. Verification for advanced levels can take up to several days.

Other Crypto Features

Coinbase has several other crypto-related features not found with Kraken. First, Coinbase offers its own crypto wallet, which lets you take coins off the exchange for storage and transfer them to others. They also have a crypto-rewards debit card.

Through this card, you can spend both cash and crypto. Each purchase earns you free crypto back. Lastly, Coinbase runs its own non-fungible token (NFT) marketplace. Kraken does not offer any of these, though they are in the process of creating their own NFT marketplace.

Educational Materials

Coinbase has better educational materials than Kraken. It offers a thorough library of articles, videos, and courses. Even better, if you complete the Coinbase course and pass a quiz, you’ll earn free crypto.

Kraken has decent educational materials. But it’s not as comprehensive as Coinbase. Kraken also doesn’t offer courses that help you earn free crypto.

Who Should Pick Kraken?

Kraken’s stellar security features, a wide range of coins, and advanced margin and futures trading features make it a good pick for advanced cryptocurrency traders. Sophisticated traders using Kraken Pro will benefit from the lower rates than its “Instant Buy” product.

Crypto traders with larger portfolios will appreciate Kraken’s staking opportunities as a way to make money from specific coins. Staking, of course, is also available at Coinbase.

Disadvantages at Kraken begin with their vetting process, which can be confusing, along with the complex fee structures. Beginners will pay higher fees when they start with the basic crypto trading platform.

Additional fees add up, so cost-conscious traders might consider lower-cost alternatives. New users might prefer a simpler platform with a more complex user experience than Coinbase.

Regardless of your chosen platform, understand that this is a speculative asset with large price swings. Margin magnifies losses, and you shouldn’t invest any money you cannot afford to lose.

Kraken Pros:

• Top-notch security
• Futures trading
• A robust choice of cryptocurrencies

Kraken Cons:

• Complex user experience
• No crypto wallet
• Fees are relatively high

Who Should Pick Coinbase?

Coinbase is a better choice for beginner crypto investors. The basic exchange charges much lower fees than what you would pay using Kraken’s “Instant Buy.”

Coinbase also offers excellent educational materials to help you learn about the crypto market, including courses that earn free crypto as you complete them.

Coinbase is also better if you plan on spending your crypto or transferring it to others versus only using crypto as an investment. Coinbase has a highly-rated crypto wallet as well as a crypto-rewards debit card, whereas Kraken focuses on its investment platform.

While advanced investors may also benefit from using Coinbase because of their Coinbase Advanced Trade product, Kraken offers more for these users.

Coinbase Pros:

• Large cryptocurrency selection
• Training courses earn crypto rewards
• Crypto wallet and rewards-based debit card

Coinbase Cons:

• Trading fees are high
• Suffered a major account hack
• No margin trading