Kraken vs Coinbase

Every novice trader wants to choose a simple and reliable exchange. But advanced players are always looking for more profitable services. Two cryptocurrency giants Coinbase and Kraken are excellent options. Each of them has its advantages.


What criteria should I look for? This article provides a complete guide to the most important differences Kraken vs Coinbase.


Available Cryptocurrencies, Purchases and Trade Comparison


Both Kraken vs Coinbase works with popular coins such as Ethereum.


The cryptocurrencies' list that Kraken gives its traders:


  1. Bitcoin
  2. Cardano
  3. Bitcoin Cash
  4. Bitcoin Satoshi’s Vision
  5. Dash
  6. EOS
  7. Ethereum Classic
  8. Ethereum
  9. Gnosis
  10. Litecoin
  11. Melon
  12. QTUM
  13. Augur
  14. Tether
  15. Stellar Lumens
  16. Monero
  17. XRP
  18. Zcash.


Any cryptocurrency on this exchange may be bought for fiat money.


At Coinbase, the number of coins available is significantly less:


  1. Bitcoin
  2. Ethereum
  3. Litecoin
  4. Bitcoin Cash.


The goal of creating this service was maximum usability. It was developed in the style of PayPal. The platform has a partnership with Dell, Expedia, PayPal. This service also has an official license in the USA. The great traders' deals are subject to income taxes.


To work on the Kraken, a player needs to use currency pairs. To take a cryptocurrency for dollars, euros or another Fiat, clients need:


  1. Create an account.
  2. Enter the specified currency by bank transfer.
  3. Wait 1-5 days until the deposit is transferred to the profile.
  4. Exchange fiat for coins.


As readers can see on the picture, Coinbase allows fixing the price.




In addition, Coinbase simplifies the cryptocurrencies' purchase. One may buy coins with both bank transfers and bank cards.


Shopping with a bank card:


  1. Sign in and link an account.
  2. Then immediately purchase the desired cryptocurrency at the market price.


Limits from a bank card or a bank transfer depend on the trader. Bankcard restrictions are specified by profile age, purchase history. There are several degrees of client authentication. The more checks the trader went, the higher the limit of transactions.


To purchase bigger sums, use a bank transfer. Ranges, in this case, are much higher. But it takes some time to verify the user.




Bank transfer:

  1. Sign in to your profile.
  2. Buy the right coins.
  3. Processing takes several days.


At Coinbase, buyers immediately get a cryptocurrency when paying by bank card. When paying by bank transfer, Coinbase records the price. This feature is very useful if the currency's value is growing rapidly. Until the bank account has been processed, the player can't trade in the purchased coins.


Kraken offers its customer leverage trading. This means people may use borrowed funds. In this way, a user may earn more, but lose more in a failure case.


For example: on the deposit are Bitcoins in the sum of $60. If a gamer uses the leverage of 3:1, then he may take Bitcoins worth $180. Suppose the cryptocurrency price increased by 1.5 times. Now the trader can sell coins worth $216. Net profit is $156.


Another Kraken service is a short position. This is a trade at a lower price. For example, a user deposits coins of $50. Their price drops to $40. Then the trader buys them back at a reduced price. Net profit is $10.


Coinbase does not provide such services. This is just a crypto-brokerage service. Work algorithm:


  1. The user creates an application for the purchase of coins.
  2. Then the platform performs the trade.
  3. The funds fall into the Coinbase wallet.


Customer Support Comparison


Currently, both exchanges provide a quick response to technical support. There are several ways to contact customer service:


  1. During business hours local time by phone.
  2. Create a request (ticket).
  3. By email.
  4. In the online chat.


The term of solving the problem is on average 1-3 days.


Checking new accounts on the Kraken often takes more than 3 days, which users do not like.

Security Comparison


Founder of the Kraken, Jesse Powell worked in the past on the Mt.GOx exchange. It was hacked twice, so Powell took into account past mistakes when creating a new system. It worked because the Kraken was never hacked.


In matters of security, both Coinbase and Kraken use the most reliable security systems in the industry. Since both exchanges are very large, many millions of dollars are kept in their accounts. Which is the secret of their protection?


  1. They keep the company's and users' funds separately.
  2. Most coins are stored in a protected offline cold storage wallet. This storage way secures the assets from possible hacking.
  3. Both sites offer various ways to protect the user's profiles, including 2-factor identification and complex verification of the client’s identity.


Coinbase provides several additional precautions. Cryptocurrency funds are insured by Lloyd's of London syndicate. Balances on wallets are covered by FDIC insurance for up to $ 250,000 (this applies only to US residents).


If a client's profile has been hacked or a gamer has passed the password to a third party, the platforms are not responsible for this.


Fees


You have to analyze fees when choosing a service between Coinbase vs Kraken. The Kraken's undeniable plus is a low commission. In this matter, it is more attractive than Coinbase.


  1. What makes them charge more?
  2. Additional services.


Work with debit cards. Banks for this take their interest. The commission's cost is covered with insurance (for example, against fraudulent payment returns).


Kraken fees vs Coinbase fees


Kraken vs Coinbase exchange rate argues in favor of the first site. Kraken trading fees are commonly less than 0.36%, depending on the currency pair are trading with. Deposit and cash withdrawal fees are also very low. Here is the price list of the site:




Coinbase has higher fees. If someone trade all the time, the service will take a significant part of his profit. This is a simple interface fee.


Buying from a bank card costs 3.99%. Trading operations with Coinbase wallet cost players 1.49%.


The fees even depend on the country when the trader is located. Here is the exact price:




Kraken wallet vs Coinbase


Kraken is an exchange service, not a wallet. The platform provides customers with the opportunity to deposit and withdraw funds. The service uses a corporate wallet for secure storage. Traders can use it in the process of buying and selling currencies. But Kraken doesn't give each player with a personal wallet.


Kraken uses hot wallets and secures cold storage.


What does it mean?


  1. Clients cannot send cryptocurrencies from one Kraken profile to another.
  2. Users must withdraw funds only to the addresses associated with the account. When sending coins to an unauthorized person and returning them, the amount may be lost.
  3. If the trader incorrectly indicated the deposit address, the money may be lost.


Coinbase is the simplest and reliable cryptocurrency wallet:


  1. All client's digital assets in one wallet.
  2. Convenient mobile application.
  3. Decentralized asset storage system.


The site provides absolutely safe storage of customer funds. The secret keys are secured using Secure Enclave and biometric authentication technology.


Should I use Kraken vs Coinbase


This review presents the main criteria for comparing two exchanges. Each of them has its advantages. The choice depends on the experience and goals of each trader.


For experienced players who have a strong investment strategy, Kraken is perfect. The platform allows traders to invest big money and get big profits. The service also offers margin trading using borrowed funds. One of the lowest commissions is another bonus. However, it will be difficult for beginners to understand the interface of the site.


To start trading cryptocurrencies, try Coinbase. This platform has a simple interface and fast customer support. But for the convenience, gamers have to pay a big commission. This service is very fast. Coins are credited to the account instantly.


Conclusion


It is worth noting that both exchanges are very reliable. They were not hacked and their customers did not lose money. The choice is a question of individual comfort. If the trader doesn’t have too much experience, it’s wise to practice at Coinbase, then switch to Kraken.



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