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 our editorial 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." 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." Related Terms What Was FTX? An Overview of the Exchange FTX was the third-largest centralized cryptocurrency exchange. Its founder now faces a lengthy prison sentence for contributing to its bankruptcy. more What Is a Bitcoin Exchange? How It Works, Fees, and Example A Bitcoin exchange is a digital marketplace where traders can buy and sell Bitcoins using different fiat currencies or altcoins. more Hot Wallet: Definition, Types, Examples, and Safety Tips Hot wallets are used to conduct transactions in digital currencies. Learn how they work, if they're secure, and what you can do to secure your cryptocurrency. more Coinbase Commerce: What It Is, How It Works, and Benefits Coinbase Commerce allows merchants to accept multiple cryptocurrency payments from global customers. more What Is a Mobile Wallet? A mobile wallet is an app that stores payment card information and other on a mobile device. more What Is Coinme? Coinme is a digital currency exchange and mobile app that allows you to buy and sell cryptocurrency through ATM kiosks and MoneyGram locations. moreKraken
Coinbase
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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? ›
Both platforms offer a rich set of features.
Safe, Simple, Secure- Sign up for Kraken! Our Take : Kraken is one of the most respected and secure crypto exchanges in the industry. Ranked #1 in terms of security by independent research firm Certified, and ourselves here at the Bureau, Kraken is the only major exchange to never suffer a security exploit.
What is the most trusted platform to buy crypto? ›- Best for Low Fees and Best for Experienced Traders: Kraken.
- Best for Beginners: Coinbase.
- Best Mobile App: Crypto.com.
- Best For Security: Gemini.
- Best for Altcoins: BitMart.
- Best for Bitcoin: Cash App.
- Best Decentralized Exchange: Bisq.
eToro – Overall Best Coinbase Alternative With Transparent Fees And Smart Portfolios. Founded in 2007, eToro has become a leading trading platform for crypto, with over 30 million customers in over 100 countries. It is beginner-friendly, caters to experienced investors, and is currently the best alternative to Coinbase ...
Should I use Kraken or Coinbase? ›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 are the disadvantages of Kraken? ›- Higher fees when not using Kraken Pro: The main Kraken platform charges higher transaction fees than Kraken Pro.
- Some users report losses due to hacks: Some users report a history of costly hacks with little to no support from Kraken.
Not only does Kraken offer safe coin storage, with 95% of deposits held offline in cold storage units spread across the world, but it also promises platform security. Its servers are kept in secure cages under 24/7 surveillance by armed guards and video monitors.
What are the top 3 crypto exchanges? ›As of today, we track 219 crypto exchanges with a total 24h trading volume of $43.5 Billion, a -39.63% change in the last 24 hours. Currently, the 3 largest cryptocurrency exchanges are Bybit, OKX, and Coinbase Exchange. Total tracked crypto exchange reserves currently stands at $208 Billion.
Which crypto exchange is best in the USA? ›- BYDFi: Best for advanced trading.
- Binance.US: Best for trading bitcoin.
- Interactive Brokers: Best for crypto stocks and funds.
- Kraken: Best for customer service.
- Bitstamp: Best for beginning traders.
- Uphold: Best for trading fiat currencies.
- Gemini: Best for availability in all 50 states.
| Broker | NerdWallet rating NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service. |
|---|---|
| Gemini Read review | 4.6 /5 |
| Binance.US Read review | 3.7 /5 |
| Webull Pay Read review | 3.5 /5 |
Is there a downside to Coinbase? ›
High fees compared to competitors: Many reviewers believe that Coinbase charges relatively high fees when compared to other platforms in the industry. Users express dissatisfaction with these fees, especially considering that they are imposed on top of the fees already charged by crypto networks.
Who is Coinbase's biggest competitor? ›The best overall Coinbase Exchange alternative is Binance. Other similar apps like Coinbase Exchange are UPHOLD, Kucoin, LocalBitcoins, and NiceHash. Coinbase Exchange alternatives can be found in Cryptocurrency Exchanges but may also be in Crypto Mining Software.
Why Coinbase is the best? ›Coinbase is one of the few crypto exchanges to allow users to withdraw crypto immediately after they purchase it using fiat currency, rather than waiting several days for the payment transaction to clear. This can be a big help for users who want to use cryptocurrency in decentralized apps and other external services.
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.
Is Kraken the best platform? ›Kraken's top-notch security, low trading fees and solid range of available cryptos makes it a good choice for investors who are just experimenting with crypto as well as more experienced traders.
Why does Kraken need my SSN? ›Laws and regulations require that we verify your account by asking who you are and where you live. Kraken takes every measure to prevent fraud and be fully compliant with KYC and AML regulations for trading of cryptocurrencies.
What is the number 1 crypto exchange? ›Binance.US is the U.S. trading arm of Binance, the largest cryptocurrency exchange by market cap. Binance.US also ranks in the top 20 largest exchanges. Trading fees vary based on volume. They start at 0.40% for maker fees and 0.60% for taker fees at volumes of $10,000 or less.
Which is better, Kraken or Binance? ›Binance vs Kraken cryptocurrency exchange overall score comparison reveals that Binance has a higher overall score of 9.8, while Kraken gathered an overall score of 9.6. If we look at the ease of use, it's clear that in this Binance vs Kraken comparison, Binance has better & smoother user experience than Kraken.
Which is better Kraken or Robinhood? ›By comparing Kraken vs Robinhood overall scores, we clearly see that Kraken has the higher overall score of 7.8. Robinhood, on the other hand, has scored 6.4 final points.