Which Exchange is Better for You?

Choosing a crypto exchange is one of the most important steps when buying cryptocurrencies for the first time. There are so many platforms available, and it can be hard to decide which one is right for you. Two of the most popular and trusted names in the market are Kraken and Coinbase. Both offer access to a wide range of cryptocurrencies and trading tools, but they are built for different types of users.

In this guide, you will see how Kraken vs Coinbase compare across key features like security, trading features, supported currencies, trading fees, and ease of use. This will help you decide which crypto exchange is better for you.

Kraken vs. Coinbase: Comparison Table

	Kraken	Coinbase
Founded	2011	2012
Headquarters	San Francisco, USA	Remote-only company
Supported Cryptocurrencies	200+ coins and tokens	250+ coins and tokens
Trading Fees	Maker: 0.25%; Taker: 0.40%	Maker: 0.40%; Taker: 0.60%
Security Features	Two-factor authentication (2FA), cold storage, encryption, and more	Two-factor authentication (2FA), cold storage, encryption, and FDIC insurance up to $250,000
Mobile App	Available on iOS and Android	Available on iOS and Android
Regulatory Compliance	Registered with FinCEN; complies with U.S. regulations	Registered with FinCEN; complies with U.S. regulations; publicly traded company
Margin Trading	Available with up to 5x leverage	Not available
Futures Trading	Offers futures trading with up to 50x leverage	Limited to the U.S. users only (10x leverage)

What Is Kraken?

Kraken is a San Francisco-based cryptocurrency exchange that was founded in 2011. You can use it to buy, sell, and exchange more than 200 cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE). You can deposit your account with fiat currencies like USD, EUR, GBP, and JPY.

The exchange has multiple options for trading. You can trade in spot market, margin with up to 5x leverage, and futures with up to 50x leverage. The exchange also hasa  staking feature that allow you to earn rewards for holding specific cryptocurrencies.

Kraken has two primary interfaces for trading: the default Kraken platform and Kraken Pro. Kraken Pro is for professional traders, with more advanced charting features and reduced fees. The maker fees begin at 0.25%, and taker fees begin at 0.4%, reducing with increased trading volumes.

It also keeps 95% of deposits in cold storage offline wallets, utilizes two-factor authentication (2FA), and performs regular audits to check for asset holdings. Kraken serves more than 190 countries and adheres to local laws. But some services, such as staking, might be unavailable in some areas.

Kraken Pros

• Offers over 200 cryptocurrencies for global trading and investment access
• Strong security with cold storage, 2FA, and regular proof-of-reserves audits
• Advanced tools on Kraken Pro for experienced and high-volume traders
• Supports fiat deposits in multiple currencies like USD, EUR, and GBP
• Allows crypto staking with rewards on several popular coins and tokens

Kraken Cons

• Staking services are restricted in some countries, including some U.S. states
• Trading fees are higher compared to global exchanges like Binance and Bybit

What Is Coinbase?

Coinbase is another American cryptocurrency exchange established in 2012. It is one of the largest and most secure platforms to buy, sell, and store digital assets. The platform has over 100 million customers in over 100 countries, and it is a remote-first company and is listed on the stock exchange under the ticker symbol COIN.

Coinbase has a variety of products for retail and institutional investors alike. For everyday users, the primary Coinbase app enables you to buy, sell, and hold multiple cryptocurrencies. Coinbase Wallet is a non-custodial wallet that enables you to store and manage your crypto assets and access decentralized apps. Coinbase Advanced, previously Coinbase Pro, offers more advanced trading tools for sophisticated users, similar to Kraken Pro.

For institutional investors, Coinbase offers Coinbase Prime and Coinbase Custody services. These services provide secure storage options and advanced trading features customized for large investors and financial institutions. Coinbase also provides Coinbase Commerce, which allows businesses to accept cryptocurrency payments. Coinbase has custody of more than 12% of all the Bitcoin in existence, making it the largest Bitcoin custodian globally. The company has over $400 billion in digital assets under custody on its platform.

Read our in-depth Coinbase review for more info.

Coinbase Pros

• Easy-to-use interface, ideal for beginners in crypto trading
• Supports 250+ cryptocurrencies for buying and selling
• High security with offline cold storage and insurance coverage
• Regulated and publicly traded on the NASDAQ exchange
• Offers a separate wallet app for full crypto control and storage
• Available in over 100 countries with a strong global reputation

Coinbase Cons

• High transaction fees compared to other crypto exchanges
• Account freezes are possible during security or compliance reviews

Kraken vs. Coinbase: Trading Features and Products Offered

The best features of Kraken are:

• Kraken Pro: It is an advanced version of the basic Kraken trading platform, and it is designed for experienced traders, offering low-latency trading, advanced charting tools, and a variety of order types like stop-loss and take-profit. It supports over 200 cryptocurrencies and 600+ trading pairs.
• Margin Trading: You can trade margin trading with up to 5x leverage. This feature is available for spot trading and futures. Margin trading is not available in all jurisdictions, such as Washington, New York, and Maine, due to regulatory restrictions.
• Futures Trading: Kraken enables users to speculate on the price movements of cryptocurrencies without owning the underlying assets, offering up to 50x leverage on select contracts. Kraken provides 300+ perpetual futures with competitive fees.
• Staking: Kraken allows users to earn passive income by locking up supported cryptocurrencies, with annual percentage yields (APYs) up to 17% for assets like Ethereum and Solana. Available in 37 U.S. states and globally in over 190 countries, Kraken’s on-chain staking is secure and transparent, with flexible or bonded options.

The best features of Coinbase are:

• Coinbase Advanced: It is a professional trading platform that provides advanced charting tools, real-time order books, and technical indicators like Fibonacci and moving averages. It offers lower fees than the standard Coinbase platform. Here, you can easily buy crypto with fiat currencies.
• Coinbase Learn and Earn: It allows users to gain free cryptocurrency by completing educational modules about various crypto assets and blockchain concepts. Users can earn rewards worth a few dollars per module, which helps beginners understand the market while building a small portfolio.
• Coinbase Wallet: This is a self-custody wallet supporting millions of assets across Ethereum, Solana, and other EVM-compatible networks. It allows users to store, send, and receive cryptocurrencies securely, with private keys controlled by the user. The wallet integrates seamlessly with Coinbase’s exchange and also supports NFT storage.
• Staking: Coinbase enables users to earn up to 12% APY by staking 147 supported assets, such as Ethereum and Cardano, with flexible or locked options.

Kraken vs. Coinbase: Staking

Kraken has resumed its staking service for American clients following a temporary halt last year due to regulatory concerns. The exchange now allows users from 39 U.S. states to stake 17+ digital assets, including Ethereum (ETH), Solana (SOL), Polkadot (DOT), and Cardano (ADA). 

Kraken provides competitive annual percentage yields (APYs) of 1% to 17%, depending on the asset and length of staking. The platform offers bonded staking, in which tokens are held for some time, and rewards are paid out correspondingly. Kraken reinforces staking security with the use of cold storage, two-factor authentication, and slashing insurance via a third-party service.

Coinbase similarly provides staking options for a variety of cryptocurrencies such as Ethereum (ETH), Solana (SOL), Tezos (XTZ), and Algorand (ALGO). It is user-friendly and compliant with regulations. 

Staking rewards on Coinbase are usually between 2% and 14% APY, depending on the asset. Anyone can begin staking with a minimum of $1, and rewards are credited to their wallets automatically. Coinbase does, however, take a 25% commission fee on all staking rewards. Also, staking services are not available in some U.S. states because of regulatory issues.

Kraken vs. Coinbase: Supported Currencies

Kraken supports over 200 cryptocurrencies, including major assets like Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and various stablecoins. The platform continues to expand its offerings to meet growing demand. Coinbase supports over 250 cryptocurrencies.

In terms of fiat currencies, Kraken offers a broader range of fiat currency support, including USD, EUR, CAD, AUD, GBP, CHF, and JPY. Coinbase primarily supports USD, EUR, and GBP for retail and institutional customers and facilitates deposits and withdrawals in these currencies.

Kraken vs. Coinbase: Security

Kraken and Coinbase, both platforms, use cold storage solutions to keep most user balances offline, reducing exposure to the kinds of threats posed online. They apply two-factor authentication (2FA) for account entry, have support for biometric login, and use advanced encryption algorithms to secure sensitive information. 

Both platforms also perform regular security audits and have bug bounty programs in place to find and deal with potential weaknesses. They also follow regulatory requirements, such as Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, to maintain compliance and build user trust.

Kraken’s Security Approach

Kraken works on a “security above everything” philosophy and implements a comprehensive security framework. The platform has achieved ISO/IEC 27001:2013 certification and completed a SOC 2, Type 1 examination, demonstrating adherence to international security standards. 

The exchange also offers features like FIDO2-compliant 2FA, customizable API key permissions, and PGP-signed emails for secure communication. Kraken’s Security Labs actively test third-party services to identify and mitigate potential threats, contributing to the broader crypto ecosystem’s security.

Coinbase’s Security Measures

Coinbase is a publicly traded company and maintains a transparent and regulated environment. The platform stores approximately 98% of customer funds in offline cold storage and employs AES-256 encryption to protect user data. Coinbase also provides insurance coverage for fiat assets held on the platform, offering an additional layer of protection for users.

Kraken vs. Coinbase: Fees

Trading Fees

Kraken employs a maker-taker fee model with incentives based on 30-day trading volumes. For volumes under $10,000, maker fees are 0.25%, and taker fees are 0.4%. As trading volume increases, these fees decrease, reaching as low as 0.00% for makers and 0.10% for takers at volumes over $100 million.

Coinbase, on the other hand, charges a flat fee of 0.60% for takers and 0.40% for makers. These fees decrease with higher trading volumes, going down to 0.05% for both makers and takers at volumes over $400 million.

Deposit and Withdrawal Fees

Kraken offers free cryptocurrency deposits for most assets, with a few exceptions. Withdrawal fees vary by cryptocurrency; for example, Bitcoin withdrawals incur a fee of 0.000015 BTC. For fiat currencies, Kraken provides various options: ACH withdrawals in the U.S. are free and typically process within 1-3 business days.

Coinbase does not charge fees for ACH deposits or withdrawals in the U.S.. However, wire transfers incur fees: $10 for deposits and $25 for withdrawals. Also, cryptocurrency withdrawals are subject to network fees, which vary based on network congestion.

Kraken vs. Coinbase: Ease of Use

Coinbase is well known for its simple interface, and as such, it is the perfect option for new users. Users love its minimalist design, easy navigation, and simple features that make buying, selling, and trading digital currencies a breeze. The mobile app of the platform is no different, providing a smooth experience for users. Coinbase also offers educational materials and tutorials to help new users learn the fundamentals of cryptocurrency trading.

Kraken caters more to experienced traders, offering a comprehensive suite of advanced trading tools and features. While its interface is robust and feature-rich, it may present a steeper learning curve for newcomers. 

Users have noted that Kraken’s platform is well-suited for those seeking detailed charting options, margin trading, and customizable trading dashboards. The mobile app provides access to these advanced features, though it may be less intuitive for users unfamiliar with complex trading platforms.

Kraken vs. Coinbase: Payment Methods

Kraken supports several payment methods in both the U.S. and Europe. In the U.S., the top payment methods include debit card, ACH transfer, wire transfer using FedWire, SWIFT transfer, Etana Custody, Silvergate Exchange Network, Signature Signet, Apple Pay, Google Pay, and Kraken Pay. 

These options allow easy movement of funds for American users, though credit cards are not accepted. In Europe, Kraken supports SEPA transfer, SWIFT transfer, debit card, and InCore Bank transfer. However, some banks in Europe like Rietumu Banka and National Bank of Greece do not allow deposits or withdrawals to Kraken.

Coinbase also offers a wide variety of payment methods for users in different regions. In the U.S., supported payment methods include ACH transfer, wire transfer, debit card, PayPal, Apple Pay, Google Pay, USDC balance, PayPal USD, Coinbase Wallet, and a linked bank account. 

In Europe, Coinbase supports SEPA transfer, 3D Secure card, iDEAL for Dutch users, PayPal, Apple Pay, Google Pay, easy bank transfers in countries like the Netherlands and Finland, Klarna (Sofort), credit cards, and linked bank accounts. Some European banks and services like Wise may block transactions with Coinbase, so users should check with their bank before depositing.

Kraken vs. Coinbase: Customer Support

Kraken offers 24/7 customer support through live chat, email, and phone. They also provide a help center and dedicated support for VIP clients. Coinbase claims to offer 24-hour support via chat, phone, and email. However, users frequently report difficulties in reaching a human representative. Complaints include long wait times, unhelpful responses, and unresolved issues. 

For example, some users have reported that their funds were not released even after a week, with support providing inconsistent information. These experiences have led to a low customer satisfaction rating on various review platforms.

Kraken vs. Coinbase: Regulatory Compliance

Kraken holds several important licenses, ensuring its regulatory compliance across various regions:

• Money Services Business with FinCEN, United States
• Financial Conduct Authority (FCA), United Kingdom
• Cyprus Securities and Exchange Commission (CySEC), Cyprus
• Financial Services Regulatory Authority (FSRA), Abu Dhabi, UAE

Coinbase also operates under multiple licenses, demonstrating its commitment to regulatory compliance:

• New York Department of Financial Services (NYDFS), United States (BitLicense)
• Monetary Authority of Singapore (MAS), Singapore (Payment Institution License)
• Central Bank of Ireland (CBI), Ireland
• Financial Supervisory Authority (BaFin), Germany (Crypto Custody License)

Kraken Pro vs. Coinbase Advanced Trade

Kraken Pro is best for its wide array of trading features and tools. It supports a variety of cryptocurrencies and trading pairs, making it easy for users to access different markets. The platform features advanced charting tools, several order types, and features such as margin trading and perpetual futures contracts. Kraken Pro is specifically popular with traders who desire deep liquidity and a wide variety of assets.

Coinbase’s Advanced trading platform, however, is a more minimalistic platform that has advanced trading features. It gives users real-time access to order books, sophisticated charting, and multiple order types. Although it does not have as many features as Kraken Pro, Coinbase Advanced Trade is welcomed for its clean design and easy integration into the Coinbase ecosystem. It does not offer margin trading and has limited support for futures trading in the U.S. only.

Also, in terms of fees, Kraken Pro generally offers lower trading fees compared to Coinbase Advanced Trade (0.25% maker fee vs 0.4% maker fee), making it more attractive for high-volume traders.

Conclusion: Which Exchange Is Better?

In a nutshell, Kraken and Coinbase are two of the most trusted crypto exchanges in the world. Both offer secure platforms, licensed operations, and a wide range of services. However, they serve different types of users. Coinbase is best for beginners who want a simple and easy-to-use interface. It offers educational tools, fast sign-ups, and a smooth experience for buying or selling crypto. Coinbase also supports over 250 digital assets and has strong regulatory backing in multiple countries.

Kraken, on the other hand, is better suited for advanced users. It supports over 200 cryptocurrencies, offers margin and futures trading, and has lower fees for high-volume trades. Kraken Pro is feature-rich and trusted for its strong security record. Unlike Coinbase, Kraken has never been hacked.

You can also check out our other exchange comparisons, like Coinbase vs Binance. 

FAQs

Which crypto exchange is better than Coinbase?

Kraken is often considered a strong alternative to Coinbase, especially for advanced traders. It offers a wider range of cryptocurrencies, advanced trading tools, and lower fees compared to Coinbase. Additionally, Kraken has a strong reputation for security, with no major hacks reported in its history. You can also use other popular crypto exchanges like Binance, Crypto.com, Bybit, and MEXC.

Which is better, Coinbase or Kraken?

Kraken is better for experienced traders, while Coinbase is better for beginners. Coinbase is ideal for beginners due to its intuitive interface and educational resources. However, Kraken caters to more experienced traders by offering advanced features like margin trading, futures contracts, and staking services.

Can Kraken be trusted?

Yes, Kraken is considered a trustworthy exchange. It has implemented robust security measures, including cold storage for digital assets and two-factor authentication. Kraken has never been hacked, which is a significant testament to its security protocols. 

It is registered as a Money Services Business with FinCEN and regulated in multiple jurisdictions, including the UK and Australia. While Kraken has faced regulatory challenges, such as settlements with the SEC and OFAC, these are not uncommon in the crypto industry.

Can US users use Kraken?

Yes, Kraken is accessible to users in the United States, with some state-specific restrictions. Residents of Washington, New York, and Maine are currently unable to use Kraken’s services.