Kraken vs Coinbase are two of the leading cryptocurrency exchanges in the United States. Both were founded in 2011 and are fully regulated. Coinbase launched with Bitcoin as the only tradable cryptocurrency, but soon added a number of other cryptocurrencies. Besides its excellent trading platform, Coinbase also offers a retail investor wallet and custodial accounts for institutions. Kraken was founded one year before Coinbase, but it has more user base and accepts a variety of payment methods.
The security of both these platforms is another important factor in deciding which one to use. Both of these exchanges require users to provide their social security number, address, and Proof of Identity. While some exchanges allow users to withdraw funds instantly, both require advanced verification. Kraken requires users to provide their social security number, photo ID, and proof of residence. Coinbase users can deposit funds through a digital wallet, ACH, or wire transfer.
Kraken allows users to deposit fiat currencies, although the fee for this option is higher than for other exchanges. Although it is free to deposit fiat currency, it charges fees when depositing other cryptocurrencies. For instance, if you want to withdraw Tezos (XTZ), you must deposit 0.2 XTZ to earn a withdrawal. Moreover, you must pay a fee if you deposit below that amount.
The fees of Kraken are lower than those of Coinbase, but the minimum amount of each transaction is higher. Kraken does not accept debit or credit cards, but it does allow users to buy and sell cryptocurrency with Paypal and Apple Pay. However, both exchanges charge fees for their transactions, which can make general comparisons difficult. Moreover, both exchanges offer reduced fees for high volume traders, but the details have yet to be revealed.
In summary, Kraken is the better choice if you are a cryptocurrency beginner. Coinbase is more convenient and less difficult to use, but Kraken offers more coins. It is also recommended for those who want to trade more than one type of cryptocurrency. While Coinbase is better for the experienced trader, Kraken is better for beginners. Aside from lower fees, Kraken also supports a wider variety of cryptocurrencies.
As of January 2018, Kraken offers an insurance program that covers a large number of transactions. With this insurance, users do not have to worry about losing money in the event of a hack or attack. Kraken offers coverage up to $100 million per customer, per incident. That’s more than enough to cover the costs of a hack or attack. The company has also partnered with Lloyd’s of London, one of the world’s top insurance companies.
Kraken is a dedicated crypto exchange, while Coinbase caters more to investors in the United States. Both exchanges support a wide variety of fiat currencies. Coinbase has lower fees, while Kraken offers more options for funding. Both exchanges have their pros and cons. Whether you’re a beginner or an experienced trader, it’s important to make an informed decision. The following comparison may help you decide which one is right for you tech deck ramps.