Kraken is better for trading in BTC than Coinbase, but it has some drawbacks. Unlike Coinbase, which accepts a variety of payment methods, Kraken does not. In addition, it does not support the Cardano Network, introns, or six coins. Despite their similarities, Kraken does not offer the same range of cryptocurrencies as Coinbase, and their minimum buying amount is only $2. Coinbase has a lower minimum order amount, but it measures minimum buying quantities in native tokens. For example, Bitcoin requires just 0.0002 BTC, while the minimal buying amount on Kraken is 0.0002.
Kraken is registered as a money services business with the Financial Crimes Enforcement Network (FinCEN), and holds a banking license from Wyoming that allows it to act as a custodian for client funds. Unlike Coinbase, you do not need to maintain a separate crypto wallet on Kraken. Coinbase also has more security features, including cold storage of 95% of digital assets. Additionally, Kraken’s servers are housed in cages under armed surveillance. As a US-based company, Coinbase meets high standards of legal compliance and is regulated by FinCEN.
Despite these differences, Coinbase is a more beginner-friendly platform with a friendly UX and more advanced trading options. Unlike Coinbase, Kraken offers more than 45 cryptocurrencies to trade with. Moreover, Kraken is cheaper than Coinbase, and its fees are more reasonable. The platform has a transparent fee structure, which is a plus for traders. Also, both platforms offer multiple withdrawal options, including PayPal.
Coinbase is a great choice for a beginner looking for a good exchange for trading BTC and other cryptocurrencies. They offer lower fees, more cryptocurrencies than Kraken, and invaluable Live Chat support. You can use a small amount of funds to test both exchanges before making a big deposit. This is the best way to compare Kraken vs Coinbase and choose the best crypto exchange for you.
In addition to their lower fees, Kraken has more attractive withdrawal and deposit options. Most cryptocurrencies are available for withdrawal and deposit through both services. The fees are based on volume traded and can vary significantly. On the other hand, the fees for depositing Bitcoin and Ethereum are 0.26% per transaction and 0.10 percent per transaction, which is considerably lower than on Coinbase. Additionally, it is possible to withdraw your cryptocurrency using a cold wallet, but only when you meet certain thresholds.
Both Coinbase and Kraken have online support, but their customer support is not as extensive. For the most part, you can send emails or chat with customer support. While both platforms provide support through email and live chat, the latter only offers phone support if your account has been compromised. However, in both cases, there is an online support center that addresses common concerns and has an extensive FAQ section. If you are unsure about which cryptocurrency exchange to choose, visit the Kraken website to learn more.
When it comes to security, Kraken has the edge. Both companies use two-factor authentication for security purposes and store their customer funds in cold storage. In addition to this, they also run a bug bounty program. While Coinbase does not offer FDIC insurance, they do protect their customers with two-factor authentication. While Kraken’s customer support is not as thorough as Coinbase’s, the platform’s support team is staffed with security specialists with experience in the financial and crypto-asset industries.
