Kraken vs. Coinbase 2024: Detailed Comparative Analysis!

Coin Bureau has a long history of putting head-to-head the best ideas, projects, chains, and products in crypto so that it can help readers make the best decisions in DeFi. If you have decided to get your hands on some sweet crypto, you will find yourself at one such critical juncture – looking for the ideal cryptocurrency exchange.

Deciding what exchange to use is not easy these days. Today, hundreds of centralized exchanges are out there, and the top exchanges, such as Coinbase, Kraken, Binance, OKX, Gemini, and KuCoin, are suitable for everyday trading, making selecting one even harder.

Let’s shed light on two major exchanges in this piece — Coinbase and Kraken. Here is an in-depth comparison of two leading cryptocurrency exchanges. If you are unfamiliar with any of them, check out our Coinbase Review and Kraken Review before venturing further. To expand your search and look for more options, refer to our analysis of the best cryptocurrency exchanges for insights.

Here is a video of Guy with his take on which exchange is better:

Before we begin with the comparison, I want to mention that Coinbase and Kraken are excellent exchanges and are ran by teams of experienced and dedicated professionals. Therefore, you could not go wrong with either of them. The objective of this comparison piece is not to name a better exchange but to help you assess which platform provides better solutions for the niche qualities you value more so that your personalized trading experience is as fluid as possible. Without further delay, let’s begin our analysis of Kraken vs Coinbase!

Kraken vs. Coinbase Overview

Both Coinbase and Kraken are deeply respected, successful, and trustworthy crypto exchanges, making both a good general choice for anybody with access to them. These platforms value security, are regulated, and completely comply with the local laws of the countries in which they operate. 

Here is a snapshot of CoinMarketCap's list of the top cryptocurrency exchanges I took in May 2024. Coinmarketcap lists Coinbase in second place with an impressive rating of 8.2. Kraken is no slouch; it bags the sixth spot with a rating of 7.3.

These exchanges are very well-rated and trustworthy. Therefore, the choice between which exchange is better comes down to subjective factors, like listings or specific trading features that only one might have. The answer to which is better may vary from user to user. 

As a general precaution, while your funds are safe in Kraken or Coinbase, crypto custody-best practices suggest that centralized exchange users move their funds out of exchanges and into non-custodial hardware or software wallets for long-term hodling. Our analysis of the Top Hardware Wallets can help you pick one or watch Guy help you with the same.

Kraken vs. Coinbase: Crypto and Fiat Listings

When comparing Coinbase and Kraken regarding crypto and fiat support, it's crucial to consider each platform's range of assets and trading pairs. This is because the more diverse the assets and trading pairs, the more opportunities for trading and profit. According to Coingecko data:

Coinbase supports 246 crypto assets and 404 trading pairs. 

Kraken, on the other hand, supports 237 crypto assets but offers a more extensive selection of 656 trading pairs.

Therefore, while both exchanges list similar cryptocurrencies, Kraken provides greater trading flexibility through a broader array of trading pairs.

Fiat currency support differs significantly between the two platforms: 

• Kraken supports seven fiat currencies: USD, EUR, CAD, AUD, GBP, CHF, and JPY. 
• In contrast, Coinbase supports only three fiat currencies: USD, GBP, and EUR. 

This broader fiat support on Kraken makes it more accessible for users worldwide, allowing for more accessible deposits and withdrawals in various countries.

Despite Kraken's advantage in trading pair variety and fiat support, Coinbase holds a significant edge in liquidity and the number of active users. Higher liquidity on Coinbase, due to its larger user base, means that users are more likely to execute trades quickly and at better prices, which can be particularly advantageous during times of high market volatility. The larger user base on Coinbase also enhances market making, providing a smoother trading experience with potentially tighter spreads.

In summary, while Kraken offers more trading pairs and a more comprehensive range of fiat currencies, Coinbase's superior liquidity, bolstered by its large user base, makes it a strong contender for those prioritizing efficient and effective trading execution, instilling a sense of reassurance in the platform's reliability and market stability.

Coinbase vs Kraken: Products Offered

When choosing a cryptocurrency exchange, it's essential to consider the variety of products and services each platform offers. Kraken and Coinbase provide a broad range of features tailored to different users. This section will delve into each platform's specific products and analyze how these products align with their target audiences.

Products Offered by Kraken

Kraken caters primarily to advanced traders and investors, offering a comprehensive product suite to meet their needs.

1. Kraken Exchange: Renowned for its security and regulatory compliance, Kraken's exchange supports a wide range of cryptocurrencies and offers both margin and futures trading. These advanced trading options are crucial for experienced traders looking to leverage their positions and engage in more complex trading strategies.
2. Kraken NFT Marketplace: A relatively new addition, Kraken's NFT marketplace features over 250 NFT collections. Its user-friendly interface and lack of gas transaction fees make it appealing to NFT enthusiasts, although a 2% transaction fee applies to purchases.
3. Kraken Earn: This product allows users to earn yields on various cryptocurrencies, including Celestia, Ethereum, Kusama, Kava, Polkadot, Solana, and Bitcoin. Kraken Earn also supports ETH POS staking and participation in Polkadot’s Slot Auctions, providing multiple avenues for users to grow their investments.
4. Kraken Wallet: A versatile crypto wallet that supports multiple blockchain networks (Bitcoin, Ethereum, Polygon, Dogecoin, Base, Solana, and Arbitrum). It offers portfolio tracking, decentralized application access, 24/7 customer support, and robust security measures. The open-source nature of the wallet ensures transparency and trust.
5. Kraken Pro: An advanced trading platform on the Kraken website and as a mobile app. It provides advanced trading features and functionality, catering to traders who require detailed market data and tools to execute complex trades.

Kraken’s product offerings reflect its commitment to providing advanced users with a robust and secure trading environment. Including margin and futures trading and comprehensive support for staking and earning highlights Kraken's focus on facilitating sophisticated trading and investment strategies.

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Products Offered by Coinbase

Coinbase, on the other hand, aims to cater to general retail investors with a range of products designed to make cryptocurrency trading and investing accessible and straightforward.

1. The Coinbase Exchange: Known for its regulatory compliance, Coinbase offers a secure and user-friendly platform for buying, selling, and trading cryptocurrencies. Its straightforward interface makes it an excellent choice for beginners.
2. Coinbase Wallet: This non-custodial wallet supports Ethereum and Solana-compatible networks, along with various tokens, including Bitcoin, Dogecoin and Litecoin. It is integrated with numerous decentralized applications (Dapps), making it a versatile tool for managing digital assets.
3. Coinbase Card: Available to US residents, the Coinbase Card allows users to transact using cash and crypto via Visa channels. This feature enhances the utility of crypto holdings in everyday transactions.
4. Coinbase NFT Marketplace: Similar to Kraken's offering, Coinbase's NFT marketplace enables users to create, discover, trade, and showcase NFTs. It is accessible through the Coinbase Wallet, simplifying the process for NFT enthusiasts.
5. Coinbase Advanced: Previously known as Coinbase Pro, this feature is now integrated within the primary trading terminal. It offers advanced charting tools, technical market data, and the ability to place customized orders, catering to more experienced traders.
6. Coinbase Earn: This program allows users to earn interest on their crypto holdings, supporting assets like ETH, USDC, SOL, MATIC, and ATOM. It also includes ETH staking and DeFi yield products, providing various ways for users to grow their investments.
7. Coinbase Private Client: A personalized service offering tailored account management and trading support for high-net-worth individuals.
8. Coinbase One: A subscription service providing trading fee discounts, taxation support, and analytics services, enhancing the overall trading experience for frequent users.

Coinbase’s product lineup underscores its mission to simplify cryptocurrency investing for retail users. The focus on regulatory compliance, user-friendly interfaces, and educational resources makes it an ideal platform for newcomers and casual investors.

Comparative Analysis

When comparing the product offerings of Kraken and Coinbase, it's clear that each platform has tailored its services to distinct user bases. Kraken excels in providing advanced trading tools and features that appeal to experienced traders and investors. Its support for margin and futures trading, alongside a comprehensive staking and earning program, caters to users seeking sophisticated investment opportunities.

Coinbase, meanwhile, prioritizes accessibility and ease of use, making it an excellent choice for retail investors and beginners. Its regulatory compliance and straightforward interface provide a secure and user-friendly environment for buying, selling, and managing cryptocurrencies. The additional features like the Coinbase Card and educational resources through Coinbase Earn further enhance its appeal to everyday users.

Kraken is best suited for advanced traders looking for a robust and feature-rich trading environment. At the same time, Coinbase is ideal for general retail investors seeking a secure, compliant, and user-friendly platform.

Kraken vs Coinbase: User Friendliness

When evaluating user-friendliness, both Coinbase and Kraken have made significant strides to cater to users of all experience levels.

Coinbase has long been celebrated for its user-friendly interface. The platform is designed with simplicity in mind, making it easy for novice users to navigate and conduct transactions. Coinbase's commitment to user education further enhances its appeal, offering learning opportunities through its Coinbase Earn program, which rewards users for completing educational tasks and quizzes about various cryptocurrencies.

Kraken, while traditionally seen as a platform for more advanced users, has also made significant improvements in its user interface. Kraken now offers a simple, intuitive interface for trading, akin to Coinbase's design. For users looking to conduct straightforward transactions, Kraken provides instant market buying, allowing for quick and easy swaps between assets.

Both platforms recognize the need for more advanced trading options and have created Pro or advanced sections to accommodate this. Coinbase Advanced and Kraken Pro offer detailed charting tools, technical market data, and customizable order types for users seeking granular control over their trades. These advanced features are neatly tucked away in a separate section on both platforms, ensuring that regular users are not overwhelmed by the complexity.

In terms of user-friendliness, it's a close call. Coinbase's simple design and educational resources make it an excellent choice for beginners. Kraken, with its updated design and intuitive interface, matches Coinbase in ease of use while also providing robust options for advanced traders. Therefore, considering the updated designs and features, user-friendliness is a tie. Both platforms offer a seamless experience for beginners and advanced users alike, making them equally accessible and user-friendly.

Kraken vs. Coinbase: Fees

Here is a fee comparison table that analyses all fee-related aspects of the exchanges.

Summary:

• Spot Trading Fees: Kraken offers lower fees compared to Coinbase, which is especially beneficial for high-volume traders.
• Instant Buy/Sell Fees: Kraken’s fees are significantly lower than Coinbase’s.
• Credit/Debit Card Fees: Kraken charges higher fees for credit/debit card transactions than Coinbase.
• ACH and Wire Transfer Fees: Both platforms have similar fees for ACH transfers and wire transfers.
• NFT Marketplace Fees: Kraken charges a flat 2% transaction fee, while Coinbase’s fees vary by collection.
• Margin and Futures Trading: Kraken supports margin and futures trading with competitive fees, whereas Coinbase does not offer these options.
• Staking and Earn Products: Kraken generally charges lower fees and offers higher yields on staking than Coinbase.
• Pro/Advanced Trading: Kraken Pro has lower fees than Coinbase Advanced, making it more attractive for traders needing advanced tools and lower transaction costs.

You can visit Kraken’s fee schedule and Coinbase’s pricing page for detailed fee structures.

Kraken vs. Coinbase: Trading and Leverage

Regarding trading and leverage, Coinbase and Kraken offer robust platforms tailored to different types of traders.

Coinbase

Coinbase Advanced provides a dedicated interface for experienced traders who want more control over their trades. This platform features an order book, limit orders, stop orders, and various technical analysis tools essential for making informed trading decisions. Additionally, Coinbase Advanced supports futures trading, allowing users to take advantage of leverage and trade with more significant capital efficiency. Futures contracts on Coinbase can be accessed with up to 5x leverage, except for XRP futures, which offer up to 3x leverage. However, it's important to note that futures trading on Coinbase is currently only available to non-US customers in eligible jurisdictions.

Kraken

Kraken Pro is a feature-rich trading platform similar to Coinbase Advanced but offers even more advanced trading options. Alongside standard features such as order books, limit orders, and stop orders, Kraken Pro supports advanced order types like stop loss and take profit orders, take profit limit orders, Iceberg strategy, and trailing stop orders. These tools provide traders with extensive control over their trading strategies. Additionally, Kraken supports margin trading, allowing users to open positions with up to 5x leverage. This feature is not available on Coinbase, giving Kraken an edge for traders interested in leveraged trading.

Comparative Analysis

Both Coinbase and Kraken offer advanced trading platforms suitable for experienced traders. Coinbase Advanced is known for its user-friendly interface and regulatory compliance, making it a solid choice for those who need futures trading capabilities. Kraken Pro, with its wider array of advanced trading tools and margin trading support, is ideal for traders looking for more sophisticated trading options and higher leverage. While Coinbase focuses on accessibility and regulatory adherence, Kraken provides a more comprehensive trading environment for those needing advanced features and leverage.

Kraken vs Coinbase: Earn and Staking

When comparing the earn and staking products of Kraken and Coinbase, both platforms offer competitive options, but they differ in terms of rates, features, and flexibility.

Kraken Earn and Staking

Kraken offers a variety of staking and earn products with competitive rewards. Key features include:

• Diverse Asset Support: Kraken supports staking for multiple cryptocurrencies, including Ethereum (ETH), Polkadot (DOT), Solana (SOL), Cardano (ADA), and many others. Users can earn up to 23% APY on certain assets like Kusama (KSM), though typical rates are generally lower​.
• Flexibility: Kraken provides both flexible and bonded staking options. Flexible staking allows users to stake and earn rewards without a lock-up period, making their funds readily accessible for trading or withdrawal. Bonded staking requires a set period where the assets are locked but typically offers higher rewards​.
• Compounding: Kraken allows users to compound their staking rewards, which means users can reinvest their rewards to generate additional yield over time.
• Staking Fees: Kraken charges a commission on staking rewards, which varies by asset. Despite these fees, Kraken often offers higher net returns than other platforms due to its competitive reward rates​.
• Automated Rewards: Kraken's platform automates the process, making it easy for users to enroll and earn rewards with minimal effort. Rewards are calculated daily and paid weekly.

Coinbase Earn and Staking

Coinbase also offers robust earn and staking products with some distinct features:

• User-Friendly Interface: Coinbase Earn is designed to be accessible to all users, including beginners. The platform offers educational resources and rewards users for learning about different cryptocurrencies.
• Asset Support: Coinbase supports staking for several cryptocurrencies, including Ethereum (ETH), Algorand (ALGO), Tezos (XTZ), and Cosmos (ATOM). However, the number of supported assets is smaller than that of Kraken.
• Staking Rewards: Coinbase charges a 25% commission on staking rewards, which is relatively high. This means that despite the gross APY rates, the net returns for users are lower compared to Kraken.
• Educational Incentives: One unique aspect of Coinbase is its Earn program, which incentivizes users to learn about various cryptocurrencies. Users can earn small amounts of crypto by watching educational videos and completing quizzes.
• Accessibility: Coinbase provides an intuitive and user-friendly experience, making it an excellent choice for users new to staking. The platform's regulatory compliance and robust security measures add to its appeal​.

Comparative Analysis

• Rates and Commissions: Kraken generally offers higher staking rewards and lower commission fees than Coinbase. This makes Kraken more attractive for users looking to maximize their returns from staking.
• Asset Variety: Coinbase supports a wider range of assets for staking, providing more opportunities for diversification. Kraken, while more limited in variety, focuses on popular and well-known cryptocurrencies.
• User Experience: Coinbase excels in providing a user-friendly interface and educational resources, making it ideal for beginners. Kraken, while also accessible, offers more advanced features and higher returns, appealing to more experienced users.
• Flexibility: Kraken's flexible staking options and compounding rewards provide more flexibility and potential for higher earnings. Coinbase's straightforward approach is easier for newcomers but offers less flexibility and lower net returns due to higher commissions.

In summary, Kraken's Earn and staking products are better suited for users seeking yield and more advanced features, while Coinbase provides an accessible, diverse and educational experience ideal for beginners.

Kraken vs Coinbase: NFT Marketplace

Kraken and Coinbase also offer a platform to trade NFTs. While Kraken continues to offer advanced trading solutions for NFTs, Coinbase focuses on user experience and simplicity. Let’s compare:

Kraken NFT Marketplace

Kraken has recently launched its NFT marketplace, offering several distinctive features aimed at both novice and experienced users:

• Gasless Transactions: One of the standout features of Kraken's NFT marketplace is the absence of gas fees for buying and selling NFTs on the platform. However, gas fees do apply when transferring NFTs off the platform.
• Multi-Blockchain Support: Kraken's marketplace supports NFTs across multiple blockchains, including Ethereum and Solana. This allows users to manage NFTs from different ecosystems within a single platform.
• Diverse Payment Options: Users can purchase NFTs using several different cryptocurrencies as well as fiat currencies, providing significant flexibility.
• Integrated Experience: Kraken integrates its NFT marketplace with its broader suite of crypto services, offering users a seamless experience from trading to NFT management. This integration includes compatibility with popular wallets like MetaMask and Phantom, with plans to support WalletConnect in the future​.
• Educational Resources: Kraken offers comprehensive educational materials to help users understand and engage with the NFT space, making it accessible even for those new to NFTs​.

Coinbase NFT Marketplace

Coinbase also offers a robust NFT marketplace with several key features designed to simplify the NFT experience:

• User-Friendly Interface: Coinbase is known for its intuitive and user-friendly interface, which extends to its NFT marketplace. This makes it easy for new users to navigate and start collecting NFTs.
• Educational Initiatives: Coinbase Earn provides users with opportunities to learn about NFTs and earn small amounts of cryptocurrency in the process. This educational focus helps onboard new users to the world of NFTs and crypto​.
• Integrated Wallet Support: Coinbase Wallet supports Ethereum and Solana-compatible networks, allowing users to store and manage a variety of NFTs directly within the Coinbase ecosystem​.
• Marketplace Features: The Coinbase NFT marketplace includes features such as rarity rankings and an easy-to-use buying process, which simplifies the experience for users. The platform also supports various payment methods, including fiat and cryptocurrencies, though it is less flexible than Kraken's extensive payment options​.
• Regulatory Compliance: Coinbase is known for its strict adherence to regulatory standards, which extends to its NFT marketplace. This makes it a trusted platform for users concerned about regulatory issues.

Comparative Analysis

• Transaction Fees: Kraken's gasless transaction model for buying and selling NFTs provides a cost advantage over Coinbase, which typically incurs gas fees for transactions on the Ethereum network.
• Blockchain Support: Both platforms support Ethereum and Solana NFTs, but Kraken's marketplace supports a broader range of payment options and is set to expand its wallet support, giving it an edge in terms of flexibility.
• User Experience: Coinbase offers a more user-friendly interface and extensive educational resources, making it an excellent choice for beginners. While also user-friendly, Kraken provides more advanced features suitable for experienced users.
• Integration and Ecosystem: Kraken's integration of its NFT marketplace with its full suite of crypto services offers a comprehensive experience, allowing users to manage their entire crypto portfolio in one place. Coinbase also integrates its wallet and trading services but is generally seen as more user-focused with its educational initiatives.
• Security and Compliance: Both platforms are highly secure and adhere to stringent regulatory standards, but Coinbase's reputation for compliance may provide additional peace of mind for cautious users.

In summary, Kraken's NFT marketplace stands out with its gasless transactions and extensive payment options, making it ideal for users seeking flexibility and lower costs. Coinbase excels in user experience and education, making it the better choice for newcomers to the NFT space.

Kraken vs Coinbase: Security

When comparing the security features of Kraken and Coinbase, both exchanges are known for their robust security measures, but they each have unique strengths and approaches.

Kraken

Kraken has a reputation for being one of the most secure cryptocurrency exchanges. Here are some critical aspects of Kraken's security:

• Cold Storage: Kraken uses advanced cold storage solutions where the majority of its digital assets are held offline in geographically distributed locations with 24/7 surveillance and armed guards​.
• Multi-Factor Authentication (MFA): Kraken supports Google Authenticator and Yubikey for MFA. Additionally, they do not allow phone/SMS recovery, ensuring that accounts remain secure even if a user's phone number is compromised.
• ISO and SOC Certifications: Kraken holds ISO/IEC 27001:2013 and SOC 2, Type 1 certifications, indicating its adherence to the highest international standards for information security management.
• Security Features: Kraken offers extensive security features, including customizable API key permissions, PGP encrypted email communications, global settings lock, and robust device management tools. Recently, they introduced features like Security Shield and Device Approvals to enhance account security further.
• Kraken Security Labs: Kraken has a dedicated security lab that tests third-party services and products to identify and address vulnerabilities. This proactive approach helps maintain the security of the broader crypto ecosystem.
• Bug Bounty Program: Kraken runs a bug bounty program to encourage external security researchers to identify and report potential vulnerabilities, ensuring continuous improvement of their security measures.

Coinbase

Coinbase is equally known for its stringent security measures and regulatory compliance. Key security features of Coinbase include:

• Cold Storage: Coinbase stores 98% of customer funds in offline cold storage to protect against theft or loss. The remaining 2% is held in secure online storage for operational liquidity​.
• Multi-Factor Authentication (MFA): Coinbase supports MFA via SMS and the Google Authenticator app, providing an additional layer of security for user accounts​ (Kraken Blog).
• Insurance: Coinbase has insurance coverage to protect a portion of its holdings against cybersecurity breaches, adding an extra layer of security for its users' assets.
• Regulatory Compliance: Coinbase is renowned for its regulatory compliance and transparency. It complies with all applicable laws and regulations in the jurisdictions in which it operates, providing users with confidence in the platform's security and legitimacy.
• Security Features: Coinbase offers various security features, including biometric logins (fingerprint and facial recognition), address whitelisting, and encrypted email communication. Additionally, they have implemented machine learning-based fraud detection systems.
• Bug Bounty Program: Like Kraken, Coinbase also runs a bug bounty program to identify and mitigate security vulnerabilities by leveraging the broader security research community​.

Comparative Analysis

• Cold Storage and MFA: Both Kraken and Coinbase excel in using cold storage for the majority of their funds and offering robust MFA options. However, Kraken's phone/SMS recovery prohibition can be seen as a more secure approach than Coinbase's MFA via SMS.
• Certifications: Kraken's ISO and SOC certifications indicate a rigorous approach to information security management, a feature not explicitly highlighted by Coinbase.
• Proactive Security Measures: Kraken's Security Labs and extensive security feature set, including the recent introduction of Security Shield and Device Approvals, show a proactive stance in continuously enhancing user security. Coinbase also maintains high-security standards but emphasizes regulatory compliance and insurance coverage.
• Bug Bounty Programs: Both exchanges actively encourage security research through bug bounty programs, demonstrating a commitment to identifying and fixing vulnerabilities.

In conclusion, both Kraken and Coinbase offer robust security measures to protect users' assets and personal information. Kraken's approach is highly proactive, with advanced security features and regular security audits, while Coinbase emphasizes regulatory compliance and comprehensive insurance coverage. Users should choose based on their specific security preferences and trust in each platform's unique security protocols.

Kraken vs. Coinbase: Conclusion

In comparing Kraken and Coinbase, both exchanges offer unique strengths catering to different user needs. Kraken excels in providing advanced trading features, higher flexibility in trading pairs, and comprehensive security measures. It supports margin and futures trading, which appeals to experienced traders looking for sophisticated tools and leverage options. Kraken's broader fiat support and competitive staking rewards make it a versatile platform for international users and investors seeking higher returns on their holdings.

Coinbase, renowned for its user-friendly interface and regulatory compliance, is an excellent choice for beginners and retail investors. Its educational resources, integrated Coinbase Wallet, and straightforward trading interface provide a seamless entry point into the crypto world. Although Coinbase has fewer trading pairs and higher staking fees, its focus on ease of use and robust security measures, including extensive insurance coverage, offers peace of mind to new users.

Ideal Choice for Different Trader Preferences

• Advanced Traders - Kraken: Advanced trading features (stop loss, take profit orders), margin trading (up to 5x), and a broader range of trading pairs.
• Beginner and Retail Investors - Coinbase: User-friendly interface, educational resources, integrated wallet, simpler trading experience.
• International Users - Kraken: Supports multiple fiat currencies (USD, EUR, CAD, AUD, GBP, CHF, JPY), more flexible staking options.
• Security-Conscious Users:
  • Kraken: Advanced security features (cold storage, multi-factor authentication, Security Labs).
  • Coinbase: Regulatory compliance and insurance coverage for crypto holdings.
• Staking and Earning Enthusiasts:
  • Kraken: Higher staking rewards, flexible and bonded staking options.
  • Coinbase: Educational Earn program, albeit with higher staking fees.

Both exchanges are highly secure and reliable, making the choice ultimately dependent on individual trading needs and preferences.