Kraken Vs. Coinbase

Kraken vs. Coinbase: How the Crypto Exchanges Compare

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Note: Coinbase is currently under investigation by the US Securities and Exchange Commission (SEC) after receiving charges for breaking securities rules. 

Bottom line: Kraken and Coinbase are two of the best cryptocurrency exchanges and the best dogecoin crypto apps. Kraken, however, is ideal for traders looking for lower fees, and it gives you access to margin trading and multiple futures trading platforms. Coinbase is a better fit for beginner crypto traders, thanks to its learning rewards feature. Plus, if you're looking to merge trading and digital wallet storage under the same company, Coinbase is the better option — Kraken doesn't offer wallets.

Kraken vs. Coinbase: The Biggest Differences

Kraken and Coinbase are two popular cryptocurrency exchanges offering crypto assets for traders around the world. Both platforms allow you to earn interest rewards for holding cryptocurrencies over a set period of time (a process known as "staking"). 

While Kraken and Coinbase both present a large selection of assets with interest-earning perks and mobile trading options, Kraken may be the better choice for traders in search of lower fees or features like margin and futures trading. Coinbase offers a wider range of institutional services, educational resources, and features like Coinbase Card, which is a debit card.

Kraken and Coinbase's account features and fees vary. Keep reading to see which brokerage is best for you.

Is Kraken Right for You?

Founded in 2011, Kraken is a global crypto exchange providing a plethora of services for individuals and institutions. The exchange supports more than 220 cryptocurrencies (including bitcoin, ether, and dogecoin), and its products are available to those in nearly 190 countries around the world.

The Kraken mobile app is available on iOS and Android.

Pros

• More than 220 cryptocurrencies
• Margin and futures trading available
• Over-the-counter (OTC) trading and account management support
• Staking rewards
• Great selection of educational resources and tutorials on cryptocurrencies

Cons

• Futures trading isn't available in the US
• Must have Kraken Pro for margin trading and easy staking through the app
• Doesn't provide a crypto wallet
• Not available for residents of New York or Washington State

Ways to Invest with Kraken

When it comes to trading, Kraken offers several options. These include fiat-to-crypto transactions, margin trading, futures trading (not available in the US), and over-the-counter (OTC) trading. On the fiat end, the exchange supports USD, EUR, CAD, AUD, AED, GBP, CHF, and JPY.

Kraken offers four account verification levels: Starter, Express, Intermediate, and Pro. These levels determine which account features you can access, as well as represent the amount of documentation you provide when setting up your Kraken account. Pro members, for example, are members who have met all of Kraken's account requirements. (See more info on account verification levels here.) 

Kraken is currently offering a beta NFT marketplace which is only live for beta testers. 

You can also fund your account with cryptocurrencies as long as Kraken currently supports the coins. (See a complete list of Kraken's funding options here.)

Kraken Account Features

If you're an institution or an advanced trader, there's no shortage of services at Kraken. Institutions and high-net-worth individuals (people with at least $1 million in liquid assets) can take advantage of the exchange's OTC services to place high-volume trades. You'll need a minimum of $100,000 to place an order.

Its OTC services also give you access to expert market insights, 24/7 global customer support, one-on-one expert consultations, and full support for all fiat currencies and crypto assets listed on the exchange. Advanced traders, on the other hand, can utilize both the Kraken Pro platform and ongoing support from an account manager.

Kraken additionally provides several helpful resources — including videos and webinars — on the fundamentals of bitcoin and cryptocurrencies. And for the staking-oriented traders, you can earn rewards from bitcoin, ether, and multiple other assets

Is Kraken Trustworthy?

Kraken currently has an F rating with the Better Business Bureau. The BBB evaluates companies with a grade range of A+ to F, so Kraken has received the lowest possible rating.

The SEC filed a lawsuit against Kraken, claiming it did not register its crypto staking-as-a-service program and sold unregistered securities. In February 2023, Kraken paid a $30 million fee to settle the lawsuit. 

Kraken has closed more than 23 complaints in the last 12 months, according to BBB data. 

Is Coinbase Right for You?

Coinbase is best for individual or institutional traders — both in the US and abroad — looking for access to crypto exchange services, staking, crypto rewards, asset storage, and more. The exchange is available in all 50 US states, and it supports traders in more than 100 countries.

The Coinbase mobile app is available on iOS and Android devices. 

Pros

• Low account minimums
• More than 250 cryptocurrencies
• Digital wallet storage, educational resources, mobile access
• Can earn interest rewards for holding certain assets
• Offers futures and margin trading (Coinbase Pro)

Cons

• Beginners can't access all account features
• Limited staking options

Ways to Invest with Coinbase

You can invest through Coinbase with a basic, Pro, or Advanced Trade account. However, Pro accounts are currently being phased out and are being replaced with Advanced Trade accounts. New users can no longer open a Pro account on Coinbase.

Within these account options are the following options: 

• Individual brokerage accounts
• Custodial accounts
• Business accounts
• Retirement accounts (traditional IRAs, Roth IRAs, and SEP IRAs)
• ESG Portfolios (offered through Coinbase Waller)

Like Kraken, Coinbase lets you exchange a large selection of cryptocurrencies, including bitcoin, ether, litecoin, dogecoin, and others. It also offers USD Coin (USDC), which is a stablecoin pegged to the value of US dollars.

Recently, Coinbase announced that it will no longer be supporting BCH, ETC, XLM, and XRP on Coinbase Wallet. 

Coinbase now offers a beta NFT trading platform for individuals to create and exchange NFTs with 0% transaction fees (but no transaction fees are only available for a limited time). 

Account Features

Coinbase offers staking rewards, which pays you in crypto assets when you utilize educational resources through Coinbase's site (referred to as Coinbase Earn). You can earn up to 10% APY for holding coins and tokens. 

The standard Coinbase account includes crypto trading, Coinbase Earn, Coinbase Card (a Coinbase debit card), wallet services, and more. With Pro, you'll get access to real-time market data, trading APIs, and charting tools. Custodial accounts have also been established in a manner to make pass-through FDIC insurance available for up to $250,000 per individual. 

Coinbase Advanced includes more advanced trading charts and stronger security features compared to Pro. In addition, Coinbase's Coinbase One subscription has a 30-day free trial, and it gives you access to 0% trading fees, advanced market research, and 24/7 customer support. It's unclear what monthly fees the service charges after the free trial period ends.

Coinbase also offers several institutional services, including its Coinbase Prime institutional trading platform and cold storage (cold storage is offline custody for crypto assets). In addition, businesses and institutions can utilize commerce services, venture fundraising services for crypto startups, asset-listing software, and analytics services.

Is Coinbase Trustworthy?

Coinbase has received an F rating from the Better Business Bureau. Coinbase has received the lowest grade from the BBB because it has failed to respond to more than 2,036 complaints, and government actions have taken place against the business. Coinbase has closed more than 1,135 complaints in the last 12 months.

Coinbase Global, Inc. faced a lawsuit in July 2021, for allegedly violating securities laws. However, the case was dismissed in May 2022. Coinbase then entered into a settlement agreement on January 2, 2023, with the New York State Department of Financial Services after the department claimed Coinbase failed to comply with the New York banking law and DFS regulations. Coinbase is set to pay a $50 million penalty.

Most recently on June 6, 2023, the SEC filed charged Coinbase for allowing crypto asset staking-as-a-service program, as well as performing crypto trading on its unregistered national securities exchange, broker, and clearing agency. Coinbase is currently under investigation by the SEC on this matter. Coinbase denies these claims. 

Kraken vs. Coinbase: Which is Better for You?

Coinbase and Kraken are both great cryptocurrency exchanges with large cryptocurrency selections, account features, NFT beta marketplaces, and more. But the exchanges differ when it comes to fees, portfolio options, and account perks. If you're looking for the lowest fees and access to options like futures trading, Kraken may be the best fit for you. 

Yet Coinbase offers a slightly larger cryptocurrency selection at more than 250 available assets (Kraken support 220+ cryptocurrencies) and offers a plethora of account features like Coinbase Earn, trading charts, real-time market data, trading APIs, and more. 

Coinbase is an overall better platform for beginners, thanks to its learning rewards and easily navigable interfaces, but Kraken is still a decent option for new traders. Plus, it offers more portfolio options, including IRAs, custodian account options, and ESG portfolios. Its mobile apps are highly rated both for iOS and Google Play devices, you can complete crypto transactions in minutes, and it offers a Learn Center with copious educational materials on cryptocurrency topics.

Coinbase has overall higher fees compared with Kraken with a 0.50% spread for trade transactions, and a transaction fee ranging from $0.99 to $2.99. Advanced Coinbase features either require a higher minimum requirement or higher fees. For example, a Coinbase One subscription has a $29.99 monthly fee. Kraken has fees ranging from 0% to 0.26% depending on the coin or token you're trading. But Kraken does charge a 1.5% fee to instant buy, sell, or convert orders.