When it comes to choosing between Kraken vs Coinbase, you have to decide which is best for you. While both exchanges offer a range of cryptocurrencies, Kraken is specifically designed for frequent trades and offers margin access. When comparing fees, remember that each exchange has its own fee structure and schedule. While some may have lower fees, they do not always outweigh the better coin availability. Here are some of the pros and cons of each exchange.
Coinbase has more users and is available in over 100 countries, which gives it the best liquidity. On the other hand, Kraken has just seven million users, whereas Coinbase has over 56 million. Moreover, both exchanges have similar fee structures, with the former offering lower fees for larger volumes. While they are both excellent in their own right, you might want to choose one over the other based on the features and functionality you require.
Coinbase is more intuitive and easier to use, but it lacks the educational resources Kraken offers. If you are a beginner in crypto, Coinbase offers free videos that teach you about various projects and give you bonus crypto for taking quizzes. However, if you have a significant amount of money to invest, it’s more prudent to go with Kraken. You’ll be happier with the latter in the long run.
Kraken offers higher leverage and margin trading. However, you’ll need at least $100,000 to use the platform. In addition, the platform isn’t accessible to all residents of the U.S., and it doesn’t offer standalone wallets or FDIC insurance. However, its user interface is easier to use and it supports a greater variety of cryptocurrencies. Lastly, Kraken offers lower fees and allows you to withdraw your funds at a faster pace.
While Coinbase allows you to download a wallet, Kraken does not. Instead, Kraken uses a built-in wallet to store your coins. The vast majority of user funds are stored in cold storage throughout the world, so you don’t have to store them on a separate wallet. But coinbase offers a range of passive income options. It’s best to choose a cryptocurrency exchange based on your needs.
If you’re a beginner looking for a trading platform for your first crypto investment, Kraken is a better choice. The shrewd and experienced investor may prefer this platform. Traders Union’s community has plenty of helpful information for new investors. Its FAQ section will answer many common questions. You can even make your first trade within minutes after signing up. You can find all of the information you need to make an informed decision about which exchange will suit you best.
Security is an essential aspect when choosing between Kraken and Coinbase. Both exchanges use two-factor authentication to secure your funds. You can create and store multiple keys for added security. You can also protect your personal information with encryption. Coinbase and Kraken both use Pretty Good Privacy (PGP) encryption and Google Authenticator. The security key helps you to avoid hacker activities. While you can never be 100% secure, both exchanges offer two-factor authentication, which is a good idea.