Are you passionate about cryptocurrencies and trading but unsure where to begin? Purchasing cryptocurrencies isn't as simple as buying everyday items like bread or milk—you can't just walk into a store or order them online. Instead, you'll need to use a crypto exchange platform to convert fiat currency into digital assets.
Among the most reputable exchanges available today are Kraken and Coinbase. But how do they compare, and which one suits your needs? This guide breaks down their histories, features, pros and cons, and long-term storage solutions to help you decide.
Kraken vs Coinbase: A Historical Overview
Kraken: Security-First Exchange
Founded in 2011 by Jesse Powell, Kraken emerged after the infamous Mt. Gox hack. Powell prioritized security, designing Kraken to be hack-resistant—a reputation it maintains to this day. The platform supports high-volume trading with leverage and offers a wide range of cryptocurrencies, including Bitcoin, Ethereum, and Monero.
Coinbase: User-Friendly Gateway
Coinbase, launched around the same time, focused on accessibility. Its PayPal-like interface simplifies crypto purchases for beginners. By 2014, it had over a million users and partnerships with major companies like Expedia and PayPal. Coinbase supports fewer cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Bitcoin Cash) but excels in ease of use.
Key Differences Between Kraken and Coinbase
Kraken Features:
- Leveraged Trading: Trade with borrowed funds (up to 5x margin) for higher profits (or losses).
- Short Selling: Bet against cryptocurrencies by borrowing and selling assets.
- Diverse Cryptos: Supports 16+ major coins, including privacy-focused options like Zcash.
- Lower Fees: Trading fees start at 0.16% for high-volume traders.
Coinbase Features:
- Instant Purchases: Buy crypto instantly with verified accounts (no 1–5 day wait).
- Beginner-Friendly: Intuitive interface and educational resources.
- Insurance Protection: Funds held on Coinbase are insured against breaches.
- Higher Fees: Up to 3.99% for debit/credit card purchases.
Pros and Cons
Kraken
Pros:
- Advanced trading tools (leverage, shorting).
- Lower fees for active traders.
- Strong security track record (never hacked).
Cons:
- Steeper learning curve.
- Slower fiat deposits (1–5 business days).
Coinbase
Pros:
- Easy for beginners.
- Fast transactions.
- Insured custodial wallets.
Cons:
- Limited coin selection.
- High fees for small trades.
Long-Term Crypto Storage
Neither platform is ideal for long-term storage. For security, transfer assets to:
- Hardware wallets (e.g., Ledger, Trezor).
- Software wallets (e.g., Exodus, Trust Wallet).
👉 Explore secure wallet options
FAQs
1. Which is better for beginners?
Coinbase’s simple interface makes it the top choice for newcomers.
2. Can I trade with leverage on Coinbase?
No—Kraken supports margin trading, while Coinbase does not.
3. Are these exchanges safe?
Both are highly secure, but Kraken has a stronger record against hacks.
4. Which has lower fees?
Kraken offers significantly lower trading fees (from 0.16%).
5. Where should I store my crypto long-term?
Use a non-custodial wallet (hardware or software) for maximum security.
Final Verdict
- Choose Kraken if you’re an experienced trader seeking low fees and advanced tools.
- Opt for Coinbase if you prioritize ease of use and quick transactions.
👉 Start trading on a secure platform
Remember: Always conduct your own research and never invest more than you can afford to lose. Happy trading!