Investing in the crypto realm is an interesting topic at the moment. Cryptocurrency is causing quite a stir throughout the world.
Investors have been taken aback by the random fluctuations in its stalks. Teenagers are also very interested in the potential of bitcoin.
Leaving that disagreement aside, we’re talking about websites where you can invest in cryptocurrency if you’re interested. They are Coinbase and Kraken, and we will try to determine the significant distinctions between them.
Key Takeaways
- Coinbase is a user-friendly cryptocurrency exchange platform suitable for beginners, while Kraken is a more advanced platform with additional features for experienced traders.
- Coinbase offers a limited selection of cryptocurrencies but has a simple interface, whereas Kraken supports a wider range of digital assets and provides advanced trading tools.
- Kraken has lower fees than Coinbase, making it more cost-effective for frequent or high-volume trading.
Coinbase vs Kraken
Coinbase is a beginner-friendly secure online platform for buying, selling, transferring, and storing cryptocurrency. But it doesn’t offer many advanced trading options. Kraken is a cryptocurrency exchange that offers many types of trading, including margin trading, futures trading, as well as limit orders.
Coinbase is a platform for investing in digital currencies. It provides a safe environment for you to digitally convert your currency into bitcoin.
It facilitates the purchase and sale of cryptocurrency. You can use Coinbase among friends, online wallets, and other services to transmit currency for free among pals.
Many platforms have been built using Coinbase’s API.
Kraken is a bitcoin exchange platform situated in San Francisco. It can be used by a variety of traders to sell or buy currencies.
Kraken was first established in 2011, but it was not formally introduced until 2013. It was owned by Paywand Inc., whose CEO was Jesse Powell.
Money transfers are simple thanks to the linked bank accounts and the platform.
Comparison Table
| Parameters of Comparison | Coinbase | Kraken |
|---|---|---|
| Platform features | You can withdraw or sell using PayPal. | Strong security at a reasonable cost. |
| Cryptocurrencies permitted | More than 120 | 97 |
| Security features | Two-step verification, biometric fingerprint scanning, AES-256 encryption, and more features | 2FA withdrawal email confirmation, API key permission control, SSL encryption, and other features are available. |
| Is staking possible here? | No | Yes |
| Is crypto watch facilitated here? | No | Yes |
What is Coinbase?
While investing, you must understand where your money is going and how it will be returned to you. A cryptocurrency is a volatile form of electronic money.
So, before investing in any of these digital sites, seek professional guidance to avoid huge losses. Coinbase is a digital platform that allows you to invest in, buy or sell bitcoin, and exchange it.
This website supports the exchange of over a hundred and twenty cryptocurrencies. It is a large platform, with over 73 million individuals consuming this digital medium.
It is well-known for having around $250 billion in assets on its platform.
If you are a newbie, you can use the standard Coinbase platform, but if you want something more complex, you can utilize Coinbase Pro. There is a lot of ambiguity about cryptocurrency because it is incredibly volatile and electronic currency.
It lacks a centralized governing body. If you are ready to invest in cryptocurrency, Coinbase is one of your options.
Coinbase was founded to exchange bitcoins. It has grown tremendously since then and now has a workforce of 2,700 people.
It has no headquarters and users in over a hundred countries globally. It finances nine thousand businesses and operates two separate trading platforms.
What is Kraken?
Let us now discuss Kraken, which, as previously stated, facilitates stock trading. It is a digital platform that facilitates the trade of cryptocurrencies.
However, it differs from the former in several ways. The quantity of cryptocurrencies that can be exchanged through Kraken is less than that of Coinbase.
It only supports the exchange of 97 coins. Fiat currencies, such as US dollars, euros, Canadian dollars, and Japanese yen, can be used to purchase bitcoin.
Ethereum (ETH), Bitcoin (XBT), EOS, and Monero are some of the currencies that may be traded through the app (XMR).
Kraken is a highly adaptable platform with a robust trading platform. It invites both individuals and large trade firms.
There are several forms of accounts from which to justify one’s needs. There have been countless instances when this platform has suffered significant losses, but it has managed to keep up with the many others.
2FA withdrawal email confirmation, tight surveillance, SSL encryption, air-gap cold storage, and other security features are available. One of the platform’s advantages is that it is secure and reliable.
It accepts fiat money. The deposit and withdrawal limits are quite high.
Because it is a more European-oriented platform, there are several instances where US customers are unable to use particular functionalities. The verification step is lengthy and features a somewhat difficult user interface.
Main Differences Between Coinbase and Kraken
- Coinbase offers over 120 cryptocurrencies, but Kraken only accepts 97.
- Coinbase’s user interface is more approachable than Kraken’s.
- Coinbase has a lesser withdrawal and deposit level ($25000), whereas Kraken has a higher withdrawal and deposit level ($100000).
- Two-step verification, biometric fingerprint scanning, AES-256 encryption, and other security protections are included in Coinbase, whereas Kraken has 2FA withdrawal email confirmation, API key authorization control, and SSL encryption.
- Coinbase supports trading in 100 countries, whereas Kraken supports trading in 176.
- https://www.sciencedirect.com/science/article/pii/S0960077917305209
- https://www.inzeko.ktu.lt/index.php/EE/article/view/25162
Last Updated : 13 July, 2023
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
