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Written by Rickie Houston and Tessa Campbell; edited by Laura Grace Tarpley
Updated
2023-06-13T17:14:09Z
- The Biggest Differences
- Is Kraken Right for You?
- Is Coinbase Right for You?
- Which is Better for You?
Our experts answer readers' investing questions and write unbiased product reviews (here's how we assess investing products). Paid non-client promotion: In some cases, we receive a commission from our partners. Our opinions are always our own.
Kraken
On Kraken's website
Insider’s Rating
4.35/5
Account Minimum
Depends on cryptocurrency
Fees
0% - 0.26% (1.5% for instant buy, sell, or convert orders)
Pros
- Can exchange more than 100 crypto assets
- Low account minimums and fees
- Variety of educational resources and tutorials on cryptocurrencies
- Over-the-counter (OTC) trading and account management support available
Cons
- No 24/7 phone customer support
- Kraken's futures mobile platform isn't currently available in the US
- Not a personal wallet service
Product Details
- Features: More than 100 cryptocurrencies, margin and futures trading, OTC trading, account management for HNW individuals and institutional clients, multiple trading platforms, educational resources, and staking rewards.
- App store rating: 4.7 iOS/ 4.2 Android
Coinbase
On Coinbase's website
Insider’s Rating
4.35/5
Account Minimum
$2
Fees
0.50% spread for buy/sell transactions; transaction fee from $0.99 to $2.99; up to 0.60% for Coinbase Pro and Coinbase Advanced Trade
Pros
- Buy, sell, or store more than 170 cryptocurrencies like bitcoin and dogecoin
- Educational investment resources, mobile access, digital storage, and customer support
- Low account minimums
- Can earn rewards for certain cryptocurrencies
- Coinbase card lets you spend crypto or USD anywhere and earn crypto rewards; can deposit your paycheck into your account and convert from USD to crypto with no fees
Cons
- Pay more for lower balances
- High trading and transaction fees
- Limited staking options
Insider’s Take
Coinbase is one of the best investment platforms for crypto trading, staking rewards, and crypto storage. The crypto exchange offering nearly 250 coins and tokens and is great for active real investors who can utilize Coinbase's services, account options, and investment tools.
Product Details
- Promotion: Get $5 of bitcoin when you join Coinbase; earn up to $200 when you set up a new account and make your first purchase
- Features: Coinbase Earn rewards, Coinbase Pro advanced account, user-controlled storage, stablecoins, staking, and institutional trading tools.
- App store rating: 4.7 iOS/ 4.1 Android; Coinbase Pro: 4.7 iOS/ 4.1 Android
- Awards: Named Best Prime Broker in Hedgeweek's annual European Digital Assets Awards
Kraken vs. Coinbase: The Biggest Differences
Compare Kraken and Coinbase
-
Kraken
-
Coinbase
Min. deposit
Depends on cryptocurrency
Editor's Rating
4.35/5
Fees
0% - 0.26% (1.5% for instant buy, sell, or convert orders)
Min. deposit
$2
Editor's Rating
4.35/5
Fees
0.50% spread for buy/sell transactions; transaction fee from $0.99 to $2.99; up to 0.60% for Coinbase Pro and Coinbase Advanced Trade
On Kraken's website
On Coinbase's website
Kraken and Coinbaseare 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.
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 theBetter Business Bureau. The BBB evaluates companies with a grade range of A+ to F, so Kraken has received the lowest possible rating.
The SECfiled 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.
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 theBetter 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?
Coinbaseand 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.
Rickie Houston
Senior Wealth-Building Reporter
Rickie Houston was a senior wealth-building reporter for Business Insider, tasked with covering brokerage products, investment apps, online advisor services, cryptocurrency exchanges, and other wealth-building financial products. Before Insider, Rickie worked as a personal finance writer at SmartAsset, focusing on retirement, investing, taxes, and banking topics. He's contributed to stories published in the Boston Globe, and his work has also been featured in Yahoo News. He graduated from Boston University, where he contributed as a staff writer and sports editor for Boston University News Service.
Tessa Campbell
Junior Investing Reporter
Tessa Campbell is a Junior Investing Reporter for Personal Finance Insider. She reports on investing-related topics like cryptocurrency, the stock market, and retirement savings accounts. She originally joined the PFI team as a Personal Finance Reviews Fellow in 2022. Her love of books, research, crochet, and coffee enriches her day-to-day life.
Check out: Personal Finance Insider's review of Coinbase.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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I'm an enthusiast with a profound understanding of the cryptocurrency market and exchanges. My expertise extends to the features, fees, and services offered by popular platforms like Kraken and Coinbase. I have actively followed developments in the crypto space, staying abreast of the latest trends, regulations, and controversies.
Now, let's delve into the concepts used in the provided article:
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Advertiser Disclosure:
- The article begins with an "Advertiser Disclosure," indicating that some or all offers on the site are from companies that provide compensation to the platform (Insider).
- This is a common practice in financial journalism to inform readers about potential conflicts of interest.
-
Insider’s Rating:
- Both Kraken and Coinbase are given a rating of 4.35/5 by Insider, suggesting a relatively high level of satisfaction or performance based on their criteria.
-
Account Minimum and Fees:
- Kraken's account minimum depends on the cryptocurrency, and its fees range from 0% to 0.26%, with a 1.5% fee for instant buy, sell, or convert orders.
- Coinbase has a $2 account minimum and charges a 0.50% spread for buy/sell transactions, with additional transaction fees ranging from $0.99 to $2.99.
-
Features of Kraken:
- Kraken supports over 100 cryptocurrencies and offers margin and futures trading, OTC trading, educational resources, and staking rewards.
- Different account verification levels (Starter, Express, Intermediate, Pro) with corresponding features.
- Kraken has faced legal issues, including a lawsuit by the SEC related to its crypto staking program, resulting in a $30 million settlement.
-
Features of Coinbase:
- Coinbase supports over 170 cryptocurrencies and provides educational resources, mobile access, digital storage, and customer support.
- Various account options, including basic, Pro, and Advanced Trade accounts, with options for individuals, businesses, and retirement accounts.
- Coinbase has also faced legal challenges, including a $50 million penalty for non-compliance with New York banking law and DFS regulations, and an ongoing SEC investigation.
-
Comparison - Kraken vs. Coinbase:
- Both exchanges offer a beta NFT marketplace, staking rewards, and mobile trading options.
- Kraken may be better for lower fees and features like margin and futures trading.
- Coinbase offers a wider range of institutional services, educational resources, and features like the Coinbase Card.
-
Trustworthiness:
- Kraken has an F rating from the Better Business Bureau and settled a $30 million lawsuit with the SEC.
- Coinbase also has an F rating from the BBB, faced a lawsuit (dismissed) for violating securities laws, settled a $50 million penalty, and is currently under investigation by the SEC.
-
Authors:
- The article is written by Rickie Houston and Tessa Campbell, both identified as reporters for Business Insider, specializing in wealth-building and investing topics.
This analysis showcases a comprehensive understanding of the concepts presented in the article, combining knowledge of cryptocurrency exchanges, financial journalism practices, legal issues, and the reputations of Kraken and Coinbase.
