Kraken vs. Coinbase
In the crypto world today, many applications and platforms render services to millions of people. Yet, there are two United States-based platforms which for one reason or the other have remained in the lips of users; Kraken and Coinbase.
Both platforms offer such brilliant services that people sometimes use both alternatively. However, it isn’t easy to keep track of transactions that way. In as much as both platforms are superb, it is better if you stick to one. To help you decide which of them fits your preference, we have drawn up this comparison-based analysis.
Mode of Operation and Purchase
Kraken works like a forex trading platform. In other words, it uses exchange and currency pairs system. The only difference is that whereas forex deals with fiat currencies, Kraken uses cryptocurrency pairs. The demerit of this style is that users with little trading experience may end up making a lot of terrible mistakes whilst trading.
Kraken’s exchange system makes the purchase of cryptocurrency on the platform a bit slower. For instance, if a person wants to purchase cryptocurrency on Kraken, the following steps will have to be followed.
- Account verification.
- Deposit of fiat currency via bank transfer.
- Wait for the transfer of fiat currency to reflect in your account. (This takes around two to five working days).
- Then, trade the fiat currency in your Kraken account for cryptocurrency.
On the other hand, Coinbase has a faster and simpler method of trade. This is achieved by removing the exchange system Kraken operates with. Coinbase allows you to purchase cryptocurrencies using both bank transfers and debit cards and the process is faster.
Purchasing via card transfer:
- Verify your bank card and your debit card.
- Purchase of Bitcoin Cash, Bitcoin, Ethereum Classic, Ethereum, Litecoin, and other cryptocurrencies at the current price.
Purchasing via bank transfer:
- Account verification.
- Purchase of Bitcoin Cash, Bitcoin, Ethereum Classic, Ethereum, Litecoin, and other cryptocurrencies at the current price.
- Thereafter, you’ll receive the amount of cryptocurrency that you bought the moment processing has been concluded.
In this regard, Coinbase is more beneficial than Kraken. Apart from the fact that you have viable options, you also receive the purchased cryptocurrency almost instantly; hence you can lock in prices faster. Kraken, on the other hand, doesn’t allow lock in prices before your bank transfer is processed.
It is also pertinent that you note that Kraken has more cryptocurrencies available
Customer Care Service
Before now, Coinbase struggled with providing optimal customer assistance to its users. That right now is a thing of the past. Coinbase now offers a tremendous customer care response via e-mail and phone to complaints and inquiries From the experiences of users, Coinbase responds within twenty-four to forty-eight hours after a complaint or inquiries made.
Although some users aver that sometimes they get replies three days later, one can say that the customer care service of Coinbase is near perfect. Meanwhile, Kraken has always held it’s customer service game strong. We can say that Kraken has a noble reputation when it comes to customer support.
The only backlash to this, however, is the process of account verification which has is made difficult by the inept response customers get in that regard. Asides from that, Kraken has a top-notch customer service platform in place.
Popular Support
On the issue of popular support, both companies enjoy public trust from a vast majority in the crypto community. Although Kraken started in 2011, before Coinbase joined the industry the following year, one can hardly differentiate which company has more supporters.
There are those that say that Coinbase has more supporters because it runs on mobile apps for Android and IOS users. However, some other people believe Kraken is more popular because it offers a wider variety of cryptocurrencies. Whichever way we look at it, both pioneers have carved a niche for themselves in commerce of cryptocurrency since their inception.
Again, both companies are compliant with international banking policies and laws guiding monetary transactions. This level of care and compliance has endeared them to the crypto community.
Security
Considering the amount of money held by these companies, even a layman will ask serious questions about security before using their platforms. An in-depth research on the accounting policies of both companies reveals that they practice very high-security hygiene.
For instance, they do not use customer funds stored as fiat currencies in their online accounts for maintenance or logistics. They also separate company and user funds. They operate a cold storage system which makes the system impenetrable to potential hackers. Additionally, they use a two-factor authentication protocol which makes it impossible for a third party to access an account without the device which was used to create that account.
In addition to the aforementioned, Coinbase has taken a step further to engage more precautionary measures. Funds held with Coinbase as cryptocurrencies are insured by Lloyd’s of London. Also, FDIC insurance covers about $250,000 of customer funds held in USD wallets. It is, therefore, safe to say that Coinbase is a step ahead on the issue of security.
Charges
Kraken is ahead of Coinbase on this table. If you want to be charged minimal fees for transactions, Kraken is a better option. However, before you decide, cast your mind back to their mode of payment.
Kraken charges less than 0.36% depending on the currency pair involved in the transaction. Whereas, Coinbase charges 1.49% on bank transfer purchases and 3.99% on debit card purchases. Although the reasons for the extra trading fees on Coinbase are quite coherent, it doesn’t underscore the fact that the difference in the rates of both companies is much.
Cryptocurrencies Traded On Both Platforms
As earlier mentioned, Kraken offers its users more options when it comes to available cryptocurrencies that can be purchased. To be precise, the following cryptocurrencies (eighteen in number), are traded on Kraken:
Kraken
- Cardano
- Zcash
- Monero
- XRP
- Tether
- Bitcoin
- Bitcoin Cash
- Bitcoin Satoshi’s Vision
- Dash
- Ethereum
- Ethereum Classic
- Gnosis
- EOS
- Stellar Lumens
- Melon
- Augur
- Litecoin
- QTUM
Coinbase, on the other hand, offers the following cryptocurrencies:
Coinbase:
- Bitcoin Cash
- Bitcoin
- Ethereum Classic
- Ethereum
- 0x
- USD Coin
- Litecoin
- Zcash
- Basic Attention Token
Dollar sign. Versus concept. Payment exchange line icon. Finance transfer symbol. Line vs classic payment exchange icon. Vector https://www.123rf.com/profile_blankstock
Kraken Vs Coinbase: Time to Choose
Although analysts will always have a puzzle to explain, the truth remains that there is no real all-time favorite in the comparison of both platforms. Coinbase is simpler, faster but more expensive. Kraken is more difficult to use, slower but by far cheaper than Coinbase. In a way, the strength of one is the weakness of another. In the end, it simply comes down to customer preference, nature, and the aim of transactions and trading skills.
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