Comparing Kraken and Coinbase: Two Titans in Digital Asset Trading
In the rapidly evolving world of digital asset trading, two platforms have emerged as leaders—Kraken and Coinbase. Both offer unique features and cater to a broad range of users from retail investors to institutional traders. This article aims to compare these two platforms based on their user interface, security measures, fees, variety of cryptocurrencies offered, customer support, and additional services.
User Interface
Kraken's platform is known for its clean design and intuitive navigation. Traders can easily navigate between different markets using the side panel or toggle between a simple layout and a more detailed view to suit their preferences. The interface is highly customizable with options to choose from five price scales, seven time frames, and six price steps. Kraken also offers multiple charting tools for technical analysis.
Coinbase, on the other hand, has a simpler and more straightforward user interface designed primarily for retail investors. Navigation is easy and intuitive, making it an excellent platform for first-time users of digital assets. However, its simplicity means that advanced features such as customizable layouts or extensive charting options are not available.
Security Measures
Security is paramount in the world of cryptocurrency trading, and both Kraken and Coinbase take this seriously. Kraken employs multi-factor authentication (MFA) for enhanced security, allowing users to add additional layers of protection beyond just a password. The platform also utilizes cold storage wallets, meaning that their customers' funds are stored offline on hardware wallets rather than being left on servers at risk from hackers.
Coinbase is renowned for its user-friendly approach to security without compromising on safety measures. Users can activate two-factor authentication (2FA) and they offer a range of wallet options including ledger support, which is a popular cold storage solution among users. Coinbase also ensures that the wallets are protected by firewalls and other network segregation technologies.
Fees
Fees are another critical factor to consider when choosing between Kraken and Coinbase. Kraken offers both maker/taker fees and transaction fees, with rates varying depending on the volume of trades. For standard transactions, the fee is 0.16% for makers (buying orders) and 0.26% for takers (selling orders). Deposit and withdrawal fees are also charged, which vary based on the cryptocurrency being transacted.
Coinbase, while primarily a fee-free platform for small transactions under $10,000 per calendar year in USD value, charges higher rates for larger trades. The trading fee is 0.25% of the total trade volume and there's also an additional charge of $0.0086 per transaction, rounded up to the nearest penny. Deposit and withdrawal fees are relatively low compared to other exchanges but do depend on the cryptocurrency being transacted.
Variety of Cryptocurrencies Offered
Kraken boasts a wide variety of cryptocurrencies available for trading, catering to a broad spectrum of users from those interested in Bitcoin (BTC) and Ethereum (ETH) to less mainstream coins like Zcash (ZEC) or Lisk (LSK). The platform supports over 150 cryptocurrencies across a range of markets, including derivatives.
Coinbase is more limited when it comes to the number of cryptocurrencies available for trading—it primarily focuses on Bitcoin and Ethereum due to their widespread use and acceptance. However, Coinbase has recently expanded its offerings to include other altcoins like Binance Coin (BNB) in response to market demand.
Customer Support
Both Kraken and Coinbase offer customer support through email, phone, and a knowledge base full of articles that cover a wide array of topics. The response times for both platforms are generally quick, but the difference lies in their service philosophies; Kraken provides extensive documentation on their website, which can be an invaluable resource for those looking to self-solve problems or gain deeper insight into their trading platform. Coinbase's customer support is more focused on resolving immediate issues and ensuring a smooth user experience.
Additional Services
In addition to cryptocurrency trading services, both platforms offer a variety of additional services that complement the core function. Kraken offers access to its Liquidity Pool Service (LPS), where users can become market makers by providing liquidity across multiple markets. They also provide API keys for developers wishing to integrate Kraken's capabilities into their own applications.
Coinbase, on the other hand, extends beyond trading and offers a wallet solution that integrates with their exchange for secure storage of cryptocurrencies. Additionally, Coinbase has a platform for institutional investors in the form of its subsidiary, Coinbase Custody, where they provide high-security cold storage solutions for institutions' cryptocurrency holdings.
Conclusion
In summary, Kraken and Coinbase are two distinct platforms with unique features that cater to different user groups. While Kraken is geared towards professional traders and those seeking advanced trading tools and a more customizable experience, Coinbase is ideal for retail investors looking for simplicity and ease of use in digital asset management. Ultimately, the choice between these platforms will depend on individual needs and preferences regarding security, fees, variety of cryptocurrencies, customer support, and additional services offered.