Cryptocurrency is big news and trading in it is becoming highly popular and, more importantly, incredibly lucrative. Entering into not just a new currency, but a complete re-imagining of what currency is, however, is certainly a little intimidating. Thankfully, help is at hand through a number of cryptocurrency exchanges, the most popular of which are Kraken and Coinbase.
To help you understand each of these digital platforms a little more clearly, we’ve put together a list of the pros and cons of each. And, by the end of it, you should have a better idea of where you’re going to buy, sell and store your cryptocurrencies.
Kraken vs Coinbase
Founded in 2011 by Jesse Powell, Kraken is located in San Francisco and was one of the first Bitcoin exchanges to launch on the Bloomberg Terminal. Here are the pros and cons that you need to be aware of when using Kraken:
- Wide range of currencies available: Kraken is able to boast 14 different currencies on their exchange and these include the three most popular in Bitcoin, Ethereum and Litecoin
- Low fees: Trading fees on Kraken are some of the lowest you can find among crypto-exchanges
- High limits: Kraken allows you to deposit and withdraw up to $25,000 per day
- Simple verification: Users are able to start trading in both digital and fiat (issued by a government) currencies by providing just a few personal details
- No credit/debit card facilities: The only method for withdrawing and selling on Kraken is through bank transfers and cryptocurrency
- Not user friendly: The Kraken interface has been criticised for being unfriendly to users and causing beginners to make numerous errors
Coinbase was founded in San
Francisco by Brian Armstrong in 2012 and now has a user base of around 13.3 million users. If you’re interested in trading on Coinbase then these are the pros and cons of the platform:
- User friendly: Simplicity is the name of the game with Coinbase and it ensures that beginners are able to get up and running with the minimum of fuss
- Good buy/deposit methods: Coinbase allows its users to use either credit/debit card, bank transfers and cryptocurrency to facilitate withdrawals/deposits
- Safe Limits: Rather than allow new users to lose huge amounts of money immediately, Coinbase sets purchase limits based on account age, buying history and verification status
- Easy verification: Bank details can be linked to your account almost instantly to allow you to start trading
- Limited cryptocurrencies: Coinbase only supports Bitcoin, Litecoin and Ethereum, so the choice of available cryptocurrencies is limited
- Medium fees: Purchase fees on Coinbase are higher than their rivals with 1.49% and 3.99% fees for bank transfer and credit card transactions respectively
Final Thoughts: Kraken vs Coinbase
No matter what people tell you, the cryptocurrency bubble is not going to burst. And that’s why there’s no better time to get involved with cryptocurrency.
Kraken and Coinbase both represent fantastic options for getting to grips with the complexities of cryptocurrency, but with a significant difference in the services on offer. Kraken, of course, provides a wide range of different cryptocurrencies to work with, but offers limited options when it comes to withdrawing/depositing funds. Coinbase, meanwhile, may offer slightly higher transaction fees, but it’s a platform which is intuitive and offers superior buy/deposit methods.
Deciding on which platform is entirely down to your circumstances, but if you choose carefully then you stand to make the whole process easier and more financially rewarding.