Coinbase vs Kraken: Head-to-Head (November 2024)

Coinbase and Kraken are two of the most popular cryptocurrency exchanges in the world. In this guide, we’ll be comparing the two exchanges on key factors — like fees, user interface, and advanced features! 

Coinbase vs Kraken: What’s the best choice for me? 

Coinbase and Kraken are both fantastic platforms. The best choice for you may vary depending on your specific situation. 

Coinbase: Coinbase is considered the best choice for beginner investors due to its easy-to-use user interface and its Learn and Earn program. 

Kraken: Kraken is a better choice for more experienced investors due to its low fees and advanced features. 

Coinbase vs Kraken: User Friendliness

Winner: Coinbase

Coinbase is the best choice for newcomers in the crypto space. The platform is renowned for its easy-to-use interface and user-friendly design. 

While Kraken is considered relatively easy-to-use, it may not be as intuitive for beginners as Coinbase.

Coinbase vs Kraken: Regulatory Issues

Winner: Tie

Both Coinbase and Kraken are trusted exchanges that have obtained licenses in various jurisdictions. 

Coinbase and Kraken are both registered as Money Services Businesses with FinCEN in the United States. 

While both companies are trusted, they have faced issues from regulators from recent years. 

• Coinbase: Coinbase is currently undergoing a legal battle against the SEC. In 2023, the SEC charged Coinbase with operating as an unregistered securities broker, and also charged it with failing to register its staking-as-a-service program. Coinbase challenged the SEC in court over unclear cryptocurrency regulations. 
• Kraken: Kraken settled with the U.S. Treasury's Office of Foreign Assets Control (OFAC) for $362,158.70 over allegations of violating sanctions against Iran. Kraken also settled with the SEC for $30 million over its staking-as-a-service program, and stopped offering staking to US customers. 
  

It’s important to note that these regulatory issues are not unique to Coinbase and Kraken. These actions are indicative of the recent stance the SEC has taken against the crypto industry as a whole. 

Coinbase vs Kraken: Security 

Winner: Tie

Coinbase and Kraken are both considered highly-secure platforms. Both platforms use two-factor authentication and encryption to protect user data, and hold customer funds 1:1 offline. 

Kraken is one of the few cryptocurrency exchanges to never be hacked in its history. Meanwhile, Coinbase was hacked in 2021. 

However, Coinbase offers pass-through FDIC insurance up to $250,000 through its banking partners as well as crime insurance. Kraken does not currently have insurance for customer holdings. 

Kraken: 2-factor authentication, encryption, all customers funds held in reserve 1:1

Coinbase: 2-factor authentication, encryption, Proof of Reserves audited by third-party 

Coinbase vs Kraken: Cryptocurrency Selection

Winner: Coinbase

Coinbase offers a wider cryptocurrency selection than Kraken.

Kraken: 120+ cryptocurrencies

Coinbase: 260+ cryptocurrencies 

Coinbase vs Kraken: Staking

Winner: Coinbase 

As noted earlier, Kraken and Coinbase have both faced scrutiny from the SEC over staking. While Kraken no longer offers staking to US customers, Coinbase is currently fighting the SEC in the courts and continues to offer staking to most US customers. 

Kraken: In 2023, Kraken was fined $30 million by the SEC and forced to shut down its staking program in the United States. 

Coinbase: Coinbase is currently engaged in a lawsuit with the SEC over its staking offering. However, Coinbase is still offering staking to customers in most US states (except California, New Jersey, Maryland, South Carolina, and Wisconsin). 

Coinbase vs Kraken: Advanced Features 

Winner: Kraken 

Kraken is the best choice for experienced investors looking for advanced features. While Coinbase supports advanced charting, it’s important to note that the platform is geared towards beginners and does not offer other advanced features like account management. 

Kraken: Account management for advanced traders, derivatives trading, advanced charting, margin trading (for select traders who meet eligibility criteria)

Coinbase: Advanced charting, derivatives trading for non-US customers 

Coinbase vs Kraken: Customer Support

Winner: Kraken 

Kraken has been praised for offering better customer support than most of its competitors.

Kraken: Kraken has been praised for offering faster and higher quality customer support than most of its competitors. The platform provides customer service via phone, email, and live chat. Still, Kraken has faced accusations of slow response times in some cases. 

Coinbase: While Coinbase does offer customer support via phone and live chat, the platform has faced criticism for slow/unhelpful customer service. Coinbase does offer Coinbase One, a subscription service that offers priority customer support (amongst other benefits).

Coinbase vs Kraken: Educational Resources 

Winner: Coinbase 

While both Coinbase and Kraken offer educational resources, Coinbase’s Learn and Earn program makes it the best choice for beginners. 

Coinbase: Coinbase's Learn and Earn program allows users to earn small amounts of cryptocurrency while learning about different blockchain projects. Coinbase’s Learn and Earn modules have been praised for how short and easy they are to complete! 

Kraken: Kraken has a comprehensive Learn section on its website, offering articles, videos, and podcasts about cryptocurrencies and blockchain technology. However, the platform does not offer Learn rewards. 

Coinbase vs Kraken: Mobile App 

Winner: Coinbase 

Both exchanges offer mobile apps for iOS and Android. Coinbase and Kraken both currently have a 4.7/5 rating on the App Store. 

The Coinbase app offers better user experience, more functionality, and is updated more frequently. However, Kraken may be a better choice for experienced investors due to its advanced interface. 

Coinbase: App includes biometric authentication, extra security through Vault feature, price alerts, Web 3 dApp browser, Apple & Google Pay support 

Kraken: App includes biometric authentication,  price alerts (offline and online), and advanced interface with detailed orderbook

Coinbase vs Kraken: Withdrawal Limits

Winner: Coinbase

Both Coinbase and Kraken offer a generous withdrawal limit of $100,000 per day to fully verified customers. However, Kraken limits withdrawals at $500,000 per month. 

Coinbase: $100,000 per day withdrawal limit 

Kraken: $100,000 per day withdrawal limit ($500,000 per month) 

Coinbase vs Kraken: International 

Winner: Tie 

Kraken has a wider geographical availability. 

However, Coinbase supports a wider range of fiat currencies and might be more beginner-friendly for international users. 

Coinbase: Available in 100+ countries 

Kraken: Available in 190+ countries

Coinbase vs Kraken: Tax

Winner: Tie 

Both Kraken and Coinbase issue tax documents to users. Both exchanges send Form 1099-MISC to the IRS and give users the option to download their transaction history for tax purposes. 

However, it’s important to note that exchanges like Kraken and Coinbase have trouble calculating your capital gains and losses if you transferred your cryptocurrency across exchanges. This is not the fault of the exchanges themselves, but is rather due to cryptocurrency’s unique properties. 

The best way to accurately report your cryptocurrency taxes across different exchanges and wallets is to use crypto tax software like CoinLedger. Crypto tax software can pull transactions from your platforms and help you generate complete tax forms in minutes.

Final Verdict

While Coinbase is the best exchange overall, Kraken offers advantages like low fees and features for experienced investors. Before you get started with a crypto platform, consider your own unique situation and what you’re looking for in a cryptocurrency exchange.