Kraken vs Coinbase is one of the questions investors have before investing in cryptocurrency. When a market is as hot as this one, there’s always a lot of intense interest.
Kraken vs Coinbase Security
Both Kraken and Coinbase are equally secure. There have been many advancements and requirements when it comes to keeping modern, online, cryptocurrency exchanges healthy and secure. It’s essential to have the public’s and the community’s trust in order to successfully run an exchange.
When it comes to Kraken vs Coinbase, Coinbase is an automated exchange. If you want a Bitcoin (BTC), you buy one. With Kraken, you need to place a market or a limit order and then let the exchange work seller by seller and sale by sale. Founder Jesse Powell created Kraken after Mt Gox was first hacked in 2011 to provide a more secure exchange. At the time, Mt Gox was the largest exchange for cryptocurrency.
Kraken vs Coinbase Easy-of-Use
Kraken is designed for security and Coinbase is designed for simplicity. Coinbase succeeded in making it quick and simple to become a crypto holder (Hodler). If you have experience in Forex or day trading and want to leverage trades or trade on margin or short cryptocurrencies, Kraken is the better choice. Coinbase does offer advanced trading features on their PRO platform. Whether on Kraken or Coinbase PRO, leveraging and shorting are risky. But remember, with great risk often comes great reward.
Apples to Oranges
Comparing Coinbase PRO to Kraken is more apples to apples but the much more popular Coinbase original and Kraken are apples to oranges.
Kraken offers advanced tools and products right off the bat while Coinbase starts you off with the most basic of choices possible in order to make it much simpler for people new to cryptocurrency to onboard.
Coinbase was the first of all the online services to make it easy to buy your first cryptocurrency. Before Coinbase, all cryptocurrency exchanges were like Kraken and had complicated interfaces because they were only there to facilitate people who already had crypto coins to buy, sell, and trade.
Dipping your toe into the new world of cryptocurrency using Kraken might take days of reading and watching YouTube videos unless you’re already an experienced currency or stock trader.
The hardest thing about joining Coinbase is verifying your legal identity and setting up a link to your bank account or a card.
Kraken vs Coinbase Access to Funds
There’s one thing that both Kraken and Coinbase have in common: sometimes it takes days for funds to clear. Not everything always happens immediately. In order to make sure everything squares away in the debit and credit columns, both Kraken and Coinbase need to hold money in the same way, your bank does when it comes to your account balance versus your available balance.
Coinbase is the place to go if you’re dipping your toe into Cryptocurrency. Once you’ve become a cryptocurrency investor, Kraken is the logical next step even though Coinbase Pro was introduced to try to keep Coinbase customers from leaving. Kraken is both powerful and secure and where the professional trader trades. Thus, choose wisely while keeping your limitations in mind.