Introduction
Cryptocurrency has been a buzzword in the financial industry in recent years. It's no surprise that payment processing technology has been evolving to accommodate cryptocurrency transactions. Coinbase and Kraken are popular names in the cryptocurrency exchangers industry. In this article, we'll be comparing the two platforms.
Coinbase
Coinbase is one of the largest cryptocurrency exchanges in the world. Founded in 2012, Coinbase provides a secure platform for buying, selling, and storing cryptocurrency. The platform supports seven cryptocurrencies: Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, 0x, and USD Coin.
Fees
Coinbase charges a flat fee of 1.49% for buying or selling cryptocurrency. However, there is a catch. Coinbase has a spread on the exchange rate. The spread ranges from 0.50% to 2.00% based on market fluctuations.
Security
Coinbase has a reputation for its high-security standards. The platform stores 98% of its customer funds in offline storage. Coinbase also offers insurance protection against theft and hacking.
Kraken
Kraken is a popular cryptocurrency exchange founded in 2011. Kraken offers a robust trading platform for buying, selling, and storing cryptocurrency. Kraken supports over 30 cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
Fees
Kraken operates on a maker-taker model. The maker-taker model is a fee structure that rewards customers who provide liquidity to the exchange. Kraken's fees range from 0% to 0.26% for makers, while the taker fees range from 0.10% to 0.26%.
Security
Kraken is known for its high-security standards. The platform offers two-factor authentication, encrypted emails, and master seed backups. Kraken also stores the majority of its customer funds in offline storage.
Comparison
| Features | Coinbase | Kraken |
|---|---|---|
| Cryptocurrencies | 7 | 30+ |
| Fees | 1.49% + spread | 0% - 0.26% |
| Security | 98% funds in offline storage | Majority funds in offline storage |
Conclusion
Both Coinbase and Kraken are reputable cryptocurrency exchanges. Coinbase offers a secure platform with lower fees, while Kraken offers a broader selection of cryptocurrencies and lower fees for liquidity providers. It's up to you to decide which platform fits your needs.