Comparative Analysis: Kraken vs Coinbase

With the burgeoning popularity of cryptocurrencies in the United Kingdom, it’s essential that potential investors understand their options. Two of the leading digital currency platforms offering services for UK users are Kraken and Coinbase. This article provides a comprehensive comparison of trading fees and features between these giants.

Introduction to Kraken and Coinbase

Kraken and Coinbase are both reputable cryptocurrency exchanges that have been serving customers around the globe for years. Both offer a wide range of cryptocurrencies for trading, secure platforms, and are easy-to-use, making them favourable options for both beginners and experienced traders.

1. Trading Fees

The trading fees you pay can significantly affect your profitability as a trader. Let’s examine the cost implications on these platforms:

Kraken

Kraken operates on a maker-taker fee model. Here, “takers” who place trades that execute immediately – removing liquidity, pay a fee between 0.10% to 0.26% depending on their trading volume.
“Makers” who add liquidity to the market, on the other hand, pay between 0.0% to 0.16%.

Coinbase

Compared to Kraken, Coinbase‘s fee structure is less straightforward and generally higher, which has been a critical point of contention among users.
Its fee structure is divided into two: a standard spread of 0.50% for crypto sales and purchases, plus a fee based on your location and the amount of transaction. This can lead to transaction fees up to 3.99% for debit card purchases.

2. Trading Features

Trading features are equally as important as fees. They can assist traders in making crucial investment decisions. Let’s examine how Kraken and Coinbase compare:

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Kraken

Kraken provides a higher level of sophistication in terms of trading features. Advanced traders benefit from the extensive charting tools, numerous order types, and margin trading with up to 5x leverage.
Moreover, Kraken offers futures trading and a dark pool, an anonymous trading feature for high-volume traders.

Coinbase

Coinbase is characterised by its simplicity, focusing on making it easy for beginners to buy crypto and trade. It provides real-time price alerts, recurring purchases, and insured Bitcoin deposits.
The Coinbase Pro platform, designed for professional traders, offers advanced trade features, plenty of liquidity, and a robust API.

Platforms Similar to Kraken and Coinbase

Two platforms that offer services similar to Kraken and Coinbase for UK traders include Cornix and Zignally.

Cornix, like Kraken and Coinbase, provides an intuitive platform which makes it easy for all categories of users. It stands out for its auto-trading feature which works with several crypto exchanges.
Meanwhile, Zignally is known for its signal trading. It not only allows users to set their trading strategies but also to copy the trades of successful traders. However, Zignally isn’t an exchange and doesn’t offer the trading liquidity that Kraken and Coinbase have.

Conclusion

Choosing between Kraken and Coinbase as your go-to crypto trading platform in the UK depends on your needs. If your focus is on lower fees, advanced trading features, and you are an experienced trader then Kraken might be better for you. On the other hand, if you’re just starting out or prefer simplicity, then Coinbase may be more suitable.

The decision will ultimately depend on your personal trading needs and experience. Regardless, one thing is certain – with their proven track record, either would serve as a secure and efficient gateway into the world of cryptocurrencies.