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Coinbase vs. Kraken: What Works Better For Canadians in 2024

Oleg Galeev

Last updated December 27, 2023

In this comparison, we delve into two of the leading players in the crypto exchange domain – Coinbase and Kraken, highlighting their unique offerings. While Coinbase stands out with its user-friendly interface and expansive learning resources, Kraken shines with its robust trading tools and wide array of cryptocurrencies.

Description

Founded in 2012, Coinbase Canada is a cryptocurrency exchange with a simple interface making it a popular choice for Canadians looking to start their crypto journey. However, more Canadians are starting using local exchanges e.g. Bitbuy. Coinbase has 56 million users and became the first cryptocurrency exchange to have an Initial Public Offering.

Kraken is a Canada-friendly, but US-based crypto exchange that has been operating since 2013. Kraken has a strong reputation due its security and compliance with US regulations. Kraken aims to accelerate mass adoption of cryptocurrency and offers a wide range of coins.

Coins

50+ including BTC, ETH, XRP, LTC

90+

Fees

Extremely High
3.99% buy fee
0.50% fee per trade

nstant buy incurs a 1.5% fee (0.9% for stablecoins) plus:
3.75% and€0.25 card processing fee or,
3.75% + €0.25 digital wallet processing fee or,
0.5% online bank transfer fee

Pros

Simple and easy interface
Good for beginners
Secure exchange with cold storage
The most popular coins offered
Users can set up automatic recurring buys
Learn to earn crypto program

Wide range of coins
High fees when not using Pro
Good for beginners
Free CAD deposits
Advanced tools with the Pro platform
Staking

Cons

High fees
Fewer coins than Binance
Complaints of bad customer support
No Interac e-Transfer

No Interac e-Transfer
Deposits can take 1-5 business days
Extremely high trading fees
Tend to freeze accounts for no apparent reasons
Slow support

Account Limits

High limit. Purchase limit depends on account age and other factors

Low

App

Methods to buy

Debit card

Wire transfer
Debit card

Security

2FA, coins held in cold storage with multi-signature wallets, KYC verification process

95% of coins held in cold storage
Servers monitored 24/7 by armed guards
2FA available
Confirm withdrawals via email
Fully Audited

Mobile and Desktop Trading

Coinbase and Kraken both offer seamless trading experiences across mobile and desktop platforms. On the App Store and Google Play, Coinbase sports a rating of 4.6 and 4.1, respectively, commended for its intuitive interface. The desktop version mirrors the mobile experience, ensuring easy navigation. Conversely, Kraken Pro, the mobile app from Kraken, has ratings of 4.7 on the App Store and 4.2 on Google Play. Its desktop platform provides advanced features such as futures and margin trading, making it a fit for more experienced traders.

Coinbase

Coinbase app offers a clean white background with simple text. It's user-friendly and easy to navigate.

Coinbases’s app is almost identical to its desktop platform making it easy to trade crypto wherever you are. Safely store your debit card information and you can buy and sell top cryptocurrencies such as Bitcoin and Ether in just a few clicks. On the Apple App Store, Coinbase has a 4.7-star rating with 1.3 million ratings. On Google Play it has a 4.3-star rating with 453,000 ratings.

Coinbase desktop interface

Coinbase portfolio

Coinbase app interface

Coinbase app interface while trading

Kraken

Kraken's app is well-designed and offers tools for both beginners as well as advanced tools for more experienced traders.

Kraken has an “Instant Buy” option, where users can purchase crypto in seconds with their card or from funds in their fiat wallet. Instant Buy, while convenient, incurs high fees. There is a standard purchase fee plus an additional fee depending on the method of payment. Still, the Instant Buy option is suitable for beginners and is easy to navigate.

Kraken Pro has more reasonable fees based on the maker/taker method. However, the interface could be confusing for beginners. It shows advanced charting and offers more trading tools and order types.

Kraken’s mobile app has a 4.5-star rating from 3000+ reviews on the Apple App Store and a 2.2-star rating from over 13,000 reviews on Google Play. A lot of users say the app has trouble loading, certain funding or purchase options are unavailable and it is generally not user-friendly.

Kraken desktop interface

Kraken Pro Trading view

Kraken app interface

Kraken app interface while trading

Security Compliance

Coinbase uses its own digital wallet for storing your cryptocurrency.

Coinbase keeps 98% of its cryptocurrency in cold storage. This makes it hard for thieves to steal crypto assets if the exchange is hacked. Cold storage is the most secure way to store cryptocurrency, so the fact that Coinbase does this is a huge plus.

Kraken keeps 95% of users’ funds in cold storage. All account information is encrypted, their servers are locked in cages under 24/7 surveillance by armed guards.

To help secure your Kraken account you can use two-factor authentication. You will receive an email notifying you of any withdrawal, and there is an account timeout for added protection.

Both Coinbase and Kraken prioritize security, employing top-notch measures. Coinbase employs a blend of hot and cold storage for assets, two-factor authentication (2FA), and website traffic encryption. Kraken also leverages cold storage, 2FA, and SSL encryption. Notably, Kraken has an excellent track record in terms of security, with no major breaches reported

Regulatory Compliance

Coinbase is a US-based cryptocurrency exchange, however, no restrictions for Canadians. Canadian residents can use Coinbase to their full capacity.

Kraken is fully compliant with US regulations. The exchange is independently audited to show that customers’ funds are properly held. Canadians can use the platform as well.

Both Coinbase and Kraken are authorized to operate in Canada, adhering to all relevant laws and regulations. They both comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) policies, with their operations overseen by regulatory bodies in the country. Nonetheless, users should remain informed about specific legal norms in their respective provinces or territories.

Customer support

Coinbase customer support is very slow. It took them 4 days to address our request to a real person. Even though they offer 24/7 support and a live chat option, the quality of the support is bad due to a very high volume.

Kraken offers a 24/7 live chat and email support. It also offers a good amount of learning documentation and helpful articles on its website. Unfortunately, many people say Kraken has poor customer support with tickets taking a long time to be resolved if ever.

Coinbase provides live chat, email, and 24/7 phone support. Some users, however, have expressed concerns over slower response times. Kraken, in contrast, offers 24/7 live chat and email support, backed by a comprehensive support center with a wealth of guides and articles. It does lack phone support, which might be a consideration for some users.

Conclusion

Both Coinbase and Kraken are formidable contenders in the crypto exchange arena. While Coinbase's simplicity and educational resources cater to beginners and casual investors, Kraken's advanced trading tools and more extensive crypto offerings are suitable for experienced traders. Nevertheless, our winner in this comparison is Coinbase due to its user-friendly interface, solid security measures, and rich educational resources, making it a more comprehensive platform for a wider audience.

We recommend choosing Coinbase over Kraken for your cryptocurrency trading needs. By opting for Coinbase through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.

If you find that neither Coinbase nor Kraken meets your requirements, we encourage you to explore our monthly-updated list of the best exchanges for Canadians to trade crypto. This list provides a range of alternative options that may better suit your specific needs and preferences.

Author

Oleg Galeev

Cryptocurrency Specialist

Oleg is a Canadian citizen & crypto expert who has been trading since 2016. He started out with Coinbase, Kraken and Peer-to-Peer exchanges. After some time, centralized exchanges started charging crazy fees to their users.

He decided to review different crypto exchanges that operate in Canada and start a Youtube channel in order to educate Canadians on what kinds of things are going inside each one while giving them unbiased advice. On top of that, Oleg also has experience with NFT, airdrops, and crypto staking and he is constantly checking on new crypto assets.

His writing has been featured in popular Canadian media sources such as Toronto Sun and Ottawa Citizen.