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

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.

When comparing Coinbase to Kraken, it's worth noting that Coinbase One introduces several new features that make it more competitive. These include zero trading fees, boosted rewards, and priority customer support. Additionally, the platform has increased its focus on staking, allowing users to earn rewards, such as 5.10% APY on USDC. While Coinbase’s fees remain high outside of Coinbase One, these added benefits can make the platform more attractive for users looking to maximize earnings while minimizing transaction costs, especially compared to exchanges with lower fees but fewer reward opportunities.

Kraken stands out with its variety of flexible funding methods, including wire transfers and crypto funding options, giving users more convenience when moving their assets. Furthermore, Kraken’s 24/7 customer service is a significant advantage, ensuring that users can get support anytime, which is crucial for traders working across multiple time zones. This level of accessibility can be a key differentiator when compared to other exchanges, some of which may not offer round-the-clock support.

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.