Key Takeaways on Kraken vs Coinbase
- Asset variety & global reach. Kraken offers more coins and fiat currencies across 190+ countries; Coinbase supports fewer assets in 100+ countries.
- Fees & trading costs. Kraken has lower trading fees than Coinbase.
- Crypto lending. Coinbase offers easy loans against Bitcoin; Kraken provides margin trading instead.
- Staking & security. Kraken gives higher yields and more staking options. Platforms are secure with Kraken never losing client money to a hack.
- Both platforms are good in certain respects, but they can be difficult for beginners – for simple crypto management, it’s worth considering something else, such as CoinRabbit.
What is Kraken?
Kraken is among the world-oldest and the most reputable cryptocurrency exchanges. It was started in 2011 by Jesse Powell, and went public in 2013, soon gaining a reputation of security and transparency. It is used by millions of customers today in almost 190 countries and is particularly favored by advanced traders and institutions.
What is Coinbase?
Coinbase is the biggest cryptocurrency exchange platform in the US. It was founded in 2012 by Brian Armstrong and Fred Ehrsam and became a publicly traded company on Nasdaq in 2021. Coinbase serves more than 100 million verified users across over 100 countries. The company is oriented towards transparency and trust: its mobile application and web interface allow purchasing, selling, and storing crypto.
Kraken vs Coinbase: Supported Cryptocurrencies and Fiat
Coinbase currently supports more than 280 cryptocurrencies and provides a minor advantage among those who would like to use more recent or experimental tokens. Kraken opposes with 570+ assets and contributes to more niche altcoins that play the DeFi and game projects. Both exchanges trade all major coins (Bitcoin, Ethereum, Solana, Cardano, etc.) and stablecoins such as USDC and USDT.
In the case of fiat, Kraken accepts deposits of 10 currencies (USD, EUR, GBP, CAD, JPY, CHF, AUD, etc.), whereas Coinbase supports only USD, EUR, or GBP. Kraken tends to provide more convenient banking solutions to traders not based in the US or Europe.
Want to know more about crypto? Learn what is crypto treasury and when is the next Fed interest rate decision in our recent articles.
Kraken vs Coinbase: Trading Tools and Advanced Features
Coinbase keeps the core experience open to beginners but has expanded its Advanced Trade platform with solid charting, limit orders, and perpetual futures up to 20x leverage on eligible pairs. The biggest recent addition is native crypto lending, launched in September 2025. Users can now borrow USDC directly against Bitcoin collateral converted to cbBTC through a partnership with Morpho and Steakhouse Financial. How it works: deposit BTC, choose your loan amount (up to 40% initial LTV, with liquidation at 86%), and receive USDC. There are no fixed terms, no minimum payments, and you can repay anytime. APRs typically range from 5-10%, and loans go up to $1 million USDC for qualified users. However, this feature is not yet available in New York and starts with Bitcoin-only collateral.
Kraken does not provide regular crypto-backed lending, but offers strong margin trading up to 5x on more than 150 spot pairs and up to 50x on futures contracts where available. Margin trading lets you borrow funds to open larger positions, using your existing holdings as collateral. Opening fees range from 0.01-0.02%, with rollover charges every four hours. While this gives experienced traders more flexibility and potential profit, it also carries higher liquidation risk than Coinbase’s lending product. Overall, you can invest, trade, and earn money on crypto on Kraken.
| Feature | Coinbase Lending | Kraken Margin Trading |
|---|---|---|
| Product type | True crypto-backed loan | Margin trading |
| What you can borrow | USDC | USD, EUR, USDT, BTC, ETH, etc. |
| Collateral | Bitcoin only | Any eligible spot asset on the account |
| Max LTV | 40% | Up to 83% (5x leverage on spot); up to 98% on futures |
| Maximum leverage | N/A | 5x on spot, up to 50x on futures |
| Interest rate/cost | 5–10% APR fixed at issuance | Opening fee 0.01–0.02% + rollover every 4 hours (~4–12% annualized depending on pair) |
| Repayment terms | No fixed term, no minimum payments, repay anytime | Position can be held indefinitely if margin maintained |
| Liquidation risk | Very low; health factor monitored, gradual liquidation | High; fast liquidation if price moves against you |
| Availability | Not available in New York | Restricted in some U.S. states and countries |
| Best for | Getting cash without selling BTC | Active traders wanting amplified returns or shorting |
For pure lending without the stress of active trading, Coinbase currently has the clearer advantage. For leveraged trading across many pairs, Kraken remains stronger.
Security and Regulatory Track Record
Both exchanges have excellent security reputations in 2025. Kraken has never suffered a major hack that resulted in client fund losses and was the first exchange to publish Proof of Reserves back in 2014. It holds ISO/IEC 27001 certification and keeps the majority of assets in cold storage. Coinbase also keeps the majority of funds offline and gives USD balances insured by the FDIC up to 250,000 via partner banks and provides a crime insurance policy against hot wallet breaches. After a 2021 phishing incident, Coinbase significantly strengthened its safeguards and now runs large bug bounty program.
Kraken vs Coinbase: Staking Rewards
Kraken supports various staking crypto options with earning up to 22% APY yearly (e.g., on KAVA via bonded staking). It resumed full U.S. staking in early 2025 after the SEC settlement and now covers 37 states plus 2 territories. Coinbase offers straightforward rewards (up to 15% APY on Ethereum and USDC) and makes the process completely hands-off for retail users.
Read about taxes on crypto gains or discover real crypto portfolio examples that deliver results in our blog.
Kraken vs Coinbase: Fee Comparison
Kraken remains the lower-cost option for most traders. On Kraken Pro, maker fees start at 0.25% and drop to 0.00-0.16% based on 30-day volume, while taker fees start at 0.40% and drop to 0.10-0.26%. Instant buys on the basic Kraken interface cost 1.5%, but almost everyone uses Pro.
Coinbase Advanced Trade charges 0.00-0.40% maker and 0.05-0.60% taker (starting higher at 0.60%/1.20% for low-volume users), which is reasonable for active traders, yet simple buys through the main app still include spreads that can reach 0.5-2% on small transactions. ACH deposits are free on both, but wire transfers cost more on Coinbase ($10 incoming, $25 outgoing) compared to Kraken’s often free incoming wires and lower fixed crypto withdrawals.
Summary table
| Feature | Kraken | Coinbase |
|---|---|---|
| Trading fees | Very low, 0.00-0.16% | Higher (0.00-0.60% + spreads up to 2% on simple buys) |
| Ease of use | Good, but Pro interface is needed for best rates | Suitable for beginners, polished app |
| Crypto lending | Not available | Available: borrow USDC against BTC, 5-10% APR, no fixed terms |
| Margin/leverage | Up to 5x spot, 50x futures | Up to 20x perpetual futures only |
| Number of coins | 570+ coins | 280+ coins |
| Fiat currencies supported | 10 (USD, EUR, GBP, CAD, JPY, CHF, AUD, etc.) | Only USD, EUR, GBP |
| Global availability | ~190 countries | ~100 countries |
| Staking rewards | Up to 22% APY | Up to 15% APY |
| Security track record | Never lost client funds to a hack, pioneered Proof of Reserves | Very strong, FDIC on USD, crime insurance |
| Best for | Active traders, low fees, global users, high leverage | Beginners, U.S. users, crypto owners interested in crypto-backed loans |
CoinRabbit – a Convenient Alternative to Kraken and Coinbase
When it comes to new users, it may be hard to make a choice between Kraken and Coinbase. Beginner crypto users may get confused by all the features these apps offer, or they may find it difficult to decide exactly what they need.
CoinRabbit is an all-in-one platform, which intuitive design simplifies the process or storing, swapping, borrowing, buying/selling or saving crypto for beginners. It offers an accessible entry into crypto lending, allowing to borrow against crypto without selling your assets. You don’t need to set up a complex Web3 wallet or go through lengthy document checks – the platform simplifies your access to all of its features.
Here’s why CoinRabbit stands out:
- Straightforward process
Deposit your collateral and get funds in 10-15 minutes with no complicated setup, credit checks or paperwork. - Supports 300+ Cryptos As Collateral
Use BTC, ETH, SOL and hundreds of other altcoins. - Flexible Terms
Borrow for short (up to 30 days) or long periods with an open end. Adjust LTV and deposit your crypto at a stable, predictable interest rate. - No Rehypothecation Policy
Your crypto stays safe in cold wallets and is never lent out or used for any dubious trading operations. - Full Ownership of Your Assets
Your assets remain yours. Once you repay the loan, you get back the entire collateral along with any growth in value. - 24/7 Customer Support
A live support manager is always ready to help you with any questions related to your assets.
The information provided in this article is for educational and informational purposes only and should not be construed as financial advice. Cryptocurrency investments carry a high level of risk, and it is essential to conduct thorough research and consult with a qualified financial advisor before making any investment decisions. The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any financial institution or organization. We do not take responsibility for the platforms we recommend. Always invest responsibly and consider your individual financial situation before making investment choices.
Last Updated on December 1, 2025 by Dan Marsh
