Cryptocurrency exchange platforms are growing in popularity each day as more and more people learn about the benefits of investing in cryptos. Even though the crypto market is known for its volatility, people are drawn to the chances of gaining large profits with little effort. Crypto exchange platforms are a source for users to connect to the crypto market and invest their money via a safe source.
Most crypto platforms are pretty similar to one another and therefore, it is essential to research thoroughly before choosing a crypto platform. Most people are stuck choosing between several options, so it helps to have an extensive analysis of each. Below we have discussed two of the most common crypto exchanges in the market currently: Coinbase and Kraken.
Understanding a crypto exchange
The two crypto exchange platforms, Coinbase and Kraken, are famous around the globe. They’ve built a strong reputation for being practical and reliable crypto exchanges well suited for fiat to crypto exchanges. These platforms allow users to make the best of their fiat savings and invest safely into the crypto market.
Beginners find both Coinbase and Kraken pretty easy to use. Experienced investors and traders might find it easier to understand how both exchanges’ user interfaces and services operate. These platforms offer many features, such as around-the-clock customer services, that can be accessed via mobile and desktop apps.
Each of these two cryptocurrency exchanges attracts users because of its unique features. Coinbase has a much more popular user base in the United States as its policy is more beneficial to its investors. On the other hand, Kraken attracts users owing to its low fees and the ability to help users make high trades with little to no limits.
These cryptocurrency exchanges have curated a stable set of services that attract many users. Their features are different from one another and also share common standard features. We shall go over their features and understand how both these platforms operate. Let’s see if we can assess which is the best crypto exchange platform!
What services are offered by Kraken?
Since its founding in 2011, the Kraken crypto exchange has grown into a well-respected platform. As a global crypto platform, it offers various services to its users, whether businesses or individual clients. Kraken users can use nearly 100 different cryptocurrencies; these include Bitcoin, Ethereum, and many others. The Kraken market expands its services and products to around 200 countries annually.
The Kraken exchange offers a myriad of services for cryptocurrencies and crypto-assets. Users can hold crypto to fiat currency transactions and vice versa. Moreover, futures trading, margin trading, and OTC (over-the-counter) trading are easily accessible for Kraken users. Numerous fiat currencies are easily convertible over Kraken, such as Euros, Australian dollars, US dollars, and Canadian dollars. There is an extensive list of services and funding opportunities available over Kraken. Users also can fund their own Kraken account through their crypto-asset, such as coins, as long as the platform still supports them.
Kraken is easily accessible via the Apple and Android app stores. The Kraken mobile app would operate efficiently for every user over their phones, and the app also works for laptops. It is easiest to use crypto exchanges with a friendly user interface and low trading fees.
In addition to the numerous services that the Kraken offers, as we’ll discuss below, the Kraken offers online lectures and tutorials about the basics of cryptocurrencies and how to make the best investments in the crypto market
Kraken listing triggers Shiba Inu price
There are different levels to the services available over Kraken. Through Kraken, users can easily stake their crypto assets and earn rewards from them without much hassle. An interesting effect of the Kraken listing is Shiba Inu surging 31% in price. After the Kraken announcement, SHIB whale, Glimli added more Shiba Inu to his wallet, increasing his holding by a little over $1 million. Presently, the whale holds about $59 million worth of Shiba Inu token. Kraken became one of the three high-profile crypto exchanges that have listed the token in the last few months.
Besides staking, margin trading is one of the specialties of the Kraken trading platform.
Trading is beneficial to all, whether individual traders or big institutions. The Kraken cryptocurrency exchange has OTC trading services that benefit clients with deep pockets. OTC (over-the-counter) trading is for large-scale trades, and most users need to invest at least a million dollars to get started and the trading fees.
The OTC services of Kraken come with certain trading fees. There are around-the-clock customer services for users around the globe, a team of experts and analysts at the Kraken exchange supports users through consultations and market knowledge. Digital assets and fiat currencies supported by the exchange are all under the expert team’s purview, so they offer the best investment advice to their users. Crypto assets listed on the platform are the ones that are available for trading and other services.
The Kraken Pro platform exists to allow users to manage their digital assets much more effectively and with more services. More advanced traders make full use of the Kraken pro platform and simple account management. The transaction fee is determined by the services that each user utilizes.
Suitability of Kraken for futures trading
To establish whether or not the Kraken crypto exchange is suited for trading and other crypto-related transactions, we shall assess the pros and cons of the platform. It is one of the most famous cryptocurrency exchange platforms, and the Kraken wallet is one of the most reliable ones. We will go over Kraken’s merits as a good platform.
Pros of the Kraken Crypto Platform
- Users can access more than 80 different cryptocurrencies
- Kraken makes margin trading and futures trading easy
- “Over the Counter Trading” (OTC) services are available
- Users have full account management support available
- Users enjoy rewards from Staking
- Resources and insights available to invest and buy crypto
- Robust security features
- Desktop and Mobile apps available
Cons of the Kraken Platform
- Futures Trading not available in the USA
- Kraken does not have its own wallet
- Limited to particular states in the USA
What services are offered by Coinbase?
Coinbase is one of the best crypto platforms for new crypto investors as well as experienced ones. Its services allow users to stake their assets, earn rewards in cryptos, store their assets safely, and much more. Users in all the 50 states of the United States benefit from Coinbase as those elsewhere around the globe.
Coinbase users can use about 80 different cryptocurrencies like Ethereum, Bitcoin, Dogecoin, Litecoin, etc. However, its services do not cover margin accounts, and futures trading to its users like Kraken does.
The main benefit of the Coinbase platform is that it allows users to stake rewards. This service allows Coinbase users to gain from their knowledge of crypto assets. This feature is known as Coinbase Earn. There are two options available to Coinbase users, the standard one and the Coinbase Pro account, to purchase crypto and sell it.
The crypto exchange platform Coinbase offers numerous advanced trading routes via Coinbase Earn, the Coinbase Card, and the Coinbase Wallet. The Coinbase Pro perhaps has the most advanced trading options. The platform offers its users full access to market data and statistics in real-time and access to order books. Trading APIs, FDIC insurance protection, and charting tools are among the other services available.
Coinbase Prime offers institutional services for large-scale users and cold storage. The platform provides individualized services and cold storage. Crypto startups provide various benefits, including commerce services and venture capital fundraising.
Android and Apple users can download Coinbase’s digital app. It is pretty easy to set up and even more straightforward, even with advanced trading tools.
Suitability of Coinbase for futures trading
Pros of Coinbase
- Offer minimums on low accounts
- Users can access 80 plus cryptos
- Cold Storage avDigital wallet
- Extra resources for helping users
- Mobile and desktop versions of the Coinbase mobile app are available
- Earn through interest by holding assets.
Cons of Coinbase
- Lower balances cost more
- Margin trading is not available
- Futures trading is not available
What is futures trading vs margin trading?
Futures involve an agreement to transact an asset on a specific date at a specific price and allow traders to bet on what they think the market will do in the future. In a futures trade, there are only two parties. There is the buyer of the future and the seller of the future. Here is a good discussion of futures trading here.
The advantages of futures trading are as follows:
- You can hedge existing spot positions without additional crypto – allowing you to be agile and prepared for any market environment.
- You can maximize your returns by utilizing the power of leverage to multiply your profits and apply advanced trading strategies.
- You gain stability as you smoothen your exposure while being able to focus on your core business.
- You gain access to regulated crypto futures products.
In margin trading, the exchange, in this case, Kraken, is loaning you the extra funds just in case you decide to leverage. A 1:3 leverage means Kraken will lend you the extra 2 BTCs or ETHs, boosting your position. Stakes are equally high if prices tank, you will be liquidated if prices move against your initial position. Futures trading on the other hand allows leverage (up to 125X) and long or short positions can be opened. However, the position can be held until expiry. It’s a binding agreement and often cash-settled.
Margin trading, however, becomes a tri-partite transaction with the financer of the transaction that provides margin funding also becoming a part of the transaction. Margin investing increases your buying power (a.k.a. the money you have available to purchase securities) because you’re not using solely your own money.
Essentially, you’re borrowing from the brokerage on the assumption that the price of the stock you’re purchasing will rise, plus you also need margin to short stocks. Keep in mind, however, that you don’t have to trade on margin at the 50 percent mark; you could opt for a smaller loan of 10 or 20 percent instead. Read more about margin trading here.
The Kraken vs Coinbase debate goes on. It is no secret that both these exchanges are among the most reliable and suitable options for individual crypto traders and large-scale institutional investors. It would be safe to say that Kraken and Coinbase are amongst the best crypto exchanges.
These platforms provide users with helpful tools and many different products and services to buy and sell crypto quickly. These platforms offer more than 80 different crypto tokens, offering a variety of ways for users to earn profits.
While Coinbase is available to all the states in the USA, Kraken has not been so kind. It does not work in the states of New York and Washington. In the bigger picture, however, Kraken expands to over two hundred countries around the globe, while Coinbase only in about a hundred.
Coinbase also offers the “Coinbase Earn” function, which is beneficial to new traders that are still learning the nuances of the crypto market. Coinbase helps users learn about trading in various assets through varying methods. Coinbase is also more suited for storing assets in the digital cold wallet, something not available over at Kraken.
While Coinbase has many benefits, Kraken is beneficial for its low fees, which might attract more individual users. It allows users to access Futures trading and Margin trading for a meager fee.
Both have their unique benefits and drawbacks, depending on the most importance to the users. As soon as users decide which services they need, they can evaluate Coinbase and Kraken based on which one suits their needs.