This page contains no affiliate links. Fees, rewards, and features change often, so confirm current terms on each provider's official site before signing up. See our disclaimer.
Which Is Better: Coinbase or Kraken?
Beginners: Coinbase. It's the simplest app, it's available almost everywhere in the US, and it's a public company with audited disclosures. Active traders: Kraken. Kraken Pro's entry-tier fees (0.40% maker / 0.80% taker) are lower than Coinbase Advanced's (0.50% / 0.90%), but Kraken isn't available in New York or Maine.
Many people use both: Coinbase to get started, then Kraken Pro (or Coinbase Advanced) once they buy regularly and want lower fees. Either way, avoid the "simple buy" button for regular purchases. On both platforms it costs noticeably more than the advanced trading screen.
Side-by-Side Comparison
| Feature | Coinbase | Kraken |
|---|---|---|
| Founded | 2012 | 2011 |
| Ownership | Public company (Nasdaq: COIN) | Private company |
| Advanced trading fees (entry tier) | Coinbase Advanced: 0.50% maker / 0.90% taker (US, from Sept 2026) | Kraken Pro: 0.40% maker / 0.80% taker (entry tier, under $2,500 of 30-day volume; 0.30% / 0.60% above that) |
| Simple / instant buy | Spread plus a Coinbase fee shown before you confirm | 1% fee plus spread |
| Debit/credit card purchases | Extra card fees | Extra card processing fees |
| USD bank deposits and withdrawals | ACH is generally free | Fees depend on method; see Kraken's funding page |
| Staking | ETH, SOL, ADA and others; no new staking in CA, MD, NJ, WI | Onchain staking in about 37 states plus DC and Puerto Rico |
| US availability | Available in almost all states | Not available to residents of New York or Maine |
| Security features | 2FA, hardware security keys, most assets in cold storage | 2FA, hardware security keys, global settings lock, proof-of-reserves audits |
| Tax forms | Form 1099-DA | Form 1099-DA |
Fees and availability change often. Check Coinbase's fee page and Kraken's fee schedule before you trade. Figures checked September 30, 2026.
Coinbase vs Kraken Fees
Fees are the biggest practical difference. Here's the cost of buying $500 of Bitcoin once a month on each platform's advanced screen, at entry-tier rates:
| Scenario | Coinbase Advanced | Kraken Pro |
|---|---|---|
| $500 market order (taker) | $4.50 (0.90%) | $4.00 (0.80%) |
| $500 limit order (maker) | $2.50 (0.50%) | $2.00 (0.40%) |
| 12 × $500 market orders a year | $54 | $48 |
| 12 × $500 limit orders a year | $30 | $24 |
Two things matter more than the headline rate:
- Use limit orders. A limit order that waits on the order book pays the lower maker fee on both exchanges. On a $6,000-a-year buying plan, that saves $24 on either platform.
- Avoid instant buys and card purchases for regular buying. Kraken charges 1% plus spread for instant buys, and Coinbase's simple buy includes a spread and a fee. Card purchases add processing costs on both. For the same $500, these can cost several times the advanced-screen fee.
Both exchanges lower fees as your 30-day trading volume rises, and both offer subscriptions (Coinbase One, Kraken+) that waive some fees. These only pay off if you trade often.
Coinbase vs Kraken Staking
Both platforms let you stake proof-of-stake coins such as Ethereum and Solana and earn rewards. Availability depends on your state:
- Coinbase: after 2023 state actions, customers in California, Maryland, New Jersey, and Wisconsin can't stake new funds. Existing stakes can remain. Washington customers should also check Coinbase's notice.
- Kraken: relaunched onchain staking for US clients in 2025. It's available in about 37 states plus DC and Puerto Rico, and not in states such as California, New York, New Jersey, Texas, or Washington.
Reward rates move with each network and each platform's commission, so compare the rate shown in each app on the day you stake. Whichever you choose, staking rewards are taxable income when you receive them. See our staking rewards tax guide.
Security
- Coinbase is a public company, so it publishes audited financial statements and must disclose material incidents. In May 2025 it disclosed that criminals had bribed overseas support contractors to steal some customers' personal data. Passwords and private keys weren't exposed, but the data was used in impersonation scams. USD balances held with Coinbase may be eligible for FDIC pass-through insurance at partner banks. Crypto isn't FDIC-insured.
- Kraken has a long record without a major hack of customer funds, keeps most assets in cold storage, and publishes proof-of-reserves attestations. As a private company, it discloses less than Coinbase.
On either platform, the most likely way to lose money is your own account being taken over. Use an authenticator app or a hardware security key, never SMS codes, and never share codes with "support." Our scam guide covers the fake-support calls that target Coinbase and Kraken users.
Coin Selection
Both list several hundred assets. Coinbase often lists new tokens quickly, and Kraken has a broader range of fiat currencies and trading pairs. For beginners buying Bitcoin, Ethereum, or other large coins, both have everything you need. Which assets you can trade can vary by state.
Ease of Use
Coinbase's app is built for first-time buyers: clean screens, clear prompts, and a simple buy flow. Coinbase Advanced lives in the same account when you want lower fees. Kraken's main app is also straightforward, and Kraken Pro is a full trading interface that takes a little longer to learn. If you've never bought crypto, our Coinbase step-by-step guide walks through a first purchase.
Choose Coinbase If… / Choose Kraken If…
| Choose Coinbase if… | Choose Kraken if… |
|---|---|
| You're buying crypto for the first time | You buy regularly and want lower trading fees |
| You live in New York or Maine | You live in a state where Kraken offers staking and Coinbase doesn't |
| You want a public company with audited disclosures | You want Kraken Pro's trading tools |
| You want the simplest possible app | You trade many pairs or fiat currencies |
FAQ
Is Kraken or Coinbase better?
Coinbase is better for most beginners because it's the simplest app and is available almost everywhere in the US. Kraken is better for regular buyers and traders because Kraken Pro's entry-tier fees are lower, but it isn't available in New York or Maine.
Is Kraken cheaper than Coinbase?
On the advanced trading screens, yes. Kraken Pro's entry tier is 0.40% maker and 0.80% taker, while Coinbase Advanced charges US traders 0.50% maker and 0.90% taker. Instant buys and card purchases cost more on both platforms.
Can I stake crypto on Coinbase or Kraken in my state?
It depends on the state. Coinbase doesn't accept new staking from customers in California, Maryland, New Jersey, or Wisconsin. Kraken offers onchain staking in about 37 states plus DC and Puerto Rico, not including California, New York, New Jersey, Texas, or Washington.
Can I use both exchanges at the same time?
Yes. Many people keep accounts on both. Keep records of transfers between them, because the receiving exchange may not know your original cost basis for tax purposes.
Which exchange reports to the IRS?
Both. As US brokers, Coinbase and Kraken send Form 1099-DA for customer sales made from 2025 onward, and both respond to IRS summonses. Using either exchange doesn't hide your crypto activity from the IRS.
Sources
Written by Asad Shaikh
Founder of StartCryptoNow. Nine years researching, trading, and teaching crypto; BSCS from Virtual University of Pakistan. Every tax figure is checked against IRS and state revenue publications. Our editorial policy.