Coinbase vs Kraken – Comparison for UK 2025
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Updated 11/02/2025
Quick Answer: Which is Best for You?
- Coinbase – Best for beginners who want an easy-to-use platform with fast GBP deposits.
- Kraken – Better for experienced traders looking for lower fees, more security, and advanced features.
- For staking & passive income: Kraken usually offers higher rewards.
- For NFT trading: Coinbase has a more developed marketplace.
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I remember the first time I bought Bitcoin back in 2017. I was excited but also completely lost on where to start. As a UK-based investor, I needed an exchange that was reliable, easy to use, and had fair fees. Over the years, I’ve used both Coinbase and Kraken, each with its pros and cons. This guide is my honest take on which one works best for UK traders in 2025.
According to Statista, Coinbase remains one of the most downloaded crypto wallets in the UK, showing its popularity among retail investors
Coinbase vs Kraken – Quick Comparison
| Feature | Coinbase | Kraken |
|---|---|---|
| Ease of Use | Very simple | More complex |
| Trading Fees | Higher fees | Lower fees |
| Security | Strong but downtime issues | Excellent track record |
| Cryptos Available | 250+ | 220+ |
| GBP Support | Faster deposits | Lower fees |
| Staking | Lower rates | Higher APY |
| NFT Marketplace | Established | Newer |
| Customer Support | Slower responses | Faster support |
Which One is Best for Different Types of Users?
- Beginners: Coinbase is easier to navigate and makes buying crypto as simple as a few clicks.
- Serious Traders: Kraken’s lower fees, margin trading, and detailed order types make it ideal for those who trade regularly.
- Security-Conscious Users: Kraken wins with two-factor authentication (2FA), cold storage, and a spotless security record.
According to a Statista report, major exchanges like Coinbase and Kraken play significant roles in Ethereum staking pools, highlighting their reliability for long-term investors.
Coinbase vs Kraken: Available Cryptocurrencies and Fiat Support
Coinbase vs Kraken: Available Cryptocurrencies and Fiat Support
Both platforms offer major cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). However, Coinbase lists more altcoins and tends to add new tokens faster than Kraken.
GBP & Other Fiat Support for UK Users
- Coinbase supports GBP deposits via Faster Payments, allowing for instant bank transfers.
- Kraken supports GBP deposits too but mainly via bank transfer, which can take longer.
- Both support debit/credit card deposits, but fees vary.
In terms of digital asset adoption in the UK, Statista reports that Coinbase has consistently been among the most downloaded wallets in the country.
Fees Breakdown – Which Exchange is More Cost-Effective?
Trading Fees – Is Coinbase or Kraken Cheaper?
- Coinbase: Instant buy fees exceed 1.49%, plus a spread fee that adds hidden costs.
- Kraken: Lower maker (0.16%) and taker (0.26%) fees, making it far more cost-effective for regular trading.
| Method | Coinbase | Kraken |
|---|---|---|
| GBP Bank Deposit | Free (Faster Payments) | Free (Bank Transfer) |
| Card Deposit | 3.99% Fee | High Fee |
| GBP Withdrawal | £1 Fee | Free (Faster Payments) |
Additional Costs (Spreads, Conversion Fees, etc.)
Coinbase often marks up the spread, meaning you pay more than the listed price for a cryptocurrency. Kraken has transparent pricing, making it cheaper for large transactions.
Security & Trust – Which Platform is Safer?
How Each Exchange Protects Your Funds
| Security Feature | Coinbase | Kraken |
|---|---|---|
| Cold Storage | 98% of funds stored offline | 95%+ stored offline |
| Two-Factor Authentication (2FA) | Available (SMS/Authenticator App) | Available (YubiKey, Authenticator App) |
| Withdrawal Whitelisting | Yes | Yes |
| History of Hacks | Some phishing incidents reported | Never hacked |
| Insurance Coverage | Covers USD balances | No direct insurance |
My Personal Experience with Security on Both Platforms
From personal experience, Kraken feels more robust. The added layers of security, such as mandatory 2FA and account lock features, give me extra confidence in holding funds there. Coinbase, while generally safe, has at times felt less reliable during high-traffic periods, where logins and transactions have been delayed.
The BBC has extensively covered cryptocurrency regulation in the UK, discussing the security measures exchanges need to meet in order to operate legally.
Trading Features – Advanced Tools, Leverage & More
| Feature | Coinbase | Kraken |
|---|---|---|
| Margin Trading Available? | No | Yes (Up to 5x leverage) |
| Futures Trading? | No | Yes (BTC, ETH, and more) |
| Advanced Order Types? | Limited | Stop-loss, limit, OCO, etc. |
| Trading Fees | Higher | Lower for frequent traders |
Customer Support
My Experience Contacting Support on Both Platforms
I’ve reached out to both Coinbase and Kraken support multiple times. Kraken’s live chat option and faster ticket response times make it a more reliable option when dealing with urgent issues. Coinbase, on the other hand, relies mostly on email-based support, which often leads to delayed resolutions.
| Support Feature | Coinbase | Kraken |
|---|---|---|
| Live Chat | No | Yes |
| Email Support | Yes | Yes |
| Response Time | Slow | Faster |
| Helpfulness | Inconsistent | More reliable |
Final Verdict – Which Exchange Do I Recommend?
Summary of Pros & Cons for UK Users
Coinbase Pros:
- Easy to use, great for beginners – Coinbase offers a simple and intuitive interface, making it ideal for those who are new to cryptocurrency. With a straightforward buying process and easy navigation, it provides a stress-free experience for first-time users.
- Faster GBP deposits via Faster Payments – Depositing GBP into Coinbase via the UK’s Faster Payments system is quick and efficient, often allowing funds to be available within minutes. This makes it easier to react to market movements.
- Well-established NFT marketplace – Coinbase has a more developed NFT marketplace, featuring a broad range of digital collectibles and seamless integration with its crypto wallet. This makes it a go-to platform for those looking to explore the NFT space.
Coinbase Cons:
- Higher fees – Compared to Kraken, Coinbase charges significantly higher fees for trades and instant purchases. The platform’s fee structure, including spread costs, can be expensive, particularly for frequent traders.
- Slower customer support – Many users have reported slow response times from Coinbase’s customer service team. Support is primarily available via email, which can lead to frustrating delays when dealing with account issues or urgent queries.
Kraken Pros:
- Lower fees, better for frequent traders – Kraken offers a more cost-effective trading environment with lower maker and taker fees, making it a better choice for active traders who need to keep costs low.
- More security features – Kraken is widely regarded as one of the most secure crypto exchanges, with robust security measures including mandatory two-factor authentication (2FA), cold storage of funds, and strong encryption protocols.
- Stronger staking rewards – Kraken provides higher staking APYs compared to Coinbase, allowing users to earn more passive income on assets like Ethereum, Polkadot, and Cardano. Payouts are also frequent and transparent.
Kraken Cons:
- More complex interface – Kraken’s interface is designed with experienced traders in mind, featuring advanced trading tools and multiple order types. While this is beneficial for pro traders, it can be overwhelming for beginners.
- Slower GBP bank deposits – Unlike Coinbase, Kraken does not support Faster Payments for GBP deposits, which means bank transfers can take longer to process. This may be inconvenient for those looking to quickly fund their accounts.
My Personal Choice and Why
For long-term investing and serious trading, I prefer Kraken because of its lower fees and better security. However, for quick and easy purchases, I still use Coinbase occasionally. If you’re a beginner, Coinbase is more intuitive, but if you want better value and more control, Kraken is the superior choice.
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FAQs
Kraken generally has lower fees than Coinbase, with maker fees starting at 0.16% and taker fees at 0.26%, whereas Coinbase charges higher trading fees and additional spreads on transactions.
Coinbase is more beginner-friendly due to its simple interface and one-click purchases, while Kraken is better suited for experienced traders who want lower fees and more trading features.
Kraken has never been hacked and has stronger security features like mandatory two-factor authentication (2FA), cold storage, and encrypted data protection. Coinbase is also secure but has faced downtime issues during high trading periods.
Yes! Coinbase supports Faster Payments, allowing instant GBP deposits, while Kraken supports bank transfers, which may take slightly longer but have lower fees.
Kraken generally offers higher staking APYs compared to Coinbase. Kraken supports Ethereum, Polkadot, Cardano, and more, with frequent payout schedules, whereas Coinbase has fewer staking options and takes a larger commission from rewards.
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References:
- Statista. “Biggest wallets for cryptocurrency storage in the United Kingdom (UK) from 1st quarter of 2015 to 4th quarter of 2023, by number of downloads.”
- Statista. “Biggest groups of staking pools for Ethereum (ETH) based on total staked value on September 22, 2022.”
- Statista. “Number of downloads of 25 apps for decentralized digital assets – cryptocurrency, DeFi, NFT, Web3 (metaverse) – in the United Kingdom (UK) from January 2015 to July 2022.”
- BBC News. “Cryptocurrency regulation in the UK.” Accessed January 20, 2025.
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Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.