Coinbase vs Kraken – Comparison for UK 2025
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Updated 29/03/2025
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.
Coinbase
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- Coinbase Earn
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Kraken
- Multiple Payment Options
- Coinbase Earn
- FCA-Regulated & Secure
- Trusted & Established
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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.
As of early 2025, Coinbase offers over 250 cryptocurrencies, while Kraken supports around 220. Both platforms cover all major coins like Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), and Solana (SOL) — but there are some notable differences in their altcoin coverage and listing strategy.
✅ Coinbase: Broader Altcoin Access & Rapid Listings
Coinbase is known for rapidly listing newly popular tokens, especially those in the DeFi, meme coin, and NFT ecosystems. It often leads the market in adding emerging assets like:
PEPE (a meme token)
ApeCoin (APE)
Optimism (OP)
Bonk (BONK)
Numerous ERC-20 tokens
Coinbase also has a user-friendly way of categorizing assets — such as trending, new, and top-performing — which helps beginner investors discover opportunities more easily.
🔐 Kraken: Quality-First Listings & Niche Layer 1s
Kraken, while more conservative in its listing process, offers high-quality, vetted assets and often supports more advanced or institutional-grade coins. It’s a popular choice for:
Polkadot (DOT) and full support for parachain auctions
Monero (XMR) — a privacy coin not available on Coinbase
Tezos (XTZ) with native staking
Flow (FLOW) and Kusama (KSM)
Kraken is also preferred by users looking to trade coins not available on more mainstream platforms, especially those offering native staking or use cases in Web3 infrastructure.
Implications for Traders:
Coinbase is better suited to those chasing hyped or new coins early in their lifecycle.
Kraken is better for those looking for undervalued, technical, or privacy-focused assets, and those participating in more advanced ecosystems.
If you’re an investor targeting new market trends or NFT/DeFi tokens, Coinbase may be more your style. If you prefer secure, long-term altcoins with fewer listing risks, Kraken has you covered.
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.
Regulatory Compliance: Are Coinbase and Kraken Safe & Legal in the UK?
Cryptocurrency regulation has tightened in the UK in recent years, especially with the Financial Conduct Authority (FCA) stepping up oversight of crypto exchanges. Both Coinbase and Kraken operate under strict compliance standards, but their legal structures and licensing approaches differ.
✅ Coinbase: Registered with the FCA as a Cryptoasset Business
Coinbase operates in the UK through Coinbase UK, Ltd, which is registered with the FCA under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017. This registration means:
KYC (Know Your Customer) and AML (Anti-Money Laundering) checks are mandatory
GBP bank transfers (via Faster Payments) are FCA-compliant
Users have access to UK-specific support, including clear tax documentation
However, it’s important to note that Coinbase’s core business is headquartered in the US, and it’s not covered by the FSCS (Financial Services Compensation Scheme) — so customer funds aren’t protected in the same way as with traditional banks.
✅ Kraken: FCA-Registered via Payward Ltd
Kraken operates in the UK via Payward Ltd, also registered with the FCA as a cryptoasset business. Like Coinbase, Kraken:
Complies with UK anti-money laundering laws
Offers GBP trading pairs and deposits/withdrawals
Requires full ID verification for all new users
Kraken is headquartered in the US and follows a conservative, regulation-first strategy, which has earned it a strong reputation for trust and transparency. It’s also a member of CryptoUK, a self-regulatory trade association that promotes industry best practices in the UK.
🇬🇧 UK User Implications
Both platforms are legally allowed to operate in the UK under existing crypto regulations.
Neither platform currently offers FSCS protection — a common limitation across crypto exchanges.
Users must complete full identity verification (KYC) to access services and comply with UK tax and AML regulations.
As the UK government continues to tighten regulation, both Coinbase and Kraken are well-positioned to adapt due to their proactive compliance track records.
Mobile App Experience: Coinbase vs Kraken on the Go
For many UK users, the mobile experience is a deciding factor when choosing a crypto exchange. Both Coinbase and Kraken offer mobile apps on iOS and Android — but they cater to different user types in terms of design, simplicity, and feature depth.
📲 Coinbase Mobile App: Built for Simplicity
User Interface: Clean, modern, and minimalistic. Designed for beginners, the app prioritizes ease of use with large buttons and a simple “Buy/Sell” layout.
Features:
Instant buying with GBP via Faster Payments
Portfolio tracking with performance charts
Access to ‘Learn and Earn’ within the app
Push notifications for price alerts
App Ratings:
★ 4.4 on iOS (App Store)
★ 4.2 on Android (Google Play)
Update Frequency: Updated regularly (bi-weekly or monthly), with bug fixes and UI improvements
User Sentiment: Praised for intuitive navigation but criticized for high fees and occasional login delays during high traffic
📲 Kraken Mobile App: Designed for Power Users
User Interface: Sleek but more data-rich and dense. Suited for users familiar with trading apps, offering more control and customization.
Features:
Advanced order types (market, limit, stop, OCO)
Access to Kraken Pro for charting and trading tools
Staking, price alerts, and funding history
Dark mode and real-time price feeds
App Ratings:
★ 4.7 on iOS (App Store)
★ 4.4 on Android (Google Play)
Update Frequency: Frequently updated with stability improvements and added features
User Sentiment: Appreciated for low fees and functionality but noted to have a steeper learning curve for beginners
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.
Educational Resources
Coinbase and Kraken both offer robust educational tools, but they take slightly different approaches depending on their target audience.
Coinbase: Learn and Earn for Beginners
Coinbase’s “Learn and Earn” program is specifically designed to help new users understand crypto while rewarding them with small amounts of free cryptocurrency. Topics include:
Blockchain fundamentals
How individual coins work (e.g. Stellar, The Graph, Optimism)
Wallet basics and Web3 tools
Lessons are short, video-based or article-driven, and often take just a few minutes to complete. The reward system is a strong incentive for beginners and creates an engaging, gamified learning experience. Educational content is integrated directly into the app, making it easy for users to learn while browsing or trading.
Kraken: Deep Dives and Research-Backed Content
Kraken offers a more traditional education portal through its Kraken Learn Center, designed for users who want to go beyond the basics. Topics include:
In-depth articles on market dynamics, DeFi, staking, and trading strategies
Regularly updated market insights, podcast episodes, and webinars
Security tutorials and regulatory explainers
While it doesn’t offer financial incentives like Coinbase, Kraken’s content is more analytical and appeals to those seeking technical and strategic knowledge. The content is accessible via its main site but isn’t as natively integrated into the trading dashboard as Coinbase’s tools.
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.
Coinbase
Kraken
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.
Crypto Made Simple
- Coinbase Earn
- Regulated & Secure
- Trusted & Established
Coinbase is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
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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