Coinbase vs Kraken — Head-to-Head Custody Comparison

An independent, data-driven comparison of Coinbase and Kraken across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Coinbase scores 7.8 vs Kraken's 7.6. Coinbase leads in 3 of 8 categories.

Coinbase is better suited for Beginners, US-based investors, Passive holders. Kraken is better suited for Active traders, Security-conscious exchange users, International users.

7.8

GoodCustody Score

Coinbase

7.6

GoodCustody Score

Kraken

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Coinbase	Kraken	Winner
Security	20%	8.0	8.5	Kraken
Insurance	15%	7.0	5.5	Coinbase
Regulatory	15%	9.5	8.0	Coinbase
Fee Transparency	10%	6.0	8.0	Kraken
Track Record	15%	8.5	9.0	Kraken
Withdrawal Flexibility	10%	8.0	8.5	Kraken
Reporting & Audit	10%	9.0	8.0	Coinbase
Counterparty Diversification	5%	2.0	2.0	Tie
Overall Score	100%	7.8	7.6	Coinbase

Visual

Score Radar

Visual overlay of Coinbase and Kraken across all categories.

CoinbaseKraken

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (8.0 vs 8.5)

Coinbase uses Institutional cold storage system key management with 98%+ in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: 2021 account takeover attacks (phishing, not platform breach).

Kraken uses Exchange hot/cold wallet system key management with 95%+ cold storage in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: No major security breaches in 13+ years.

Insurance (7.0 vs 5.5)

Coinbase offers Crypto insurance for hot wallet portion. FDIC on USD (up to $250K). via Crime insurance policy. Publicly traded company. FDIC insurance on cash. Crypto hot wallet insured.

Kraken offers Not explicitly disclosed via N/A. Maintains significant cold storage reserves. Proof of reserves verified.

Regulatory (9.5 vs 8.0)

Coinbase holds NASDAQ listed (COIN), FinCEN MSB, NY BitLicense, State licenses, Multiple international licenses and is a qualified custodian operating in United States / Global. Most regulated US exchange. Publicly traded. Custodian for multiple Bitcoin ETFs.

Kraken holds FinCEN MSB, State money transmitter licenses, FCA registered (UK), AUSTRAC (Australia) and is not a qualified custodian operating in United States / Global. One of the most compliant global exchanges. Bank partnership for USD.

Fee Transparency (6.0 vs 8.0)

Coinbase charges None in annual custody fees with ~1.5% (Simple) / 0.05-0.6% (Advanced) per transaction. Simple interface has higher fees. Advanced trading has competitive fees.

Kraken charges None in annual custody fees with 0.16-0.26% maker/taker per transaction. Competitive trading fees. Free ACH deposits. Proof of reserves audited.

Track Record (8.5 vs 9.0)

Coinbase was founded in 2012 and is headquartered in San Francisco, CA. AUM: $130B+ assets on platform. Incident history: 2021 account takeover attacks (phishing, not platform breach).

Kraken was founded in 2011 and is headquartered in San Francisco, CA. AUM: $20B+ in quarterly trading volume. Incident history: No major security breaches in 13+ years.

Withdrawal Flexibility (8.0 vs 8.5)

Coinbase withdrawal fees: Network fees. Minimum account: No minimum ($1). Supported assets: Bitcoin, Ethereum, 250+ cryptocurrencies.

Kraken withdrawal fees: Network fees + small flat fee. Minimum account: No minimum. Supported assets: Bitcoin, Ethereum, 200+ cryptocurrencies.

Reporting & Audit (9.0 vs 8.0)

Coinbase: SOC compliance is SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Kraken: SOC compliance is SOC 2 Type 2. Not classified as a qualified custodian.

Counterparty Diversification (2.0 vs 2.0)

Coinbase is a exchange custody provider. Key management: Exchange-managed custody with institutional-grade cold storage infrastructure..

Kraken is a exchange custody provider. Key management: Exchange-managed hot/cold wallet system with proof of reserves..

Fees

Fee Comparison

Side-by-side fee breakdown for Coinbase and Kraken.

Fee Type	Coinbase	Kraken
Setup Fee	Free	Free
Annual Custody	None	None
Transaction	~1.5% (Simple) / 0.05-0.6% (Advanced)	0.16-0.26% maker/taker
Withdrawal	Network fees	Network fees + small flat fee

Coinbase: Simple interface has higher fees. Advanced trading has competitive fees.

Kraken: Competitive trading fees. Free ACH deposits. Proof of reserves audited.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Coinbase	Kraken
13+ year track record	✗	✓
24/7 customer support	✗	✓
95%+ cold storage	✗	✓
98%+ cold storage	✓	✗
Beginner-friendly interface	✓	✗
Coinbase Vault for extra security	✓	✗
ETF custodian (BlackRock IBIT)	✓	✗
FDIC on USD	✓	✗
Futures and margin trading	✗	✓
Proof of reserves	✗	✓
Publicly traded (NASDAQ)	✓	✗
Staking services	✗	✓

Recommendation

Who Should Choose Which?

Coinbase is better if you…

✓Are a beginners
✓Are a us-based investors
✓Are a passive holders
✓Are a mainstream adopters
✓Want: Publicly traded — maximum transparency
✓Want: Custodian for BlackRock and other ETFs
✓Want: 98%+ cold storage

Kraken is better if you…

✓Are a active traders
✓Are a security-conscious exchange users
✓Are a international users
✓Are a stakers
✓Want: 13+ year track record with zero major breaches
✓Want: Proof of reserves — verified by third party
✓Want: 95%+ assets in cold storage

FAQ

Frequently Asked Questions

Is Coinbase or Kraken better for Bitcoin custody?

Coinbase scores 7.8 vs 7.6 in our weighted Custody Score. Coinbase leads in 3 of 8 scoring categories. However, the best choice depends on your specific needs: Coinbase is best for Beginners and US-based investors, while Kraken suits Active traders and Security-conscious exchange users.

What is the difference between Coinbase and Kraken?

Coinbase is a exchange custody provider, while Kraken is a exchange custody provider. Coinbase excels in Regulatory, whereas Kraken is strongest in Track Record.

How do Coinbase and Kraken fees compare?

Coinbase charges None annual custody fees with ~1.5% (Simple) / 0.05-0.6% (Advanced) transaction fees. Kraken charges None annual custody fees with 0.16-0.26% maker/taker transaction fees.

Which is more secure, Coinbase or Kraken?

Coinbase scores 8.0/10 for security while Kraken scores 8.5/10. Coinbase uses Institutional cold storage system key management, and Kraken uses Exchange hot/cold wallet system.