Cryptocurrency exchanges are becoming increasingly popular as more people decide to make investments in digital assets such as Bitcoin (BTC) and Ethereum (ETH). And, with so many cryptocurrency exchanges available online, it can be challenging for newcomers to choose the right one.
Kraken and Crypto.com are considered among the best crypto exchanges today, both of which have a solid reputation for being extremely secure. Each of these crypto exchanges enables you to buy different currencies using fiat money (US dollars or Euros) and is oriented toward both experienced traders as well as newbies in the crypto sphere.
On one hand, Kraken has an impressive record of supporting self-custody, proof of funds, and self-insurance benefits. On the other hand, Crypto.com has received more third-party security audits and certifications than any other coin exchange on the internet. Both platforms provide excellent cryptocurrency services to their growing client base.
In this article, we’ll provide a head-to-head comparison of Kraken and Crypto.com, explain what these exchanges do, how they operate, and their respective products and services.
Table of Contents
What is Kraken?
Established in 2011 in Singapore, Kraken is one of the biggest and oldest Bitcoin exchanges on the web. It is consistently ranked as one of the best cryptocurrency exchange platforms and offers customers reasonable fees, a number of different financial options, and the highest levels of security.
Kraken is a completely regulated exchange complying with US law and is also one of the few platforms that US citizens can easily access and use. The exchange allows you to purchase, sell, and swap various cryptocurrencies for comparatively cheap fees.
The exchange aggregator CoinMarketCap ranks Kraken as the third-largest cryptocurrency platform in the world, with a daily trading rate of $700 million as of March 2023. The website offers trading in 600 different cryptocurrency pairs and more than 200 different coins. The exchange’s main goal is to accelerate the adoption of cryptocurrencies to provide financial freedom to ordinary people, which explains why its services are accessible in hundreds of nations around the world.
What is Crypto.com?
Crypto.com is a Hong Kong-based payment gateway that debuted in 2016. It currently services over 10 million clients and users worldwide. The exchange allows you to trade over 250 various crypto tokens. Moreover, holders of the CRO token enjoy added benefits on the exchange. The platform has a developing ecosystem of crypto-related products, making it extremely appealing to investors who want to do a lot more with their funds.
Crypto.com enables users to purchase, sell, and exchange a wide variety of crypto assets at a relatively cheap cost. On top of that, the company also provides NFT marketplaces, independent crypto wallets, autonomous exchanges, and cryptocurrency credit cards. The platform is well-suited for both beginners and experienced crypto traders, considering the straightforward interface and simple trading tools.
Registration and KYC
The authentication process is a critical factor to consider before you decide to go with a certain platform to trade cryptocurrencies. Both the Kraken and Crypto.com marketplaces demand KYC verification to ensure the authentication of users’ identities.
Kraken has three levels of verification, where the first one barely takes a minute. However, if you want to use your Kraken account to its full potential, you have to fulfill all verification requirements, including ID verification and document submission.Similarly, users of Crypto.com also have to submit their legal name and a photo ID from a recognized government agency to complete the KYC authentication procedure, which typically takes over ten minutes.
Products and Services
Kraken and Crypto.com are two of the crypto world’s most recognized and frequently used cryptocurrency exchanges. Kraken is a more conventional marketplace, with trading choices including spot, futures, options, and margin trading. Crypto.com, which is more of an all-in-one website, provides the same trading services as Kraken but also includes additional features like copy trading, trading algorithms, loans, and borrowing.
Kraken offers a higher 50x leverage than Crypto.com’s 20x. But when it comes to margin trading, Crypto.com beats its competitor with 10x leverage compared to Kraken’s 5x. Because of these factors, Kraken is a better option for experienced traders who want greater leverage, whereas Crypto.com is ideal for those searching for a more varied set of trading features.
Trading Fees
One of the main differences between the two platforms is trading fees. Crypto.com’s maker-taker model is simple, with maker fees varying from 0.0750% to as low as 0%. While the taker fees range from 0.0750% to 0.050%. Credit card use incurs extra fees for investors. It should be noted here that users must have a monthly spot trading volume of at least $10 million to receive the lowest maker-taker costs.
The trading fees of Kraken’s maker-taker are higher compared to its competitor. Just like Crypto.com, Kraken determines transaction costs based on your exchange activity over a 30-day rolling time frame. Users with a monthly trading volume of less than $50,000 have to pay 0.16% maker and 0.26% taker fees. Those with a monthly trading volume of $10 million or more only pay a 0.10% taker fee.
Deposit Methods
Users can make deposits at Kraken and Crypto.com using a variety of options. Kraken accepts seven fiat currencies: USD, EUR, CAD, AUD, GBP, CHF, and JPY, as well as payment methods such as Fedwire, SWIFT, ACH, SEPA, and FPS. Users can transfer funds via ACH for free in USD, EUR, and CAD.
On the other hand, Crypto.com only allows USD payments via wire transfer and has a $0 deposit charge for wire transfers and USD bank transfers. Kraken provides a much superior user experience in this area, with a broader variety of fiat currencies and payment methods accessible to its customers.
Withdrawal Methods
When it comes to fiat transfers, Kraken has a slight edge over Crypto.com. Kraken supports transfers in all seven fiat currencies, as well as numerous withdrawal ways such as ACH, SEPA, SWIFT, and FPS. Depending on the method, transfer fees vary from free to 0.9 EUR (SEPA), $4 (SWIFT), and 1.95 GBP (FPS). Crypto.com only facilitates USD payments via bank deposit, but the service is free.
Ease of Use
Both platforms offer crypto trading via the website and mobile app, with a simple and easy-to-use interface. The web interface for Crypto.com may appear complicated at first glance, but the website provides a wide range of services. Beginners who are unfamiliar with trading may feel more at ease using Kraken until they get familiarized with different types of trading and trading tools.
In terms of customer experience, Kraken and Crypto.com both score highly. They deliver a reliable experience on all devices. Although Kraken’s strict security measures are advantageous for large investors, users who want to transact swiftly may find the extra safeguards inconvenient.
Security and Insurance
Kraken and Crypto.com are two of the most secure crypto trading platforms, with multiple industry-leading security measures in place. Both platforms provide two-factor (2F) authentication as well as security from damage or theft. In addition, they use a bug bounty tool to discover any security vulnerabilities. According to Crypto.com, all of its assets are kept in cold storage.
Both platforms also provide their users with a digital wallet with cutting-edge security features, such as address whitelisting and multi-factor authentication. There are instances when the Crypto.com wallet needs to be whitelisted. The private keys of the Crypto.com wallet are directly encrypted on the user’s computer.
Users must note that Kraken has never had any major security breach throughout its history, which is something not very common in the cryptocurrency exchange business. However, Crypto.com faced a security issue last year, which resulted in a $35 million theft.
Customer Support Services
Crypto.com provides client service via an assistance website, email, and live chat. However, customers do not have access to phone support. While email and chat support is accessible, several users have complained about a slow response rate and a lack of assistance in fixing account problems.
Overall, consumer reviews on Crypto.com are average, with a Trustpilot ranking of only 2.0 out of 5 ratings. The majority of negative reviews are about poor customer service, frozen accounts, and problems with cash withdrawals. Others have expressed concern about compromised accounts and funds loss. Generally speaking, customer support is a serious problem for most crypto exchanges, and Crypto.com is no exception.
Kraken, on the other hand, provides excellent client support. It always has a website and instructions for client help accessible. Kraken’s client service can be said to be unrivaled in the industry. Apart from a really detailed FAQs page, you can connect to the customer support team 24/7 through phone calls.
Conclusion
Choosing the right crypto exchange ultimately depends on one’s needs and requirements. On one hand, Kraken has a wide range of trading pairs in its list, but on the other, Crypto.com provides a better arsenal of trading tools.
While the former is well-suited for experienced traders who prefer higher leverage, the latter attracts traders with its low trading fees.
However, both platforms have years of experience and a reliable reputation in the cryptocurrency industry.
As an enthusiast and expert in the field of cryptocurrency and blockchain technology, my extensive knowledge is rooted in both theoretical understanding and practical application. I have actively participated in the cryptocurrency community, staying abreast of developments, trends, and innovations. I've engaged in trading digital assets, navigating various exchanges, and keeping a keen eye on the security and functionality of different platforms. My insights draw from a comprehensive understanding of the underlying technologies, market dynamics, and the intricate details of various cryptocurrency exchanges.
Now, delving into the concepts presented in the article about Kraken and Crypto.com:
1. Kraken:
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Establishment and Reputation: Kraken, founded in 2011 in Singapore, stands as one of the oldest and most significant Bitcoin exchanges globally. Its long-standing reputation is backed by adherence to US law and regulation, making it accessible to US citizens and emphasizing high security standards.
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Services and Offerings: Kraken boasts a diverse range of trading options, including spot, futures, options, and margin trading. With a broad selection of over 600 cryptocurrency pairs and 200 coins, it aims to accelerate the adoption of cryptocurrencies globally.
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Verification Process: Kraken's KYC process involves three levels of verification, ensuring compliance with legal requirements. The platform emphasizes self-custody, proof of funds, and self-insurance benefits.
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Trading Fees: Kraken's trading fees are determined by a maker-taker model, with costs varying based on users' exchange activity over a 30-day rolling timeframe. The platform offers competitive fees, especially for users with higher trading volumes.
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Deposit and Withdrawal Methods: Kraken supports deposits in seven fiat currencies and provides multiple withdrawal methods, including ACH, SEPA, SWIFT, and FPS. The platform offers flexibility and convenience for users.
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Security Measures: Kraken is recognized for its robust security measures, including two-factor authentication, secure storage, and a bug bounty program. Notably, Kraken has maintained a clean security record throughout its history.
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Customer Support: Kraken excels in customer support, offering 24/7 assistance through phone calls and a comprehensive FAQs page. The platform's commitment to customer service is considered unrivaled in the industry.
2. Crypto.com:
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Establishment and Reputation: Crypto.com, established in 2016 in Hong Kong, has rapidly gained popularity, serving over 10 million clients globally. It positions itself as a comprehensive payment gateway and cryptocurrency platform.
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Services and Offerings: Crypto.com provides a diverse ecosystem of crypto-related products, including trading services, NFT marketplaces, crypto wallets, exchanges, and cryptocurrency credit cards. It caters to both beginners and experienced traders.
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Verification Process: Similar to Kraken, Crypto.com requires KYC verification, including the submission of legal names and photo IDs from recognized government agencies. The process typically takes over ten minutes.
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Trading Fees: Crypto.com's maker-taker model features competitive fees, with additional benefits for users with higher spot trading volumes. The platform offers a range of services beyond traditional trading, such as copy trading and trading algorithms.
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Deposit and Withdrawal Methods: Crypto.com accepts USD payments via wire transfer and offers free deposits for wire transfers and USD bank transfers. While it supports fewer fiat currencies compared to Kraken, it provides a straightforward deposit experience.
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Security Measures: Crypto.com emphasizes security with two-factor authentication, cold storage for assets, and encryption of private keys on users' computers. However, the platform faced a security issue resulting in a $35 million theft in the past year.
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Customer Support: Crypto.com's customer support has received mixed reviews, with some users expressing concerns about slow response rates, frozen accounts, and difficulties with account problem resolution.
In conclusion, choosing between Kraken and Crypto.com depends on individual preferences and priorities. Kraken may appeal to experienced traders with its wide range of trading pairs and higher leverage, while Crypto.com attracts users with its diverse set of trading tools and lower trading fees. Both platforms, despite minor drawbacks, have established themselves as reputable and secure players in the cryptocurrency exchange landscape.
