Kraken and eToro, two cryptocurrency exchange platforms, are trendsetters with two different approaches, making investors torn about which one to choose.
At a Glance
Kraken is the better option when you are making the choice between Kraken vs eToro. Kraken is the better value for the money as it provides a better value for the cost. Kraken has a large base of active users with a membership of close to four million. In addition, Kraken has a higher number of allowable cryptocurrencies than eToro.
The fee for a cryptocurrency exchange is also significant. Kraken is the winner there with the lowest fee, but with the fee structure implemented by eToro, it may not always be clear. eToro promotes a zero commission platform, but you need to understand the details. Kraken is upfront about their fees and clearly lists them. eToro has a spread, and it is not always easy to determine. All of the reasons, and more, indicate Kraken as the favorite when making the eToro vs Kraken comparison.
How the Best Choice Was Determined
When determining which of the two platforms is the better option, we looked at many of the features and compared them. We made sure that the information we used was factual and valid before we compared the two platforms. In addition, we sought to understand user feedback, pricing, and the service features of both platforms. While feedback is critical, it is valuable to understand the input to ensure that there are no false claims being made. Therefore, it was essential for us to dig into the features to understand what each platform provides to traders fully.
It is clear that Kraken is the winner for ease of use and features, which we have outlined for you in this article.
Kraken is an exchange platform that is based in San Francisco that has been in existence since 2011 but went live in 2013. It is almost as old as Bitcoin itself. It is one of the largest crypto exchange platforms in the United States. It has the ultimate security along with advanced tools for trading and a variety of possible currencies to trade. In addition, Kraken gives you the ability to earn rewards.
- Highest security available
- Well tested exchange
- Mobile app
- Allows most popular tokens for trade
- Quality customer service
- Some states in the US have restricted access
- Cannot use debit cards or credit cards
- Five day verification process for accounts
eToro is a company that is based in the United Kingdom that was founded in 2007. It is known for being one of the leading forces for investing and social trading. On the eToro platform, traders can network and interact with other traders to learn strategies utilized by other traders. eToro is geared more to the beginning trader. It has an easy to use and intuitive interface. In addition, they provide a large number of financial tools and trading features to assist you. eToro is also a brokerage platform that extends beyond cryptocurrency to include the stock exchange, forex, and commodities trading, along with many others.
eToro extends to over 100 countries with more than 17 million users. They are licensed to operate in Europe, the UK, and the US. It also maintains a custodial approach to assets on the platform.
- Provides support for the leading cryptocurrency options
- Incorporates a mobile app
- Regulated for security
- The interface is easy to use
- There is no option for self custody
- Fees for crypto trades can be high
- Limited opportunities for US traders
When you are using a platform at this level, you expect a high amount of security. You want to feel confident that your information is safe from hackers but also will not be used by the platform in nefarious ways. In addition, you want to trust the platform you are utilizing, mainly because they expect you to give them quite a bit of information about yourself.
eToro is well regulated by the Financial Conduct Authority (FCA) of the UK and the Australian Securities and Exchange Commission (ASIC). Kraken stores 95 percent of their wallets’ cryptocurrency offline. They also offer Google 2FA and Yuikey MasterKey to users to increase security.
They both provide the ultimate in security and are well regulated. However, Kraken takes security one step further by offering higher levels of security to users. In addition, Kraken does not ask for as much personal information such as salary, which eToro does.
The ability to use the interface easily and simply is essential for traders, especially those new to the world of trading crypto. Both platforms have an easy to use interface that is intuitive even for the beginner. They both provide access to tools for advanced trading so their users can grow and learn to become master traders. Both platforms offer a mobile app that is available for iOS and Android.
eToro has a fast process for creating an account. It takes no time at all to gain access to the platform once creating one. eToro offers a dashboard that is similar to most social media platforms. It allows you to see what other traders are saying about crypto options. They also offer a sentiment calculator. However, not every trader enjoys the social aspect of eToro. There are traders with the sole intent of making money, and they do not want to get hung up interacting with others. Kraken allows you to sign up quickly if you are a run of the mill trader. However, if you want a pro account, that may take as long as five business days.
eToro wins here for the interface mimicking a social platform. eToro provides a more social environment where traders can interact with each other. As a result, they market themselves as a social platform.
The fees that a platform charges are essential because this impacts your bottom line. These fees are taken directly from your money, and most of us want them as low as possible.
eToro says they have trade with zero commission, but it is essential to look at the details. eToro uses a spread that changes with the conditions of the market. This increases the profit margin for them between the buying and selling. The spread ranges from 0.75 percent and can go as high as 2.9 percent. This is a large variance in how much comes off your bottom line. It is critical that you understand the fee structure of eToro, especially when it comes to figuring out the percentage difference between buying and selling. eToro also requires a minimum of $50 for trading crypto. They also have a minimum deposit amount of $200.
Kraken is up-front about its fee structure. They utilize a sliding scale to provide a discount on large trade amounts. They have a 0.16 percent maker fee and .26 percent taker fee. As a result of their simple and up-front fee structure, Kraken wins in the fee category.
Cryptocurrency is where the Kraken vs eToro conversation really creates separation between the two platforms. eToro offers more than just crypto with expansion into shares, ETFs, commodities, Forex, and contract for difference. As a result, they offer fewer crypto options for trading. They have 19 tokens available and the big-cap cryptos. eToro also allows the ability to margin trade crypto against tokens, coins, currencies, and commodities.
If you are simply looking for crypto, Kraken is the clear winner with a list of 61 tokens. The list is too long to add here, but it includes Bitcoin, Ripple, Litecoin, and Ethereum. In addition, Kraken allows staking, swaps, and margin trading.
Knowing how the platforms accept deposits and provide withdrawals can save you a lot of headache. Understandably, you want the easiest and fastest possible way to get access to your money. Both Kraken and eToro accept fiat deposits.
eToro accepts bank transfers, credit cards, debits cards, PayPal, Skrill, and Neteller. eToro uses a crypto wallet, allowing you to transfer some crypto out of the platform. However, you cannot transfer them out of the wallet into your account. It takes 24 hours before the funds appear in your wallet and even longer for funds to move from your wallet to wherever you would like them. eToro has fees for withdrawal and deposits of non-US dollar transactions. There is a standard fee for withdrawals and a minimum amount for transactions.
Kraken accepts cash transfers in various currencies, including Australian, Canadian, and US dollars, pounds, euros, Swiss francs, and yen. Kraken allows you to transfer tokens and coins directly in and out. You do not need to use cash. This is fortunate because converting cash to crypto and back can be expensive and has tax ramifications. There is a standard fee for withdrawing crypto from Kraken. Kraken stands above eToro when it comes to withdrawing and depositing money.
eToro vs Kraken: The Winner
Kraken is the best overall crypto platform. It is easy to use and learn. It has low fees that are explained upfront and static. You do not have to worry about them fluctuating with the market. You can trade various tokens and crypto easily. The withdrawal and deposit options are simple and accessible. Kraken offers a large number of features, all wrapped up in a nice interface for a small amount of money. Kraken is the all around best platform for crypto trading.
Best for a New Trader
While Kraken is a great overall platform, eToro has a slight advantage for new users and traders. eToro offers social networking among traders. eToro’s social platform is a great place to get tips and tricks on trades from those who know. As a result, you are able to learn and grow as a crypto trader. eToro creates a more social atmosphere and environment that may be more welcoming to those new to crypto.
Best for a Skilled Trader
Kraken takes the lead again for the skilled trader. If you are already familiar with trading crypto, Kraken is the place for you. The Kraken interface is easy to use, and you can get right to trading without having to interact with anyone in the community.
Now that you know all about Kraken and eToro, now is the time to get started. Getting started on Kraken as your trading platform is easy. It should only take a few minutes. First, go to the Kraken website or mobile app to create an account. To create an account, you must review the terms of service and privacy agreement. Once you create an account, you want to secure your account, email, devices, and internet to be sure you and your account are as safe as possible. Next, Kraken will verify you, and then you can fund your account. After that, you are set and ready to begin trading.