Cryptocurrencies can no doubt make you rich, but only if you choose the right coins. Similarly, you must choose the right exchange to buy and sell coins in order to ring in higher profits. Two bigwigs in the world of cryptocurrencies are Bitstamp and Kraken. If you want to better understand these two exchanges in terms of their similarities and differences then read on.
Similarities and differences
• Fiat Currencies
The first similarity between Bitstamp and Kraken is they both give you the option of exchanging fiat currency for coins. It is best for traders and investors, especially beginners, to buy and sell coins in their local currency. Kraken offers a greater number of fiat options such as USD, Canadian dollar, Yen, Euro and pounds. Bitstamp, on the other hand, offers just USD and Euros.
• Coins Offered
Kraken offers nearly 17 coins on its exchange including Bitcoin, Bitcoin cash, Litecoin, Melon, Dogecoin, Ripple, Monero, Ethereum and many more. Bitstamp offers lesser number of coins including Bitcoin, Bitcoin Cash, Litecoin, Ethereum and Ripple.
Fees vary between currencies; location of the person and the coins being exchanged. In general, fees charged by Kraken will be slightly higher than what Bitstamp charges. In fact, it sticks to a standard charge for all trades under $20,000, while Kraken charges buyers 0.16% and sellers 0.26% per trade.
Both Kraken and Bitstamp have apps that allow customers to buy and sell cryptocurrencies, check their latest prices, access latest information and much more. Kraken app is available on the App Store only and can be downloaded on all Apple powered devices. Meanwhile, Bitstamp app is available on the App Store and Play Store--accessible to android user.
The user interface for Kraken and Bitstamp is quite smooth, but since both were not designed keeping beginners in mind, there can be a few confusing elements. Bitstamp does a better job at providing customers information regarding currencies, lists coins out cleanly and provides a comprehensive trading page. Kraken has too many things going for it on the trading page with charts, volumes and statistical tools that are ideal for advanced traders. Investors can choose either as they might not be interested at looking at these pages every day.
When it comes to safety, Kraken has an upper hand over Bitstamp as it has never been hacked. They keep most of the cryptocurrencies offline. Kraken uses two-factor authentication to keep accounts and coins safe. Bitstamp was hacked once in 2015 and has since doubled their security. Although no customers lost coins, the site’s security protocols have raised a few eyebrows.
As you can see, there are quite a few points to consider before choosing the right exchange. Although Kraken and Bitstamp are both good platforms for cryptocurrency exchanges, Kraken has a slight advantage over Bitstamp in terms of fiat currencies and coins offered, while Bitstamp wins with their lower fees and better access to their app.
It can be safely said that Kraken is best suited for professionals, as it provides more features, is safer and lists many currencies. Beginners can opt for Bitstamp, as it is easier to use, does not have confusing options and provides lower trading fees.
Feel free to choose the best one based on your needs.