We are the luckiest to experience the tech era at its peak. Technology is evolving at maximum speed, and while some may feel overwhelmed, others take advantage of all the updates and make the best out of technology.
Crypto is one great example of innovation, and the whole industry keeps on growing, with almost 23,000 cryptocurrencies available. And for cryptocurrencies to work, investors have to use crypto exchanges. Such platforms help crypto users to trade, buy, and sell various cryptocurrencies.
Two of the most popular and widely used crypto exchanges at the moment are Kraken and eToro. The 2 platforms offer great features, each one focusing on specific advantages. Thus, let’s see what their strengths are, and which one is better for crypto investors.
How does eToro work?
eToro is a crypto exchange launched in 2007 in Israel. It first focused on forex trading, but once crypto became popular, eToro introduced crypto trading on its platform and has offered users a complete and positive user experience ever since.
eToro has always improved its platform in order to help both beginners and experienced traders perform various crypto-related activities and not only, such as manual investing for stocks and crypto and social investing for crypto.
Currently, eToro is available in over 140 countries, thus being one of the most widely used platforms of its kind. However, it is still essential to note that eToro is not available in all US states, which can significantly affect its popularity and user base. Currently, the platform is only available in 46 US states, and even if it is constantly working to improve that, some users still cannot use eToro and choose other platforms to perform crypto-related activities.
Yet, some might say that eToro is especially suitable for beginners, considering that the exchange does not offer plenty of advanced options. Still, the platform is extremely user-friendly, and the company also offers an app it recently developed, thus improving users’ experience even more.
Is Kraken Good for Crypto?
Kraken was founded in 2011 in San Francisco and currently has offices all over the world. Being available in 190 countries, Kraken allows users to buy, sell, and exchange plenty of cryptocurrencies.
Kraken has developed 2 platforms, one for beginners and one for experienced traders. Thus, those just starting their trading journey can use the main Kraken platform, while users with significant trading experience can use the lower-cost active trading platform Kraken Pro.
As of the beginning of 2023, Kraken became the world’s third-largest crypto exchange, having millions of active users that trade crypto on the platform.
eToro vs Kraken
Supported Crypto
When it comes to the cryptocurrencies an exchange supports, it is pretty beneficial for a platform to support multiple coins and tokens. This way, the exchange can increase its user base and become even more popular.
eToro is well-known for many things, but in what concerns the supported crypto, it offers users the option to trade a little over 30 cryptocurrencies, including the most popular ones, such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Cardano (ADA), Solana (SOL), Dogecoin (DGOE), Polkadot (DOT), Polygon (MATIC), and TRON (TRX).
And this is not entirely a bad thing, as this proves that eToro focuses on the most popular cryptocurrencies and how to improve the trading experience for them. Still, eToro falls short in one way, considering that it does not support Tether (USDT), which is among the most popular and widely traded cryptocurrencies at the moment.
Kraken, on the other hand, supports over 220 cryptocurrencies, including coins and tokens such as Bitcoin, Ethereum, Litecoin, Cardano, Solana, Polkadot, Stellar Lumens, and Uniswap (UNI). This is a significant increase when compared to eToro, and the difference can be noticed in the total number of active users of each of the platforms.
Fees
Trading fees are sometimes a downside for some crypto exchanges. But in what concerns eToro and Kraken, the 2 platforms tend to keep the fees low, and users seem to be intrigued by this fact.
Now, let’s talk Kraken vs eToro fees.
eToro does not have any fee or commission for ETFs and stocks, only the former may have some internal costs, however. When it comes to crypto trading fees, the crypto exchange charges a 1% fee for the amount of crypto bought or sold.
eToro does not have a withdrawal fee, and this is one of the main advantages of the platform. However, there is a minimum amount required for withdrawal of $30. The crypto exchange charges a $10 fee for inactivity, which is applied to inactive users for over 1 year. If a crypto trader aims to transfer the accounts somewhere else, they will be charged a $75 transfer fee. Another fee eToro charges is applied to users who transfer crypto from the eToro platform to the eToro Money wallet.
Kraken does not have a set transaction fee, as it depends on the amount transacted. Thus, Kraken set the following ranges and fees:
- $0 – $50,000: 0.16% for the maker and 0.26% for the taker;
- $50,001 – $100,000: 0.14% for the maker and 0.26% for the taker;
- $100,001 – $250,000: 0.12% for the maker and 0.22% for the taker;
- $250,001 – $500,000: 0.1% for the maker and 0.2% for the taker;
- $500,001 – $1,000,000: 0.08% for the maker and 0.18% for the taker;
- $1,000,001 – $2,500,000: 0.06% for the maker and 0.16% for the taker;
- $2,500,001 – $5,000,000: 0.04% for the maker and 0.14% for the taker;
- $5,000,001 – $10,000,000: 0.02% for the maker and 0.12% for the taker;
- $10,000,000+: 0% for the maker and 0.1% for the taker.
However, these fees are applied for Kraken Pro users, while those who use the main Kraken platform will be charged a certain percentage of the transaction, along with a spread fee. The fees are usually displayed in the final step of confirming a transaction.
Security
Security is extremely important for crypto users, and a platform that does not offer multiple security features may not be taken into consideration by most of the crypto investors out there. And in this case, eToro and Kraken seem to have got this.
eToro provides 2FA (Two-Factor Authentication) and biometric fingerprint entry. Besides, Apex, eToro’s clearing partner, protects the users of the exchange with up to $37.5 million in securities and $900,000 in cash for each user.
eToro has also developed a crypto wallet called eToro Wallet. Users can transfer their digital assets into the wallet in no time, and having a wallet available on the crypto exchange can be a plus for many users.
Kraken also offers 2FA to all its users and strongly recommends setting it once an account is funded. The platform allows users to create different 2FA codes for sign-in, trades, or withdrawals. Furthermore, Kraken has developed a way of locking an account from any changes to make sure that the account is not breached.
Still, some Kraken users report that some accounts get hacked, and users are left with no digital assets, and it is widely known that once you lose some crypto due to theft, it is pretty difficult to get it back.
FAQ
Is Kraken better than eToro?
Both Kraken and eToro provide great features for both beginners and experienced traders. However, while one of the platforms shines from some points of view, the other has different advantages.
For instance, while eToro supports just a little over 30 crypto coins and tokens, Kraken supports more than 220 cryptocurrencies.
On the other hand, while eToro seems to be extremely secure and provides many advanced security settings, Kraken may be a little less secure, considering that users are reporting some hacks and stolen crypto.
What is the main difference between eToro and Kraken?
The main difference between the 2 crypto exchanges might be the way they set their fees. Thus, Kraken uses a maker-taker fee schedule, and once the amount of crypto traded increases, the fees are lower. So, Kraken fees range from 0% to 0.16% for the maker and from 0.1% to 0.26% for the taker.
eToro, on the other hand, has the same fee for all transactions, and that is 1%. Thus, no matter the amount traded, users will be required to pay 1% as a transaction fee.
Is eToro good for beginners?
eToro has proved to be pretty useful for beginners, considering the user-friendliness of the platform. However, the crypto exchange does not offer the advanced settings and options an experienced trader might look for, and this is why such traders usually tend to use other platforms.
Can Kraken be trusted?
Despite the thefts and hacks reported by some users, Kraken is still working pretty hard to improve its security settings and to ensure that users’ digital assets are always safe and cannot be subject to another theft.
In conclusion
Kraken and eToro are 2 of the most popular crypto exchanges out there, with millions of active users buying, selling, and trading crypto daily. With many helpful features developed, the 2 crypto exchanges seem to have stolen the hearts of many crypto investors.
It is essential to note that eToro and Kraken support different numbers of cryptocurrencies, and in this case, the difference is significant. While eToro supports around 30 cryptocurrencies, Kraken offers users the opportunity to trade more than 220 cryptocurrencies.
In what concerns fees and security, each crypto exchange tries to ensure that users have a positive experience on the platforms, but there still are some things that can be improved, especially in what concerns security setting in Kraken’s case.
We hope that our Kraken vs eToro comparison will help you decide on a specific crypto exchange you want to use.
