Choosing which crypto exchange to use can be one of the most important parts of your crypto and investing journeys, especially with the recent news of FTX going insolvent now it is more important than ever to have a safe exchange to use and as we have learnt a transparent exchange.
Today we will be comparing Kraken and Crypto.com two of the more known exchanges, we will cover aspects from user interface right through to security.
Kraken vs Crypto.com
Kraken is a US based crypto exchange that was founded in 2011. Having run for over 10 years Kraken has solidified itself in the crypto space as a trusted exchange that has withstood the test of time.
Kraken has a super clean, user friendly interface which makes it perfect for those that are less technical or perhaps new to the space. Implementing a similar style to Coinbase it is safe to say that Kraken has a great UI that really focuses on user friendliness.
While Kraken boasts a simple to use UI they also offer advanced features to the more experienced traders such as order books and other advanced features. Kraken also offers margin trading with leverage up to 5x.
Kraken offers a fiat to crypto on-ramp with a super clean UI that makes it easier than ever to start your crypto journey, this is a big one for mass adoption and bringing new users into the space.
As a US based exchange Kraken has a very high level of security and also boasts great banking relationships and the highest levels of legal compliance.
Kraken keeps 95% of all deposits in offline cold storage to minimize the risk of a cyber attack and loss of user funds. Kraken also completes proof of reserve audits for full transparency which we will discuss in the next section of this article.
While setting up your account you have dozens of additional security options which are recommended such as 2FA and email confirmations for withdrawals. Kraken also uses PGP encryption for all communications to keep conversations private and secure.
Kraken is one of the few exchanges that have had complete transparency and completed proof of reserved audits for years.
While I have not been able to find the exact holding in Krakens treasury, they have added a feature which makes it super simple for you to check if the assets you personally hold in your Kraken account are backed by real assets. You can view all the info regarding that and how it works here.
Another area that Kraken shines is its mobile app, similar to the web app it has a super user friendliness UI and offers a vast range of features. If you want the more advanced technical features then Kraken Pro offers all the advanced trading features right from its mobile app.
Whether you want to buy crypto with fiat, trade with leverage or stake your crypto tokens the Kraken mobile app can do all of the above.
The one downfall is it is currently only available from specific countries, you can check the full availability list here.
Crypto.com rose to fame very fast during the 2020 bull run for its native token CRO and its large sponsorship/partnership with organizations such as the UFC.
Muck like Kraken, Crypto.com really ups the bar with its UI. Made for mass adoption and all levels of traders and investors Crypto.coms UI is sleek, clean and easy to use.
Crypto.com offers both basic and advanced trading features to cater to all levels of traders. While the UI is clean and simple to use it can sometimes get a bit cluttered as they often run ads or banner images along the top which can hinder the UI performance marginally.
Crypto.com claims to hold 100% of cryptocurrency offline in a cold storage wallet however I cannot confirm this due to the recent proof of reserves audits going around and Crypto.com moving funds around hot wallets, this is still unconfirmed so take it with a grain of salt.
They do however one up Kraken by using MFA which is multifactor authentication, requiring you to confirm password, email, phone and authenticator verification when making transfers and tracations.
Another great feature they offer is if you are a US customer then all USD held in your crypto.com account is held in a regulated custodian bank account at Metropolitan Commercial Bank. This is a very high level of security for US customers.
This is where things get a tiny bit iffy for Crypto.com, while some of this information is not confirmed it is worth mentioning as at the time of writing this the popular exchange FTX has gone insolvent.
While completing a proof of reserves audit they somehow sent a large amount of ETH to the wrong wallet which happened to be a Gate io wallet which luckily they were able to retrieve. This does make me question their security a little bit however the CEO of crypto.com has come out and said that all funds were returned straight to cold storage following this situation.
During their proof of reserves audit it was shown that they hold $2.9 billion in their cold storage however they own a large amount of the meme coin SHIB which again makes me question their treasury a little bit.
Crypto.com has a very well designed and built mobile app which is where the majority of their use comes from. Available on both IOS and Android.
One area Crypto.com excels is their staking options especially right from their mobile app. With a large range of tokens available and really competitive rewards they slightly jump ahead of Kraken.
As mentioned before their mobile app does sometimes get a little bit cluttered however this is all personal preference.
After researching both Kraken and Crypto.com I’m going to say that Kraken just pulls ahead and gains the edge.
With a slightly cleaner UI, higher level of proof of reserves and a longer time in the market I think Kraken is a better choice for both beginner and advanced traders.
It is however worth mentioning especially with all the recent news regarding FTX going insolvent that when you hold tokens on and exchange they are not 100% secure, as the saying goes, not your keys, not your crypto.
The most secure way you can hold you keys is in cold storage such as a Ledger.
Considering Binance? Check out our Kraken vs Binance comparison here.