Coinbase, Kraken, and Bitmart are three of the highest-profile exchange platforms in the world, just behind Binance.
Each allows users to buy different cryptocurrencies using fiat currencies (such as the US dollar and euro), and all three are geared differently to expert or novice investors.
Coinbase, Kraken and Bitmart exchanges compared
In this article we will explain what these exchanges are like, comparing them with each other, to understand which among them is the best one to use in 2023.
We will go over the pros and cons of these three exchange platforms, also explaining their limitations. We will explore the distinguishing features, security, fees, and ease of use.
What is Coinbase and how does it work?
Always known as one of the most reliable exchanges in the world. It is currently ranked second on CoinMarketCap for traffic, liquidity and trading volume.
Created in San Francisco, USA, it has been active since 2012 and allows traders and consumers to buy cryptocurrencies and NFTs. The exchange currently has about 73 million verified users.
It also provides a Wallet function. In fact, Coinbase Wallet is an additional product, separate from the crypto platform, that allows users to store their cryptocurrencies and NFTs independently and, if needed, connect the wallet to their personal Coinbase account through a connection procedure available within Coinbase Wallet itself.
Thus Coinbase provides the customer with a complete service.
The ease of use of Coinbase, allows the platform to be used even by those who are new to the cryptocurrency world. In fact, Coinbase is one of the most widely used exchanges for small investors, and those who are new to the industry.
To be part of the community, one only needs to be a credit card or bank account holder.
What is Kraken and how does it work?
Kraken’s crypto exchange platform is one of the first exchanges to be known on the web. It was born in 2011.
It is still referred to as “the Bitcoin exchange,” because it was created solely for the exchange of Bitcoin.
Kraken‘s regulatory past has been very difficult, but that past is long gone now. Today Kraken is one of the top 3 exchanges, by capitalization, liquidity, and traffic.
Kraken’s tactic over time was to expand the catalog more and more, to provide investors with many more alternatives to their investments.
The exchange has low fees, features, and many advantages.
Bitmart what is it and how does it work?
Bitmart among the three exchanges mentioned above is the youngest; it was launched in 2017, following the Bitcoin boom.
Bitmart is currently ranked number 20 on CoinMarketCap’s rankings for traffic, liquidity, and capitalization.
The platform is headquartered in the Cayman Islands and provides service on the exchange platform to more than 500,000 customers in over 180 countries worldwide.
Bitmart also has many branches in Asia and a few in the United States as well. This is a testament to the fact that the platform, while not having a very long track record, has from the very beginning sought to endow itself with an international prominence.
Comparing the three exchange platforms: Coinbase, Kraken and Bitmart
By comparing the three, we can already establish that Kraken and Coinbase, finding themselves even higher in the rankings, are much more widely used than Bitmart. This is mainly because compared to Bitmart, the two exchange platforms cater to an audience of more people, but there is a reason.
Bitmart, unlike Kraken and Coinbase, offers a service for individuals and institutions that need a professional platform. Therefore, it caters mostly to business professionals.
BitMart seems to be mainly in the crypto trading business, meaning that users here are inclined to mainly trade between cryptocurrencies themselves.
While both Coinbase and Kraken, offer a service to anyone who wants to get started in the crypto world. Individually Kraken, though, is much less specialized for beginners than Coinbase.
By analyzing the strengths of the three, one can understand which one is the most advantageous. As for Coinbase, its ease of use and also its alternative deposit and withdrawal methods such as PayPal.
Kraken’s strengths, on the other hand, are its low fees and strong security protections and extensive catalog.
Bitmart, on the other hand, includes OTC trading products and thus decentralized trading, which is very convenient for those who see cryptocurrencies as a form of investment not to be kept for the long term.
On the matter of geographic presence, Bitmart wins, offering trading in 180 countries. Whereas Coinbase offers trading to 100 countries and Kraken to 176. Both Coinbase and Kraken, however, provide different functions depending on location.
Coinbase is the only one of the three platforms to provide a Hot Wallet service, a feature that makes it very unique. It is not necessary to be a Coinbase customer to use Coinbase Wallet, a feature that makes it ideal for traders transferring between various fiat and cryptocurrencies.
What is the best one for 2023?
Defining the best is very difficult, both show different features, different uses and different audiences.
If you are new to the world of cryptocurrencies and are just getting started, our advice is to use Coinbase, including its wallet, which is very easy to use.
If, on the other hand, you are experienced in the field and need a platform that allows crypto exchange, Bitmart is the platform for you, more complicated to use but with great benefits.
For its part, Kraken is not to be underestimated, which is also very simple to use. But Kraken’s spearhead is the platform’s low trading fees.
In view of a potential rise in the market, cryptocurrency buying and selling will increase in volume, and having low commissions, is certainly an advantage to benefit from. Thus, in conclusion, Kraken might be the right choice for 2023, because of the ease of use and low fees and also the extensive catalog of cryptocurrencies provided.