In the first quarter of 2024, Bitstamp and Kraken will both be celebrating their 10th anniversaries. With a decade of experience under their belts, these two exchanges have become synonymous with cryptocurrency trading. However, there is one key difference between them: Bitstamp has been around since 2011 and Kraken only launched in July 2017.
Bitstamp is a European cryptocurrency exchange founded in 2011. Kraken is an American cryptocurrency exchange founded in 2011. Gatehub is a European cryptocurrency exchange and the first regulated exchange on the market.
It’s critical to grasp the distinctions between Bitstamp and Kraken while comparing the two. It is critical that you choose the most appropriate and convenient exchange for yourself and your company. Trading on the appropriate exchange choice may, and most likely will, take your crypto experience to the next level, making it more useful, engaging, and enjoyable, while also increasing your expertise.
But how can we choose between Bitstamp and Kraken? After reading this guide, you’ll be able to develop your criteria for determining which exchange option is best for you and your objectives. As we move along, we’ll tell you about all of the features of both platforms. Come find out with us.
Let’s get this party started!
The Origins of Bitstamp vs. Kraken!
A little history may help you grasp a lot of things that are important so that we can better understand these exchanges. Take a look at the following bullet points:
- Everything began in the year 2011. Unusually, one Bitcoin (BTC) achieved the equal value of one US dollar, and at this point, everyone who was aware of this began to speculate on how much value cryptocurrency might achieve in the not-too-distant future.
- Coincidentally, Mt. Gox was hacked at the same moment. This proved to be a point at which individuals began to lose faith in the Cryptocurrency system and began to consider ways to innovate and enhance it.
The two factors above would give birth to the thoughts of three individuals (who will be mentioned shortly), who were aware of Bitcoin’s ascent and Mt. Gox’s collapse.
Kraken was created by one of these guys, while Bitstamp was created by the other two.
Story of Bitstamp
The game is Bitstamp, and the players are Nejc Kodric and Damian Merlak. These two visionaries are responsible for Bitstamp’s development in Slovenia, their native nation.
Users should be able to trust the platform in the same manner that they trust the Bank of England or the New York Stock Exchange. One of the major reasons they were able to create the business as planned was because of their vision.
To do this, they relocated part of Bitstamp’s operations to the United Kingdom in 2013, but as time passed, and due to recommendations from PayPal’s president, Bitstamp relocated to Luxembourg in 2016, becoming the world’s first nationally regulated crypto exchange. Bitstamp was required to obey the same regulations as other financial organizations in Luxembourg at this time. By obtaining a valid operating license in Luxembourg, Bitstamp was immediately licensed in all 28 European Union nations.
Story of the Kraken
Jesse Powell established Kraken in San Francisco, California, in the United States. This guy got the opportunity to visit Mt. Gox’s headquarters in Japan and was both excited and shocked by what he saw. He was giddy with anticipation.
Kraken was developed especially to be a reliable exchange alternative for users. Powell believed in openness, and he wanted Kraken’s users to be able to see how the system worked and, more crucially, know that their money was secure. He was astute in that he recognized the significance of the user experience from the start.
Kraken’s strong relationships with major financial institutions in Europe and Asia, as well as its acquisitions of other crypto companies such as CryptoWatch and Glidera, are meritorious. Kraken purchased three cryptocurrency exchanges in 2016: Coinsetter, Cavirtex, and CleverCoin. Purchasing Coinsetter and Cavirtex aided Kraken’s growth in North America, while CleverCoin bolstered its position in Europe.
As a result of the aforementioned activities, Kraken was able to develop extended arms capable of crossing the world’s seas, exactly like the enormous sea monster.
As you would expect, Bitstamp and Kraken are presently two of the most significant and reputable cryptocurrency exchanges. If this isn’t enough to persuade you to choose, we’ll go through some particular contrasts and similarities. Let’s get started!
Fiat currencies are those that are issued by the government.
The most important thing to know about any cryptocurrency exchange is whether or not you can trade with fiat money.
NOTE: Any currency backed by the government is referred to as a fiat currency. They are nations’ lawful currencies. The US Dollar, the Japanese Yen, the Euro in the EU, and other fiat currencies are examples.
This is the first thing that Bitstamp and Kraken have in common. You may exchange fiat money for coins in each of them. Traders and investors, particularly novices, should use their local currency to purchase and sell coins.
Keep in mind that Bitstamp only accepts USD and Euros, while Kraken accepts a wider range of fiat currencies, including USD, Canadian dollar, Yen, Euro, and even pounds. We think that if you understand and make the correct choice in this area, you can alter your game and set yourself up for success.
Fees
Fees vary depending on the currency, the person’s location, and the coins being exchanged. Kraken’s fees will, on average, be somewhat higher than those of Bitstamp. For transactions under $20,000, Bitstamp charges a flat fee, while Kraken charges buyers 0.16 percent and sellers 0.26 percent each trade. The withdrawal costs charged by Kraken are another factor to consider, although they are extremely fair and among the finest in the industry.
Also see: How to Move Bitcoin from Coinbase to Kraken
Offer of Coins
Bitcoin, Bitcoin Cash, Litecoin, Ethereum, and Ripple are among the currencies offered by Bitstamp.
Bitcoin, Bitcoin Cash, Litecoin, Melon, Dogecoin, Ripple, Monero, Ethereum, and many more currencies are available on Kraken’s exchange.
Apps
Customers may use Bitstamp and Kraken’s applications to buy and sell cryptocurrencies, check their current values, get the latest news, and more.
That’s great news since both exchanges have mobile trading applications.
Kraken is only available on iOS, while Bitstamp is available on both iOS and Android. Bitstamp’s software has a better reputation than Kraken’s, which may be glitchy and unstable at times.
With these applications, you’ll be able to quickly learn what currencies you can trade, what kind of transactions you can do, and what devices you can utilize!
Interface
On a high level, this is an element that may be quite subjective, but we’ll offer you the greatest summary we can so you can determine which one works best for you while taking into account key factors such as your time, page navigation, and other factors in order to maximize your exchange activities.
NOTE: Both systems’ user interfaces are basic and fluid, but since neither was built with novices in mind, there are a few aspects that may be perplexing at times.
Interface for Bitstamps:
Interface of the Kraken:
Bitstamp performs a better job of keeping consumers up to current on currency exchange rates. It neatly organizes coins and has a thorough trading page. On the trading website, Kraken has much too much going for it, including charts, volumes, and statistical tools that are perfect for experienced traders. Investors may select between the two options since they may not want to look at these sites every day. It all boils down to personal taste and skill level.
When it comes to interface, after you’ve decided which platform to use, the greatest advise we can offer you is to get as acquainted with it as possible and make it your strength, even if you pick one platform over the other, you’ll lose out on the good aspects of the other. Don’t forget that! There’s a lot to be learned from both!
Bitstamp vs Kraken: Which Is Safer?
After being hacked once in 2015, Bitstamp has beefed up its security. Despite the fact that no consumers lost money, the site’s security measures have raised some questions due to their lack of trust. More information on Bitstamp’s security may be found here.
So, when it comes to safety, we want to be as open as possible. Kraken has been destroying Bitstamp due to the fact that it has never been hacked. The majority of cryptocurrencies are kept offline by them. Kraken is very secure, using two-factor authentication to protect accounts and currencies.
Bitstamp vs. Kraken in terms of size
Let’s look at some statistics to see how big these cryptocurrency exchanges are, particularly their 24-hour trading volume. An exchange’s trading volume is the total quantity of cryptocurrencies purchased and sold in a single day. It’s typically expressed as a number of US dollars. The trade volumes for Bitstamp and Kraken for 04/18/18 are shown here.
184,509,912 USD Kraken
134,724,737 USD on Bitstamp
Is it critical to know how these figures compare to the rest of the market? Obviously:
For the day of 04/18/18, the total 24-hour trading volume of all the exchanges listed on coinmarketcap.com was more than 18 billion USD. Kraken now controls approximately 9% of the market, while Bitstamp controls about 6%. Kraken is the market’s 12th largest exchange, while Bitstamp is 14th. That is enormous.
However, size isn’t as essential as the currencies that an exchange provides when it comes to selecting a crypto exchange, so keep that in mind.
Kraken is, thus, larger, but only by a little margin. If Kraken is Coca-Cola, Bitstamp might be described as Pepsi!
Kraken and Bitstamp are both global platforms with a large number of happy and devoted users.
Bitstamp is a highly secure and customer-oriented platform. It wants its consumers to have the same level of confidence in it as they have in their own bank. It has minimal costs, making it an excellent location to start trading (especially if you live in the EU). Bitstamp’s features are definitely simpler to utilize for a novice than Kraken’s. However, Bitstamps’ leveraged trading (which is not for the faint of heart) is said to be in the works. If it happens, we’ll know as quickly as possible.
Kraken has almost unequaled fees and coin options. It offers enough trading capabilities to pique the attention of users of all skill levels. If you’re a novice who picks things up quickly, Kraken is a good location to start crunching. Not to add that Kraken’s customers enjoy almost unrivaled security.
The world of cryptocurrency exchanges moves at a breakneck pace. Platforms come and go, but these two seem to be here to stay.
Which do you prefer between Bitstamp and Kraken, and why?
Have you figured out how to tell the difference between Bitstamp and Kraken, and, more importantly, are you ready to choose one?
Let us know in the comments what you think!
I really anticipate hearing from you.
See also: Coinbase vs. Bitstamp
The bitstamp vs coinbase is a question that has been asked by many people. In this article, we will be comparing the two exchanges and outlining which one is better for you in 2024.
Frequently Asked Questions
Is Kraken better than Coinbase?
Kraken is a cryptocurrency exchange that allows users to trade in Bitcoin, Ethereum, Litecoin, and other cryptocurrencies. Coinbase is an online wallet that allows users to store their cryptocurrencies.
What is the best crypto Exchange 2024?
Which is the best exchange for cryptocurrency?
The best exchange for cryptocurrency would be Coinbase.
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