eToro has been around for quite some time. Given that the company behind the platform was founded way before Bitcoin ever came to the scene, eToro is considered a pioneer trading platform and boasts of over 17 million users, not to mention availability in approximately 100 countries.
Kraken, on the other hand, was launched just two years after Bitcoin emerged but has since grown to become one of crypto’s most established exchange platforms. One of Kraken’s biggest selling points is its security, as there has never been a hack on Kraken. eToro stands out for its social trading feature.
If you are looking to trade cryptocurrencies and are torn between these two choices, here is an in-depth review that will highlight the pros and cons of both eToro and Kraken to help you make an informed decision.
eToro
eToro is a U.K based company founded in 2007 and has since made a name for itself as a pioneer of the social trading and investing platform. Simply put, with eToro, traders can learn from the trades and strategies deployed by other traders on the platform as they interact and network with each other.
At its core, eToro caters to the beginner crypto trader as it features an intuitive user interface with a variety of trading tools and financial instruments to choose from.
This is a fully-fledged multi-asset brokerage platform that offers crypto trading, forex trading, a stock exchange platform, and commodities trading, to mention a few.
With its platforms available in more than 100 countries worldwide, not to mention a user base that stretches beyond 17 million people, eToro boasts of being a regulated exchange platform with a license to operate in the U.K, European countries, and as well as in the U.S.
Also, while crypto enthusiasts can trade a wide variety of financial tools such as a crypto-based contract for difference (CFD) eToro retains a custodial approach on assets stored on its platform.
Pros and Cons of eToro
Pros
1. Features support for the top cryptocurrencies
2. Easy-to-use interface with social trading features.
3. Comes with a convenient mobile app
4. Well regulated for security and peace of mind
Cons
1. Crypto trading spreads are wide
2. No self-custody option
3. Relatively high fees on some crypto trades
4. Limited trading options for American users
Kraken Quick Overview
After the famous downfall of Mt.Gox in 2014, Kraken emerged as the next big crypto exchange to fill up the vacuum left behind by the now-defunct crypto exchange.
Kraken is a San Francisco-based crypto exchange platform that was founded by Jesse Powel in 2011, just two years after Bitcoin came to the scene. However, its platform only went live in September 2013 after research and development were finished and just in time for a take over of the industry given Mt.Gox’s collapse.
Currently, Kraken is one of the biggest crypto exchange platforms, especially for its users in the U.S as it is known for top-notch security not to mention advanced trading tools and the ability to trade cryptocurrencies with a variety of fiat currencies.
Also, in line with the growing popularity of the decentralized finance movement (Defi), Kraken offers the option of earning rewards on the coins you hold in your wallet. Granted, not all coins can be staked for rewards; however, this is one of the biggest attractions to the platform, especially for most crypto enthusiasts.
Kraken Pros & Cons
Pros
1. Tried and tested crypto exchange with exceptional security
2, Comes with an intuitive mobile app
3. Supports a variety of popular tokens to trade
4. Reliable customer support
Cons
1. Restricted access to some U.S. states
2. Does not support credit or debit card purchases
3. Account verification takes up to 5 days
Beginner Friendliness
Ease of use is a top consideration for beginners looking for a trading platform that will serve as an easy gateway to the crypto industry. Both Kraken and eToro have done a good job at creating an intuitive, beginner-friendly platform. On both platforms, you can access advanced trading tools that are presented simply, thus allowing anyone to master the art of trading with a few trades.
eToro, for instance, has a quick sign-up process that allows anyone to create an account in less than ten minutes. Kraken also features a straightforward sign-up process that only takes a few minutes unless you are signing up for the pro-level account, which might take up to five business days.
Kraken, like eToro, comes with a mobile app that is available on both Android and iOS devices with a fully functional web-based platform as well.
To add to the simplicity, however, eToro comes with a social media-like dashboard that informs the user on what other people are saying about various cryptocurrencies. The social media dashboard on eToro also offers a service for traders to copy the trading strategies of expert traders. You also access a free sentiment calculator on eToro, which is a feature you won’t find on Kraken.
Trust & Security
When it comes to trust and security, both eToro and Kraken hold their own with pretty impressive security features in place. On the one hand, you have eToro, which is regulated by the U.K’s Financial Conduct Authority (FCA) as well as the Australian Securities and Exchange Commission (ASIC).
Kraken, on the other hand, boasts of 95% offline storage of cryptocurrencies in its wallets. What’s more, Kraken stands out, especially when compared to other run-of-the-mill crypto exchanges, given the fact that its exchange platform has never been vulnerable to a hack of any kind. Kraken also offers its users additional security features such as the use of Google’s 2FA as well as the use of Yubikey Masterkey for increased levels of security.
Fees
eToro charges varying trading fees in the form of spreads that may rise and fall based on market conditions, while Kraken charges fees using a maker and taker model where lower fees are rewarded for adding liquidity to the platform.
eToro features the highest fees of the two trading platforms, with varying crypto trading and transaction fees set between 0.75% and 2.9%. Kraken charges trading fees in the range of 0% to 0.26%.
In addition to higher fees, eToro also comes with a minimum crypto trading requirement of $50. Users looking to take advantage of eToro’s social trading platform also have part with $200 which is the set minimum deposit for using eToro’s Copy Trader.
In comparison, apart from the transaction fees paid to the network when depositing and withdrawing crypto, Kraken does not charge you any fees until your order is executed.
Available Cryptocurrencies
Compared to other brokerage firms such as Robinhood and Tradestation, eToro’s support of about 29 cryptocurrencies is a plus; however, when contrasted with dedicated crypto exchanges such as Kraken, eToro falls short.
Kraken supports over 50 cryptocurrencies, including but not limited to the following ;
- Aave
- Bitcoin
- Cosmos
- Ethereum
- Ethereum Classic
- Filecoin
- Cardano
- Monero
- Litecoin
- OmiseGo
- Polkadot
- Kusama
- Ripple
eToro, on the other hand, supports the trading of these cryptocurrencies to mention a few;
- Bitcoin
- Ripple
- IOTA
- Zcash
- Tron
- Dogecoin
- Uniswap
- Stellar
- Chainlink
- Ethereum
- Litecoin
- Cardano
Standout Features
eToro’s most outstanding feature is its social trading dashboard that allows beginner traders to leverage the experience and expertise of other traders on the platform. Any beginner can look up the trading strategies of expert traders, chat with them and follow up on market sentiments for different cryptocurrencies, which is great. With eToro, traders can also set up a practice account which is a useful feature for beginners.
Kraken, on the other hand, stands out for its security features given the fact that 95% of cryptocurrencies in its wallets are stored in offline cold storage. Furthermore, Kraken’s servers are kept under 24/7 security surveillance. The platform also encrypts all your sensitive contact information with regular vulnerability testing to keep tight security at all times.
Conclusion: Kraken for Crypto, eToro for Stocks
So there you have it, a comparison between Kraken and eToro. While both platforms offer crypto trading functions, Kraken and eToro differ on many levels and are therefore designed to fit different purposes.
For instance, apart from crypto trading, eToro also incorporates several fundamental analysis tools for those looking to trade stocks and shares. Granted, Kraken’s security levels, not to mention an intuitive user interface, make it a worthwhile service for crypto traders and investors.
Perhaps the biggest factor — which is pivotal for serious crypto investors — is the ability to self custody your crypto from Kraken.
However, for an all-rounded trading experience, eToro serves the best purpose.