Did you know that as of May 2020, the cryptocurrency market cap reached $265.545 billion? Or that the global market will reach $23.3 billion over the next three years? If you haven't gotten serious about cryptos yet, it's time to get in the game.
And if you have dabbled outside of fiat currencies and want to start making money? Then, you must pick the best platform to help you achieve your financial goals. With that in mind, let's take a closer look at two options, Crypto.com vs. Kraken, that continue to garner attention.
Here's what you need to know about each platform so that you can make the optimal selection when getting Bitcoin and other cryptos.
What Is Crypto.com?
Think of Crypto.com as a one-stop crypto exchange, providing wide-ranging services. These services include crypto debit cards and wallets. Through these payment services, users may access funds anytime and anywhere they'd like.
How does accessibility to funds through ATM withdrawals sound? Or cashback on spending? If you're interested in these features, then Crypto.com's MCO Visa Card might be right for you.
Crypto.com also offers customers improved liquidity of crypto holdings. This fact represents a worthwhile bonus for users. The exchange provides users with ways to reduce the fee amounts they pay for interacting in the crypto market, too.
With the Crypto.com app, you can access the company's MCO Visa Card as well as the exchange. The app facilitates market order trading at true cost, no doubt a handy feature.
How? By classifying customers based on their monthly transaction volumes. In other words, the higher your transaction volume, the lower your taker and maker fees.
History of Crypto.com
When and how did Crypto.com come into being? The platform dates back to early 2017 and was initially known as Monaco. It raised $26.7 million in an initial coin offering (ICO) in June of that year. Investment prices averaged $2.89/MCO at the time of the ICO.
Who makes up Crypto.com's team today? Seventeen members are currently listed on the team led by Kris Marszalek. Marszalek formerly worked together at Ensogo along with many of Crypto.com's other employees.
What do you need to know about Ensogo? It closed its doors in 2016 after Monaco's inception. Many believe the closure resulted from unstable cash management and the inability to deliver on flash sales and promised rewards.
A handful of unexpected layoffs occurred during this period, resulting in a rapid shift in public sentiment. As a result, there was initial skepticism among many when it came to Crypto.com. Fortunately, the exchange has come a long way since the troubles at Ensogo, and the team appears to have learned its lessons well.
Of course, we always recommend proceeding cautiously when entering a new ecosystem like Crypto.com. That way, you'll gain familiarity with the platform. You'll also have the opportunity to see its security features in action, which will give you a better indication of whether the level of risk involved with the platform is right for you.
Advantages of Crypto.com
Now that you have a better understanding of Crypto.com's past, let's take a look at its impressive progress in recent years. After all, the platform offers many compelling features considered by a growing number of customers too good to resist. Customers are pleased with Crypto.com's many exciting additions, coupled with its focus on supported assets.
What do these additions include? Everything from blog posts to active updates.
For these reasons, we project that Crypto.com will maintain its position as a standard investment tool for individuals, particularly those new to the digital asset ecosystem.
Our belief is based on the popularity of the platform, especially since the pandemic broke out. Transaction volumes doubled between December and February, according to Marszalek. These figures are remarkable, considering the virus's devastating impact on so many other areas of the global economy.
To what does Marszalek attribute this high level of performance? The fact people are turning to crypto to diversify their portfolio. They have also increasingly come to see cryptos such as Bitcoin as a hedge against market tumult.
But how does Crypto.com stack up when it comes to security features? Here's what you know about what the company does to protect your investments.
If you're considering an investment in Crypto.com, one of your top questions will be how secure the platform is. You'll be pleased to know that the platform has adopted the proactive philosophy, "defense in depth."
What does this approach to security mean? In every aspect of the business processes, Crypto.com embeds a security growth mindset. What's more, Crypto.com has divided its security between cold storage and hot wallets.
What does this mean for users? Crypto.com places 100 percent of its user's cryptocurrency in cold storage. The company also boasts a partnership with Ledger.
Why does this matter? Ledger remains a global leader in security and infrastructure solutions for blockchain applications and cryptos.
What about Crypto.com hot wallets? Hot wallets facilitate streamlined day-to-day withdrawal requests from customers. The platform leverages corporate funds and HSM, relying on multi-signature key-generation technologies.
Bank accounts linked with Crypto.com are also regulated and secured for fiat transactions and storage. Consumers retain ownership of the fiat currencies deposited in these bank accounts, meaning Crypto.com and its creditors can never claim these funds.
Now that you've learned more about Crypto.com's history and security features, here's what you need to know about Kraken.
What Is Kraken?
Kraken website is one of the oldest and largest Bitcoin exchange on the planet. Consistently rated one of the top sites for crypto exchange, it offers customers low fees, flexible funding options, and the highest security standards.
Once upon a time, Kraken was scorned by some for its instability. But the site has gone through significant renovations in recent years.
What does this mean for consumers? A streamlined experience with an easy-to-use, though sophisticated, interface. While we wouldn't recommend this platform for beginners, it's an excellent way for those with some experience to branch out and try new platforms.
If you dedicate some time to learning this platform, you'll also be amazed by how quickly your crypto investment knowledge skyrockets.
The platform boasts excellent security and low fees, both attractive reasons to utilize it. Kraken remains committed to learning from the past and striving to enhance its features and interface.
We also appreciate the company's continued commitment to customer experience. The site provides users with fantastic crypto tools and resources, making it a best website for crypto exchange.
History of Kraken
Kraken was founded by Jesse Powell in 2011 and launched in 2013, raising $100 million in the process. The brand operates across America (except New York) and Canada. You'll also find offices in Japan and the European Union.
Why do consumers love it? Because of its low transaction fees, top-notch security, and wide range of features.
The crypto exchange won additional kudos after assisting customers affected by the disastrous bankruptcy of Mr Gox. Kraken stepped in to help with processing claims. Kraken's team won over many new users in the process.
What are some other features people like about Kraken? They include high liquidity, 24/7 live customer service, and industry-leading safety protocols.
The platform proves hard to surpass in these areas. To show that funds get correctly held by customers and interested third parties, the company even employs a cryptographically-verified, independent audit. In other words, Kraken maintains full reserves of its customers' funds.
Advantages of Kraken
What makes Kraken stand out for many consumers? For starters, Kraken hasn't bought into percent-based fees like so many other crypto platforms. Instead, flat fees remain the norm on consumer purchases.
If you're looking to make large deposits into the market, you should take advantage of this feature. Why? Because it means you'll only get charged a relatively low percentage of the entire purchase amount.
What does this look like? If you deposit $500 into your account, you'll only pay a fee of $5. That's just one percent, which I think you'll agree is hard to beat.
Why does Kraken charge such low fees? This strategic approach attracts the largest players to the platform. Once these large players get hooked to Kraken's cheap deposit fees, they inevitably start taking advantage of other features such as trading.
However, bear in mind that when getting cryptocurrency in smaller batches, you'll generally do better with the fees charged by Crypto.com. Once you get comfortable with higher stakes, give Kraken a try.
When it comes to security, Kraken has everything you could ask for. Its safety features include:
- Two-factor authentication
- Global setting time lock
- Email confirmation for withdrawals
- SSL encryption
- API key permissions
- And more
As you can see, Kraken takes a comprehensive approach when it comes to keeping your investments safe. The team has built many sophisticated measures into its platform to counter attacks on your data and funds.
One of the mottos at Kraken is "security above everything." Here's where the rubber meets the road. The platform has assembled a world-class security team with decades of experience constructing security programs trusted by millions of businesses.
Pros and cons of Crypto.com
- Is a complete crypto platform
- Offers frequent promotions
- Permits you to earn returns on your deposits
- Includes a high-speed exchange with competitive fees
- Offers a crypto-backed rewards card
- High-speed exchange with competitive fees
- Having to stake CRO or MCO to get the most out of your MCO rewards
- A general lack of transparency regarding where funds come from
- A confusing two token system (e.g., CRO and MCO)
Pros and cons of Kraken
- When it comes to security, no exchange can outdo Kraken
- Users who are new to the crypto world will find it quite easy to start trading on Kraken as it is beginner-friendly
- Kraken is one of the most liquid crypto exchanges today as it is quite popular among both professional traders and crypto enthusiasts
- Regulated in the US and they have a US banking license
- Kraken is very transparent, and that is how it has become one of the most trustworthy exchanges in the world. In fact, Kraken is the first exchange that carried out proof of reserves.
- There are 50+ cryptocurrencies on Kraken for buying and selling, which includes the likes of Bitcoin, Ethereum, Litecoin, and much more
- Kraken supports trading in six different fiat currencies, which gives Kraken an advantage over many other cryptocurrency exchanges that only supports 1-3 fiat currencies
- There have been many complaints from Kraken users about the slow verification process of new users for intermediate and pro-level accounts
- Kraken is suffering from the same issue that many multi-exchange platforms suffer from - sluggish customer support. But we have to give credit to Kraken as the company is trying its best to improve its customer support
Crypto.com: Frequently Asked Questions (FAQs)
Now that you've got a much better concept of what you'll get with Crypto.com, let's take a look at some of the platform's most frequently asked questions (FAQs). These common customer inquiries will provide you with insights into everyday aspects of using the app, card, and more.
Which Cryptocurrencies Are Accepted by Crypto Pay?
At the moment, you only have one option when it comes to Crypto Pay. The platform currently only accepts Crypto.co Coin (CRO).
What Should You Know About Crypto.com DeFi Swap Fees?
Crypto.com's DeFi swap permits users to connect their personal Ethereum wallet for effortless and streamlined ERC-20 token swaps, unlike the app or exchange.
Generally, you'll get charged 0.3 percent fees to liquidity providers for token swapping fees. These fees support the run of smart contracts.
To get started, connect your Defi Swap with your Crypto.com Defi Wallet. When transferring crypto in the Ethereum network, you must pay gas fees.
Choose between average, fast, and super transaction confirmation speeds. Remember that average and super-fast speeds respectively represent low and very high transaction fees.
Which Wallets Are Compatible With Crypto Pay?
You've got incredible flexibility when it comes to Crypto.com. You may use any wallet that both holds and sends Crypto.com Coin (CRO) with Crypto Pay.
Frequently asked questions about Kraken
We’ve compiled some answers to questions we often get. Should you have any other questions, feel free to reach out below in the comments.
Is Kraken Safe to use?
To safeguard the funds and privacy of their users is a number one priority of Kraken. They have a team of experts who have implemented multiple safeguards to prevent theft of money or information.
Any users that decide to trade on Kraken can be rest assured as Kraken ensures that the cryptocurrency exchange is stable, has full reserves, and meets the highest standards of legal compliance. With two factor authentication and email confirmations to withdraw funds, along with round the clock monitoring for any suspicious activities, Kraken is committed to its mission of being the most secured crypto exchange in the world.
Is Kraken licensed or regulated?
Kraken announced in September that they received a U.S.bank charter. This is a first for any crypto company. They stated that Kraken Financial “will be the first regulated, U.S. bank to provide comprehensive deposit-taking, custody and fiduciary services for digital assets.”
They comply with legal and regulatory requirements in all he jurisdictions they operate in.
Kraken is registered as a Money Services Business (MSB) with:
- FinCEN in USA — registration number 31000176593851.
- FINTRAC in Canada — registration number M19343731.
In Australia, Kraken (as the entity "Bit Trade Pty Limited") is registered as a Digital Currency Exchange and regulated by the Australian Transaction Reports and Analysis Centre (AUSTRAC)
Payward Asia, Inc. is registered as a Crypto Asset Exchange Operator with the FSA in Japan. Registration Number: Director-General of Kanto Local Finance Bureau No. 00022
Is my Personal Data Secured?
Kraken's security team has ensured that the personal information of its users remains protected through their dedicated design efforts. It is not possible to access the encrypted sensitive client data of Kraken through their website. At the same time, it is almost impossible to decrypt the encrypted client data. A hacker will have to access multiple highly secured systems first to get their hands on the sensitive client data.
When it comes to document security, all user documents are watermarked. Hence, these documents cannot be used elsewhere. For account-related security measures, the most likely scenario that can come true is the leakage of client-specific data. That, too, is only possible if someone manages to access a user's login credentials. Even in this scenario, Kraken has put a safeguard measure as very limited information is viewable.
What fiat currencies and crypto coins and tokens Kraken support?
Kraken supports seven fiat currencies and 54 cryptocurrencies. This number may be less for markets where the ability of trading in some fiat currencies and cryptocurrencies has been restricted by Kraken. The supported fiat currencies include USD, EUR, CAD, AUD, GBP, CHF, and JPY. As for cryptocurrencies, Kraken supports popular ones, such as Bitcoin, Ethereum, Litecoin, among others.
How can I deposit funds to Kraken?
Kraken supports both fiat currency deposits and crypto-asset deposits. Depending on your resident country and verification level, the availability of fiat deposits and withdrawal may be restricted. Multiple fiat deposit methods are available for users, but it again depends on your residence. Users in the United States can deposit USD to their Kraken accounts via Fedwire, whereas users in Europe can fund their accounts via SEPA & SWIFT. Australian users can opt for bank transfers to fund their Kraken accounts.
To deposit cryptocurrency supported by Kraken, you can select the cryptocurrency that you want to deposit and an address will be generated for it. You can either copy the address or scan the QR code and paste the address on the transfer page of the place where your funds are located.
Crypto.com vs. Kraken: The Takeaway
In a comparison of Crypto.com vs. Kraken, it's clear to see that both platforms offer attractive benefits. For those newest to cryptos as well as small investors, you'll love Crypto.com's ease of use and versatility.
However, when you're ready to step up to the plate with significant investments, Kraken's flat fee structure will make it well worth migrating to this platform. Of course, these are just two of many crypto platforms worth considering.
Are you ready to learn more about the many options available to you? Browse our reviews now.