What are the differences between Robinhood and Kraken? In order to buy, sell, or hold crypto coins you will need to use a suitable and reliable platform such as Robinhood or Kraken.
Therefore, you will need to know the exact ways to choose the right one for you. One of the simplest ways is to know the difference between them. This article will be of great help in that matter.
It is needless to say that all crypto exchanges available out there are not created equal in terms of their features and functionalities.
The same theory is applicable to Robinhood and Kraken in this case. Therefore, you will need to balance the features of the crypto exchange with your needs so that you get the best results.
While choosing a crypto exchange for your needs, you will need to look at different factors and parameters that separate one from the other.
These parameters include its coin support, transaction fees, payment methods, options offered and more.
There are some other factors to consider which you will find in this article. Check out Differences Between Coinbase and PayPal.
7 Differences Between Robinhood and Kraken
Here are some of the most significant factors that differentiate between Kraken and Robinhood that will help you to choose the one that is most suitable for you based on your needs and circumstances.
The primary objective of Kraken is to be one of the top and most popular crypto trading exchanges that offer a wide variety of Altcoins with the largest market cap for their users to trade. Founded in the year 2011, it is located in the United States.
Robinhood, on the other hand, is also quite a popular crypto exchange but it is primarily known to be one that has led the way in mobile trading in the United States.
In addition to that, they also attempt to provide the cheapest option to trade crypto coins. This company is also located in the United States but was founded in the year 2013.
2. Demo Account
Kraken is a good crypto exchange for the beginners in this space because it offers a demo account that will allow them to practice and grow some experience.
In comparison, Robinhood is a crypto exchange for those who have some experience in crypto trading since it does not offer a demo account.
3. Payment Options
Kraken supports different payment methods such as wire transfer, Bitcoin Payments, PayID, Clear Junction, Etana, and Silvergate Bank Transfer.
In contrast, Robinhood crypto supports only two payment methods namely, Apple Pay and Google Pay.
4. Instruments Supported
Kraken is a crypto exchange and supports trading different types of crypto coins. Therefore, it is more popular and favored both in terms of cryptocurrencies and crypto wallets.
In comparison, Robinhood also supports fintech options, binary options, CFD, stocks. As for crypto and wallet preferences, this lags a little behind Kraken.
5. Minimum Requirements
Kraken does not offer any bonus to its users and needs its users to make 0.0001 XBT minimum deposits to start trading. It also has a minimum trading requirement which is 0.0002 XBT.
On the other hand, Robinhood does not have any minimum deposit requirement but its mining trading requirement is pretty high at $10. However, Robinhood does not offer any bonus as well.
When it comes to regulation, Kraken works according to the regulatory standards of FCA, FINTRAC, FSA, FinCEN, and AUSTRAC. This is another factor that makes it more reliable than Robinhood.
However, Robinhood is also good enough since it follows the regulatory standards of The Securities and Exchange Commission of the United States.
7. Audience and Support
Kraken is a crypto exchange that mainly targets the audience of the global markets and it offers customer support 24/7 all year round through Live Chat.
On the other hand, Robinhood caters to the needs of the people who are looking to buy or sell Bitcoin primarily. As for customer support, it is available online as well.
Which is Better to Use – Robinhood or Kraken?
Typically, there is no specific answer to this question. Since the features and functionalities of Kraken and Robinhood are different, as is evident from above, it will be difficult to label one as better than the other.
However, if you still insist, it can be said that it all depends on your personal preferences and the circumstances.
If you want to go for low fees and excellent service, you can go for Kraken which is one of the oldest as well as the largest Bitcoin exchanges in the world.
When you use Kraken, you will also get to use the most versatile funding options and rest assured for safety, thanks to its robust security standards.
Ideally, Kraken is a crypto exchange designed to cater to the needs of every crypto trader or investor.
Whether you are a beginner in this field and need proper guidance as to how everything works or how you should go ahead or an experienced crypto player looking to take your crypto investments to the next higher level, Kraken is just right for you.
You will always get a better solution from Kraken and something that your current crypto exchange may not offer.
Whether you buy, sell or trade crypto coins, you will have an intuitive and better user experience right from the start.
Making deposits is as easy as making withdrawals on this platform that will also allow you to measure the performance of your portfolio and keep a track of your crypto holdings from a single and convenient place.
Kraken is also a reliable crypto exchange that considers the protection of your crypto assets to be their topmost priority.
A major part of their holdings is stored in cold wallets so that it is out of reach from the bad actors.
In addition to all these, you will also get the assurance of top class financial stability from them.
They maintain healthy banking relationships, full reserves and ensure the highest possible standards of legal compliance.
And, if you are looking to make your trades without paying any fees then Robinhood is the one you should go with.
It is quite user-friendly and you can sign up pretty quickly to start trading within 5 minutes.
It is a good and reliable platform where you can start with just $1 and gradually increase your trading volume.
You will find a lot of different types of crypto coins to trade with and to find your favorite in Robinhood.
It can be Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ethereum Classic, Litecoin, and even Dogecoin.
As for the security aspect, Robinhood offers a failsafe protection with its top-class security measures for your crypto coins so that you have a complete peace of mind.
It also offers cold storage to store the major portion of the coins held for the customers as well as ownership over them.
Most importantly, Robinhood provides crime insurance to cover losses due to cyber security breaches as well as theft.
Now, it is up to you as to which one among Robinhood and Kraken crypto exchanges will you choose for your crypto trading needs.
It is not easy to choose between Kraken and Robinhood for your crypto needs if you do not know how each of these crypto exchanges differs from one another. Hope this article was able to make you more confident and knowledgeable.