Poloniex and Kraken are two of the most popular cryptocurrency exchanges in the market. Both are known for their security measures and user-friendly interfaces. However, choosing between the two can be a daunting task for investors, especially for those who are new to the world of cryptocurrencies. This article aims to provide an in-depth comparison of Poloniex and Kraken, highlighting their differences and similarities in terms of security, trading features, supported cryptocurrencies, user interface, fees structure, and customer support.
Poloniex was founded in 2014 and is based in the United States. It is known for its advanced trading features and extensive range of cryptocurrencies. Kraken, on the other hand, was founded in 2011 and is based in San Francisco. It is one of the oldest cryptocurrency exchanges in the market and is known for its high liquidity and low fees. Both exchanges have a strong reputation in the market, and investors often find it challenging to decide which one to choose.
When it comes to choosing the right cryptocurrency exchange, security should be the top priority. Investors need to ensure that their funds are safe and secure. Therefore, in the following sections, we will compare the security measures taken by Poloniex and Kraken to help investors make an informed decision.
Key Takeaways
- Poloniex and Kraken are two of the most popular cryptocurrency exchanges in the market.
- Both exchanges offer advanced trading features and an extensive range of cryptocurrencies.
- Security should be the top priority when choosing a cryptocurrency exchange.
Overview of Poloniex and Kraken
Poloniex and Kraken are both well-known cryptocurrency exchanges that allow users to buy, sell, and trade various cryptocurrencies. They are among the most popular crypto exchanges in the market and have been around for several years.
Poloniex was founded in 2014 and is based in the United States. It offers both spot and derivatives trading and has a 24-hour spot trading volume of $150 million and a derivatives volume of $13 million. Poloniex supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple.
Kraken, on the other hand, was founded in 2011 and is also based in the United States. It is one of the largest crypto exchanges in terms of trading volume and supports a wide range of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple. Kraken also offers margin trading and futures trading.
When it comes to funding methods, both Poloniex and Kraken offer a variety of options, including bank transfers, credit/debit cards, and cryptocurrencies. However, Kraken also allows users to fund their accounts with SWIFT and FedWire transfers.
In terms of security, both exchanges offer two-factor authentication (2FA) and cold storage for users’ funds. Poloniex also has a dedicated security team that monitors the platform for any potential threats.
When it comes to trading fees, Poloniex and Kraken have different fee structures. Poloniex uses a maker-taker fee model, where makers pay lower fees than takers. Kraken, on the other hand, uses a tiered fee structure based on a user’s trading volume.
Overall, both Poloniex and Kraken are reputable and reliable cryptocurrency exchanges that offer a range of features and services. However, users should consider their specific needs and preferences when choosing between the two exchanges.
Security Measures
Both Poloniex and Kraken have a strong focus on security, which is essential for any cryptocurrency exchange. Here are some of the security measures that both exchanges have in place to protect their users’ funds:
Two-Factor Authentication
Both Poloniex and Kraken offer two-factor authentication (2FA) as an additional layer of security. With 2FA, users must provide a second form of authentication, such as a code generated by an app on their phone, in addition to their login credentials. This makes it much more difficult for hackers to gain access to user accounts.
Global Settings Lock
Kraken also offers a Global Settings Lock, which allows users to lock down certain account settings, such as withdrawal addresses and 2FA settings. This prevents hackers from making unauthorized changes to a user’s account, even if they manage to gain access to it.
Hot and Cold Wallets
Both exchanges use a combination of hot and cold wallets to store user funds. Hot wallets are connected to the internet and used to facilitate transactions, while cold wallets are stored offline and used to store the majority of user funds. This makes it much more difficult for hackers to steal user funds, as they would need to gain access to the offline cold wallets.
Hardware Wallet
Kraken also offers support for hardware wallets, such as the Ledger Nano S and Trezor. These wallets provide an additional layer of security, as they store a user’s private keys offline on a physical device.
Fund Security
Both exchanges have a strong track record when it comes to fund security. Poloniex has never been hacked, and Kraken has only experienced one minor security breach in its history. In both cases, the exchanges were able to quickly identify and resolve the issue, and no user funds were lost.
| Security Measures | Poloniex | Kraken |
|---|---|---|
| Two-Factor Authentication | ✔️ | ✔️ |
| Global Settings Lock | ❌ | ✔️ |
| Hot and Cold Wallets | ✔️ | ✔️ |
| Hardware Wallet Support | ❌ | ✔️ |
| Fund Security | ✔️ | ✔️ |
Overall, both Poloniex and Kraken take security very seriously and have implemented a range of measures to protect their users’ funds. While Kraken offers some additional security features, such as the Global Settings Lock and hardware wallet support, both exchanges are generally considered to be very secure.
Trading Features
Both Poloniex and Kraken offer a range of trading features for their users. Here are some of the key features available on both platforms:
Spot Trading
Both Poloniex and Kraken allow users to trade cryptocurrencies on a spot basis. This means that users can buy and sell cryptocurrencies at the current market price, without any leverage or margin.
Margin Trading
Both platforms also offer margin trading, which allows users to borrow funds to increase their trading position. Poloniex offers up to 5x leverage on margin trades, while Kraken offers up to 5x leverage on some cryptocurrencies and up to 50x leverage on others.
Futures Trading
Kraken offers futures trading on some cryptocurrencies, allowing users to trade contracts that settle at a future date.
Maker and Taker Fees
Both Poloniex and Kraken charge maker and taker fees on trades. Maker fees are charged when a user adds liquidity to the market, while taker fees are charged when a user removes liquidity from the market. Poloniex’s maker and taker fees start at 0.125%, while Kraken’s start at 0.16%.
Stop Limits and Conditional Closes
Both platforms offer stop limits and conditional closes, which allow users to set specific conditions for their trades. For example, a user could set a stop limit to automatically sell their cryptocurrency if the price drops below a certain level.
Leverage Options
Both platforms offer leverage options for margin trading. However, Kraken offers more leverage options than Poloniex, with up to 50x leverage available on some cryptocurrencies.
Overall, both Poloniex and Kraken offer a range of trading features for their users. While Kraken offers more leverage options and futures trading, Poloniex offers slightly lower maker and taker fees.
Supported Cryptocurrencies
Both Poloniex and Kraken are popular cryptocurrency exchanges that support a wide range of cryptocurrencies. Poloniex supports at least 200 cryptocurrencies, including Bitcoin, Ethereum, Tether, Ripple, Monero, Bitcoin Cash, Ethereum Classic, EOS, and many others. In addition to well-known cryptocurrencies, Poloniex also supports new and emerging altcoins like SL, OGN, TLM, and SUPER.
Kraken, on the other hand, supports over 50 cryptocurrencies, including Bitcoin, Ethereum, Dash, Ripple, Monero, Tether, Bitcoin Cash, Ethereum Classic, EOS, and many others. Kraken is known for its support of fiat currencies, with users able to trade in USD, EUR, CAD, GBP, and JPY.
While both exchanges offer a wide range of cryptocurrencies, Kraken has a more extensive selection of digital assets available for trading. In addition to its support of fiat currencies, Kraken also offers margin trading and futures trading for certain cryptocurrencies.
It is important to note that the availability of specific cryptocurrencies may vary depending on the user’s location and other factors. Users should check the exchange’s website for the most up-to-date information on supported cryptocurrencies.
User Interface and Experience
Both Poloniex and Kraken offer user-friendly interfaces that are easy to navigate. However, Kraken has a more polished and modern interface that is intuitive and visually appealing. On the other hand, Poloniex’s interface is a bit outdated and can be overwhelming for new users.
Kraken’s interface is customizable, allowing users to tailor it to their preferences. It offers a dark mode option, which is easier on the eyes and reduces eye strain. Additionally, Kraken’s interface is optimized for mobile devices, making it easy to trade on the go. The Kraken app is available for both iOS and Android devices, and it offers all the features available on the desktop platform.
Poloniex also has a mobile app, but its user interface is not as user-friendly as Kraken’s. The app is cluttered and can be challenging to navigate, especially for new users. However, Poloniex’s desktop interface is more straightforward and easier to use than the mobile app. It offers a customizable dashboard that allows users to view the information they need at a glance.
| Feature | Kraken | Poloniex |
|---|---|---|
| Customizable Interface | Yes | No |
| Dark Mode | Yes | No |
| Mobile App | Yes (iOS and Android) | Yes (iOS and Android) |
| User-Friendly Interface | Yes | No |
Kraken’s customer support team is available 24/7 to assist with any issues or questions. They offer live chat support, which is an excellent feature for users who need immediate assistance. Poloniex, on the other hand, has faced criticism in the past for its slow customer support response times.
Overall, Kraken has a more user-friendly interface and experience than Poloniex. Its interface is customizable, visually appealing, and optimized for mobile devices. Kraken’s customer support is also more responsive and helpful than Poloniex’s.
Deposit and Withdrawal Methods
Both Poloniex and Kraken offer a variety of deposit and withdrawal methods to their users.
Deposit Methods
Poloniex allows users to deposit funds via bank transfer, credit card, and debit card. In addition, users can also deposit cryptocurrencies directly into their Poloniex wallets. However, it is important to note that Poloniex does not support fiat currency deposits.
On the other hand, Kraken offers more deposit methods than Poloniex. Users can deposit funds via bank transfer, wire transfer, and credit/debit card. Kraken also supports fiat deposits in USD, EUR, CAD, JPY, and GBP.
Withdrawal Methods
Both Poloniex and Kraken allow users to withdraw funds via bank transfer and cryptocurrency withdrawals. However, Kraken also allows users to withdraw funds via wire transfer.
Deposit and Withdrawal Fees
Poloniex does not charge any deposit or withdrawal fees, except for cryptocurrency withdrawals which are subject to network fees. Kraken, on the other hand, charges a small fee for deposits and withdrawals, depending on the funding method and currency.
Funding Methods
When it comes to funding methods, Kraken offers more options than Poloniex. Kraken supports bank transfers, wire transfers, and credit/debit card deposits. In addition, Kraken also supports funding via cryptocurrency deposits.
Conclusion
Overall, Kraken offers more deposit and withdrawal options than Poloniex, including support for fiat currency deposits. However, Poloniex does not charge any deposit or withdrawal fees, except for cryptocurrency withdrawals.
Fees Structure
Both Poloniex and Kraken charge fees for trading on their platforms. The fee structures of the two exchanges are different, and the fees they charge depend on your trade volume and/or native token holding.
Poloniex Fees
Poloniex has a tiered fee structure with six tiers for traders: Tier 1 – Tier 6. Users with a 30-day volume of under $50k or a TRX balance of less than $49 fall into the first tier. The higher the tier, the lower the fees. Poloniex charges a maker fee and a taker fee for each trade. The maker fee is the fee you pay when you add liquidity to the order book, while the taker fee is the fee you pay when you remove liquidity from the order book.
| Trading Volume | Maker Fee | Taker Fee |
|---|---|---|
| $0 – $50,000 | 0.125% | 0.225% |
| $50,001 – $100,000 | 0.105% | 0.205% |
| $100,001 – $250,000 | 0.085% | 0.185% |
| $250,001 – $500,000 | 0.065% | 0.165% |
| $500,001 – $1,000,000 | 0.045% | 0.145% |
| $1,000,001+ | 0% | 0.125% |
Kraken Fees
Kraken also has a tiered fee structure with five tiers for traders: Tier 0 – Tier 4. Users with a 30-day volume of less than $50,000 fall into the first tier. Kraken charges a maker fee and a taker fee for each trade. The maker fee is the fee you pay when you add liquidity to the order book, while the taker fee is the fee you pay when you remove liquidity from the order book.
| Trading Volume | Maker Fee | Taker Fee |
|---|---|---|
| $0 – $50,000 | 0.16% | 0.26% |
| $50,001 – $100,000 | 0.14% | 0.24% |
| $100,001 – $250,000 | 0.12% | 0.22% |
| $250,001 – $500,000 | 0.10% | 0.20% |
| $500,001+ | 0.08% | 0.16% |
Kraken also charges deposit fees, which vary depending on the currency and the deposit method. For example, depositing USD via wire transfer incurs a fee of $5, while depositing EUR via SEPA transfer is free.
Comparison
As far as trading fees go, Poloniex is generally cheaper than Kraken, with a very economical starting cost of 0.125% for both the maker fee and the taker fee. Once you’re trading over $50 million a month (30 days), or you pay to become a Poloniex Plus member, this drops down to 0% (for makers). Kraken’s fees start at 0.16% for makers and 0.26% for takers, which is higher than Poloniex’s starting fees.
However, it’s worth noting that Kraken offers more deposit options than Poloniex and doesn’t charge deposit fees for all currencies and deposit methods. Therefore, the best option for you will depend on your specific trading needs and preferences.
Customer Support
When it comes to customer support, Kraken has the upper hand over Poloniex. Kraken offers 24/7 customer support via live chat, email, and phone, while Poloniex only offers email support. In addition, Kraken’s customer support team is known for their quick response times and helpfulness.
On the other hand, Poloniex has faced criticism in the past for its slow customer support response times. Some users have reported waiting several days to receive a response to their support ticket. However, Poloniex has been working to improve its customer support in recent years, and has added a new ticket system to help streamline the support process.
In terms of customer service, both exchanges have similar policies, offering two-factor authentication, email notifications, and other security features to help protect user accounts. However, Kraken offers additional security features like global settings lock, which allows users to lock down their account settings to prevent unauthorized changes.
Overall, when it comes to customer support and service, Kraken is the clear winner. Its 24/7 support and helpful team make it a preferred choice for users who value quick and efficient support. However, Poloniex has been making strides to improve its customer support, and its new ticket system is a step in the right direction.
| Exchange | Customer Support |
|---|---|
| Kraken | 24/7 customer support via live chat, email, and phone |
| Poloniex | Email support only, with a new ticket system to help streamline support process |
Verification and Privacy
When it comes to cryptocurrency exchanges, verification and privacy are two crucial factors to consider. In this section, we’ll compare how Poloniex and Kraken handle these important aspects.
Verification
Both Poloniex and Kraken require users to complete a Know Your Customer (KYC) process before they can start trading. This process involves providing personal information and identification documents to verify your identity. The level of verification required may vary depending on the amount of funds you wish to deposit and withdraw.
According to a comparison by The Crypto Breakdown, Poloniex’s verification process is relatively straightforward and can be completed within a few hours. In contrast, Kraken’s verification process can take up to a few days to complete, and the exchange may require additional documentation to verify your identity.
Privacy
Privacy is another important consideration when it comes to cryptocurrency exchanges. Both Poloniex and Kraken have measures in place to protect user privacy, but there are some differences between the two exchanges.
Poloniex’s privacy policy states that the exchange “takes the privacy and security of our users’ personal information very seriously” and that they “do not sell or rent users’ personal information to third parties for their marketing purposes.” However, the exchange may share users’ personal information with third-party service providers to provide services to users.
Kraken’s privacy policy also emphasizes the importance of protecting user privacy and states that the exchange “does not sell, rent, or trade your personal information to third parties.” The exchange also has measures in place to protect user data, such as using encryption and secure storage.
Comparison Table
| Exchange | Verification Process | Privacy Policy |
|---|---|---|
| Poloniex | Relatively straightforward and can be completed within a few hours | Does not sell or rent users’ personal information to third parties for their marketing purposes, but may share users’ personal information with third-party service providers |
| Kraken | Can take up to a few days to complete, and may require additional documentation | Does not sell, rent, or trade your personal information to third parties, and has measures in place to protect user data such as encryption and secure storage |
Overall, both Poloniex and Kraken have measures in place to protect user privacy and require users to complete a KYC process before they can start trading. However, there are some differences between the two exchanges in terms of the verification process and privacy policy.
Company Information
Poloniex and Kraken are two popular cryptocurrency exchanges that have been operating for several years. Both companies have a reputation for being reliable and secure, and they offer a wide range of cryptocurrencies for trading.
Poloniex
Poloniex was founded in 2014 and is based in Wilmington, Delaware. It was one of the first cryptocurrency exchanges to offer margin trading, lending, and futures contracts. Poloniex has a user-friendly interface and offers a wide range of cryptocurrencies for trading, including Bitcoin, Ethereum, and Litecoin.
The company has had some issues in the past with customer support and security. In 2014, it suffered a major hack that resulted in the loss of over 12% of its total Bitcoin holdings. Since then, the company has implemented several security measures to prevent similar incidents from happening.
Kraken
Kraken was founded in 2011 and is based in San Francisco, California. It is one of the largest cryptocurrency exchanges in the world and offers a wide range of cryptocurrencies for trading. Kraken is known for its advanced trading tools and features, including margin trading and futures contracts.
Kraken has a reputation for being one of the most secure cryptocurrency exchanges in the world. The company has never suffered a major hack, and it has implemented several security measures to protect its users’ funds. Kraken is also known for its excellent customer support, which is available 24/7.
| Company | Founded | Headquarters |
|---|---|---|
| Poloniex | 2014 | Wilmington, Delaware |
| Kraken | 2011 | San Francisco, California |
In conclusion, both Poloniex and Kraken are reputable and reliable cryptocurrency exchanges. While Poloniex has had some issues with security and customer support in the past, it has taken steps to improve its services. Kraken, on the other hand, has a reputation for being one of the most secure cryptocurrency exchanges in the world.
Conclusion
Both Poloniex and Kraken are well-established and reputable cryptocurrency exchanges. They offer a range of features and services to their users, including spot and derivatives trading, margin trading, and staking.
When it comes to trading fees, Poloniex offers a tiered fee structure based on trading volume, while Kraken offers a maker-taker fee model. Kraken has slightly lower trading fees for high-volume traders, but Poloniex may be more cost-effective for smaller traders.
In terms of security, both exchanges have robust security measures in place, including two-factor authentication, cold storage, and regular security audits. However, Kraken has a more extensive track record of security, having never been hacked, while Poloniex has experienced security breaches in the past.
Overall, the choice between Poloniex and Kraken will depend on individual preferences and needs. Traders who prioritize lower fees and a wider range of trading pairs may prefer Poloniex, while those who prioritize security and a more established reputation may prefer Kraken.
| Criteria | Poloniex | Kraken |
|---|---|---|
| Trading Fees | Tiered fee structure based on trading volume | Maker-taker fee model |
| Security | Two-factor authentication, cold storage, regular security audits | Two-factor authentication, cold storage, regular security audits, never been hacked |
| Trading Pairs | Wide range of trading pairs | Narrower range of trading pairs |
| Reputation | Established reputation, experienced security breaches in the past | Established reputation, never been hacked |
Frequently Asked Questions
What are the main differences between Poloniex and Kraken?
Poloniex and Kraken are both popular cryptocurrency exchanges, but they differ in several ways. Kraken is known for its advanced trading features and security, while Poloniex is known for its wide range of altcoins and margin trading. Kraken offers more trading pairs and has lower trading fees compared to Poloniex. On the other hand, Poloniex has a more user-friendly interface and offers more advanced trading features.
Which exchange has better fees, Poloniex or Kraken?
Kraken generally has lower trading fees compared to Poloniex. Kraken’s trading fees start at 0.16% for makers and 0.26% for takers, while Poloniex’s fees start at 0.10% for makers and 0.20% for takers. However, Poloniex offers volume-based discounts for traders who trade more than $10,000 per month.
Can I use Poloniex or Kraken in the United States?
Yes, both Poloniex and Kraken allow users from the United States to use their services. However, Kraken is not available in some states due to regulatory restrictions. Users from New York, Washington, and Florida, for example, are not able to use Kraken. Poloniex is available in most US states, but it is not available in New York due to regulatory restrictions.
Is Poloniex or Kraken more secure?
Both Poloniex and Kraken are considered to be secure cryptocurrency exchanges. They both use two-factor authentication (2FA) and cold storage to protect users’ funds. Kraken has never been hacked, while Poloniex has experienced security breaches in the past. However, Poloniex has since improved its security measures and has not experienced any major security incidents in recent years.
What are the deposit and withdrawal options for Poloniex and Kraken?
Both Poloniex and Kraken offer several deposit and withdrawal options, including bank transfers, credit/debit cards, and cryptocurrencies. Kraken also offers the option to deposit and withdraw funds via SWIFT and SEPA transfers. Poloniex offers margin trading, which allows users to borrow funds to trade with, but this option is not available on Kraken.
Which exchange has better customer support, Poloniex or Kraken?
Kraken is known for its excellent customer support, with a dedicated team available 24/7 to assist users with any issues or questions. Poloniex’s customer support has faced criticism in the past for its slow response times, but it has since improved and now offers 24/7 customer support via email and social media.