Coinbase vs Kraken (2026): fees, staking by state, security and proof of reserves

Coinbase vs Kraken at a glance

As published by each exchange and checked on 4 November 2026. Details change; confirm them on the official pages for your state.

Fees: how each exchange charges

We do not quote fee percentages here because both exchanges change them and the amount depends on the order. What is stable is the structure:

• Coinbase simple buy and sell — the price includes a spread, and Coinbase adds a separate fee. Coinbase says both are shown on the order preview, and that the fee depends on your payment method, order size and other factors.
• Coinbase Advanced — you trade directly on the order book with no spread markup, and Coinbase Advanced's own maker and taker fees apply.
• Kraken Instant Buy/Sell — the price includes a spread plus a trading fee, and payment-method fees can apply.
• Kraken Pro — a tiered maker-taker schedule based on your 30-day trading volume.

The practical lesson is the same on both: if you buy regularly, the advanced screen usually shows costs more transparently than the one-tap screen, but limit orders and order books take some learning. Before you fund an account, place a small test order on each and compare the total cost shown on the preview with the official fee page: Coinbase fees and Kraken fee schedule. Remember to include deposit and withdrawal costs, which vary by payment method and network.

State availability

Crypto exchanges in the US are registered with FinCEN as money services businesses and licensed state by state. Coinbase, Inc. lists its state money transmitter licenses on its licenses page and holds a NYDFS BitLicense, so it can serve New York residents; Coinbase notes that some state licenses do not cover virtual currency and that some products vary by state. Kraken (Payward Interactive, Inc.) says it is licensed as a money transmitter in 46 US jurisdictions and does not offer services to residents of New York or Maine; it is not on the NYDFS list of regulated virtual currency entities.

If you live in New York or Maine, Kraken is not an option. Everywhere else, both may be available, but check each exchange's own state page for the product you want, because staking and some funding methods are restricted separately.

Staking: where each exchange offers it

Staking means locking certain proof-of-stake coins, such as ether, to help secure their networks in return for rewards. In the US, several state securities regulators have taken action over exchange staking programs, so availability depends on where you live.

• Coinbase says no new staking is possible in California, Maryland and Wisconsin, and Coinbase takes a commission on staking rewards. New Jersey: on 30 October 2026 the New Jersey Bureau of Securities rescinded, without prejudice and without a ruling on the merits, the June 2023 summary penalty and cease-and-desist order that had stopped new Coinbase staking in the state. Coinbase has said New Jersey users can resume staking, and reports on 4 November said its eligibility page no longer listed New Jersey among the restricted states. Because the bureau kept the right to take future action, check Coinbase's staking eligibility page for the current position.
• Kraken offers on-chain staking only in the 37 states it lists plus DC and Puerto Rico. States not on its list include Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Texas, Vermont, Washington and Wisconsin (and Kraken does not serve New York or Maine at all). Kraken deducts a commission from rewards.

Staking rewards are not guaranteed, staked coins can take time to unstake, and the value of the coins can fall by more than the rewards you earn. Rewards may also be taxable income.

Proof of reserves and how customer assets are reported

Kraken publishes a Proof of Reserves. An independent accountant takes an anonymized snapshot of client balances, aggregates them into a Merkle tree, checks Kraken's signatures proving control of on-chain wallets, and confirms that those wallets hold at least as much as clients are owed in the covered assets. Kraken says it runs these reviews at a regular cadence; on 4 November 2026 its page showed a snapshot dated 30 June 2026. Clients can log in to Kraken Pro and verify that their own balance was included. Kraken also lists the limits: a snapshot cannot prove exclusive possession of keys, rule out hidden encumbrances or borrowed funds, or show what happened after the snapshot date. Kraken's security page describes the review as an agreed-upon procedures engagement under AICPA standards, which is not a full financial-statement audit.

Coinbase does not publish a Merkle-tree proof of reserves. Its parent, Coinbase Global, Inc., is a US-listed company that files financial statements with the SEC. In its Form 10-Q for the quarter to 30 September 2026, Coinbase says it held full keys to $376.6 billion (at fair value) of crypto assets and stablecoins on behalf of customers, with a corresponding obligation to keep them secure, and that these sit off its balance sheet. Coinbase also says it holds customer assets 1:1 and does not lend them without your instruction.

Both approaches give you some evidence, but neither is a guarantee. A proof of reserves covers listed assets on one date; financial statements are reviewed or audited at set intervals. Neither protects against a hack or a sudden withdrawal freeze, and crypto balances are not covered by FDIC insurance or SIPC.

Security and custody

• Coinbase says it stores the vast majority of customer assets offline in cold storage and auto-enrolls accounts in two-factor authentication.
• Kraken says it uses cold storage and hot wallets, holds ISO/IEC 27001:2022 certification and has completed a SOC 2 Type 1 examination.

Whichever you choose, the biggest security gains are on your side: use an authenticator app or hardware security key rather than SMS where available, set up withdrawal address allowlists if offered, and be suspicious of anyone who contacts you claiming to be exchange support. If you plan to hold crypto for a long time, consider whether to move it to a wallet you control, and learn how to back up your recovery phrase first.

Products and who each may suit

Both exchanges offer a beginner-friendly app for buying and selling, an advanced order-book platform (Coinbase Advanced and Kraken Pro) and staking where state rules allow. Coinbase is available to New York residents and Kraken is not. Kraken lets clients check their own balance against a dated Proof of Reserves snapshot, while Coinbase reports customer assets through its SEC filings. Which of these matters more depends on where you live and how you trade. Product ranges (coins listed, derivatives, cards and earn features) differ by state and change often, so check each exchange's state page before you sign up rather than relying on a feature list.

A simple way to decide: list the two or three coins you want, the funding method you will use and whether you want staking, then check each item on both exchanges' pages for your state. For more on checking any provider, see how to choose a broker, and for market background see our Bitcoin and Ethereum pages.