Coinbase is at least a decent exchange when you consider their huge client base. However, it does not mean other exchanges cannot boast the same or even better features.
Let’s compare Coinbase to some of its greatest competitors:
As of today, end of September 2017, Coinbase is available in 32 countries, including the US, Canada, Australia, Singapore, and dozens of the European countries.
It means that Coinbase competitors should cover at least the same countries.
So, the first rivals that come to my mind at the moment are Kraken, CEX IO, and Bitstamp.
Why would clients go for one of the three mentioned exchanges instead of Coinbase? Let’s check this:
Kraken – Coinbase
Kraken is known in the industry as the number one exchange in terms of euro volume trading. Considering that euro is the second fiat currency after the USD regarding liquidity, we can conclude that it’s huge.
Here is what Kraken has and Coinbase lacks:
- Margin trading opportunity with up to 5:1 leverage. It means that you can trade Bitcoin and altcoins with borrowed money and boost your return potential by five times! However, it also means that you take additional risk. Coinbase platform does not offer margin trading solutions, though it’s available through their GDAX platform.
- With Kraken, one can trade Bitcoin, Bitcoin Classic, Ethereum, Ethereum Classic, Litecoin, Ripple, Dogecoin, Monero, Augur, Ripple, Zcash, Dash, Stellar, DAO, and Iconomi. This is an impressive list compared to Coinbase’s BTC, ETH, and Litecoin.
On the other hand, Kraken allows only wire transfer as deposit/withdrawal method, while Coinbase operates with credit/debit cards, ACH transfers, and even PayPal for withdrawals.
CEX IO – Coinbase
CEX IO is another big name in the cryptocurrency industry.
Here are its great points:
- CEX IO allows margin trading, but at this time the maximum leverage is 3:1.
- CEX IO operates with a wide list of fiat currencies, such as USD, EUR, GBP, RUB, and more.
- The exchange allows deposits/withdrawal with wire transfer, credit/debit card, and AstroPay.
The main drawback of CEX IO against Coinbase is higher fees.
Bitstamp – Coinbase
Bitstamp is one of the most popular cryptocoin exchanges since its trading volume is comparable to the Coinbase one.
Here are some things to know about it:
- Payment methods are credit/debit card, wire, and AstroPay.
- It allows limit orders and stop orders;
- Low fees.
- Available worldwide (the same as Kraken).
- Operates with more coins when compared to Coinbase.
Besides, there is also Gemini, is the greatest competitor of Coinbase on the US market. Gemini allows crypto trading solutions for both individual and institutional investors.
Here are the exchanges with the largest market share during the last six months:
As you can see, Kraken has had a larger share than Coinbase, while Bitstamp has been very close.
Check the evolution week by week:
Note that the charts refer to Bitcoin trading volume only, while Kraken has over a dozen of coins, which means their volume is even larger.
The Final Verdict
Coinbase is a good exchange but surely not the best one for specific situations. Still, the exchange has a huge trading volume, which shows people trust it on a regular basis.
Hope this helps!