Kraken vs. Bitbuy is not a simple issue, you’ll see in the following article. We will investigate these two exchanges and detail both their positives and negative.
Choosing between Kraken and Bitbuy might depend on their security, cryptocurrencies supported, easy-to-use interface, or one of a thousand different things. Read on for our coparison of the two exchanges to find which one suits you best.
What is Kraken?
Kraken is one of the oldest cryptocurrency exchanges in existence. It was started in 2011 by Jesse Powell and remains a popular choice for experienced and novice cryptocurrency investors.
A global crypto-exchange that serves nearly 200 countries, Kraken offers a variety of options for trades that includes buy, sell, send, receive, exchange, futures trading, staking, market watch (cryptowatch), and staking.
This trusted exchange has an impeccable reputation for security, boasting that they have never suffered a major security incursion. Kraken offers many of the most popular cryptos, including Bitcoin (obviously), Chainlink, Ethereum, Cardano, Litecoin, and more. There are exactly 97 different cryptos available on Kraken.
Apart from great security and a large variety of crypto available, Kraken also offers low fees maxing out at 0.26%. The fees you pay to trade on Kraken are based on a rolling 30-day period where your fees go down as your transaction amounts go up.
Kraken Pros & Cons
Numerous crypto options
Educational videos and articles for new traders
Advanced interface that new users may find intimidating
What is Bitbuy?
Bitbuy, started by Adam Goldman in 2013 as Instabit, is a rarity among crypto exchanges because it is 100% Canadian, only allowing Canadian citizens and Permanent Residents to become users, and accepts only Canadian dollars – the good ol’ Loonie.
The crypto-canuck supports only 15 coins at the moment, including some of the most popular options: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTE), Stellar Lumens (XLM), Eos (EOS), Bitcoin Cash (BCH), and Chainlink (LINK). However, the relatively limited array of currency choices hasn’t stopped Bitbuy’s more than 400,000 Canadian users from trading over $4 billion on the exchange.
When it comes to security, Bitbuy is at home with the crypto giants like Kraken or Coinbase. Bitbuy uses two-factor authentication, a comprehensive insurance policy, and 95% cold storage security, meaning that most of the users’ assets are kept offline, making them extra safe from hacking attempts.
Bitbuy has established itself as hyper security conscious and developed a name for transparency. In 2019, it hired a cybersecurity company to conduct, among other things, a security audit. Bitbuy passed in every category. The Canadian company also designed its own exclusive wallet so it wouldn’t have to rely on wallets from other providers.
Once you become a member on Bitbuy, you can trade on their two trading platforms: Express Trade and Pro Trade.
Express Trade is for newbies, but don’t feel bad. Everyone is new at some point. On Express Trade, you can buy and sell crypto instantly. The fees on Express Trade are decently high, however, at 0.5% for buying and selling.
Pro Trade is more advanced. Its software gives users charting and analysis tools beyond the information available in Express Trade. Plus, there are customizable widgets so you can personalize your experience. Maker fees in this order-book style trading platform are 0.1%. Taker fees are 0.2%.
Bitbuy supports several deposit methods such as bank transfer, Interac e-transfer, and crypto.
Bitbuy Pros & Cons
Supports many deposit methods
Excellent user interface
Only available to Canadians
Doesn’t support a large variety of cryptocurrencies
Kraken vs Bitbuy: Compare and Contrast
The fee structure at Kraken is based on a 30-day system, with fees maxing out at 0.26%. Bitbuy’s Express Trade charges a flat 0.5% on buying and selling crypto.
Bitbuy’s user interface on their mobile app is uncomplicated and user-friendly, making it perfect for new traders. Its resources page includes blog posts and explanations on “How to Buy Bitcoin” and other helpful articles.
On the other hand, Kraken doesn’t have an app, just a website. Kraken is designed for more advanced traders who understand the complex charts and analysis tools. That said, Kraken does offer educational resources on their website to help teach users about cryptocurrency, blockchain, trading crypto, etc.
Number of Currencies
Kraken supports 97 different cryptocurrencies and is available in almost 200 countries, including Canada.
Bitbuy offers only 15 cryptocurrencies, but the selection includes some of the most popular options. The exchange is only available in Canada and is only available to Canadian citizens or Permanent Residents.
Kraken includes heavy digital safeguards, 2FA, whitelisting withdrawal address, etc. And, in case a person’s phone is stolen, they do not allow SMS account recovery. The U.S.-based crypt exchange boasts that it has never experienced a major security breach.
The security at Bitbuy also utilizes two-factor authentication and 95% cold storage security, meaning that most of their users’ assets are kept off the internet, making online hacking impossible. Another point about Bitbuy’s security is its successful, self-imposed security audit by U.S. company, Cipherblade.
Bitbuy also has a native wallet, so users don’t need to rely on third parties.
Types of Transactions
Kraken supports many transaction options on its platform, which makes it the more desirable crypto exchange for advanced traders, but also potentially less desirable for novice users. Kraken offers the following transactions: buy, sell, send, receive, exchange, futures trading, and Cryptowatch (a nifty feature displaying crypto behavior on different exchanges) and staking.
Bitbuy accepts only Canadian currency (CAD), and Express Trade offers to buy and sell crypto for only 0.5%. However, its next-level trading platform, Pro Trade, is set up as more of an order-book style with maker fees at 0.1%. Taker fees are 0.2%.
Both Kraken and Bitbuy are available in Canada. Both exchanges are hyper-vigilant about security and ease-of-use, providing their users with excellent decision-making tools, charts, and in-depth analysis.
We’ve looked at Kraken vs. Bitbuy and broken down the major factors of both exchanges. Kraken offers more crypt options to trade, and is a global company. Bitbuy is relatively small, but it’s growing and working hard to be a safe, reliable, and profitable company for Canadian crypto traders.
Frequently Asked Questions
Yes, they are. Kraken is available in almost 200 countries, including Canada. Bitbuy has taken a staunch position as an All-Canadian exchange, only allowing Canadian citizens and Permanent residents to use the app and the exchange. Bitbuy also only accepts Canadian money (CAD). This makes them seem like a local corner store rather than a crypto exchange with more $4,000,000,000 in crypto traded.
Not really. Kraken’s fees are fixed based on trading volume over 30 days. They max out at 0.26% for buying and selling crypto.
Bitbuy, on the other hand, has more variability in their fees. Transactions on Express Trade max out at 0.5%. Pro-trade offers maker-taker trades at 0.1% and 0.2% respectively. So, neither is strictly cheaper than the other.
Yes, Bitbuy has heavily focussed on making its app as user-friendly as possible. Express Trade is much more stripped-down leaving the simplest transactions: buy and sell available to users.
Kraken is also great for new traders, but the resources they offer are geared towards advanced users by default.
It should be noted that both exchanges offer education sections on their websites or apps to teach the requisite information necessary to trade cryptocurrency successfully.