Coinbase is the colossus of American-based crypto exchanges. 

Whether you look at CoinMarketCap or CoinGecko, Coinbase crushes other US exchanges in terms of daily trading volume. 

However, that doesn’t mean Coinbase has a monopoly on crypto in the USA. 

Although I like Coinbase, I recognize not everyone is a Brian Armstrong fan. 

If you’re not happy with the “Coinbase experience,” please know that you have many other options.

For instance, you could use Kraken or Gemini. 

Arguably, Kraken and Gemini are two of the best “Coinbase alternatives,” especially for US customers. 

These American exchanges share many features and high-security standards. 

However, there are noteworthy differences between these companies that could sway your opinion. 

If you’re an American crypto investor not interested in Coinbase, this is the post for you.

Below, I will reveal everything you need to know about Kraken vs. Gemini.

Kraken vs. Gemini — Which Crypto Exchange Is The Better Choice? 

Availability In The USA 

Since Kraken and Gemini are in the USA, they should offer their services to all US residents…right?

Wrong!

As of today, only Gemini offers its services in all 50 states. 

Despite Kraken’s long history, it still isn’t allowed in New York or Washington State.

In Kraken’s defense, New York has some of the strictest crypto laws in the USA.

Every crypto business that wants to operate in the Empire State has to follow strict requirements to obtain a “BitLicense.”

Most estimates suggest application fees for this license cost an incredible $100,000. 

Once New York instituted its BitLicense procedures, Kraken decided to suspend its services in NY. 

By contrast, the NYC-based Gemini went above and beyond to meet every requirement thrown its way. 

Heck, some people argue Gemini is the most compliant crypto exchange.

While this means Gemini requires the most paperwork from its users, it can legally operate in more states.

So, for Americans, Gemini wins this category. 

However, from an international perspective, it seems both of these exchanges are similarly spread out.

Just be sure to check the “availability” tab on each exchange’s website for details on your specific region.

Winner: Gemini

Ease of Set-Up

As long as you don’t mind KYC rules, signing up for Kraken and Gemini is straightforward. 

Both of these exchanges ask for basic info like your name, address, and phone number. You’ll also have to submit a government-backed photo ID and social security number to buy, sell, and transfer cryptos. 

Once you successfully scan your passport or driver’s license, you should have full access to either website.

While you could get a Kraken starter account without submitting a photo ID, you can’t do much of anything with this account.

Sure, you could deposit crypto with a Kraken starter account, but you can’t deposit or withdraw cash.

Maybe this starter feature is a good option if you already have crypto and want to avoid KYC while trading.

However, you’ll likely have to submit KYC requirements to use Kraken or Gemini.

Both companies make it easy to upload photos and input all your data, so I can’t call a winner here.

Again, if you don’t mind KYC requirements, you shouldn’t have trouble setting up a Kraken or Gemini account. 

Winner: Draw  

Security

Kraken and Gemini take a security-first approach to crypto. 

Indeed, both of these exchanges had a similar goal in mind:

Avoid the catastrophe of Mt.Gox. 

For those new to crypto, Mt.Gox was a prominent crypto exchange that lost thousands of Bitcoins after a cyberattack. 

Kraken’s Jesse Powell and Gemini’s Winklevoss twins were early crypto investors on the Mt.Gox platform. 

Haunted by this legacy—but inspired by the promise of blockchain—each of these founders vowed to create crypto exchanges that met the highest security standards. 

Gemini and Kraken keep most of their crypto locked away in cold storage. 

Both companies also seem to have rigorous screening standards for their employees. 

In terms of longevity, Kraken has a slightly longer track record than Gemini. However, both exchanges have yet to report a major hack. 

The same can’t be said about Coinbase or Binance.

In terms of insurance, Gemini offers FDIC on USD plus limited insurance on crypto stored on its hot wallet.

According to Kraken’s FAQ page, it appears they offer no insurance on your crypto. 

So, although Kraken has exceptional security standards, I feel like Gemini offers better protection for customers. 

Since Gemini has limited insurance, you can rest easier even if a cyberattack occurs. 

Winner: Gemini 

Ease of Use

Compared with sites like KuCoin and Binance, Gemini and Kraken are a breeze to use. 

If you stay on the main trading portals, you can clearly see all the significant cryptos and click “buy” or “sell.”

Also, Kraken and Gemini offer convenient mobile apps you could integrate with your desktop account. 

However, I feel like Gemini has a better user experience versus Kraken.

A big reason I say this has to do with bank transfers.

You see, Kraken still doesn’t allow ACH deposits.

Gemini, however, offers both instant ACH and wire transfers from your preferred bank. 

Also, I know I’m nitpicking, but Kraken sometimes lists Bitcoin with the ticker “XBT.” 

Apparently, the International Standards Organization accepts “XBT” as the “proper” abbreviation for Bitcoin.

Again, I recognize this is a tiny issue, but it could throw new users off. 

First-time investors may think “XBT” is some weird Bitcoin-related altcoin like Bitcoin SV.

(No offense to BSV fans.) 

It appears Kraken has changed to “BTC” on most trading screens, but it’s something worth knowing before investing on this platform. 

These “issues” may not sway your opinion, but I feel they make Gemini more user-friendly. 

Winner: Gemini

Access to Cryptocurrencies

Because exchanges constantly list and de-list cryptocurrencies, it can be challenging to determine who has the most coins.

However, as it stands now, Kraken offers a broader selection of altcoins.

Currently, you could buy over 90 coins on Kraken versus about 45 on Gemini.

So, if you’re an altcoin hunter, you’ll have better luck finding lower-cap coins on Kraken.

Interestingly, Kraken is one of the few exchanges that still offers controversial coins like Ripple’s XRP and Monero (XMR).

However, as of 2021, Kraken announced it would de-list XMR to UK residents.

Therefore, this exchange may buckle under regulatory pressure and get rid of this popular OG altcoin—especially if Kraken is jumping into the NASDAQ. 

Digressions aside: If you’re more interested in dabbling with altcoins, you should focus on Kraken.

Winner: Kraken. 

Trading Fees

Gemini and Kraken may be some of the world’s safest crypto exchanges, but they ain’t the cheapest! 

While trading fees aren’t terrible on Kraken or Gemini, they aren’t as generous as exchanges like Binance or FTX.

However, I’d strongly recommend using Kraken’s Pro or Gemini’s Active Trader platforms rather than the more convenient “instant buy” features. 

While these screens aren’t as user-friendly, they will save you a ton of money in trading fees.

When comparing these two platforms, Kraken has more attractive rates for low-volume traders.

According to Kraken’s current fee schedule, you’ll have to pay 0.16 percent maker and 0.26 percent taker fees on purchases under $50,000. 

By contrast, Gemini’s Active Trader charges 0.35 maker and 0.25 taker fees on purchases under $500,000.

Gemini and Kraken’s fees are comparable as you trade at higher volumes. 

However, if you hate trading fees, you’ll probably save more money on Kraken’s Pro platform.  

You could click this link to download your Kraken account today.

Winner: Kraken

Customer Service

Ah, customer service, every crypto investor’s favorite topic.

Not!

If you’ve read my comparison of “Binance vs. KuCoin,” then you know how frustrating it could be to resolve issues on crypto exchanges. 

On the plus side, Kraken and Gemini are in the USA. So, in theory, they should have better customer service standards.

However, only Kraken stands out in this category.

Indeed, many prominent YouTubers like Coin Bureau claim Kraken has the best customer service for a centralized exchange. 

Now that’s some pretty high praise!

Unlike Gemini, you can easily reach Kraken’s team via telephone, virtual chat, and ticket requests. Kraken also boasts a 24/7 support team. 

Gemini offers standard ticket resolution, but it usually takes at least 24 hours to resolve issues. 

Also, according to recent blog posts, Gemini is still working on updating its Help Center. 

If you need more proof that Kraken is killing it with customer care, then look at TrustPilot.

Unlike many crypto exchanges, Kraken has a moderate two-star rating. 

Yeah, I know, two-stars isn’t “great,” but it’s better than the TrustPilot scores for Coinbase, KuCoin, and Gemini.

Also, if you take the time to scan Kraken’s TrustPilot page, you’ll see that the company responded to most reviewers. 

The same can’t be said about Gemini.

So, if customer service is a big deal for you, Kraken seems to have higher standards.  

Winner: Kraken

Passive Income

Generally, I never recommend keeping your crypto on an exchange.

As respected as Kraken and Gemini are, it’s always safer to store your crypto in a private wallet. 

However, there are ways you could earn passive income while using either of these platforms.

If you don’t mind handing over your crypto, you could earn interest while holding your favorite tokens.

Although interest percentages fluctuate, Gemini Earn offers more generous returns versus Kraken.

Also, there are more tokens available in Gemini’s Earn feature versus Kraken’s Staking platform. 

Most significantly, you could earn attractive interest on stablecoins like USDC and GUSD via Gemini Earn. 

Besides depositing your coins for interest, Gemini is working on a flashy new credit card that rewards users in Bitcoin.

So, even if you don’t want to use Gemini Earn, you could earn passive income with this product. 

By contrast, Kraken focuses on offering interest for Proof of Stake coins like Polkadot, Solana, and Cardano. 

You could, however, integrate with Ethereum 2.0 staking via Kraken. Also, Kraken offers modest interest for those holding USD or Euros.  

So, if you’re only “interested in interest,” you’ll find more lucrative offerings on Gemini’s platform.

Just remember these yield-bearing features carry risks. 

Most significantly, you’ll have to entrust each exchange with your crypto. 

Also, sometimes you have to lock your crypto for a predetermined period to earn rewards. 

If you’re an active trader, this is a big “no-no.” 

Before agreeing to use Kraken or Gemini’s Earn features, always read the fine print!

Winner: Gemini  

Pros & Cons Of Kraken vs. Gemini

Kraken Pros 

• Exceptional security standards. 
• Industry-leading customer support. 
• Wider selection of altcoins like Telcoin. 
• Has a long history as a successful crypto exchange. 

Kraken Cons

• Not available in every US state. 
• You can’t earn interest on stablecoins.
• User interface isn’t as clear as Gemini.  
• No ACH transfers.

Gemini Pros

• Available in all US states. 
• One of the most compliant & secure exchanges. 
• Convenient ACH and wire transfers. 
• Clean and simple user interface. 
• Generous “Earn” feature. 

Gemini Cons

• Poor ratings for customer service. 
• Limited selection of cryptos. 
• High trading fees. 

Kraken vs. Gemini — What’s The Better US Exchange? 

From a security standpoint, you can’t go wrong with either Kraken or Gemini. 

However, I’d argue Gemini offers more attractive features for most American crypto investors. 

Yes, Gemini has higher fees and fewer coins, but it’s more accessible and has a friendlier user interface. 

Also, Gemini users enjoy convenient ACH transfers, attractive interest rates, and more insurance protections.

But does that mean I think Gemini is better than Coinbase? 

If you’re curious about that question, then you’ve got to check out my recent post, “Gemini vs. Coinbase.” 

However, if you’re ready to join Gemini, you could follow this link. 

Want to learn how I make money using crypto? Check out my favorite node project here.