There has been a major debate hinging the Paxful vs Kraken discourse as to which is the best crypto exchange. But it is important to know that Paxful and Kraken are two of the most popular cryptocurrency exchanges in the world because of the excellent features they both have.
In similitude to the conventional way of assessing the competitive advantage that a product or service has over the other, this birth the idea of having a Paxful vs Kraken focus. Nonetheless, let’s have an overview of what each of these crypto exchanges is.
What Is Paxful?
Paxful is a peer-to-peer (P2P) crypto exchange created in 2015 by a group of developers to make Bitcoin more accessible to people. The platform offers a direct deal where cryptocurrency buyers and sellers may interact and conduct business with each other.
How Paxful works is that when you buy cryptocurrencies on the platform, you will deposit cash into the seller’s account using any available payment methods on Paxful. Upon confirming the money deposit, the seller will release the crypto to you. In addition to accepting more than 85% of worldwide buyers, sellers can take more than 300 different payment methods.
The Paxful platform has a $10 minimum purchase requirement, and you can access it anywhere. Also, Paxful users only need their email addresses to enter the marketplace, unlike centralised exchanges, which require them to register a username and password.
What Is Kraken?
Kraken is one of the largest and most popular crypto exchanges. According to estimates, the daily trade volume currently exceeds 17,000 BTC. You can trade over 50 cryptocurrencies and seven nation’s currencies on the platform.
Founded in 2011, Kraken is headquartered in San Francisco, California, and boasts widespread support and presence. This platform has over 3 million users trading cryptocurrencies (Bitcoin, Ethereum, Litecoin, etc.) and fiat currencies (US, Euros, and Canadian dollars).
In the sequel to the prospects of Paxful and Kraken, this begs the decision of having a Paxful vs Kraken article that will highlight the comparison and contrast of the two platforms.
Paxful Vs. Kraken Comparison
Fees for trading on Paxful are relatively low. For processing withdrawals from the exchange to your credit card or bank account, you can anticipate paying a service fee of 1% to 2%. Buying Bitcoin on Paxful is free, but you as a seller must pay transaction fees that range between 0.% to 5%.
In the case of Kraken, it charges 1.5% when you buy Bitcoin, 0.9% when you buy stablecoin, and as low as 0.5% when you buy your crypto via online banking.
Additionally, Kraken has a scheme that lowers the transaction fees for market makers and takers through a volume-based discount. For instance, a 30-day trading volume of over $50,000 will result in maker and taker fees of 0.16% and 0.26%, respectively.
2. Payment Methods
Paxful currently has over 450 payment methods available on its platform, as it is emphatic about making Bitcoin available to all and sundry. According to Paxful’s mantra ”more payment methods, more freedom,” the platform is making payments so efficiently in a way that there will be cheaper remittances and sustainable means of wealth preservation.
Paxful supports the majority of fiat money transactions, including Western Union, PayPal, Amazon gift cards, Visa or Mastercard gift cards, etc.
On Kraken, you can deposit and withdraw to and from your wallet in US dollars, Canadian dollars, Japanese yen, and Euros. You can also trade with the available cryptocurrencies on the platform. In this instance, you can sell your Ethereum to buy Bitcoin on Kraken.
Also, you can only make deposits and withdrawals via wire or bank transfer, but you can not use payment options like PayPal or your credit and debit cards. According to the exchange, the rationale for this limitation is that the danger of fraudulent transactions is too high for the business to support these payment methods due to the near-instant and practically irreversible nature of crypto transactions.
3. Security And Regulation
Paxful’s platform has KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures that protect the entire market, albeit with no regulation in any of its operating countries.
Every time a user deposits or withdraws money, Paxful creates a new wallet, decreasing the chance of a hack. By utilising ID verification and two-factor authentication (2FA), which uses Google Authenticator, Paxful has tightened security on user accounts over time.
Meanwhile, Kraken has enabled advanced security mechanisms, including two-factor authentication (2FA), email confirmations for withdrawals, and encrypted storage service. Also, Kraken stores about 95% of all deposits in cold, air-gapped, offline storage.
Other security features on Kraken include SSL browser encryption, live chat assistance, and round-the-clock staff security monitoring for any suspicious activity. The platform also has an account that provides for PGP/GPG encryption and a global settings time lock, which offers the highest level of security in the absence of the user.
FinCEN regulates Kraken; its customers’ funds are kept directly by the customers in their respective bank accounts at Kraken’s partner banks, which are subject to strict regulation.
4. User Interface And Experience
It is pretty simple to utilise the Paxful trading interface. You can access the trading platform on your mobile device and your desktop. When troubleshooting an issue, you can rely on Paxful’s robust customer support system, which is a plus to its slick, tidy, and adaptive user interface.
To open a transaction with a seller or buyer, you must click the “New Order” button. By posting their cryptocurrency offers on Paxful’s Facebook page or Instagram, retailers can create adverts through the network and draw in more customers.
Meanwhile, Kraken is mobile-friendly, giving you quick access to your accounts with only a few taps. People who are constantly moving will find this convenient because it provides them access to their money wherever they are.
There is also an iOS app for Kraken in the App Store; however, as of right now, it does not handle money deposits or withdrawals.
Conversely, all the functions are available to Android users. The Google Play Store offers the option to download the app. As long as you have a reliable internet connection and cellular reception after installation, you may easily access your account information whenever you want, wherever you are.
What Are The Pros And Cons Of The Crypto Exchanges?
Pros Of Paxful
- Peer-to-Peer trades
- Low fees
- Support gift cards
- Accessible on the web and mobile
- Supports debit and credit cards
- Available in over 190 countries
Con Of Paxful
- Very few cryptos are available
Pros Of Kraken
- Frequent discounts and promotions
- A wide range of cryptos is available
- Accessible on the web and mobile devices
- Advanced trading options
- Formidable security team
- Available in over 140 countries
Cons Of Kraken
- No wallet is available
- Does not support gift cards
The distinction that harps the Paxful vs Kraken have been made in this article, with features that make each crypto exchange unique. However, it is important to note what characterises both Paxful and Kraken before going for one of them.
If you want a crypto exchange with access to a wide range of cryptocurrencies to trade with, Kraken might be the best option for you. But if you want a trading platform where you can change your gift cards for cryptocurrencies at a low cost, consider using Paxful.
Alternatively, Prestmit suffices the above comparisons because you can trade your gift cards for cryptocurrencies, viz-a-viz, on our platform at an instant and very low cost. We also have a wide range of payment options with a user-friendly mobile app to make your trading experience relish.