Hi there! As someone who’s been involved in cryptocurrency trading for a while now, I’m always on the lookout for reliable exchanges that can help me maximize my profits. And that’s why I decided to do a review of Kraken, one of the biggest and most popular crypto exchanges out there.
In this blog post, I’ll be sharing my personal experience using Kraken Pro and giving you an honest review of the platform.
We’ll be covering everything from Exchange’s user interface and security features to its fees and customer support. By the end of this post, you’ll have a good understanding of whether It is the right exchange for your crypto trading needs. So let’s dive in!
Kraken
Summary
Kraken allows users to trade a wide range of cryptocurrencies. It has advanced trading features such as margin trading and futures contracts. The Exchange is known for its strong security measures and regulatory compliance.
Kraken: Key Specifications
| Founded | 2011 |
| Headquarters | San Francisco, California, USA |
| Cryptocurrencies | Over 222 cryptocurrencies available for trading |
| Fiat currencies | USD, EUR, CAD, AUD, GBP, CHF, JPY |
| Payment Methods | Bank Transfer, ACH, Credit/Debit Cards, |
| Minimum Deposit | $10 |
| Trading fees | Maker fee ranges from 0% to 0.16%, taker fee ranges from 0.10% to 0.26% |
| Security features | 2-factor authentication, PGP email encryption, global settings lock, master key |
| Trading options | Spot trading, margin trading, futures trading, OTC trading |
| Staking | Yes (US Customers are not allowed) |
| Mobile app | Available for iOS and Android devices |
| Customer support | 24/7 support via live chat, email, and phone |
| Reputation | One of the oldest and most trusted cryptocurrency exchanges |
| Liquidity | High liquidity for major cryptocurrencies |
| Regulation | Kraken is regulated in the US, Canada, and Japan |
| Trading interface | User-friendly and customizable interface (Kraken Pro) |
| API | Full-featured REST and WebSocket API |
Kraken Crypto Exchange Overview
Kraken is a cryptocurrency exchange founded in 2011. It’s one of the oldest and largest exchanges in the world. It is based in San Francisco, California, but operates globally. It offers trading in a variety of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin.
It is known for its advanced trading features and security measures. Users can trade cryptocurrencies against fiat currencies like USD, EUR, JPY, and CAD. It also offers margin trading, futures trading, and staking services.
The exchange has a reputation for being transparent and reliable. Kraken has faced some technical issues in the past but overall has a good track record.
Pros and Cons
| Pros | Cons |
|---|---|
| High liquidity | Not available in all countries |
| Wide range of cryptocurrencies | Limited payment options |
| Competitive fees | Complicated interface for beginners |
| Advanced trading features | No margin trading for US customers |
| High-security measures | Occasional server downtime |
| Proven track record of reliability | No Staking for US Customers |
| User-friendly mobile app | |
| Fiat currency deposits and withdrawals | |
| No reported hacks or security breaches |
Kraken Supported Coins
Kraken exchange supports more than 180 cryptocurrencies for trading, including Bitcoin, Ethereum, Solana, Dogecoin, and more. It also offers trading pairs with fiat currencies such as USD, EUR, CAD, AUD, GBP, CHF, and JPY.
Users can buy and sell cryptocurrencies on the exchange using these fiat currencies. It also provides access to a wide range of trading pairs that are only available on its “Pro” Platform.
Kraken Platform Fees
Kraken’s trading fees are competitive and depend on the trading volume and the user’s account verification level. The Maker fee ranges from 0% to 0.16%, and the Taker fee ranges from 0.10% to 0.26%.
It also offers a fee discount program based on the user’s trading volume. Deposits and withdrawals incur additional fees depending on the payment method and currency used.
Kraken Security Measures
Kraken prioritizes security and offers several features to protect user funds and data. It uses two-factor authentication (2FA) and PGP email encryption to secure user accounts.
The Exchange also offers a global settings lock, a master key, and advanced withdrawal limits to protect users from unauthorized access. Additionally, It stores the majority of user funds in offline cold storage wallets, which are inaccessible to hackers.
Kraken Payment Methods (Deposits/Withdrawals)
The Platform provides various payment methods, including bank transfers, wire transfers, and credit/debit card deposits. Bank transfers are available in the US, Canada, Europe, and other countries, while wire transfers are available in most countries. Credit/debit card deposits are available in certain countries.
It also offers deposit options for specific fiat currencies. Each payment method has different fees and processing times that vary based on location and currency.
Related: Best Cryptocurrency Exchanges to Invest in 2023
Trading Features Explained [Kraken Pro]
Kraken offers several trading options for its users, including spot trading, margin trading, futures trading, Staking, and OTC trading.
Spot Trading
Spot trading involves buying and selling cryptocurrencies at the current market price. Kraken offers over 50 cryptocurrencies for spot trading, and users can place limit, market, and stop-loss orders.
Margin Trading
Margin trading allows users to borrow funds to increase their trading position, resulting in potential higher gains or losses. Kraken Pro offers up to 5x leverage for certain cryptocurrencies, and users can adjust their margin position to manage risk.
Future Trading
Futures trading involves buying or selling contracts that speculate on the future price of cryptocurrencies. Kraken pro offers Bitcoin and Ethereum futures with up to 50x leverage, and users can place limit, market, and stop-loss orders.
OTC Trading
OTC trading is available for high-volume traders who want to make large trades off the order book. Kraken Pro offers personalized OTC trading services for individuals and institutions, and users can trade over 20 cryptocurrencies.
Staking and Earn (Not US Customers)
Kraken currently supports staking for several cryptocurrencies, including Polkadot (DOT), Kusama (KSM), Cosmos (ATOM), and more. Users can opt-in to staking by holding their coins in their Kraken account and earning rewards on a regular basis, usually every few days.
The rewards earned through staking vary depending on the cryptocurrency and the amount staked but can range from 1% to 19% annually. The Exchange charges a small fee for staking services, which varies depending on the cryptocurrency and the amount staked.
Read: Best Crypto Staking Platforms
Kraken Customer Support and Ease of use
Kraken offers 24/7 customer support through its live chat and email channels. The customer support team is known for its responsiveness and helpfulness.
The platform is user-friendly and easy to navigate, with a variety of trading options available for both novice and experienced traders. The platform is available in several languages, including English, Spanish, French, German, and Japanese.
It also offers a mobile app for iOS and Android devices, allowing users to trade on the go. The app is easy to use and provides access to all of the features available on the web platform.
How to Get Started [Open Account] With Kraken Exchange
- Go to Kraken’s website: https://www.kraken.com/
- Click on the “Create Account” button.
- Fill out the registration form with your email address, username, and password.
- Verify your email address by clicking on the confirmation link in the email Kraken sends you.
- Log in to your Kraken account and complete the required personal information, such as your name, date of birth, and country of residence.
- Verify your identity by providing a government-issued ID and a selfie of yourself holding the ID.
- Choose your preferred payment method to fund your account.
- Deposit funds into your Kraken account.
- Start trading cryptocurrencies by selecting the crypto you want to trade and placing an order.
Alternatives! Comparison between Kraken and Coinbase
Kraken has a wider selection of coins, including newer and more obscure altcoins. It also offers a wider range of trading options, such as futures trading and OTC trading. However, Coinbase’s selection of coins is still quite extensive, and its platform is more user-friendly and accessible for beginners.
When it comes to fees, Kraken tends to have lower trading fees than Coinbase, especially for high-volume traders.
Coinbase allows staking and Earn thought its advanced trading portal called Coinbase Pro, but Kraken does not.
Coinbase does not support Futures and Mragin, while Kraken Pro does.
Related:
History and Background
- Kraken acquired the popular Bitcoin exchange Coinsetter in 2016, which helped the exchange expand its reach in the US.
- In 2014, It was chosen as the platform to assist in the investigation of the Mt. Gox hack, which was one of the largest cryptocurrency exchange hacks in history.
- In 2018, It was the first exchange to pass a “proof-of-reserves” audit, which verified that the exchange had enough reserves to cover all of its customers’ deposits.
- Kraken has faced some legal battles in the past, including a lawsuit from the estate of Dave Kleiman, who claimed that Kraken CEO Jesse Powell had stolen over $5 million worth of Bitcoin from Kleiman’s estate.
- In 2017, It was one of the first exchanges to halt trading during a major Bitcoin price rally due to technical issues and high traffic.
- The Exchange has a unique system for naming its trading pairs, using a combination of four letters to represent the base currency and the quote currency. For example, XBT/USD represents Bitcoin/US dollars.
- Kraken was one of the first exchanges to implement a crypto “dark pool,” which allows users to place orders without revealing their intentions to the market.
Final Thoughts: Is it Worth Investing in Kraken?
Kraken is a reliable and reputable exchange that offers a user-friendly platform and a range of useful tools for traders.
It also has a strong reputation for security, with a variety of measures in place to protect user funds and data. Its customer support is also top-notch, with 24/7 support through live chat and email.
While it may not be the best choice for those looking for a simple and straightforward platform, Kraken’s range of features and competitive fees make it a great option for those looking to dive deeper into the DeFi world.
FAQs
Is Kraken Safe?
Kraken is considered a relatively safe cryptocurrency exchange platform. It employs industry-standard security measures to protect user accounts and assets, including two-factor authentication, encrypted databases, and cold storage for funds. Additionally, It conducts regular security audits and penetration testing to ensure its systems are secure.
Is Kraken Regulated in the US?
Kraken is regulated in the United States by the Financial Crimes Enforcement Network (FinCEN) and is registered as a Money Services Business (MSB) with the US Treasury Department. Additionally, Kraken operates in compliance with state-level regulations in states where it operates.
Is Kraken requires KYC?
Yes, Kraken requires Know Your Customer (KYC) verification for all users who wish to deposit or withdraw fiat currencies or trade with certain cryptocurrencies. This verification process includes providing identification documents and verifying your personal information.
Is Kraken Solvent?
Yes, Kraken is 100% solvent. It holds more than 1 billion reserve assets and do not lent out user funds to any third party borrowers.
