Kraken review and test – How good is the cryptocurrency exchange?
Kraken is an American veteran cryptocurrency exchange offering a leading trading platform with margin trading and OTC options. The site, which previously despised the instability of the platform, has since updated its services with a focus on security and customer support. Kraken also offers very competitive transaction fees. This is one of the largest cryptocurrency exchanges. Kraken claims to be the largest Bitcoin exchange in terms of volume and liquidity in the euro. Kraken has established connections with banks in Germany and Japan. It was also the first cryptocurrency exchange listed at Bloomberg headquarters (a tool used by bankers around the world). In this Kraken exchange review, we will tell you everything you need to know about this exchange.
What is a Kraken? – Company overview:
Kraken is a cryptocurrency exchange listed by Jesse Powell in 2011 that also offers futures contracts and margin trading. Kraken is a cryptocurrency exchange that allows users to trade fiat and cryptocurrencies. It is an experienced cryptocurrency exchange in the United States that offers advanced trading platforms with edge trading and OTC options. Kraken is based in the United States and only offers about 20 coins to trade because it has to comply with U.S. rules. This is compared to over a hundred on Binance.
Kraken is known for its low transaction fees, rich features, and overall security. After the bankruptcy of the old bitcoin exchange, Mt. Gox, the Kraken platform helped to process the application. Kraken operates in the United States (except New York due to BitLicense) and Canada, the European Union and Japan. The exchange started in 2013 and has since raised over $100 million and the final round ended in February 2019.
You can open a Kraken account on Kraken and trade digital assets without going through KYC or AML. However, the withdrawal limits for these accounts are low and fiat currency (ego) cannot be deposited or withdrawn without a KYC verified account. Anyone wishing to purchase a futures contract must also pass the KYC check. Kraken offers high liquidity, industry-leading security measures, and 24/7 real-time customer support. Kraken has a full reserve of customer funds. Kraken uses independent and encrypted verified reviews to certify to third parties and exchange them to clients that funds have been properly stored.
Currency and payment method
Kraken allows consumers to trade fiat currencies such as:
- US Dollar (USD)
- Japanese Yen (JPY)
- Canadian Dollar (CAD)
- British Pound (GBP)
- Euro (EUR)
- Australian Dollar (AUD)
- Swiss Franc (CHF)
The amount spent in each of these currencies is called the volume of transactions. Kraken has the largest euro trading volume among other stock exchanges. The exchange currently offers 40 different cryptocurrencies. The more popular the cryptocurrency, the more trading pairs there are.
Deposits can be deposited and withdrawn via SEPA, SWIFT, bank transfer and internal transfer. In almost all cases, deposits and withdrawals can take 1 to 5 business days. In my experience, the average deposit takes only 24 hours. Most of the accepted cryptocurrency deposits are free, but in some cases they add a small amount of installation cost. When it comes to statutory deposits, SEPA deposits are free, which is especially convenient if Kraken is in the European Union and your location is on the SEPA list of countries. Bank transfers in the U.S. range between $5 and $25, but are generally less than $10 outside the U.S.
Kraken vs. other crypto exchanges
- Suitable for Nigeria, South Africa, Indonesia and Malaysia.
- East to use the interface
- Stable exchange
- Works in almost any country
- Maximum limit on bitcoin purchases by credit card
- Trusted and trusted broker
- Excellent liquidity and low fees
- Most countries supported
- A trust exchange was launched in 2011.
Kraken vs Coinbase
When comparing Kraken to another major U.S. stock exchange, Coinbase, or more specifically Coinbase Pro, a lot of things have been found in common. Both exchanges have similar allocation structures and available services (OTC, margin trading, account management). However, Coinbase supports fewer cryptocurrencies. The main difference is probably in terms of support. Kraken appears to be much more focused on support than Coinbase. In general, if the desired coin is listed on both exchanges, there seems to be little difference between the two exchanges.
Kraken and Coinbase are natural competitors as they are U.S. regulated exchanges with excellent security registers. Kraken and Coinbase have been around for many years and offer the same trading pairs. At the same time, Kraken has a wider range of features. They have more altcoins available for trading and offer revenue and futures contracts, but Coinbase is just a change of location.
The advantage of Coinbase is that it has more volume than Kraken, and it also has Bitlicense, which allows it to receive customers in New York State. Kraken generally has a better reputation than Coinbase as it turns out that Coinbase intends to sell data to the IRS and Drug Enforcement Administration.
Kraken vs Gemini
The biggest advantage of Kraken over Gemini is the number of coins it can trade. Gemini only supports 5 coins compared to the 20+ coins supported by Kraken. Also, Gemini does not offer profit or futures contracts. The final drawback of using Gemini is the structure of transaction fees that are much higher than Kraken.
As an exchange, Gemini primarily serves institutional traders. Reduce fees for transactions made through API connections. One of the reasons the transaction fees are high from the start is that Gemini is fully insured and collects certifications and licenses.
So, Gemini is a great alternative for professional traders and investors looking to pay more for the most valuable exchanges. However, for most retailers, Kraken with a lower fee is more suitable.
Kraken and Gemini are American stock exchanges founded primarily by celebrities.
Gemini has significantly higher fees on Gemini than Kraken, and few people believe that Gemini runs banks with some customer reserves, but Gemini has never tested reserves.
Gemini is known for providing the best customer support because it attracts more valuable customers than Kraken normally attracts.
The Gemini trading interface is easy to use but has fewer features than Kraken, so it all depends on whether you are a beginner or an experienced trader when choosing someone with the best user experience.
Binance vs. Kraken
Binance is a much larger exchange with higher liquidity and more coins to choose from. Some people think that the smaller the coin, the better, but that’s because it’s less likely to get hacked.
Kraken also outperforms Binance in terms of reliability. Kraken is the only stock exchange with 100% reserves, so you can be confident that you can withdraw your coins whenever you want. Binance has never tested their reserves, so it is impossible to know if they have all their consumer deposits at any given time.
Kraken has also historically been a supporter of Bitcoin, unlike Binance. Binance is known for its responsive customer support, but Kraken is a bit hesitant here because of its long response times in chats and emails. Fees are very low and no one can ask for a lower fee because the fee depends on the liquidity of the stock exchange when trading with the market.
Binance and Kraken offer OTC trading, futures, and dark full service (order book that you can view before placing an order).
Coinbase Pro vs Kraken
Kraken and Coinbase Pro offer highly developed trading capabilities to experienced traders.
However, Kraken has a better user interface than Coinbase Pro. Kraken also tested reserves unlike Coinbase Pro, which, like Kraken, refused to review backups. Coinbase Pro also doesn’t support credit card purchases, but Kraken does.
In terms of fees, if you’re a marketer, Kraken is your best bet. However, if you are a liquidity provider, Coinbase Pro is your best bet.
Kraken vs Bitstamp
Bitstamp is a European exchange that is different from the oldest cryptocurrency exchanges in existence. This certainly speaks of their security and good business sense, but that doesn’t mean Bitstamp offers so many benefits. In fact, like Gemini, there are only a few coins available for trading compared to Kraken’s broader set of trading pairs.
Kraken and Bitstamp generally have more trading volumes, but they do have the same trading volume. Bitstamp transaction fees are higher than 0.5% Krakens for both producers and recipients. One of the advantages of using Bitstamp is that it has the lowest trading volume. Bitstamp’s minimum trading amount is 0.001 BTC (equivalent to about $8.50 at the time of issue).
Kraken, on the other hand, has a different minimum amount for each coin, but often exceeds $10 per transaction. This makes Bitstamp the best option for those who want to make small crafts.
One of the best advantages of using Bitstamp over Kraken is that Bitstamp has a popular Android mobile app. The app offers everything the web platform does, from deposits to trading, making it easy to trade cryptocurrencies when you don’t have a computer.
At one time, Kraken had an iOS app, but it stopped. Kraken doesn’t talk about future releases of the app, so it makes us believe that Bitstamp is the best option for anyone who needs constant access to the trading platform.
What is Kraken best for; Day trading or buying crypto?
With regulatory compliance and US headquarters, Kraken is a great alternative for professional traders and institutional investors. Kraken is also attractive to more sophisticated traders because it offers advanced features like margins and futures.
Kraken’s trading fees are slightly lower than average and start to decline sharply as traders start earning more than $50,000 per month. All in all, Kraken is a great platform for U.S. traders or organizations looking to achieve full compliance while maintaining hundreds of transactions per month.
Countries served by Kraken
Kraken is available to all Americans except New York and Washington residents. For overseas customers, there are restrictions for each country. Kraken is not available to citizens of Afghanistan, Cuba, Iran, Iraq, Japan, North Korea and Tajikistan countries. Kraken does not own the famous NYC Bitlicense, so it cannot serve NYC customers. Interestingly, Japanese traders cannot use Kraken because the digital asset sector is thriving and has lucrative rules to support it. However, Kraken is actually very liberal in its policy towards overseas customers and most citizens of the world can use it.
Kraken offers its clients an advanced trading platform that includes random trading and margin trading for more experienced consumers. The Kraken interface offers a lot of options, but it’s not the most beginner-friendly, so it’s worth considering if you’re new to cryptocurrency. For bulk transactions (over $100,000), Kraken offers one-on-one OTC transactions. Additionally, high-volume traders can often have dedicated account managers to take care of their trading needs.
Kraken also offers a dark pool, an order book not found in the rest of the market. Each trader knows only his own order. Traders can place bulk buy or sell orders anonymously without disclosing their interests to other traders. For other traders, orders that are too large usually impair market movement, making it difficult to execute orders at the desired price. These damaging price fluctuations can be avoided in dark pools. Finally, Kraken also offers betting services that allow consumers to monetize the assets they hold and use.
How to start trading in Kraken
Visit the Kraken website and click Register. Create a username and password. Do not use PASSWORD1234 as your password! You are better than this! Please enter your email address. Click Register.
You will receive an email from Kraken with an activation code. Enter your code, username and password. Click “Activate Account”.
You have successfully registered for a Kraken account!
Kraken has 5 levels of certification (or level) (0-4). Verification means you have to prove that you are yourself. The tests you need are different types of personal information.
The first three steps don’t require a lot of testing, but the last two steps require a lot of testing. Level 0 allows you to look around. A minimum level 1 certification is required to shop. This Kraken review explains how to check in levels 1 and 2. Click “OK” on the account screen.
You will need to enter your name, date of birth, country and phone number for level 1 verification.
Click “Get verified” and you’re done!
Level 1 users can only insert (enter) or remove (remove) cryptocurrencies. There is also a $2,500 cap on the amount of cryptocurrency you can withdraw daily. Level 1 is not very fun! It is advisable to pass the test at least at level 2. Click on “Level 2” to do it. You must provide proof of address. You need to enter the following information:
Now click “Get Verified”.
This is where most users stop the authentication process. At level 2 you can deposit and withdraw fiat currencies. Deposits and withdrawals of fiat currency are limited to $2,000 per day.
Cryptocurrency withdrawals are limited to $5,000 per day. There are no restrictions on depositing cryptocurrency. Verification of levels 1 and 2 takes only a few minutes. Levels 3 and 4 can take several days to validate. Levels 3 and 4 have higher deposit and withdrawal limits.
If you live in the United States, Canada, Germany or Japan, you will need a Level 3 check to deposit and withdraw fiat currency. To do this, you will need a government issued identification card and proof of your current residence address, such as a gas bill. Level 4 is used by large companies and traders.
Be careful before making your first deal! Set up two-factor authentication.
Get 2-Step Verification. On the account screen, go to Security, click on 2-Step Verification, then click on Settings. As I said earlier, you can create a second password with Google Authenticator or Yubikey. It is recommended to use on all exchanges that offer two-factor authentication. Okay, everything is boring, let’s go trading!
Make a deposit by going to the “Finance” section of your account screen. You can fund your account by making a bank transfer in fiat currency. Sometimes a fee is charged depending on the fiat currency you use and where you live.
For instance, if you live in the EEA, Euro deposits are free. Depositing in US dollars from the United States costs $5. Now all you have to do is select the cryptocurrency to start trading. Click the Transactions tab, then click New Order.
There are three trading options: Easy, Instant and Advanced. If you are a beginner, always choose easy. Kraken offers all kinds of deals and can be very difficult. Using the platform for a while will allow you to explore even more possibilities. Keep it simple until then!
Now choose the currency you want to buy and the currency you have to pay. You can purchase currencies with limited or market orders. Market ordering is quicker and easier than limited ordering. A limit order is to buy currency at a fixed price. A market order is to buy a currency at the best possible price. Now press the green BUY C button and you can do it! You are now a cryptocurrency trader.
A brief note on storage
It is important to use only the stock exchange for trading. Do not use exchanges for long-term storage of cryptocurrency. Storing cryptocurrency online or in a hot wallet is not a good idea; store most crypto coins offline or in cold storage.
At least one hardware wallet is required for this. A hardware wallet is like a very secure USB stick. It contains all the codes you need to access cryptocurrency. Kraken works very hard to protect your money when you’re on the platform, but remember that’s your security!
If you make a lot of money by trading cryptocurrencies on Kraken, you can withdraw them in fiat currency. To do this, you have to pay the Kraken fee.
Kraken withdrawal fee
Kraken’s withdrawal fees vary greatly depending on where you are in the world. For example, it would cost $5 to withdraw USD and get a U.S. bank account. Isn’t it bad? If you don’t have a U.S. bank account, it will cost you $60. Isn’t it good? Kraken’s fees for cryptocurrency withdrawals are much lower. For example, Kraken charges 0.0005 BTC to withdraw bitcoins and 0.005 ETH to withdraw ether.
The Kraken website has a detailed help guide covering everything from account verification to trading. In most cases, you can find what you are looking for. However, if you really need assistance, you can always send a help ticket or chat with a representative in real time via the chat built into the website. The general consensus for the Internet is that low cost, advanced features and robust security are Kraken’s main strengths. Kraken really has an advantage, but it does take a fair part of criticism and doesn’t work well with TrustPilot. Overall, the platform support and stability seems to have improved since the website was updated some time ago.
Kraken’s fees are the lowest among all major bitcoin exchanges. The fees you pay depend on the volume of your trades in the last 30 days. Fees are usually calculated by the manufacturer’s buyer. Manufacturers who add limited orders to the stock exchange pay a lower commission than recipients who run existing orders. Random transaction fees vary from 0.26% to 0%. Booth transaction fees range from 0.2% to 0%. Charges for dark puddles range from 0.36% to 0.2%.
Kraken’s transaction fees are sensible, particularly because the fee of Coinbase Pro has gone up significantly. Kraken traders whose transactions are under 50,000 USD per month can look forward to a 0.16% commission fee and a 0.26% taker charge. Incremental discounts are to increase your trading volume and reach a maximum of $10,000 per month. After that, the trader only pays 0.10% of the taker’s commission, as well as the maker’s commission.
Kraken trade fee structure
Kraken withdrawal charges are common on most exchanges. The withdrawal charge for bitcoin is 0.0005, Ethereum withdrawal charge or Dash is 0.005. The rest crypto coins are much cheaper: the XRP withdrawal charge is only 0.02, Stellar Lumens charge is 0.00002, withdrawal charge for Monero is 0.0001 XMR. Other coins are quite costly: Tether’s withdrawal charge is 5.0 USDT and EOS charge for withdrawal is 0.05 EOS.
As expected, you can make cryptocurrency payments with coins supported by Kraken. Kraken allows unlimited cryptocurrency payments that only allow limited withdrawals, even for traders who have not passed KYC verification.
Kraken supports fiat currency deposits, but traders must pass KYC verification before depositing in fiat currency. Kraken supports USD, GBP, EUR, JPY and CAD.
Variety of Kraken financing options
The company regrettably doesn’t accept credit card payment. Deposits on Kraken Deposit can only be made by bank or bank transfer. Technological tools include SEPA (for Individuals within the European Union), FedWire (for US citizens), and SWIFT (for all countries around the world). Kraken accepts debit and cash deposits from Canada in Canadian dollars, but again not credit card deposits. To withdraw USD, Kraken charges a fee of $5. Kraken somehow doesn’t presently offer investors interest on deposits. Kraken presently doesn’t quite allow ACH deposits, only transfers. They also do not consider Skrill deposits.
Kraken’s biggest feature
One of Kraken’s greatest features is its support for margin trading. U.S. customers are advised to have a platform that allows them to take leveraged positions as they cannot legally use derivatives trading platforms like BitMEX or Bitfinex. Unfortunately, New York merchants cannot use Kraken.
Setting up Kraken leverage for trading
Kraken’s relatively low transaction fees are also a good feature. Coinbase Pro recently increased producer and payee fees to 0.5%, and Gemini fees have reached 1%. This makes Kraken one of the cheapest cryptocurrency exchanges in the United States.
In the past, cryptocurrency exchanges faced a problem because they didn’t have enough money to pay for all their deposits. For example, QuadrigaCX was considered bankrupt prior to massive hacking. If all users ask for the return of bitcoin, the exchange cannot donate it.
Security Of Kraken
Kraken has never been hacked, making it one of the safest stock exchanges on the market. Some of the founders of Kraken are Mt. The defeat of Gox. A series of steps has been taken to prevent Kraken from receiving such exploits due to this hack.
For example, Kraken claims:
95% of all reserves are stored in independent, closed and geographically dispersed cold storage. We have a full reserve, so you can withdraw cash at any time upon request.
It also provides consumers with a variety of security features. Kraken supports 2FA (two-factor authentication) via Google Authenticator or YubiKey. You can also check withdrawal by email, so you can prevent illegal withdrawals even if your phone number is compromised. o Ensure the security of all these systems. Kraken has its own security team, and if a third party discovers abuse, they are also compensated for errors. Overall, the Kraken Stock Exchange is one of the safest places to trade and its long security record has proven to be reliable.
Kraken offers rare transparency in the opaque crypto industry and ensures that Kraken traders can withdraw any coins at any time. Kraken account too.
How safe is Kraken?
It has never been hacked before and this is because, it is committed to maintaining a very high level of security. It is a secure exchange and among the biggest digital coin exchanges in the United States in terms of volume and many believe that volume reports are accurate. Kraken is one of the most unsoiled exchanges with more than 99% current algorithms.
The chart above represents Kraken and other high performance digital exchanges in terms of real volume changes. This means that the reported transaction volume is more than 99% accurate. This is in contrast to other exchanges with low reputation that trade vaguely and report fraudulent volumes.
Does Kraken operate with FDIC insurance?
Kraken doesn’t operate with FDIC insurance. This is because it is a digital currency exchange which normally doesn’t have the qualification to be granted deposit insurance policy as they aren’t banking institution. Absence of insurance is common on crypto exchanges and it is very rare to see a digital currency exchange that offer FDIC insurance.
Digital currency exchanges do not qualify for FDIC insurance.
Despite it is not operating with a regular insurance, Kraken now has over 100 million USD in the company’s insurance fund in case of any future risks. This is close to the way other crypto exchanges function. Binance, for instance, has vowed to compensate any damages incurred as a result of the 40 million USD hack.
Probably, the most well-known instance of an insurance fund is Bittrex. They have several hundred dollars in bitcoin in their insurance fund. Its purpose is mainly to cope with any loss the company incurs.
Fiat currency trading
Kraken can trade 6 different fiat currencies. This means you don’t need to visit other exchanges before you start trading. Stock exchanges like Bittrex only accept cryptocurrency trading.
So is Kraken safe? Jesse Powell and Kraken’s team joined Mt. Gox hack. Crack has never been hacked. Save most of your calls offline. It also provides consumers with two-factor authentication for their accounts.
Kraken’s fees are the lowest on the market. The trade commission ranges from 0% to 0.26%. The amount you are charged for each transaction depends on whether you are buying or selling. Buyers usually pay 0.16% and sellers usually pay 0.26% for each transaction. Kraken’s fees are also based on 30-day trading volume and currency pair trading.
Kraken offers a variety of cryptocurrencies for trading. Some exchanges only offer the most popular coins. However, more recommended exchanges like Binance can offer more than 150 cryptocurrencies to choose from.
Kraken has worked hard to earn respect from around the world. It was one of the first digital money exchanges to prove that it can keep all of its clients’ money safe. Kraken did this through inventory checks.
Kraken has very useful information on their website. Beginners on the site can go to Help and then to Support to get a lot of helpful tips. Many other platforms don’t have this option.
Kraken has a trading app that you can use on the go. It has an intuitive interface and is very easy to use. You can also take advantage of great trading features.
Cons of Kraken
In 2017, Kraken experienced several problems. The cryptocurrency exchange cannot handle the number of subscribers. The company also had to face multiple cyber-attacks. Because of these issues, Kraken had to close for about a week in January 2018! But after that, it returned with more protection.
Many exchange platforms have poor customer support, and Kraken is one of them. But the company seems to be doing everything to improve it.
What we like:
- Safe and reliable
- Low charges
- A reliable bitcoin exchange that has existed since 2011
- Support for many countries
- Large amounts of fiat currency are allowed
What we found not so good:
- Not the most helpful support team
- It is not confidential as it requires identification.
- User interface complicates the task of new buyers.
Kraken is an viable option due to its excellent security features and low transaction fees. However, as the interface is more complex, it is not the best choice for beginners. This old-timer bitcoin exchange has built a reputation over the years and it is unlikely that it will go anywhere soon. Have you tried Kraken yourself? We’d love to hear about your experience in the comments section below.
See our other reviews about cryptocurrency exchanges:
Last Updated on March 15, 2022 by Andre Witzel