Kraken Review – A Recommended Cryptocurrency Exchange

Kraken Review

Nowadays, one can easily get confused with the myriad of options available in the market. That has become so tedious for many that they find it onerous to identify and choose quality crypto services. In this article, we will be writing a Kraken Exchange Review to help you have a profound knowledge of the platform.

One crucial function of a crypto exchange is facilitating transactions by matching orders from both buyers and sellers. Therefore, the importance of exchange in the crypto ecosystem cannot be overstated. However, you need a reliable exchange to conveniently and securely buy, sell or trade your cryptocurrencies.

While there are many factors to consider when trading cryptocurrency, some are vital to look out for in an exchange. One of such features is the security of the platform. The flexibility of a platform, fees, and liquidity are also great features to consider when planning to opt for a particular crypto exchange.

Kraken is a transparent platform, which is why customers credit it as a safe exchange. According to the data by Blockchain Transparency Institute, Kraken is the cleanest exchange with a 99% accurate trading volume. That implies that Kraken upholds an accurate trading record and does not involve in wash trading, in contrast to some exchanges.

What is Kraken Exchange?

Kraken is a leading US-based centralized cryptocurrency exchange that is owned by Payward Inc., a brokerage company. Kraken is headed by Jesse Powell and has its headquarters in San Francisco with close to 250 employees. The exchange started in 2011 with Bitcoin and Litecoin as the only trading pairs before it later expanded to include more crypto assets.

In addition to OTC trading, Kraken offers Margin Trading, Futures, and indices for advanced traders. It also features staking services for those who would like to hold a particular cryptocurrency for a long. As one of the leading exchanges in the world, Kraken has the highest euro volume of Bitcoin trading. 

Kraken partners with banks and other crypto projects to provide an extensive crypto service on its platform. The platform has many great features that allow for a high level of transparency regarding transactions and user funds. Users have full access to their favorite coins whenever they desire due to the deep liquidity offered by Kraken. 

Kraken Fees

Nothing makes crypto buying and selling on exchanges more fascinating than low fees. That is an overwhelmingly essential feature to consider when planning to use any crypto service. A high-cost platform or one with hidden charges will eat deep into your profits.

The fees on the exchange are relatively low and reasonable. Kraken offers several financial products and offers varying fee structures per product. For instance, the fees charged for futures trading are different from those for spot trading.

• Kraken funding Fees

The funding fees on Kraken refer to the charges related to withdrawals and deposits. Kraken charges users a fee for both fiat and cryptocurrency withdrawals and deposits. The fee structure for both makers and takers encourages traders to provide maximum liquidity to the market.

• Cryptocurrency Fees

Most crypto deposits on Kraken are free; however, there are exceptions. You may have to pay to either deposit or withdraw certain coins. Depending on the cryptocurrency, you may or may not be required to pay an address setup fee.

In any financial market, Makers provide liquidity, while takers are those that take liquidity. The maker and taker fees are relative to the trading volume. Both fees decrease continuously with an increase in trading volume.

The maker fees range between 0.00 and 0.16%, while taker fees range between 0.10% and 0.26%. For instance, transactions that are less than $50,000 pay 0.16% maker fee and 0.26% taker fee, while those above 10,000,000 pay no maker fee and 0.10% taker fee.

• Fiat currency fees

Kraken allows you to make fiat deposits but to do so you must have completed the KYC verification. Fiat currencies supported by the exchange include USD, EUR, CAD, AUD, CHF, GBP, JPY. However, the fees charged for each fiat deposit method is different.

Why would Kraken charge users for fiat deposits? That is because the payment processors Kraken works with also charge them to accept fiat currencies. Similarly, Kraken charges users on withdrawals depending on the withdrawal method, amount, and currency.

Deposit and Withdrawal Options

Kraken supports several deposit and withdrawal methods depending on your location and the amount you wish to transfer. The available deposit and withdrawal methods include

• FedWire (for U.S. traders),
• SWIFT, Signet, SEN (for U.S. deposits)
• SEPA, SWIFT (for Euro deposit options)
• Wire transfer, SWIFT, In-person cash/debit (Canadian Dollar deposits)
• Bank transfer and SWIFT (Australian Dollar deposits)
• FPS/BACS, CHAPS, SWIFT (GBP Deposits)
• SIC, SWIFT (CHF deposits)
• SWIFT (JPY deposits)

The platform does not support credit cards and ACH for deposits. However, it supports debit cards and cash deposits for only Canadian users.

Users can also make crypto deposits to the platform, and it has no maximum amount. While it is always advisable to complete a KYC verification, you don’t need it to make crypto deposits. However, you should always check out for the supported cryptocurrencies before you decide to make a transfer.

Margin Trading

Kraken offers margin trading to traders who want to maximize their potential gains. That is a bit more advanced than regular trading because you can incur greater losses with margin trading. Kraken’s advanced trading platform offers up to like 5x leverage.

Users can leverage up to 5x on any cryptocurrency pair via Kraken’s trading platform. You don’t have to pay more than 0.02% per 4 hours as rollover fees. Also, users can easily manage their open positions through the advanced trading options available on the platform.

Kraken’s Platform

The user interface of a financial platform directly impacts the trading experience of users. A very intuitive and plain interface allows users to maneuver the platform and perform seamless transactions. For a platform to be deemed interactive, it must provide various options to enhance customer experience.

Beginners can get familiar with Kraken’s trading platform due to its ease-of-use. Kraken also affords users the privilege to customize the trading platform depending on their level of experience.

Users have access to a list of crypto assets and also a collection of tools and features. They can leverage these amazing options to help them manage and grow their portfolio.

Supported Countries and Cryptocurrency

Kraken is available to all American states except New York and Washington. Their services are also available in several countries except for Afghanistan, North Korea, Cuba, Iraq, Iran, Japan, Tajikistan. Kraken also renders multilingual support to cater to its international clients.

The platform also supports many cryptocurrencies, including popular ones like BTC, ETHs. However, there is a list of supported cryptocurrencies on Kraken’s platform. All cryptocurrencies listed on Kraken, including ERC20 tokens, have their respective deposit addresses.

Withdrawal and Deposit Limits

The funding limits on Kraken depend on factors like your geographical location, verification level, and the asset type you are trying to deposit or withdraw. The limits for cryptocurrencies and fiats are calculated differently. Also, these limits for deposits and withdrawals are calculated differently as well.

Kraken also offers a minimum deposit amount based on the type of cryptocurrency. For instance, the minimum deposit for Aave is 0.12 AAVE while Cardano is1 ADA. However, your account won’t be credited if you do not meet the minimum deposit requirement.

There is a minimum withdrawal amount also. You are charged a flat fee for moving crypto out of your Kraken account. For instance, Kraken charges about 0.0005 for both BTC and Ethereum withdrawals, while other altcoins are relatively cheaper. However, you should regularly check your account for an update on these fees.

There is also a minimum requirement for fiat deposits. The minimum deposit requirement for fiat depends on the transfer method and currency. For the USD, the minimum deposit usually ranges between $1 and $150, while the deposit fee is between $0 and 10$. The minimum deposit for JPY is 15,000 JPY, and the deposit fee is free. Usually, most fiat deposits are free.

Liquidity

Liquidity is very critical to the operation of any financial institution. It measures how easily an asset can be bought or sold at a given stable price. If a platform has high liquidity, it means that you can buy an asset at a price very close to the BID without any delay.

There is usually a linear relationship between trading volume and liquidity. Even with the traditional order book: the higher the number of buy and sell orders placed by respective traders, the higher the liquidity of the platform. Since you need other pairs to buy and sell a crypto asset, liquidity is also ultimately crucial for an exchange.

Kraken has a high trading volume from over 7 million customers, which in turn drives immense liquidity. The platform offers exceptional liquidity and competitive pricing for all the listed cryptocurrencies. Therefore, the high liquidity on the platform equates to trades getting executed on time at market price.

Another factor that accounts for the high trading volume on Kraken is the low fees on the platforms. As we discussed, the maker fee ranges from 0.00% to 0.16%, which is more affordable compared with other exchanges. The low payment is what incentivizes the makers to open more positions on the platform.

Like many other exchanges, funds on Kraken are not backed by the FDIC. Instead, Kraken has its insurance fund worth about $100 million to cover potential losses. Kraken conveniently serves to offer deep liquidity that serves both institutional and retail investors.

Is Kraken Secure?

The security of users’ funds should be the core objective of any financial service provider. Now that there are rising instances of fraud, users should do due diligence before entrusting their funds to any exchange. Also, users should ensure that they follow every security detail to ensure that their funds are secure. As the saying goes, “your account is as secure as you make it.”.

Kraken has an excellent security track record since its establishment about a decade ago. It is one of the most secure and trusted exchanges. 95% of all deposits are kept in offline geographically distributed cold storage. Kraken sustains maximum reserves so that users can have immediate access to their funds without delay.

Based on several testimonials, Kraken is one of the most secure and reliable crypto exchange platforms. In contrast to the other exchanges, the platform upholds a high level of trust among clients. Also, you can confirm the security of your funds by running an individual audit on your account.

Like other exchanges, Kraken offers several security systems, including the 2FA (Two Factor Authentication) through Google authenticator or a YubiKey. Kraken sends an email notification for any withdrawal from your account. That makes it possible for one to quickly stop fraudulent withdrawals – before they go any further.

Kraken has a broad approach to securing users’ investments. The company has a security team that takes appropriate measures to mitigate risks that accompany financial services. Kraken also builds security technologies and programs like bug bounties to ensure that the platform runs smoothly.

The company has high legal compliance and security. Activities running in the company are completely monitored. For instance, the servers are kept under surveillance round the clock.  Data and other sensitive information are highly encrypted and monitored whether at rest or in transit.

There is no phone or SMS account recovery which means that users have ultimate control of their account. You can also configure an account timeout as an extra protective feature for your account. Web privacy while browsing on Kraken is achieved using SSL (Secure Sockets Layer).

Optional Security Layer

Kraken also allows other optional security features to further aid users in safeguarding their accounts. One is the PGP/GPG encryption for your email. Although users do not need the PGP/GPG to use the Kraken, they are an excellent method to obfuscate your correspondence.

As an account holder, you also have a role to play per the security of your funds. One foundational step is to ensure that you take full advantage of the account security features provided by the crypto exchange. Another way Kraken ensures that users’ funds are safeguarded is also through a Master Key.

The Master key is an additional password and is different from sign-in 2FA. Kraken recommends that the Master key be set up in addition to other security features to enhance your account security. It is also advised that the master key is not saved together with other security details to eliminate threats to your account.

Support Team

Kraken is the first crypto exchange to offer full-time client engagement to its customers. The specialists are part of the support team and have deep knowledge of crypto and financial services. They are quick to provide efficient solutions to personalized concerns.

You can chat directly with the client engagement specialist since they work 24/7, even on public holidays. You can chat with them to learn about the services offered by Kraken. As part of its educational services, Kraken also offers podcasts, videos, short crypto guides, Blog.

The support team is distributed across all major markets and is fluent in various languages. They also provide immediate assistance and support to clients. Based on the several testimonies available online, the level of response by the support staff is outstanding.

Kraken offers a robust library where users can get quick replies to minor issues. Also, the support team provides educative articles that supply insight into the crypto world and provide solutions to mild challenges. The library offers a stepwise guide on the conventional questions customers might have while navigating the platform.

Conclusion

Kraken is one of the oldest crypto exchanges globally and has survived the lows and highs of the crypto space. It has an excellent and consistent track record for its quality service, affordable fees, flexible trading options, and security.

One of the core and most acclaimed features of Kraken is its security. Due to both the on-chain and off-chain security features, Kraken has never suffered a note-worthy breach. The platform uses a risk-based approach to eliminate potential risks.

The exchange is trusted by many customers because of its top-notch services and transparent record. They also provide a secure and affordable way to buy and sell cryptocurrencies at competitive prices. Kraken offers immense liquidity for all its supported cryptocurrencies.

Kraken also complies with the regulatory requirements of the areas where it operates. It is a regulated crypto exchange that allows quick, easy, and secure ways to invest in the crypto space. As a long-standing crypto exchange, Kraken has expanded and built its way to the top of the ladder.