Kraken Review 2023: Best Crypto Exchange

Kraken Review: The Kraken Exchange, a leading cryptocurrency trading platform, is known for its competitive transaction fees and diverse selection of tokens. With over 9 million registered users spread across 190 countries and a staggering quarterly trading volume exceeding $207 billion, Kraken is a preferred choice for many.

Kraken accommodates a broad array of cryptocurrencies, offering an entry point as low as a $10 deposit, making it an excellent platform for budding crypto investors. It provides an impressive suite of additional features, including margin trading, indices, futures, over-the-counter (OTC) trading, Crypto Watch, a non-fungible token (NFT) marketplace, Kraken Pro, and staking.

Users can also benefit from the convenient Kraken mobile app, allowing quick and efficient trading and asset staking for potential rewards. As an educational resource, Kraken offers an extensive section filled with crypto guides, video tutorials, and podcasts. It has positioned itself as one of the most secure and reliable cryptocurrency exchanges in the United States, meeting all relevant security standards.

Kraken Review

This review of the Kraken Exchange aims to provide an overview of its strengths and weaknesses, security measures, fee structure, funding options, staking, OTC, and margin trading, among other aspects.

As per this review, Kraken is an established cryptocurrency exchange operating for over a decade. It presents a robust platform for traders of all experience levels, offering several benefits. One of the world’s oldest and most significant exchanges, Kraken has consistently set the bar high in security, offering financial and physical stability. It supports over 185 cryptocurrencies, demonstrating its evolution and growth within the industry.

Kraken Review Summary

The platform stands out for its high liquidity, ensuring traders can buy and sell at reasonable prices. Kraken offers advanced trading options such as margin trading, crypto short sales, and stop orders. For professional traders, it provides high leverage of up to 5x, enabling access to up to $500,000 in margins. Nevertheless, Kraken could improve its customer support and enhance the accessibility of its educational resources.

Kraken enforces strict security measures through a limited starter account that requires traders to submit photo IDs and other relevant documents before accessing advanced features. This step reinforces Kraken’s commitment to being a secure crypto exchange.

Kraken Pros and Cons

Pros:

1. Intuitive user interface that accommodates both novice and seasoned traders.
2. Broad market depth and competitive spreads.
3. Supports over 185 cryptocurrencies.
4. Offers various sophisticated trading features, including margin trading, futures trading, indices, OTC trading, and staking.
5. Meager transaction fees.

Cons:

1. Limited payment methods.
2. Acceptance of a narrow range of fiat currencies.
3. Lack of personal wallet service for traders.

Company Overview:

Founded in 2011, Kraken is a leading figure in the blockchain industry and stands among the world’s oldest and most significant Bitcoin exchanges. Thanks to its superior service, diverse payment alternatives, robust security protocols, and exceptional customer service, it has gained a reputation as a top-tier platform for buying and selling cryptocurrencies.

Kraken serves traders of all skill levels, from crypto newcomers to advanced traders, providing educational resources, an expanding roster of crypto pairs, advanced trading tools, and intricate trading features to aid in portfolio diversification. Kraken also supports institutional clients with customer account management and over-the-counter (OTC) trading, allowing organizations of all sizes to access competitive pricing and superior liquidity, facilitating the swift and confident achievement of investment goals.

Kraken Review: Features and Services:

Kraken is a globally available crypto exchange renowned for its top-tier security measures, low transaction costs, and extensive cryptocurrency offerings. It is a top choice for both new digital token traders and seasoned investors.

Beginners need to note that while Kraken is an excellent platform, it charges a flat fee of 0.9% for stablecoins and 1.5% for other cryptocurrencies. The Kraken Pro platform, with its reasonable costs and additional benefits, is more suited for advanced traders. Moreover, traders can leverage Kraken’s wide selection of tokens for margin trading and earn interest through crypto staking. As per multiple reviews, while many users have a seamless trading experience on Kraken, the few who faced significant issues received swift resolution.

Kraken Futures Trading App:

Kraken’s account management is predominantly self-service, accessible via the Kraken mobile application or the website. With its relatively lower pricing structure than other exchanges and industry competitors, Kraken is an excellent introduction to the crypto trading market for beginners.

Kraken Review: Security Measures:

Kraken deploys a comprehensive security protocol to safeguard the NFT Marketplace and crypto assets. Recognized as a secure cryptocurrency exchange, Kraken ensures your digital assets’ safety.

Key security features include:

Proof of Reserves:

Kraken employs top-tier security professionals to maintain optimal performance and superior client experience. With the help of an external auditor, the exchange conducts regular Proof of Reserves audits, fostering greater transparency and trust in the cryptocurrency assets held on sale.

Custody Security:

During the audit, users can verify the exchange’s custody covers all tokens in their accounts. Kraken uses cutting-edge hot wallet and cold storage solutions to protect client funds, securing its crypto infrastructure inside cages and enforcing round-the-clock surveillance through alarm systems, video monitors, and armed guards.

Information Security:

Kraken encrypts all sensitive client data at both system and data levels, further ensuring security by strictly monitoring and controlling data access.

Security Testing:

Kraken’s security team rigorously tests its systems for potential vulnerabilities. Additionally, they run bug bounty programs to leverage a broader security development community. The platform’s security features include two-factor authentication, customizable API keys, SSL encryption, global settings time lock, zero settlement risk, real-time monitoring, and encrypted sensitive data. High-priority email and live chat support are also available 24/7, and secure communication is facilitated through PGP encrypted and signed email.

Kraken Fee Structure

Kraken provides an affordable and versatile platform for all cryptocurrency traders, whether novices or experienced individuals. The platform has a wide range of products, competitively priced to meet every trader’s needs. For operations involving the conversion, buying, or selling of cryptocurrency assets via the Instant Buy option, traders incur a minimal fee which is displayed at the time of the transaction. This fee can fluctuate depending on the transaction size, the selected payment method, market conditions, and transacted assets.

Fee Structure Breakdown Kraken’s NFT marketplace stands out by offering zero gas fees, charging a flat fee of 2% for all Kraken NFT transactions instead. No additional fees are associated with listing, cancellation, or deposits on the platform.

Below is a breakdown of the fee structure:

• Kraken Transaction Fee: 2%
• Creator Earnings: The potential earnings for creators from NFT transactions are determined by the specific collection involved. When an NFT is sold, the corresponding Creator Earnings reduce the selling price.
• Listing Fee, Cancellation Fee, Deposit Fee: $0
• Withdrawal Fee: Ethereum-based transactions incur a fee of 0.01 ETH, while Solana-based transactions incur a fee of 0.02 SOL.

It should be noted that for every Ethereum-based and Solana-based transaction, Kraken charges 0.01 ETH and 0.02 SOL, respectively.

Kraken Pro

It’s essential for traders using the Kraken Pro platform to know it implements a fluctuating scale for both maker and taker fees. These fees apply to various trading options, including spot crypto trading, stablecoins, pegged tokens, forex currency pairs, margin, and futures trading. Let’s delve into the specific fee structures calculated based on a 30-day trading volume for each category.

1. Spot Crypto Trading: Kraken Pro applies a variable maker-taker fee model for spot crypto trading directly tied to the 30-day trading volume. Initially, the maker-taker fee for spot crypto trading is set at 0.16% and 0.26%, respectively. As trade volumes increase, this rate can drop to as low as 0%. The detailed fee schedule is as follows:
   

   30-Day Volume USD	Maker Fee	Taker Fee
   $0 – $50,000	0.20%	0.20%
   $50,001 – $100,000	0.16%	0.16%
   $100,001 – $250,000	0.12%	0.12%
   $250,001 – $500,000	0.08%	0.08%
   $500,001 – $1,000,000	0.08%	0.18%
   $1,000,001 – $2,500,000	0.06%	0.16%
   $2,500,001 – $5,000,000	0.04%	0.14%
   $5,000,001 – $10,000,000	0.02%	0.12%
   $10,000,000+	0.00%	0.10%

2. Stablecoins, Forex Currency Pairs, and Pegged Tokens: The maker-taker fee for these trading types is initially set at 0.2%, potentially decreasing to 0%, given higher trade volumes. The fee schedule is as follows:
   

   30-Day Volume USD	Maker Fee	Taker Fee
   $0 – $50,000	0.20%	0.20%
   $50,001 – $100,000	0.16%	0.16%
   $100,001 – $250,000	0.12%	0.12%
   $250,001 – $500,000	0.08%	0.08%
   $500,001 – $1,000,000	0.04%	0.04%
   $1,000,001+	0.00%	0.00%

3. Margin Trading: Margin trading incurs rollover and opening fees for various cryptocurrency assets and fiat currencies. Here’s a glimpse of the costs:
   

   30-Day Volume USD	Maker Fees	Taker Fees
   DOGE (Dogecoin)	0.02%	0.02% per 4 hours
   ETC (Ethereum Classic)	0.02%	0.02% per 4 hours
   ETH (Ethereum)	0.02%	0.02% per 4 hours
   USD (US Dollar)	0.015%	0.015% per 4 hours
   USDC (USD Coin)	0.02%	0.02% per 4 hours
   USDT (Tether)	0.02%	0.02% per 4 hours
   BAT (Basic Attention Token)	0.02%	0.02% per 4 hours
   BCH (Bitcoin Cash)	0.02%	0.02% per 4 hours
   BTC (Bitcoin)	0.01%	0.01% per 4 hours
   CAD (Canadian Dollar)	0.015%	0.015% per 4 hours
   EUR (EURO)	0.015%	0.015% per 4 hours
   GBP (British Pound)	0.015%	0.015% per 4 hours

4. Futures Trading: For futures trading, the maker-taker fee begins at 0.02% and 0.05%, respectively, and can dip to as low as 0% and 0.01% with increased trading volumes.
   

   30-Day Volume USD	Maker Fees	Taker Fees
   $0 – $100,000	0.0200%	0.0500%
   $100,001 – $1,000,000	0.0150%	0.0400%
   $1,000,001 – $5,000,000	0.0125%	0.0300%
   $5,000,001 – $10,000,000	0.0100%	0.0250%
   $10,000,001 – $20,000,000	0.0075%	0.0200%
   $20,000,001 – $50,000,000	0.0050%	0.0150%
   $50,000,001 – $100,000,000	0.0025%	0.0125%
   $100,000,001 +	0.0000%	0.0100%

Please note trade volumes on spot markets, stablecoins, and forex pairs order books do not count towards discounts on Futures and vice versa.

Funding Options

As a crypto exchange committed to delivering the best value, Kraken offers competitive prices and abundant digital and fiat funding options, facilitating streamlined cryptocurrency investments and trades. Regardless of executing spot trades or setting up recurring buys, Kraken’s swift and adaptable payment alternatives make buying and selling crypto assets worldwide conveniently. Here are three principal methods to fund accounts on Kraken:

1. Fiat Currencies: Traders can efficiently fund their accounts using a variety of fiat currencies such as USD, CAD, EUR, JPY, GBP, CHF, AUD, and AED. However, deposit processing times and fees may vary based on the chosen currency, necessitating a review of the official website before joining.
2. Digital Assets: Account holders owning supported cryptocurrencies can utilize these digital assets to fund their accounts. Upon confirmation, all crypto deposits are instantly credited, facilitated by Kraken’s efficient verification process.
3. Payment Card: Kraken accepts instant crypto purchases via digital wallets, bank transfers, or qualifying credit/debit cards. While Kraken provides a digital wallet for crypto holding, traders must reference Kraken’s support page for debit and credit card fees.

Kraken offers corporate funding solutions for large-scale traders, such as international wire transfers and secure and swift conversion options from fiat to crypto.

Staking Opportunities

Kraken enables traders to earn up to 24% annually by staking their crypto assets. This gives them the power to earn substantial rewards on their holdings. Kraken’s flexible staking approach allows traders to unstack their investments at any point without penalties, featuring both on-chain and off-chain staking along with a Proof of Stake system.

Unwavering 24/7 Support

Kraken prides itself on its dedicated, multilingual Client Engagement team, which is proficient in crypto and financial solutions. With team members distributed worldwide, Kraken assures swift, personalized assistance every day of the year.

Customer Support Excellence

Kraken’s 24×7 live chat ensures expedient resolution, often resolving issues within 24 hours that may take weeks on other platforms. Customers can also reach the support team via reliable email services. Kraken maintains an extensive support center filled with comprehensive guides and articles to aid traders with independent troubleshooting.

Deep Liquidity

With a high trading volume, relatively low fees, diverse funding options, and active investors, Kraken ensures deep liquidity with trade execution at fair prices.

Margin Trading Boost

Kraken enhances trading experiences with spot margin trading, providing up to 5x leverage. With this, traders can access a range of tools for simplified trading management, including high-margin limits and coverage over various cryptocurrency assets.

Indices

Access Kraken offers real-time pricing data with crypto indices run by CF Benchmarks, ensuring reliable settlement prices through a robust method that maintains real-world integrity and applicability.

Futures Trading

Kraken Futures offers superior flexibility and a wide range of collateral options. The Futures feature allows traders to manage their positions without moving their funds, amplified by their multi-collateral Futures digital wallet.

OTC Desk

Kraken’s over-the-counter (OTC) desk facilitates large orders for high net-worth individuals and institutional clients. Offering secure, discreet, and competitive trade settlement and execution services, Kraken OTC ensures deep liquidity and world-class customer service.

Account Management

Kraken goes the extra mile by providing an account management program that caters to individual traders’ preferences and needs. Traders get a personal account manager who can be reached via phone, email, messaging, and text apps for a personalized, hassle-free trading experience.

Cryptowatch

This unique feature allows traders to oversee multiple crypto exchanges from a single platform, simplifying monitoring different crypto markets.

Conclusion

In conclusion, Kraken’s competitive prices and features make it a desirable choice for novice and experienced crypto investors. While it’s beginner-friendly with low trading fees, its advanced features like Futures trading, indices, and staking attract professional traders. Though the platform may seem challenging to navigate for some users, its security features, customer support, and potential for profitability make it an excellent choice for cryptocurrency trading.

Lastly, traders must be aware of the risks involved in crypto trading and ensure the security of their accounts using measures such as two-factor authentication. With careful investment decisions and robust security, traders can expect a positive trading experience on the Kraken crypto trading exchange.

FAQ

Q: Is Kraken a good investment?

A: Investing in Kraken, a cryptocurrency exchange, can be subjective and depends on various factors. Kraken has been operating since 2011 and is one of the well-established exchanges in the crypto industry. It offers a wide range of cryptocurrencies for trading and has built a solid reputation for security and compliance. However, investing in any cryptocurrency carries risks, including market volatility and regulatory uncertainties. It is essential to conduct thorough research, consider your risk tolerance, and seek professional advice before making any investment decisions.

Q: Is Kraken safe to hold crypto?

A: Kraken has implemented several security measures to protect user funds and maintain a secure environment. These measures include two-factor authentication (2FA), cold storage for most funds, encryption protocols, and regular security audits. Kraken has also obtained relevant licenses and complies with regulatory requirements in its operating jurisdictions. While no exchange can guarantee absolute security, Kraken is considered one of the more reputable and security-conscious platforms in the crypto space.

Q: Why is Kraken better than Binance?

A: Kraken and Binance are prominent cryptocurrency exchanges, and their choice depends on individual preferences and requirements. Here are a few reasons why some users may consider Kraken to be better than Binance:

1. Reputation and Regulation: Kraken has a more extended history and is known for its strong adherence to regulatory standards. It has obtained licenses in various jurisdictions, providing its users with trust and legitimacy.
2. Security Measures: Kraken emphasizes security and implements robust measures to protect user funds. Its approach to cold storage and encryption protocols is often seen as a positive aspect.
3. Fiat Currency Support: Kraken offers more extensive options for fiat currency deposits and withdrawals than Binance. This can benefit users who want to seamlessly transfer between crypto and traditional currencies.
4. Trading Options: Kraken provides a broader selection of cryptocurrencies for trading than Binance. Kraken might offer more choices if you are interested in trading less popular or niche cryptocurrencies.

It’s important to note that Binance has its strengths, such as a larger trading volume and a wider variety of trading pairs. Ultimately, the choice between Kraken and Binance depends on individual needs, preferences, and priorities.

Q: Is Kraken profitable?

A: Kraken, as a cryptocurrency exchange, generates revenue through various means, such as trading fees, listing fees for new cryptocurrencies, and other services. However, whether Kraken is profitable as an individual investment depends on its trading strategies and market conditions. It’s worth mentioning that investing in cryptocurrencies carries inherent risks due to the volatility of the market. Some individuals may have achieved profitability through trading or other activities on Kraken. Still, conducting thorough research, monitoring the market, and making informed decisions about investing in cryptocurrencies is essential.