Is Kraken the Best Crypto Exchange? Find Out!

Are you finding it difficult to understand if Kraken is the best crypto exchange for you or not? This Kraken review will surely give you an answer to that. Just try reading it till the end.

We understand the number of crypto exchanges that are now available which make it extremely exhausting to choose the one that’s best for you. Most exchanges now offer low fees, fast transactions and other features to attract traders. However not all of them succeed in keeping up with their promises.

Kraken has some drawbacks too which we’ll discuss further down the article but its features and uniqueness far outweigh them that’s why it is considered one of the best cryptocurrency exchanges to exist.

According to BitDegree Exchange Tracker, Kraken ranks at No.6 with a 24-hour of over $400 million and a 7-day trading volume of over $199 billion.

But popularity alone doesn’t make an exchange the best. You need to compare the trading fees, customer support and trading tools if you want to make the right choice.

Kraken has something for everyone. It doesn’t matter if you’re just starting out or even if you have years of experience. So keep reading and you’ll learn something to help you make a decision.

Intro to Kraken Exchange

Kraken is one of the most well-established centralized cryptocurrency exchanges around the world. The features that make Kraken a hit include solid security features, wide range of digital assets and a user-friendly interface. This exchange was founded in 2011 by Jesse Powell. You can trade well-known cryptocurrencies such as BTC and ETH on Kraken as well as the lesser-known altcoins.

The one thing that sets Kraken apart from other exchanges is its security. To protect the user’s funds Kraken uses multiple security protocols like two-factor authentication (2FA), encryption protocols and cold storage of assets. These features have made Kraken one of the safest places to trade. So if security is your primary concern then you should definitely start trading with Kraken.

Another significant advantage of Kraken is its global reach. It is available in over 190 countries and has over 200 cryptocurrencies for trading including both Spot and Futures market. The platform also offers multiple fiat deposits and withdrawals which include USD, EUR, JPY, GBP and many more according to your region.

Kraken User Experience and Trading Platforms

This crypto trading platform cares much about user experience. That’s why they offer two distinct trading platforms. One of these has a simpler and easy to use interface while the other one is a bit more complicated with advanced tools. Let’s keep this Kraken review going by explaining these two platforms.

Kraken

This is actually the basic version of Kraken exchange. It’s perfect for individuals who are new to trading and many to keep it as easy as possible in the initial days. It has a user-friendly interface through which you as a beginner can buy, sell or trade cryptocurrencies. You can start trading with this one as soon as you create an account and add in your bank details.

You can easily buy any crypto assets directly through your bank account if you add your card details on the platform. This basic version also provides a staking option through which you can earn passive income just by putting your portfolio on their platform. This also increases your investment power.

Kraken Pro

Now for the more advanced and experienced traders Kraken Pro is a better choice. This version is available on the web browser and the Kraken mobile app as well. If you’re new to trading you might find this version a bit overwhelming. However it is worth learning how to use this one because of the advanced trading tools and other useful features.

Kraken Pro includes real-time charts, in-depth asset data and a clear view of open orders which gives you the tools you need to make trades based on data and insights. Now the main reason why Kraken Pro is preferred over the basic version is the lower trading fees on this one. This might come to you as a surprise but it’s true.

If you’re someone who trades in high volumes then it’s worth using the Pro version because of less fees. However it’s not limited to the experienced one as even if you are a beginner you can go through the interface and learn how to use it for your own benefit.

Kraken Features

This platform is all about providing the best features to its users. So let’s take a look at the most important ones.

Trading Fees

Kraken has designed their fee structure in a way that’s suitable for traders of all levels. If you’re a beginner you can use Kraken’s Instant Buy option that allows you to purchase cryptocurrencies directly from the bank account you’ve linked with the platform.

However you might not want to use it after knowing the transaction cost. It’s 0.9% for stablecoins and 1.5% for other cryptocurrencies. Additionally a 0.5% processing fee is also incurred on the transactions if you use an online bank and even more if you use a debit or credit card. Now it’s upto you if you want to use this feature or not.

If you have a significant amount to invest then your trading fees can be lowered. This feature is only available in Kraken Pro. For instance you’ll only be charged 0.16% maker fee and a 0.26% taker fee if your last 30-day trading volume is $50,000 or less. You can check out the complete table below.

High-Level Security

We might have mentioned this before too that Kraken takes security extremely seriously. They use the best security features out there to make the platform as secure as possible. For instance they use two-factor authentication (2FA), encryption and cold storage for most of the funds to keep them safe from cyber threats. Kraken also undergoes security audits so that any vulnerabilities can be detected and resolved immediately.

Kraken Mobile App

The mobile app is built for the convenience of the traders. With this app the traders can execute and keep an eye on the market and their open positions from anywhere and at any time. All they need is an internet connection and all the information will be right in front of them on their mobile phone. The Kraken mobile app is compatible for both iOS and Android devices so make sure to download it if you are going to use Kraken for your trading endeavors.

Fiat Currency Support

Kraken supports five different fiat currencies which are actually more than enough to cover the entire world. These currencies include USD, GBP, CAD, AUD and EUR. Traders living in the U.S. can connect their bank account and fund their accounts via USD with no fee at all. Here you will find all the details you need for fiat and other coins support on Kraken.

24/7 Customer Support

This cryptocurrency trading platform offers reliable customer support which is available 24/7. If you or anyone else has any questions you can simply contact the customer representatives and they will help you as quickly as possible. You can contact their customer support via Live chat or even through email but that might take a little more time to respond.

Educational Resources

Kraken is focused on helping its users which is why it also offers different educational resources. You can watch their videos to learn more about trading and improve your trading skills. The resources they have include tutorials, webinars and in-depth articles.

Advanced Trading Options

Kraken caters to traders of all experiences. It’s not just the basic buying and selling as they’re are more things that you can do on Kraken. On the pro version you can use the margin trading option to borrow some assets and trade by using them to earn more profit.

Similar to that you can also use the futures trading option to speculate on the future prices by using 10x to 100x leverage. If you don’t know what futures trading is, we will discuss it further in this Kraken review.

Kraken Staking and Other Rewards

Kraken’s Earn feature provides users with the opportunity to grow their cryptocurrency holdings through staking and other reward-based programs. Currently it offers two such features and more are in process. These two include Kraken staking and Opt-In rewards. For both these rewards you can use the crypto assets that are sitting idle in your portfolio. With these rewards you can grow your portfolio without even actively trading.

Kraken vs. SEC

In November 2023 the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Kraken exchange. They claimed that Kraken is facilitating the buying and selling of cryptocurrency assets without proper registration which was totally against their law. The SEC said that Kraken is operating as an exchange, broker, dealer and clearing agency simultaneously and hasn’t registered these activities which is why they have broken a federal law and should be charged accordingly.

According to the SEC, by not registering all these activities Kraken has deprived the users of their critical protections. These include SEC inspections, strict recordkeeping requirements and safeguards against potential conflicts of interest. On top of all this the SEC also claimed that Kraken uses the user’s funds for operational needs which is a threat to the customer’s funds if anything went sideways.

This isn’t the first time that Kraken has faced such allegations and faced scrutiny from the SEC. It also happened back in February 2023. In that lawsuit Kraken agreed to stop certain staking options and paid a $30 million fine for allegedly selling unregistered securities.

But this time Kraken isn’t holding back as it claimed that all these allegations are now baseless and there’s a trial still going on between SEC and Kraken to prove who’s wrong and who’s right.

Kraken Futures Trading

If you’re someone who likes speculating on future price movements and want to use that to your advantage then Kraken futures trading is for you. But what’s the concept behind futures trading?

It basically allows users to enter into contracts to buy or sell an asset at a predetermined price at a specified time in the future. This type of trading can be highly rewarding but it also increases the chances of loss.

So it’s important that you understand the market dynamics and know what you’re getting yourself into. Always take caution as the crypto market is highly volatile so do your due diligence before investing in any crypto asset.

Key Features of Kraken Futures Trading

A few dominant features of Kraken’s futures trading option include:

Low Fees

To make futures trading more attractive Kraken has kept the trading fees as low as possible on this platform. For high-frequency traders this is an attractive incentive which is why many traders now prefer this type of trading especially the ones who love taking risks to earn as much as possible.

Trading Tools

For its futures trading users Kraken also provides advanced trading tools to make it easier for them to analyze the market. These tools include real-time charts, order book data and multiple order types (Limit, stop-loss and take-profit orders). With the help of these trading tools you can execute precise strategies and manage your risk accordingly.

Leverage Options

Kraken makes futures trading more interesting by providing the traders with the ability to use leverage. On Kraken you can use a leverage of upto 50x which is actually lower than a few exchanges but still a good option for traders. These leveraged positions increase your profit potential as well as the loss. You need to manage your risk while using leverage or else you might lose more than you even have in your account.

Flexible Settlement

Kraken Futures offers both perpetual contracts and fixed expiration contracts. Because of this the traders now have the authority to choose whichever one they want. The traders who like to hold their positions for long-term prefer to use the Perpetual contracts without an expiration date. However the trader who has a short-term goal in mind uses the contracts with a fixed expiration date which ends according to it leaving the trader in profit or loss.

Risk Management

It’s important for you and other traders to understand the risk associated with futures trading. Using leverage can increase your profit but it also increases the chance for a loss. However because of the market volatility Kraken also offers some risk management features to keep the traders safe in every situation. These include margin liquidation levels and stop-loss orders. You should use these features according to your needs.

Kraken’s Lesser-Known Features

There are a few features of the parent Kraken company which not many people are aware of. Now that you’re here it’s our duty to tell you about them as well. So here you go.

• NFT Marketplace: You might not know this but Kraken has its own NFT Marketplace where anyone can buy and sell digital art. This marketplace supports three major blockchains – Ethereum, Polygon, and Solana.
• Dark Pool Orders: Kraken exchange provides its users with the option to place anonymous orders called Dark Pool orders. These orders are unique because they remain hidden from the public order book which means they are only visible to the traders who place them.
• Over-the-Counter (OTC) Desk: The traders who want to execute trades higher than $100,000 need to use Kraken’s OTC services. This feature is ideal for institutional investors.
• API Trading: Kraken also provides API trading through which you can use third-party software to manage your Kraken account. This feature is particularly attractive for high-frequency traders and arbitrageurs.
• Kraken Fee Credits (KFEE): It might surprise you but Kraken uses internal tokens which are exclusively used for paying the trading fee on the platform. This feature is particularly unique. These tokens have a fixed value. For instance, 1,000 KFEE tokens are equivalent to $10 of trading fees.

Negative Points of Kraken Exchange

Throughout this Kraken review we looked at all the positive aspects of Kraken. But for an honest review it’s important to talk about the negative points as well. Kraken can work on these things to make this exchange even better. These include:

Occasional Downtime

Similar to many exchanges Kraken also faces the occasional downtime during times when the market volatility is extremely high. This is frustrating for many traders who want such opportunities to make significant profit. This is something Kraken can work on and improve.

Slow Customer Support

Some people have also complained about their customer support being slow and unhelpful at times. Kraken offers 24/7 customer support but it seems like it fails to deliver on that promise. It usually happens when there’s high-traffic and many people are facing similar issues simultaneously.

Limited Payment Options

Kraken supports around 5 fiat currencies which were discussed above as well. However it still has less payment options as compared to other big exchanges. For instance it doesn’t support PayPal and charges high fees if anyone wants to use their credit card for a purchase. This can be annoying for users looking for more flexible payment methods.

High Fees for Instant Buy

Kraken offers an Instant Buy feature on the basic platform for new traders. However this is more of an inconvenience rather than a positive feature. Why’s that? Because the fees for using this service are outrageously high. It is 0.9% for stablecoin and 1.5% for other cryptocurrencies which is why most people don’t use it anymore. Kraken can make a few changes in it and make it a little more affordable.

Lengthy Verification Process

The verification takes up a lot of time of the users especially when verifying higher-tier accounts. They ask for detailed information as required by SEC and other crypto regulations now. Many people have found this process rather annoying as they also had to face some delays during the peak times.

Conclusion – Is Kraken Good For You?

If you ask us then Absolutely. Kraken is a solid choice for all the traders including beginners and even the most experienced ones. It’s a highly reliable platform because of the security features and legal compliance.

The things we liked best about Kraken were its advanced trading options which include margin and futures trading. If you’re an experienced trader you should definitely check out these features and try them out to see if you’ve got what it takes to be the best of the best.

Overall if you’re looking for a trustworthy and feature-rich platform then Kraken is the best bet. It has a positive and strong reputation in the crypto space and is certainly worth considering. Try it out and do share your experience with us.

FAQs

Is Kraken a safe platform for trading?

Yes Kraken is considered one of the safest cryptocurrency exchanges. It uses advanced security measures like two-factor authentication (2FA) and stores most of its funds in secure cold wallets offline. Because of these measures your funds are kept safe from potential threats.

Which cryptocurrencies can I trade on Kraken?

Kraken supports over 200 different cryptocurrencies for both spot and futures trading. These include well-known coins like Bitcoin and Ethereum and many lesser-known altcoins as well. Whether you’re looking to invest in major cryptos or explore newer options Kraken is the way to go.

Is Kraken a good platform for beginners?

Yes Kraken is a beginner-friendly platform. This is especially true for the basic Kraken version. It’s designed to be easy to navigate even for newcomers. There are also plenty of resources available such as tutorials and guides to help you get started and learn the basics.

Can I Use Kraken as a U.S. Citizen?

Yes, U.S. citizens can use Kraken for cryptocurrency trading. However if you live in Washington state or New York you may encounter restrictions due to state regulations. Additionally it’s important to note that Kraken’s staking services are not available to U.S. customers at the moment.

What is the minimum deposit required on Kraken?

The minimum deposit on Kraken varies depending on the currency you’re using. For instance the minimum deposit for USD is $20. You can check the minimum deposit amounts for each currency on Kraken’s website to ensure you meet the requirements.