Kraken is a US-based cryptocurrency exchange founded in 2011. Headquartered in San Francisco, it is a fully compliant cryptocurrency platform where crypto investors and traders can buy and sell a long list of available cryptocurrencies.
If you like to swap crypto with a range of fiat currencies, Kraken enables you to do that. You can buy and sell crypto using the Japanese yen, European euro, Canadian dollar, and the US greenback.
Is Kraken Easy to Use?
This platform seems like it’s been built from the ground up to accommodate both rookie and experienced traders. Whether buying, trading, or investing on behalf of an individual or a business, you can easily use this exchange.
In terms of bitcoin to euro trading volume, Kraken has always ranked in the top five. It has been the market leader at many points. Kraken is also a great choice for beginners. It’s easy to use, has a simple platform, and getting started doesn’t take much preparation.
It doesn’t matter whether you are a high or low-volume trader because its security measures have you covered. Its group action steps and its low fees make it an attractive crypto trading option for beginners.
How Do You Invest with Kraken?
Aside from Bitcoin and Ethereum, Kraken has a vast selection of over 50 cryptocurrencies. You can trade with fiat, crypto, margin, over-the-counter, and futures.
Kraken can process seven fiat currencies: US dollar, Euro, Canadian Dollar, UK Pound, Australian Dollar, Swiss Francs, and Yen.
After you deposit fiat currency, you can use that to buy cryptocurrency on the exchange like Bitcoin, Ethereum, Litecoin, Bitcoin Cash and many more!
You can borrow crypto with the equivalent amount of five times your account balance or a maximum of 500,000 dollars as your margin trading option.
For big-shots and institutional entities, you can use OTC trading, which allows you to place large orders.
Aside from straight futures trading, you can also borrow a maximum amount of 50 times your account balance for trading purposes.
Can Kraken Accommodate High-Volume Trading?
Given this platform’s tight security and KYC compliance, and ease of use, Kraken is attracting many heavy traders. It doesn’t hurt that it has the liquidity to back it up. It’s easy to deposit and withdraw money from this platform.
Given these factors, an increasing number of heavy crypto traders prefer this trading platform. It also helps that Kraken accommodates margin and leverage trading. This involves short-term loans with interests to maximize cryptocurrency trade games.
For trading, your 30 day volume can provide transaction fee discounts. This means that the more you trade, the more you can save.
They also provide staking rewards if you are looking for more high-risk investment opprotunities.
What Are the Fees Charged by Kraken?
| Kraken fees | Card Processing fee | Online banking processing fee |
|---|---|---|
| 0.9% fee for any stablecoins* 1.5% fee for any other crypto or FX pair | 3.75% | 0.5% |
Cryptocurrency deposit and withdrawal fees vary based on the cryptocurrency you are trading. Still, the most commonly used cryptocurrencies are free for the most part. For example, if you buy stable coins like DAI, USDC, or USDT with US dollars, you will only get charged a trading fee of 0.09%.
Trading fees with crypto on the platform are similarly low. But this mainly depends on if you are accepting a maker fee or taker fee. Maker and taker transaction fees are created if you: make the trade on the books or take the trade already placed by someone else.
Given the low rates, you can trade a high volume for very little money. Trading fees with Kraken are pretty reasonable compared to a more popular crypto exchange like Coinbase. To check out the complete guide on Kraken fees, follow this link.
| Types of Fee | Kraken | Coinbase |
|---|---|---|
| Trading fees | 0% to 0.26% per trade | 0.50% per trade |
| Credit Card Purchases | 3.75% | 3.99% |
| Online Bank Transfer | 1.7% | 1.49% |
| Extra Purchase Fees | None | $.99 to $2.99 depending on amount |
What are the funding options for Kraken?
There are several available methods to fund your Kraken account using fiat money. But first, you have to accomplish a KYC which will verify your identity.
Please note that you cannot temporarily withdraw funds from this account for 72 hours. After this holding period, you can start depositing fiat money to fund your crypto transactions.
You can also use credit cards to fund your account with crypto assets. However, you will be charged 3.75% plus a fixed fee of $0.25 for this option. You can instant buy with a debit card or wait a few business days if you are using a credit card.
While you can buy major cryptocurrencies directly with a fiat currency, it might be different with altcoins. For instance, if you want to exchange for Ripple, you have to buy Bitcoin first. You will then use Bitcoin to buy Ripple.
Is Kraken Secure?
Kraken is ranked as one of the most secure crypto exchanges in the world. According to several reports, this cryptocurrency exchange platform has never been hacked. To maximize security for its users and increase trading confidence, 95% of this platform’s cash and other resources are stored offline.
Also, the majority of its cryptocurrency assets are stored in air gaps and geographical facilities. This is known as cold storage. Air gapping is crucial because this prevents hot wallets or internet access accounts from being hacked. Cold storage is one of the most popular security features to protect funds from hackers.
Given all these security precautions and the way its assets are distributed and protected, the vast bulk of Kraken’s funds will be very difficult to steal. Kraken uses some of the most secure features available.
How Does Kraken Secure Its Assets?
Kraken offers a multi-level security system. First, it uses security keys. These are physical keys that validate a user’s login information and produce a one-time passcode when placed in the user’s drive.
The user can then have multiple keys and keep them in different places. Keys are also protected by PGP encryption. Each platform walks you through encrypting your online contracts with the Kraken exchange using the standard PGP encryption system.
This will safeguard all cryptocurrency communications and keep them private and secure. On top of that, Kraken also uses 2FA or two-factor authentication. When it’s time for you to withdraw or transfer crypto to your account, Kraken will require two-factor authentication.
This is facilitated through authenticator apps. Kraken employs these apps for signing on to their system on top of the existing 2FA security layer.
Is It A Good Idea to Leave Your Crypto on the Kraken Platform?
It’s always a bad idea to leave your crypto for long periods on any platform. As secure as Kraken is, it’s never a wise idea to leave the majority of your digital assets on such exchanges. Given its airtight security, it’s tempting to leave large blocks of crypto on the platform.
The bottom line is there is no such thing as a 100% foolproof crypto exchange. Make it a practice to withdraw your funds onto a hardware wallet if you’re going to be holding your crypto investment for a long time. If you need some reviews on a good hardware wallet, check out my cryptocurrency wallet guide.
On the other hand, if you’re a day trader and you quickly enter and exit positions, it makes sense to leave assets on exchanges, provided that you intend to liquidate within a short period.
Conclusion
Pros
- Advanced trading features like margins and futures
- More reasonable fees
- Never been hacked.
Cons
- Low rated customer service
- Starter account very limited
- Account funding can take a while
Kraken Conclusion
Kraken is a unique exchange that is best for advanced investors who are trading in higher volumes. The fee structure is much less complex than competitors like Coinbase. Additionally, the Kraken exchange is generally more secure.
For more info about Kraken and how it stacks up to other cryptocurrency exchanges and platforms, please check out my full Kraken Review.
If you are getting serious about cryptocurrency trading, it’s important to know all of your options. Kraken features email customer support, advanced trading options and a variety of coins to trade. In my opinion, Kraken is one of the best exchanges to buy crypto with.
Is Kraken Safe to Use?
Given its KYC compliance and its multi-layered security protocol, it would be safe to say that Kraken is a safe platform for crypto users. It provides top security management within an easy-to-use and highly accessible platform.
It can accommodate both beginner and veteran crypto investors alike.
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