Kraken: Comprehensive Review 2022 – Fees, Pros, and Cons

You must debate if Kraken is worth your time, attention, and, of course, money. Kraken is an online trading exchange that provides various investment alternatives to individuals and organizations in almost 200 countries worldwide. The trading platform supports over 120 cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, Dogecoin, and others.

However, it does not provide these facilities to New York or Washington state traders. Kraken offers several extra services to institutions, corporations, and wealthy people. Account management, one-on-one counseling services, OTC trading, and professional market insights.

This article will examine every facet of the Kraken exchange and present you with a thorough evaluation of the platform, so let us proceed with our Kraken Crypto Exchange review.

Pros and Cons of Kraken

Kraken at a Glance:

[maxbutton id=”3″ url=”https://www.kraken.com/” text=”Go to Kraken Website” ]

Kraken Exchange: Company Overview

Kraken, headquartered in San Francisco, is the world’s biggest international digital asset exchange regarding euro activity and liquidity. Kraken’s global clientele trades approximately 120 digital assets and seven fiat money, including USD, GBP, CAD, EUR, JPY, CHF, and AUD.

Kraken was created in 2011 and was the first cryptocurrency corporation in the United States to earn a state-chartered banking license. It was also one of the first crypto marketplaces to offer margin trading, regulated derivatives, and index services. Kraken is trusted by over 7 million traders, institutions, and governments worldwide and provides expert 24*7 online help.

Kraken is already having a historic year in 2022. Kraken is also the world’s largest centralized staking service, with over $10 billion in crypto assets on its protected on-chain staking infrastructure. 

Kraken is supported by several investors, including Blockchain Capital, Digital Currency Group, Tribe Capital, and Hummingbird Ventures.

Cryptocurrencies Supported in Kraken

In its current stage, Kraken supports over 56 crypto projects. The platform is home to some of the most prominent names in the industry. However, if you’re a moderate risk taker, you can also explore their smaller but potential crypto projects. Besides, the platform also welcomes new and better crypto projects. 

Here’s a look at the different crypto tokens that are on offer: 

Key Features of Kraken Crypto Exchange:

Our Kraken Crypto exchange’s review reveals that it is a secure place for traders as users experiment with forms of payment of transactions, learn new tactics, liquidity, and cheap taker and maker costs.

Kraken can assist you in closing a better and faster deal, all while keeping things simple. Regardless of your experience and competence in crypto exchanges, Kraken, according to our assessment, enables you to keep the momentum going in the realm of cryptocurrencies with the minimum Kraken trading fees.

So, if you’re a newbie or a veteran trader, Kraken is ready to meet all the needs at Kraken’s minimal costs. So, dive deep into the ocean and begin investing in the currency pairings seas as you get skilled in the discipline of trading, depending on our Kraken exchange review.

Kraken Prioritizes Investment Protection

Kraken always safeguards your cryptocurrency investments. Trading using the Kraken exchange offers absolute safety because it is guarded by a strong team of highly experienced personnel, and its server is housed in safe enclosures. As a result, your Crypto investments are secure, as are your KYC information using two-factor verification via Google Authenticator.

Guaranteed High Liquidity

Many options in minimum trading orders are a significant feature of this trading platform. In addition, the Kraken team recognizes the significance of time in trading negotiations. Thus, all trades are made at lightning speed, and the client’s pricing ensures excellent liquidity.

The Bigger, The Better

Kraken provides its customers with the convenience of “Zero Fees” based on the frequency they trade on the platform. The Kraken fee structure relies on usability and appropriateness. Clients may now take advantage of the rewards program with reduced costs. Compared to other crypto exchanges, this helps make Kraken a suitable fit for volume trading.

Margin And Futures Trading

Margin and Futures trading on the Kraken crypto exchange allows you to increase your trading earnings. The key factor for the boost in earnings is that Kraken lets you complete more complicated leveraged transactions by planning and offering the industry’s lowest taker and maker charges.

The starting costs of Kraken’s leveraged trading enable experienced people to access spot trades to increase their profits. In addition, margin crypto trading on Kraken provides significant opportunities for aggressive trading methods close to 5x leverage. The exchange even suspended its leverage trading services for ineligible crypto investors to ensure maximum security.

Kraken provides all of its cyber traders with a pot of gold known as crypto hedging. As a result, this expert trader can increase their earnings by leveraging several times.

[maxbutton id=”3″ url=”https://www.kraken.com/” text=”Go to Kraken Website” ]

Additional Features Of The Platform

• Customer Service is Available Every day of the year: Kraken’s skilled team is available 24 hours a day, 7 days a week, for any support you may require. This service is provided through robots, emails, and voice calls.
• Flexible Funding Options: Traders may now trade in fiat money and a cryptocurrency with better transaction speeds and reduced costs. This platform provides an excellent choice for synchronizing your savings account for a direct deposit at the most affordable prices to gain cryptocurrency immediately.
• Individualized OTC assistance: Another plus for the Kraken Crypto exchange would be that it provides over-the-counter tailored service for conducting huge deals with no disturbance.

Kraken’s built-in Help Center provides you with many tools you need to handle OTC trading and gain professional market insights. It allows you to engage directly and is available to address nearly any questions you may have.

• Kraken provides a 360-degree view of exchanges and indices: Kraken provides real-time updates and comparative price indexes for its user’s margin accounts. This assists seasoned traders in navigating the correct merged pricing for a variety of coins, along with the most popular Bitcoin.
• Industrial Co-operation: Kraken has made it a point to collaborate with industrial giants to provide tailored trading systems. This, without a doubt, comprises coins with the most potent API and financing limitations.  

Institutional clients, including financial firms, brokers, dealers, fund managers, insurance providers, and Automated Trading institutions, receive free asset management services from Kraken. Kraken additionally provides services for crypto-related businesses.

• Charting tools: Tools are represented by graphs and tables; these can predict market sentiment and changes. These features may be found on cryptocurrency exchanges such as Kraken from various perspectives, such as the traditional cap view and comprehensive markets view, which offer comprehensive trading tools.

Kraken Cryptowatch is a powerful crypto analysis tool that monitors over 2,000 cryptocurrencies. Aside from the typical crypto watch chart, the application also includes features like traffic and pricing notifications. This is great news for professional traders since it allows them to evaluate commodities using sophisticated technology such as data visualization. The program is also mobile-friendly, which increases its usability.

[maxbutton id=”3″ url=”https://www.kraken.com/” text=”Go to Kraken Website” ]

Trading Experience 

Users signing up for the Kraken platform can avail of two levels of accounts to add to their training experience. The available options being, Kraken and Kraken Pro provide different functionality to the users. 

Depending on your experience and the type of trades you take, you may prefer any two options. Here’s a brief of the two different experiences.  

Beginners Trading With Kraken

Beginners trading with Kraken is straightforward. Users signing up for the experience get access to an effortless trading experience. You can easily buy, sell, or convert your crypto tokens with a verified account. 

In addition, users of the ‘Beginners’ account type can earn up to 23% interest on staking, depending on the currency used.

Pro Trading With Kraken

As the name suggests, Kraken Pro is a more real-time platform with active charting ability via your phone and through a web browser. An account primarily dedicated to experienced and seasoned traders, this account type introduces users to several advanced charting tools and real-time charts. 

Besides, Kraken Pro also retains the functionalities provided by the Basic account. 

Fees Structure

Maker orders represent transactions that are rarely immediately paired against current orders, increasing market traffic. Taker fees apply to orders that are matched to an existing order from another trader and cause a marginally higher price.

Prices and charges vary based on the exchange and the entered deal. Rates, too, are due to spread fee in any instance. Here’s a quick rundown of the highest costs to be mindful of.

Kraken charges:

The cost for most coins is 1.5% for immediate transactions and 0.9% for stablecoins purchased with US dollar or perhaps some other stablecoin.

Added fees may apply depending on how you pay for the purchase. Price varies from 0.5% for financing by bank account to over 3.75% + 25 Cents for funding via debit and credit card or e-wallets.

Kraken Pro charges:

Kraken Pro is significantly less expensive than the regular platform. Your overall trading activity calculates the fee over the previous 30 days. Most deals are liable to a 0.26% taker charge or a 0.16% maker fee.

[maxbutton id=”3″ url=”https://www.kraken.com/” text=”Go to Kraken Website” ]

Is Kraken Safe?

Yes, Kraken is legit.

95% of Kraken’s crypto assets are stored in cold storage, which is effectively offline and secure from hackers. It also has complete resources and has undergone an independent resource proof audit.

The hardware servers are monitored 24 hours a day, 7 days a week. Sensitive data is encrypted on both the system and data levels.

Continuous penetration testing protects Kraken’s systems, both internally and through its bug bounty program. Bug bounty schemes reward security experts for discovering and reporting problems.

Kraken includes two-factor authentication, protected mail, and safe locks. Furthermore, it strengthens its security by educating users on securing their information.

The Better Business Bureau presently gives Kraken an F rating. Because the BBB grades firms from A+ to F, Kraken has not performed well in some elements of its customer service offerings.

Nevertheless, the BBB also states that its ratings do not guarantee a company’s reliability or performance, so one should investigate independently.

As per the BBB statistics, Kraken has resolved 30 concerns in 12 months.

Opening a Kraken Account

The steps involved in signing up for Kraken are similar to any crypto exchange or stockbroker. However, once you have all the required information, signing up with the platform can take only a few minutes. 

Here are the steps to help you better: 

Step 1: Search for the Kraken website and visit their webpage

Step 2: Once there, you’ll have to click on the “Get Started” button to initiate your sign-up journey over the platform. 

Step 3: Once done, fill in your personal details over the signup form by providing your name, phone number, and address. You’ll also be required to provide some government id to complete the KYC over the Kraken platform. 

Step 3: Turn on the 2-factor authentication feature on your account. 

Step 4: Select your ideal payment method and link it to the account.

Step 5: Deposit the funds and get started!

Remember, if you don’t verify your account with the given KYC documents, you’ll be stuck with a limited account functionality. 

Customer Satisfaction

Kraken receives a considerable number of client grievances regarding the KYC procedure and the disappearance of cash. While KYC can assist in safeguarding user profiles, problems in validation might lead user money to become “trapped” here on the Kraken network since unconfirmed accounts cannot withdraw cash. The Kraken staff replies to these negative evaluations, showing that they have been at least diligent in their desire to help clients.

Rarely do crypto exchanges provide the help that Kraken provides, but reports of lost cash must always be considered before registering.

[maxbutton id=”3″ url=”https://www.kraken.com/” text=”Go to Kraken Website” ]

Kraken Vs. Competition

Kraken and Coinbase are both crypto exchanges established in the United States that provide a safe way to purchase Bitcoins and other blockchain-based assets. In addition, both provide over-the-counter (OTC) solutions to clients and important KYC requirements to ensure regulatory compliance.

Kraken vs. Coinbase

While Coinbase brings new customers into the cryptocurrency world, Kraken is intended for seasoned investors who wish to trade using margin and the opportunity to trade futures. Coinbase makes it easy for people to gain cryptocurrency, but Kraken provides extensive charting tools for professional traders. Both are excellent choices, albeit for distinct sorts of people.

Here are a few more significant distinctions comparing Kraken and Coinbase:

1. Kraken is offered in over 200 countries, but Coinbase is accessible to just over 100. Coinbase has developed skill enhancement tools and the possibility of earning bitcoin incentives.

2. Kraken provides leverage trading to US customers that have more than $10 million in securities.

3. Coinbase provides a “hot wallet” protection, but Kraken doesn’t have it.

Coinbase is perfect for newcomers to the crypto ecosystem, as it provides an easy on-ramp for acquiring cryptocurrency. But then again, Kraken is geared to the professional trader. Its cheap costs and extensive trading choices make it excellent for individuals wishing to trade cryptocurrency actively.

What Sets Out Kraken As An Exchange?

Kraken’s top-tier reliability, cheaper costs, and wide selection of accessible cryptos may make it an excellent alternative for both new and seasoned crypto enthusiasts.  However, with Coinbase, people don’t stay in the starter mode for a very prolonged period to prevent wasting enormous amounts of money on charges on its learning service.

However, suppose you’ve been looking for a better alternative to make rapid coin purchases. In that case, you’d be served better by the Binance crypto exchange, which costs just 0.5% for this type of transaction, instead of around 2% for Kraken’s Instant buy interface.

Knowledgeable traders may be interested in Kraken’s variety of coins, staking, and leverage. While the latter had been a differentiating feature of Kraken over most other prominent exchanges, it has since been restricted to people with extremely substantial quantities of assets in the United States. Still, it remains available to anyone out of the US. As a result, experienced American traders may continue to profit from Kraken’s extensive cryptocurrency trading marketplaces and significantly reduce as their trading volume grows.

However, all traders should approach a simple bitcoin dealing on Kraken and any other platform exchange with caution. Don’t put money into investments that you can not afford to lose.

[maxbutton id=”3″ url=”https://www.kraken.com/” text=”Go to Kraken Website” ]

Final Verdict

Should You Consider Using Kraken?

Kraken is a renowned crypto exchange that has been in operation for more than a decade. As a result, it’s a sound choice with several advantages.

• Security: Kraken, started in 2011 and introduced in 2013, is one of the world’s biggest and leading exchanges. And it has prioritized security since the beginning. There have been no reports of hacks, which speak for themselves.

The platform in the United States has constantly led the market in terms of reliability. It has physical security as well as economic security. Furthermore, it encourages users to practice good security behaviors.

• Range of cryptocurrencies: Kraken accepts around 120 cryptocurrencies and 7 national denominations. That isn’t the most extensive range of digital money available, but it is similar to many of the finest crypto exchanges. 

It’s also a leap forward from many dealers, who simply provide a few well-known coins. Kraken also has a high level of liquidity, which makes it simpler to purchase and resell at a reasonable price.

• Access to multiple crypto pairs: Kraken operates based on currency pairings, but not every coin may be exchanged for others. 

What exactly is a currency pair? 

Assume you’re on holiday in Europe and need to convert your pounds to euros. That represents a currency pair. When you use pounds to purchase Bitcoin and Bitcoin to purchase Ethereum, you constantly exchange one commodity for the other.

• Advanced trading features: Kraken is among the handful of platforms that support leveraged trading, limit orders, and cryptocurrency short sells. It also features a dark pool, allowing high-volume traders to invest discreetly.  

Kraken offers you leverage any pair up to 5x and provides qualifying pro clients with over $500,000 in margins. However, if you get too enthusiastic, consider that margin trading is dangerous. You’re taking someone else’s money to trade with.

Assume you put $100 into Ethereum. You choose to utilize the 5x leverage. If the value of Ethereum rises, your profits will be multiplied by 5. However, if Ethereum falls in worth, the loss will be doubled. Cryptos already are a dangerous asset, and employing leverage amplifies that hazard tremendously.

• Reasonable fees: Kraken’s fees are comparable to those of its competition. It isn’t the lowest, however, its maker-taker prices are cheaper than those of Coinbase. 

For example, trading costs vary per exchange and are frequently determined by how often you trade every session. Consider how much that will take customers to fund and make withdrawals and the fees associated with each operation.

What Are The Shortcomings Of Kraken?

1. Not suitable for beginner investors: Kraken does provide some excellent teaching materials for those new to virtual currency trading. Specific currency instructions and a set of explanatory clips are included. Even with all its complex features, this platform is intended for more seasoned traders. With so many currencies and features, new investors may struggle to acclimate.

2. Limited starter account: Kraken provides excellent teaching materials for those new to virtual currency trading. Specific currency instructions and a set of explanatory clips are included. Even with all its complex features, this platform is intended for more seasoned traders. With so many currencies and features, new investors may struggle to acclimate.

3. Slow account funding: FedWire allows you to deposit US funds after providing your ID and verifying your account. Payment cards are not accepted as funding methods in the United States. Transfers in fiat money might take 1 – 5 working days to complete.

To transfer coins, though, you simply need a beginning account, which would take roughly 5 minutes. Again, Kraken provides services to assist you in transferring cash from those other platforms.

4. Customer service: This cryptocurrency exchange offers 24-hour phone support and an easy-to-use help center. It’s tough to determine how reliable such evaluations are, but you still need to trust the folks you’re entrusting your money with. Many reviewers state their funds did not appear in their accounts and that the support team did not help.

Through their app and website, Kraken’s customer service provides live chat help 24 hours a day, 7 days a week. This is unusual in the cryptocurrency exchange sector because most providers simply provide email help during work hours. Kraken also provides email and call help to users, but only from 6:00 a.m. to 6:00 p.m. EST Monday to Friday. Kraken also has an extensive library of support articles and user education resources on its website.

As you’ve seen from our Kraken Crypto Exchange review, Kraken is among the world’s largest, oldest, and safest Crypto exchanges. In addition, Kraken is routinely recognized as one of the finest platforms to buy, sell, and trade cryptocurrency online. 

The platform has cheap fees, flexible payment choices, top legal compliance standards, strong banking partnerships, full reserves, and stringent security requirements. In addition, Kraken is likely to extend its cryptocurrency offering and provide additional solutions and perks in the upcoming days.

Shrey Jain

Shrey Jain is a Chartered Accountant who holds a forte in creating informative content on niches like Finance, Blockchain, crypto, and Taxation. He is a contributor on Hackernoon and Publish0x, where the audience has highly appreciated his articles. In addition, his knowledge in the finance field has helped both beginners and experts gain valuable insights into the domains of Blockchain and finance.

You do not have any posts.