It can be difficult to locate a trustworthy cryptocurrency exchange nowadays. It appears that exchanges are hijacked quite often and are not very safe. Finding an exchange you can rely on is essential, especially with the recent fall of one of the most famous crypto exchanges, FTX.
A cryptocurrency exchange, Kraken, is a reliable option for consumers. It was created two years after Bitcoin, and with over 120 coins available in the United States, it serves as a platform with excellent security.
The platform also provides the option to stake your cryptocurrency and earn rewards at a low cost. For cryptocurrency investors and traders searching for minimal trading costs and access to various coins, Kraken is worth considering the option. In this review, we will outline Kraken’s features, advantages, and disadvantages.
Introduction
Jesse Powell established the cryptocurrency exchange Kraken in July 2011. It is one of the oldest and largest exchanges and has its headquarters in San Francisco, California. Kraken is a great option for more seasoned traders, thanks to its top-notch security, reasonable trading costs, and a strong selection of accessible cryptocurrencies.
In the United States, Kraken provides access to more than 120 cryptocurrencies, including Bitcoin, XRP, DOGE, DOT, Ethereum, ADA, MATIC, XLM, SUSHI, UNI, TRX, and others. Additionally, it accepts a few stablecoins like USD Coin, Tether, and Dai. If you like, you can even exchange U.S. dollars for Canadian, Swiss, or Japanese currency.
Kraken is accessible to most people worldwide. Unfortunately, citizens from Washington and New York cannot use this exchange. Kraken only accepts certain fiat currencies. This means that citizens of some nations might need to pay extra conversion fees. But, since U.S. dollars are recognized, users in America don’t have to worry about the issue. Kraken also provides customers with futures trading and margin accounts, which are speculative products suited for some trading methods.
With an official account, you can easily purchase cryptocurrency using a linked bank account. After creating your account and logging in, it only takes a few seconds to place an order using a simple form.
You will be able to purchase cryptocurrency directly using this system with the funds in your bank account. Your account doesn’t need to be funded first. In addition to purchasing and selling, you may deposit your cryptocurrency for staking and, based on the currency, get a 23% interest.
You can get interest in your Kraken-held cryptocurrency holdings by staking as well. Also, make sure to enable two-factor authentication to protect your account, which stops anyone from accessing it without your devices and a protected code.
More seasoned traders could use the Kraken Pro. Kraken Pro is accessible by any smartphone or web browser. Although the U.I. could be daunting to beginners in trading and cryptocurrency, it might be worthwhile to learn. It contains more thorough asset data, such as live charts and an overview of open orders.
Kraken Pro is accessible to everyone with a valid Kraken account. It has a lower fee but a less sophisticated interface. Thus, you’ll spend less than with the main interface if you execute the same trade via Kraken Pro as opposed to Kraken.
Cryptocurrencies are susceptible to hackers. As a result, cybercriminals have been able to steal thousands of dollars by bypassing the security measures established by crypto exchanges. You don’t want to end up at an exchange with poor cybersecurity that can leave your cryptocurrency susceptible to theft.
Kraken seriously believes in its dedication to security and has not experienced any major hacking incidents. It provides secure coin storage, with 95% of deposits kept offline in a global network of storage facilities.
Additionally, Kraken guarantees platform safety. Its servers are in safe locations and are being monitored 24/7 by security guards and video surveillance. In addition to physical security measures, Kraken tests its system for vulnerabilities and secures all your important contact info at the system and data levels.
Kraken provides a variety of Android and iOS apps. You may use its basic application and the KrakenPro version, which has more sophisticated capabilities. Kraken also provides live, multinational phone assistance around the clock.
A 24/7 web chat option is also offered. People who frequently trade on Kraken receive a private account representative who takes care of their inquiries and requests so that they can concentrate on trading.
There are several ways to deposit money into your Kraken account. It takes advantage of firms that offer fund transfer services. Each one has unique account financing requirements, maximums, and fees. The most expensive way to purchase cryptocurrency is with a credit card. There is a fee of 3.75%. You must finish the KYC (know your customer) certification process before using fiat currency.
You can choose a cryptocurrency to buy after the account has been financed with fiat. There are coins that you can access exclusively through a big cryptocurrency and coins that let you immediately convert fiat to cryptocurrency. For instance, utilizing fiat money is not an option if you wish to invest in EOS. You would need to first purchase Bitcoin or another important cryptocurrency to buy EOS.
Another feature offered by the cryptocurrency exchange is Instant Buy. You may buy cryptocurrency quickly with Instant Buy, but the fees are significantly greater than the Kraken Pro trading platform.
For stablecoins and other cryptocurrencies, Instant Buy levies a fee of 0.9 percent and 1.5 percent, respectively. If users choose to buy cryptocurrency with their bank account online, a 0.5% service fee is charged. Other costs apply when a debit or credit card is used. Fees are reduced for customers who use Kraken Pro. Depending on activity over the previous 30 days, it levies 0.16 percent maker fees and 0.26 percent taker costs for deals of $50,000 or less.
Key Features
- Kraken Pro is meant for experts
- Futures trading is enabled
- Maker-taker fee structure
- More than 120 cryptocurrencies
- Secure platform
- Mobile application available
Pros
The staking function of Kraken is one of its main advantages. This makes it possible for you to accumulate rewards using the coins currently in your wallet. By coin, the exact reward percentage you receive will change, but it presently varies from 4% to 20%. It also has a basic user interface. Even if you have no prior knowledge of cryptocurrency, Kraken is rather simple.
Kraken is an exchange with great liquidity. At market prices, buying and selling are simple. Additionally, Kraken’s fees are comparable to those of several exchanges. Although it isn’t the cheapest, the maker-taker fees are fair. Exchange to exchange, trading costs vary and frequently depend on the amount you trade monthly.
Another benefit of using Kraken is its smartphone application, which provides quick access to your account information. This is convenient for people who are always moving because it provides them access to their money whenever needed.
Kraken offers an iOS app that can be downloaded from the App Store; however, it does not yet handle money deposits or withdrawals. On the other hand, all the functions are available to Android users. The Google Play Store offers the option to install the app. You can view your account information without difficulty if you have a dependable internet connection and cellular coverage after installation.
Cons
First and foremost, Kraken is not too suitable for novice investors. For investors that are just getting started with crypto trading, Kraken does offer some useful teaching materials. This consists of a number of explanatory unique currency tutorials. The service is meant for more seasoned traders with so many advanced features. The sheer number of coins and capabilities will make it challenging for new investors to get used to.
Furthermore, Kraken only accepts eight fiat currencies at the moment. Still, several of the biggest currencies in the world, including the U.S. dollar, the euro, and the pound sterling, are supported. However, new users in some popular countries, like India, might need to convert their money to another supported currency or virtual currency to create a trading pair. It goes without saying that this can cost those users more money.
Final Verdict
If you’re an expert trader who wants to employ cutting-edge features like margin, Kraken is the right choice for you. With reasonable prices, top-notch customer support, and security measures, it’s well worth your money. You can put security over usability and relax, knowing that the most trustworthy people are handling your money.
The major downside of Kraken is that it doesn’t offer training material like other popular exchanges, which can make it difficult to use for novice traders. Kraken’s creators should address this flaw to make it more welcoming to new traders. Another problem that needs to be addressed is that the Kraken exchange only accepts a few fiat currencies, which can make it more expensive for some users.
