Kraken Review – Keeping Your Crypto Secure
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While there are a lot of benefits of using Kraken, it isn’t the most user-friendly platform for newbies.
9/10
Cost
8/10
Features
9/10
Ease of use
8.5/10
Services
9/10
Cryptocurrency is gaining in popularity as an alternative investment vehicle as more mainstream outlets have started to report on movement in the crypto world. More and more consumers are looking for trading platforms to get started with crypto trading. It’s worth noting that to transform your investment in any coin — from Bitcoin (BTC) to Ethereum, EOS, XRP, or any of several other crypto coins — to something that can sit in your bank account, you’ll need to use a cryptocurrency exchange.
This is where a platform like Kraken comes in. Kraken makes it simple to start with Bitcoin Cash and other popular crypto coins. It even offers handy guides that walk you through what to know about cryptocurrencies before buying, selling, or trading them. Read more about the pros and cons of Kraken exchange in this platform review.
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What is Kraken?
Founded by Jesse Powell in 2011, Kraken is one of the most well-known cryptocurrency trading platforms online. Powell founded Kraken to make cryptocurrency accessible to as many consumers as possible.
Kraken advances its mission by providing a variety of currency pairs that empower investors to manage their money however they like. From trading Litecoin for Bitcoin or Monero for Dogecoin, Kraken makes exchanging one cryptocurrency for another simple. It also offers a mobile app to take your trading experience away from your laptop or desktop computer. Kraken also features an up-to-date price list of all major cryptocurrencies, including information about market caps, trading volume, and 24-hour percentage change.
Get $5 in free Bitcoin for signing up
- Trade popular and trusted cryptocurrencies like Bitcoin, Ethereum, and Dogecoin among dozens of others
- Earn up to $35 worth of crypto with their Coinbase Learn video tutorials
- Extremely simple user interface
- Easy to take money out of investments - high liquidity
How does Kraken work?
Signing up for Kraken is relatively straightforward; however, there are a few hoops to verify your identity and fully utilize the most features. You’ll start by entering your email address and creating a username and password. You’ll also need to add the country of residence and state or province you live in and agree to the terms of service.
You’ll then need to check your email for an activation code. Once you’ve activated your account, you’ll want to open your dashboard and click the Get Verified button from the dropdown in the top right of the page.
When verifying your account, you have a few different options. The express method is the shortest approach; however, you’re more limited regarding the bank transfers and features you can use. You’ll want to use the intermediate or pro approach to get the most out of the platform. These take a bit more time and require more personal information to be verified.
How much does Kraken cost?
While setting up your Kraken account is free, there are still some fees to be aware of when you execute trades or exchanges. Even using the Kraken Pro trading app is free, although you’ll also run into the same sorts of fees using the desktop client.
Maker and Taker fees
One thing that makes Kraken fees different from some other investing platforms for crypto is the implementation of a system known as Maker and Taker fees. According to Kraken’s support resources, the Maker and Taker fee structure “is a way to differentiate fees between trade orders that provide liquidity ("maker orders") and take away liquidity ("taker orders")."
A maker fee on Kraken will be charged at a different percentage than a taker fee. Maker fees typically range between 0.16% and 0.20%, depending on what pairs you’re trading between. That being said, if your 30-day trading volume is significant, you may be able to get those trades down to 0%.
A taker fee will start at about 0.26% but can decrease to 0.20%, 0.10%, or even 0% if you’re trading standard or other currency pairs. It’s worth noting that these low fees are pretty competitive in the cryptocurrency market since trading fees are quite normal on internet exchanges for crypto and other kinds of investment platforms.
Crypto withdrawal fees
It’s also important to understand that when you withdraw money, you’ll be charged certain fees to get money to your bank account. In terms of withdrawing cryptocurrency, there are a broad array of fees, each specific to the type of currency you’re withdrawing, as well as certain minimums that need to be met. For example, bitcoin has a withdrawal minimum of 0.0008 BTC, and you'll be charged a withdrawal fee of 0.0004 BTC.
If you’ve exchanged your crypto coins for fiat currencies, you’ll have a different fee structure for your withdrawal fees, which may include wire transfer fees. U.S. withdrawal fees range from $4 to $35, with minimum withdrawals beginning at $20. Euro withdrawals, on the other hand, range from fees of 0.90 EUR to 35 EUR. It’s best to double-check Kraken’s support center before withdrawing to your bank account to determine how any choice will impact your overall return.
Related: How to Buy Cryptocurrency
Kraken features
Security as a priority
A big benefit of using Kraken is its comprehensive security approach to ensure your financial information and crypto wallet stay safe and secure. This starts with setting up your account when your identity is verified through Kraken’s KYC (know your customer) process. You’ll verify your identity with two-factor authentication and information about your address, social security number, and phone number.
Beyond its KYC process, other Kraken security features include encrypting your data in line with industry standards, highly-protected servers, penetration testing, and offline, geographically distributed cold storage so that you can withdraw your crypto funds at any second as quickly as possible.
24/7 customer support
Kraken’s support team is available 24/7/365. This means that no matter what issues you’re facing, you’ll be able to get help from a live agent via its chat support. Kraken also offers extensive support documentation to help you figure out how to do what you want to accomplish if you want to do your research first.
Easy and fast to use
Kraken prides itself on its high liquidity, meaning that even though crypto prices fluctuate in trade volume and price often, you can execute your trades fast through its platform.
Many people don’t realize that the liquidity of crypto coins relies on the exchange you’re trading on. Since Kraken offers more funding options, higher trading volume, lower fees, and more active traders than many other platforms, it can have much higher liquidity. Combined with its easy-to-use interface, these facts make trading crypto on Kraken a simple task involving just a few clicks.
Get $5 in free Bitcoin for signing up
- Trade popular and trusted cryptocurrencies like Bitcoin, Ethereum, and Dogecoin among dozens of others
- Earn up to $35 worth of crypto with their Coinbase Learn video tutorials
- Extremely simple user interface
- Easy to take money out of investments - high liquidity
Who is Kraken best for?
Serious crypto investors
While Kraken is straightforward enough for a beginner, its features and options make it a much better choice for intermediate or advanced investors. This is because cryptocurrency is already a foreign concept to many investors. Adding extra features like limit orders, margin trading, and futures trading—while capable of maximizing your returns—can be a bit of a learning curve for those still trying to understand crypto. Especially with all of the advanced tools Kraken packs into its platform, serious investors will get a lot from picking the exchange and won’t want for much, if anything, even as their portfolio and needs grow.
Security nuts
One of the biggest benefits of investing in decentralized currency is its added privacy and security. As such, it makes sense to use the industry leader in security when dealing with crypto. Kraken boasts 24/7 video surveillance of its servers which armed guards also protect. That means you have tangible security for your digital assets when you pick Kraken as your exchange.
People who like to have options
Kraken offers more than 200 tokens. As such, if you’re the kind of trader with plenty of options when dealing with crypto, you’ll get a lot out of Kraken. Especially considering the high number of active traders on the platform, you’ll seldom get caught with crypto you don’t want when using its exchange.
Who shouldn’t use Kraken?
Complete beginners
While Kraken offers support and plenty of resources on cryptocurrency and its exchange, the platform packs so many advanced tools that it’s easy to become overwhelmed. This isn’t to say that a complete beginner can’t learn how to use the platform—it’s super user-friendly, after all—however, it’s best to fully understand what you’re diving into with any investment platform. With the amount of functionality Kraken offers, it’s like diving into the deep end before you fully understand what staking is and which cryptos make the most sense to put in your portfolio.
Hands-off investors
If you’re looking for an account to make crypto investments for you via robo-advisor or have more hand-holding, Kraken isn’t a great fit for you either. Thanks to its advanced features and the depth and breadth of currencies available on the platform, Kraken is really for go-getters who want to take a hands-on approach to its crypto portfolio. Even if you’re not a beginner in cryptocurrency, it makes a lot more sense to pick a different investment platform if you’re trying to take a more passive approach to diversify your portfolio with Bitcoin and the like.
Related: Best Robo-Advisors
Pros & cons
Pros
- Secure. As has been mentioned elsewhere in this review, Kraken is incredibly secure and uses industry-leading technology and approaches to keep your personal data and crypto wallet safe. If security is a major factor in your financial dealings with cryptocurrencies, Kraken is the clear winner.
- Tons of coins. Kraken has a wide variety of coins to buy, sell, and trade, making it one of the de-facto choices for anyone who wants to invest in cryptocurrency. From mainstays like Bitcoin, Ethereum, and Litecoin to other coins like Algorand, Tether, Stellar Lumens, and Tron, you’ll have over 100 coins to choose from when using the platform.
- Mobile and desktop friendly. If you’re the kind of trader that wants to be able to access their crypto wallet at a moment’s notice or on the go, you’ll appreciate that you can use Kraken on your smartphone as well as via the internet on your computer.
Cons
- Can be overwhelming. There are a host of features and options in Kraken that make it ideal for intermediate and advanced investors, but if you’re new to the world of investing in crypto, it’s easy to get confused or overwhelmed by the sheer amount of things that Kraken offers you. Their live support and resources are certainly helpful in this regard; however, most beginning investors don’t want to learn the ins and outs of an entire system just to diversify their portfolio.
- Bank transfers can take some time. While Kraken makes it relatively easy to withdraw your money to your bank account, the process can take some time due to bank involvement.
- Identity verification can take time, too. If you’re trying to verify your account and identity as an intermediate or pro user, it will take a bit longer in order to be able to get your account up and running. As such, don’t expect to be able to use the platform to its fullest if you’re planning to use these higher security tiers for your account verification.
Kraken vs. Coinbase vs. Binance
While Kraken is one of the oldest cryptocurrency exchanges online, it’s not the only one. Coinbase and Binance are two other platforms worth looking into if you’re interested in taking advantage of buying, selling, and trading cryptocurrencies as part of your investment strategy. Here’s a quick overview of some of the differences between the three platforms.
Feature | Kraken | Coinbase | Binance |
Withdrawal fees | $4 to $35 | NA | NA |
Cryptocurrencies Supported | 200+ | 200+ | 150+ |
Buy/Sell/Trade | Yes | Yes | Yes |
Limit order | Yes | No | Yes |
Margin trade | Yes | No | Yes |
Coinbase
Coinbase doesn’t offer as many trading options as Kraken, but it’s still a pretty good option for many investors. Coinbase’s fees can get rather high depending on what sorts of orders you’re executing, but it offers the same functionality in buying, selling, and trading crypto.
Binance
Binance is a much better competitor than Coinbase if you want an alternative to Kraken. However, Binance has some drawbacks since it offers fewer cryptocurrencies than Kraken. If you’re interested in slightly lower fees and still want the ability to execute limit orders or margin trades, Binance is a good alternative to Kraken.
Get $5 in free Bitcoin for signing up
- Trade popular and trusted cryptocurrencies like Bitcoin, Ethereum, and Dogecoin among dozens of others
- Earn up to $35 worth of crypto with their Coinbase Learn video tutorials
- Extremely simple user interface
- Easy to take money out of investments - high liquidity
FAQs
How do I add money to my Kraken account?
Kraken lets you add money to your account via wire transfer from any of a number of banks. Whether you bank with Chase, Bank of America, Wells Fargo, or another financial institution, Kraken will interface with your bank so you can get things set up properly.
Are there any geographic restrictions to using Kraken?
Yes. While Kraken is supported in most countries, but there are some exceptions. If you currently reside in Afghanistan, Congo-Brazzaville, Congo-Kinshasa, Cuba, Iran, Iraq, Libya, North Korea, Syria, or Tajikistan you currently can’t create and use a Kraken account.
How old do you have to be to open an account?
To use Kraken, you must be at least 18 years old.
The bottom line
Kraken's exchange is a great option if you’re looking for a platform with diverse cryptocurrencies. One of the oldest crypto exchanges on the internet, Kraken is well-known for its robust features and top-of-the-line security. With advanced features like dark pools (which aren’t visible, unlike your public order book) among other tools, privacy and security features are plentiful in Kraken. The Kraken API is a particularly strong suit of the exchange compared to other competitors. You can rest assured that your personal information and money are safe when using the platform.
While there are a lot of benefits to using Kraken, it isn’t the most user-friendly platform for newbies. If you’re just getting started in the crypto world, you’ll likely become overwhelmed by how powerful Kraken is. Checking out the support tools and other crypto guides can be beneficial when learning the ropes. Still, it’s generally better to pick Kraken if you’re already familiar with investing in crypto coins. That being said, if you want a platform you can truly grow into, starting with Kraken could have its benefits.
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Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
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