Established in 2011, Kraken is a big player in the crypto space, renowned for its security measures and a broad spectrum of features catering to both novice and experienced traders. But more on them later!
The purpose of our Kraken review is to educate you. We’ve done an in-depth analysis of Kraken’s functionalities, fee structures, security protocols, and customer support systems. Why? Because we want to empower you with knowledge, whether you’re taking your first steps into the world of cryptocurrency or seeking to refine your trading strategies with a reliable platform. This review will not only highlight the technicalities and features of the platform but also offer actionable guidance to help you make informed decisions.
We’ll explore how Kraken stands out in this increasingly competitive market, its unique offerings, and the reasons why it might be the ideal choice for your crypto trading journey. Let’s get started.
Table of Contents
A Quick Snapshot + Our Methodology
Our Rating — 4 out of 5
Kraken distinguishes itself as a robust and versatile cryptocurrency trading platform. It earns a solid 4 out of 5 for its comprehensive range of features, strong security measures, and extensive support for various cryptocurrencies. However, it falls short of a perfect score due to its higher fee structure for basic users and limited availability in certain regions.
Key Strengths:
- User-friendly interface
- Support for over 200 coins
- High level of security
Areas for Improvement:
- Higher fees for basic users
- Not available everywhere
- Limited fiat currency support
Our Methodology
In order to give an in-depth and fair review of Kraken, we tested all of the platform’s features, transactions, and customer service systems. We simulated steps to trading, explored the range of cryptocurrencies available, and tested the platform’s user interface and navigation. We also interacted with Kraken’s customer support to gauge their responsiveness and helpfulness.
Our evaluation criteria were based on several key aspects:
- Functionality and Ease of Use: Assessing the user experience in terms of interface design and ease of executing trades.
- Range of Features: Looking at the variety of tools and services offered, such as futures trading, margin trading, and staking options.
- Security Measures: Evaluating the platform’s security protocols to ensure user funds and data are protected.
- Support for Cryptocurrencies: Considering the number and variety of cryptocurrencies available for trading.
- Customer Support: Testing the efficiency and effectiveness of the customer support team.
- Fee Structure: Analyzing the fees charged for various transactions and how they compare with industry standards.
Through this rigorous testing and evaluation process, we aimed to provide a detailed and accurate review, highlighting its strengths and areas where it could improve.
The Lowdown on Kraken, the Company
Established in 2011, Kraken is a leading cryptocurrency exchange renowned for its security and reliability in the digital currency market. The company has built a strong reputation by prioritizing user safety, evident in its comprehensive security measures and minimal history of security breaches. This focus on security has made Kraken a trusted name among both novice and experienced traders in the volatile world of cryptocurrency.
The platform stands out for its extensive range of services and features, catering to a diverse clientele. Kraken offers a variety of trading options, including spot and futures trading, margin trading, and a staking service, appealing to a broad spectrum of users, from casual investors to professional traders. Its user-friendly interface, combined with advanced trading features, strikes a balance between accessibility for beginners and functionality for seasoned traders.
Kraken’s commitment to regulatory compliance and transparency sets it apart in an industry often scrutinized for regulatory issues. The company actively works with regulators to ensure compliance, reflecting its dedication to operating within legal frameworks. Kraken is now seen as a forward-thinking leader in pushing for the widespread use of cryptocurrencies, which makes users more likely to trust the company.
Kraken Features You Need to Know About
For both new and experienced cryptocurrency traders, Kraken has a lot of features that are handy. From educational resources to advanced trading options, Kraken has tailored its services to cater to diverse needs and skill levels.
Here, we’ll walk you through key features that set Kraken apart in the digital currency exchange world.
1. Learning Material
Much like us, the platform recognizes the power of knowledge in the world of cryptocurrency. To support this, Kraken offers abundant learning materials, including comprehensive articles, detailed guides, and insightful video tutorials. These resources span various topics, from the basics of cryptocurrency trading to complex market analysis techniques.
In addition to offering educational content, Kraken also provides practical tips and strategies. This approach empowers beginners and seasoned traders to expand their knowledge and skills, fostering a deeper understanding of cryptocurrency.
2. NFT Marketplace
The NFT marketplace on Kraken is a vibrant space where you can explore, purchase, and sell an eclectic mix of digital collectibles and artwork. This feature taps into the burgeoning world of Non-Fungible Tokens, offering a user-friendly platform that caters to both seasoned collectors and newcomers.
Kraken’s NFT marketplace is a gateway to the digital art world. Here, you can discover unique pieces, connect with artists, and stay abreast of the latest trends in the NFT space, making it a dynamic and engaging feature.
3. Futures Trading
Kraken’s futures trading feature opens the door to advanced market strategies for its users. This option allows you to speculate on the future prices of cryptocurrencies, providing opportunities for leveraging positions and hedging against market volatility.
Futures trading on Kraken is supported by a robust and intuitive platform. This includes analytical tools and resources designed to assist traders in making informed decisions, managing risks, and maximizing their trading potential in the futures market.
4. Margin Trading
Margin trading on Kraken allows traders to increase their trading position by borrowing funds. This feature can lead to amplified gains, but it also comes with increased risks. Kraken provides a streamlined process for margin trading, complete with educational resources to help you understand and manage these risks effectively.
Kraken’s commitment to responsible crypto trading is evident in its approach to margin trading. The platform emphasizes the importance of risk management and offers tools and guidelines to ensure that traders can make the most of margin trading while being aware of its potential pitfalls.
5. Staking Section
Kraken offers a staking section where you can stake your cryptocurrencies to earn rewards. This feature caters to those looking to earn passive income from their digital assets, providing various staking options across different cryptocurrencies.
It’s important to note, however, that Kraken’s staking services are not available to clients based in the United States. This regulatory compliance ensures that Kraken operates within legal frameworks, but it also highlights the platform’s commitment to offering diverse and compliant services to its global user base.
Pros and Cons of Kraken
With a wide range of features and services, Kraken is one of the most reliable cryptocurrency exchanges in a market that is getting more and more crowded. But, like any platform, it comes with its own set of strengths and weaknesses. We’ve unearthed many factors contributing to its standing as a great cryptocurrency exchange.
This section aims to provide a balanced view, highlighting what Kraken excels at and where it has room for improvement. By understanding both sides, we hope you can make an informed decision about whether Kraken aligns with your trading needs and preferences.
What Stands Out
Kraken is a platform that definitely excels in certain key areas. Let’s see what makes Kraken stand out from the crowd.
1. User-Friendly Interface
During our use of Kraken, the platform’s user-friendly interface was immediately noticeable. It simplifies navigation, making it easy to locate various tools and features. This intuitive design is particularly beneficial for newcomers to the crypto world, ensuring a smooth and hassle-free trading experience.
2. Support for Over 200 Coins
Kraken’s home to an extensive range of over 200 cryptocurrencies — which was fun to explore. This vast selection allows you to diversify their trading strategies, exploring both popular and lesser-known coins. Such variety is definitely a strong suit of Kraken, catering to traders with varying interests and investment approaches.
3. High Level of Security
The security measures on Kraken are top-notch, a crucial aspect we focused on during our review. The platform employs stringent security protocols like two-factor authentication and KYC verification, giving us confidence in the safety of our investments. This strong emphasis on security is a cornerstone of Kraken’s reliability in the volatile crypto market.
Areas for Improvement
Despite its many strengths, Kraken, like all platforms (and much of life!), has room for improvement. Let’s look into ways that we believe Kraken could do better.
1. Higher Fees for Basic Users
As entry-level users on Kraken, we found the fee structure to be slightly high. While more experienced traders might find these fees justifiable, beginners or occasional traders might view them as a barrier, especially when starting out.
This, naturally, pushes basic Kraken users to consider joining Kraken Pro — their more advanced platform.
2. Not Available Everywhere
Another limitation we encountered was Kraken’s limited availability in certain U.S. states and global regions due to regulatory restrictions. This can be a significant roadblock for potential users in these areas, limiting their access to Kraken’s otherwise robust trading platform. We’ll touch on this a bit more later in our review.
3. Only Accepts a Few Fiat Currencies
We believe that Kraken’s limited range of accepted fiat currencies constrains trading flexibility. While dealing in major currencies like USD, GBP, and EUR was straightforward, users with other fiat currencies, like SGD or JPY, might find this limitation a hindrance, potentially affecting Kraken’s appeal to a wider global audience.
Getting Started with Kraken: The Onboarding Experience
The journey with Kraken begins with a streamlined and intuitive onboarding process. Here, we look through the initial steps of setting up an account with Kraken, providing a glimpse into the simplicity and efficiency of the platform’s user interface.
Let’s begin!
The Registration Process
The first step is registering for an account. Kraken’s registration process is straightforward and user-friendly. You’ll need to provide some basic information, like your email address, a username, and a strong password (Don’t underestimate the power of a strong password!).
The platform ensures a secure registration process, with clear instructions guiding you at every step. This initial phase is quick, taking only a few minutes to complete — which we love.
Getting Your Account Verified
Once registered, you’ll need to verify your Kraken account before using funding methods or starting trading. Kraken’s verification process is designed to strictly comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, so expect this step to be quite thorough!
Different verification levels are available: Express, Intermediate, and Pro. The Intermediate and Pro levels require additional documentation, image, and file requirements, while Pro verification also includes separate applications for personal and business accounts with Pro limits. This tiered approach to verification allows you to choose the level that best suits your trading needs and goals.
Setting Yourself Up
Once verified, you’ll access the Kraken dashboard. The initial setup is intuitive, with a clean and well-organized user interface. If you’re a new user, you’ll find it super easy to navigate through different sections like trading, account management, and support.
Kraken also provides a tutorial for first-time users, guiding you through the dashboard and highlighting key features. This attention to user experience ensures that even those new to cryptocurrency trading can explore the platform confidently and easily.
The Buying and Selling Experience on Kraken
We found that Kraken offers a streamlined buying and selling experience, regardless of your cryptocurrency preferences or active trading experience. But, depending on said preference or experience, you might prefer to use Kraken or Kraken Pro.
Let’s take a brief look at the process on both platforms.
Kraken
Kraken’s basic platform is designed with simplicity and ease of use in mind. The process for buying crypto is streamlined:
- Create an Account: Sign up using your email address and password. This first step is quick, requiring only basic personal information.
- Set Up Multi-Factor Authentication: For enhanced security, Kraken requires setting up multi-factor authentication. This involves generating unique codes for login, funding, and a master key, usually through an app like Google Authenticator.
- Connect Your Bank Account: Linking a checking account is the most cost-effective way to fund your account. This step is super straightforward and typically completed in a few minutes.
- Add Funds: Deposit dollars into your Kraken account. Your verification level influences the amount you can deposit.
- Enter Your First Trade: With your account funded, you’re ready to trade. The trading interface is intuitive, guiding you through your first cryptocurrency purchase.
Selling cryptocurrency on Kraken is almost as intuitive as buying. You simply select the amount of cryptocurrency you wish to sell or the fiat currency you aim to acquire, review the details, and confirm the transaction. The platform’s clarity in displaying transaction fees and amounts ensures you’re always informed before finalizing a sale
Kraken Pro
Designed for more advanced traders, Kraken Pro features a competitive maker/taker fee model, where my fees decreased as my trading volume increased. It also offers a more advanced trading platform, employing a maker/taker fee model.
The maker and taker model is a technique for differentiating trade orders that remove liquidity (“taker orders”) from those that give it (“maker orders”). Kraken Pro offers affordable fees that decrease with increased trading volume, which we’ll touch on a bit later!
Buying on Kraken Pro involves (assuming that you first signed up with basic Kraken):
- Access Kraken Pro: Log into the advanced trading section.
- Select a Trading Pair: Choose from a range of cryptocurrency pairs, considering your trading strategy.
- Determine Order Type and Amount: Specify your order type (market or limit) and the amount you wish to trade.
- Execute the Trade: Review and confirm your order to complete the transaction.
Selling and trading on Kraken Pro follow a similar pattern, offering in-depth analytics and a detailed historical record of your transactions. The platform’s design caters to those who require a comprehensive and nuanced trading experience.
What Can You Buy on Kraken?
Much to our delight, Kraken offers a wide array of cryptocurrencies. As of this review, Kraken supports trading in 238 cryptocurrencies — a number that is continually expanding to include new and emerging tokens.
Here are some notable offerings available on Kraken:
- Major Cryptocurrencies: This includes well-known digital currencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC).
- Altcoins: A diverse range of altcoins such as Cardano (ADA), Polkadot (DOT), and Solana (SOL).
- Stablecoins: Including Tether (USDT) and USD Coin (USDC), which offer a stable value tied to the US Dollar.
- Privacy Coins: Cryptocurrencies like Monero (XMR) and Zcash (ZEC) that focus on providing privacy-enhanced transactions.
- DeFi Tokens: Representing decentralized finance projects, tokens like Uniswap (UNI) and Yearn.finance (YFI) are available.
- Emerging Tokens: Kraken is also known for adding new and trending tokens, catering to the evolving interests of its users.
Countries Supported by Kraken
With crypto becoming increasingly accepted around the world, Kraken is usable across numerous countries globally, in over 190 countries. We love this because it means more people can enjoy cryptocurrency trading. Here is a quick look at the countries that support trading on Kraken:
- Canada
- Australia
- Japan
- United Kingdom
- Several EU countries, including Germany, Spain, Italy, Sweden, etc.
- South Africa
- Brazil
- Mexico
- India
- Singapore
- South Korea
- United Arab Emirates
- Saudi Arabia
- Turkey
- United States (with exceptions in certain states, which we’ll cover in a sec!)
However, it’s important to note that this wide accessibility comes with certain regional constraints.
Notable Restrictions
Despite its global presence, Kraken faces restrictions in specific regions globally due to varying financial regulations and laws. These limitations can impact the availability of certain services or cryptocurrencies.
Here’s a quick list:
- Crimea
- Cuba
- Donetsk
- Iran
- Luhansk
- North Korea
- Sudan
- Syria
In addition to these countries, those living in New York and Washington states cannot use Kraken due to regulatory constraints. We highly recommend checking the regulations specific to your country to understand the extent of Kraken’s offerings available!
Understanding the Fee Structure on Kraken
As one of the prominent players in the cryptocurrency exchange market, Kraken adopts a structured approach to its fees, encompassing various transactions and services.
Let’s break it down:
Breakdown of Fees
Trading Fees
As we mentioned, Kraken operates on a maker-taker model, where the fees vary based on your 30-day trading volume. This approach offers a competitive edge for active traders.
- Fees start at 0.16% for makers and 0.26% for takers under Kraken Pro for trades up to $50,000.
- Calculated as a percentage of the trade’s quote currency volume.
Deposit & Withdrawal Fees
Kraken’s fee structure extends to withdrawals and deposits, catering to both cryptocurrency and fiat transactions.
- Deposit fees are mostly free, with few exceptions
- There are flat withdrawal fee rates, depending on the crypto you want to withdraw.
- The fees for fiat currency withdrawals depend on the currency and the method of withdrawal
- Fees for debit and credit card purchases, shown on the order’s final confirmation page.
Margin Trading & Instant Buy Fees
Margin trading on Kraken comes with its unique fee set. For Instant Buy services, including custom orders and recurring transactions, Kraken implements fees that consist of a displayed fee and, where applicable, a price spread.
- Margin trading: Opening fee between 0.015% to 0.02%, rollover fees of 0.01% to 0.02% every 4 hours.
- Instant Buy: Fees include a displayed fee and a spread, varying based on payment method, market conditions, asset, order size, and VIP program participation.
Comparison with Industry Standards
Compared to other cryptocurrency exchanges, Kraken’s fee structure aligns with common practices, yet it offers distinctive benefits in certain areas. The industry typically employs trading fees, withdrawal fees, and fees for specialized services like margin trading and staking.
Kraken’s competitive edge is evident in its tiered trading fees, which favor high-volume traders, and its approach to withdrawal and deposit fees, which accommodate a range of transaction types and methods.
Kraken’s Customer Experience
Kraken’s Support Team
When dealing with cryptocurrencies, timely and effective support is crucial. Thankfully, Kraken understands that crypto never sleeps and offers various customer support routes for you to consult.
Here’s how you can tap into their support system:
- Live Chat: For immediate assistance, Kraken’s live chat is readily available. It’s ideal for quick questions or urgent trading issues.
- Email Support: If your inquiry requires more detail, Kraken’s email support provides comprehensive responses. Expect a detailed answer in a reasonable time frame.
- Ticket System: For specific issues, the ticket system allows you to submit your problem and receive a targeted solution.
- Phone Support: For situations where a conversation is needed, phone support is available, connecting you directly with a support representative.
For the most part, our experience with customer support was helpful and prompt — similar to many other Kraken users. But, users also report delays in responses, and non-English speakers may face language challenges. Also, be prepared for some bumps in the road with verification processes!
Kraken’s Educational Material
Kraken’s ‘Learn’ section has something for everyone. From basic how-tos to complex concepts like parachain auctions, Kraken’s educational content is definitely one of the greatest aspects of the platform.
How Does Kraken Compare to Other Platforms?
When you explore the world of cryptocurrency trading platforms, you’ll find a variety of options, each with its unique offerings and benefits. Let’s examine how Kraken fares in comparison with some of the top contenders in the crypto exchange market.
Binance
While Binance is known for its extensive range of cryptocurrencies and high trading volumes, Kraken has its own set of advantages. Kraken is particularly recognized for its strong security measures, a critical aspect in the crypto world.
It also offers comprehensive customer support with 24/7 availability, which can significantly benefit you if you require assistance at any hour. Moreover, Kraken’s interface is user-friendly, making it an excellent choice for beginners and advanced traders alike.
Crypto.com
Crypto.com offers a wide array of services, including a crypto credit card. However, Kraken stands out with its staking options, allowing you to earn rewards on certain cryptocurrencies.
This feature is particularly advantageous if you want to generate passive income through your crypto holdings. Also, Kraken’s lower fees and strong regulatory compliance make it a secure and cost-effective platform for your trading needs.
Coinbase
Coinbase is often praised for its ease of use and popularity among newcomers to cryptocurrency. However, Kraken edges out in terms of lower trading fees, especially beneficial if you’re a high-volume trader.
Plus, Kraken provides more advanced trading options like margin trading and futures, which are appealing if you’re looking to diversify your trading strategies beyond the basics.
Robinhood
Robinhood is known for commission-free stock and crypto trading, attracting a broad user base. Yet, Kraken offers a broader selection of cryptocurrencies, which is crucial if you want to trade diverse digital assets.
Furthermore, Kraken’s detailed trading interface and advanced trading options give you more depth in your trading experience compared to Robinhood’s simplified approach.
Etoro
Etoro is popular for social trading and copy trading features. In contrast, Kraken’s advantage lies in its strong focus on security and extensive range of cryptocurrencies available for trading.
Not to mention, Kraken’s lower fee structure and the ability to trade using leverage positions it as a more versatile platform, especially if you’re looking for more control over your trading strategies.
Who Is Kraken Good For?
Kraken is a versatile choice for diverse trading needs. Beginners will find its user-friendly interface and abundant educational resources particularly beneficial for easing into cryptocurrency trading. In contrast, experienced traders and high-volume investors will appreciate Kraken’s competitive fees, advanced trading features like margin trading and futures, and a wide array of over 200 cryptocurrencies. This range of options allows for sophisticated trading strategies and portfolio diversification.
Secure-minded users will also like Kraken because its strong security protocols keep digital assets safe. Those interested in staking can use Kraken’s services to obtain rewards on certain cryptocurrencies, which can be added to their investment strategy to generate passive income. There is a wide range of people that Kraken caters to, from people who are new to crypto trading to experienced traders who want more depth and security. Kraken positions itself as a complete platform in the cryptocurrency space.
Final Verdict
This in-depth look at Kraken, a well-known player in the cryptocurrency exchange market, covers all of its different aspects. Kraken shows that it can serve a wide range of users, from new traders to experienced ones, with its easy-to-use features and clear explanations of its fee structure. You can make an informed decision by looking at the pros and cons that we’ve highlighted. As a flexible and safe option for crypto trading and investment, the platform’s wide range of cryptocurrencies, support for many countries, and comparative strengths against other major platforms make it stand out.
Whether you’re just starting your journey in cryptocurrency or seeking to enhance your trading strategies, Kraken presents a robust yet user-friendly environment. Its commitment to security, coupled with its comprehensive customer support and educational resources, ensures a smooth and empowering trading experience.
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