Kraken
Kraken is a cryptocurrency exchange that provides trading pairs between cryptocurrencies and fiat currencies. It is the largest global digital asset exchange in Euro volume and liquidity.
Sign up KrakenWhat Is Kraken?
Kraken was founded as a replacement for then top exchange Mt. Gox after it suffered a breach in 2011. Founder Jesse Powell predicted that the crypto exchange might shut down, hence the need for another exchange that can bridge the gap. He was proved right in 2014 when Mt. Gox shuttered it doors permanently.
The crypto exchange is relatively small compared to counterparts like Coinbase and Binance. Kraken has 175 employees worldwide and its user-base sits at six million, with a quarterly trade volume of $1.83 billion. However, what the exchange lacks in size, it makes up for in security and trustworthiness.
Kraken is one of the most popular exchanges in Europe even though it is based in the United States. The exchange offers 69 cryptocurrencies for trading, including seven fiat currencies.
Kraken Vs. Kraken Pro
In addition to the web version, Kraken provides two mobile apps for trading; Kraken and Kraken Pro. The Kraken app caters to beginner-level traders and investors. Its interface is easy to understand with various payment methods for cryptocurrencies. Users can deposit up to seven fiat currencies including USD, EUR, CAD, GBP, AUD, CHY, and JPY.
Kraken Pro is a more advanced trading app. It requires connection to the Kraken app using an API key. Kraken Pro offers more advanced orders and both have very distinct user interfaces. However, the fees are the same on both apps as Kraken charges its fees on a per-trade basis.
How Safe Is Kraken?
Kraken boasts one of the most secure crypto exchanges in the market. In its decade-long history, Kraken has never been hacked. It is one of a few crypto exchanges who can confidently make this claim.
Kraken also protects its users by requiring 2FA authentication. Devices with face recognition capabilities are also required to be verified through facial ID of the user. Users can also manage approved devices. This is a list of devices that the user acknowledges are allowed to log into their Kraken account. Any login attempts from unapproved devices will be instantly flagged.
In addition, Kraken holds most of its users’ cryptocurrencies on cold wallet. In 2021, Kraken reportedly holds 95% of total cryptocurrencies on cold wallets around the globe, protecting the assets from malicious attacks.
Pros & Cons Of Kraken
To begin using Kraken, it is important to know the advantages and disadvantages to know if it is the right exchange for you. Some things to consider are fee structure, number of listed assets, security, etc. Compared to other exchanges, Kraken is a great choice for users who trade on a frequent basis.
Pros
- Provides great service for experienced traders
- Relatively low fees on deposits/withdrawals
- Low fees on instant trading
- Very safe. Security measures include two-factor authentication and approved devices list
- Offers a wide variety of trading pairs
- Wide range of options to pay, including bank transfers, Apple Pay, Google Pay
- Intuitive design that allows for customizations
- Kraken provides proof of reserves audits
- Users can stake assets, margin trade, futures, OTC, Dark Pool Trading, Cryptowatch, account management all on the same platform
Cons
- Verification process for intermediate/pro-level can be slow
- Low number of listed cryptocurrencies (69)
- Website can get slow with high traffic
- Interface can be daunting for beginners
- Instant purchase/SWIFT withdrawals fees are very high
- High minimum buys
Kraken Fees
Kraken offers an extensive list of ways to purchase and trade cryptocurrencies, hence it is good to know the fee structure of the exchange. The crypto exchange provides competitive fee rates for users.
Kraken Card Fees
For crypto purchases using a credit or debit card, transactions carry a 3.75% fees, and an additional €0.25 debited from the total amount. Minimum transactions amounts on card purchases is €10 and maximum spending is €7,500 in a time-based seven-day rolling period.
Note: Kraken processes all card transactions in Euros. If you are in the United States and choose to purchase crypto with card, the purchases on the card will be charged in Euros. So, it is important to make sure that your card issuer can process currency conversions before using this method.
Other Kraken Fees
Kraken charges 0.9% on stablecoin pairs and 1.5% for crypto or fiat currency pairs. Online banking and ACH processing fees are 0.5%. Digital wallets payments processing fees are 3.75% with an additional €0.25, similar to card fees.
For a complete guide on Kraken fee structures, check out their fees page.
Why Choose Kraken
Kraken is incredibly popular among crypto investors despite being relatively small compared to its peers. The appeal of the crypto exchange comes from its flexible pro trading platform tailored specifically to experienced traders. Kraken offers investors better fee rates on large transactions, making it an ideal crypto exchange for traders dealing with huge amounts of capital.
The exchange has also made strides in making its platform easily accessible for beginner investors. Kraken offers instant buys on its app that can be completed in a couple of clicks. The addition of payment methods like Apple Pay and Google Pay has also helped to draw new users to the exchange. This makes purchasing crypto for the first time easy for investors. In addition, users can purchase as low as €10 worth of crypto for a start.