Kraken Review – Exchange Features, Trading Fees and Security
Kraken is one of the oldest and most respected cryptocurrency exchanges available today. The platform has managed to secure over four million clients and is used by both professional and intermediate traders daily. Additionally, Kraken consistently ranks among the top five exchanges in the world. For these reasons, many consider this platform to be one of the most successful Bitcoin exchanges to date.
Benefits of The Kraken Exchange
Kraken’s success didn’t happen overnight and can be attributed to a combination of factors. The exchange has remained on the cutting edge of innovation since its introduction. Here are some of the top benefits Kraken traders enjoy.
It’s all about securing your funds. Kraken employs top quality industry security measures. For example, your account remains protected via a multi-layered approach that includes a 2 Factor authentication system as well as PGP email encryption. Impressively, Kraken has never been site-wide hacked despite being one of the oldest and most active options available today.
Kraken is designed in a way that makes it easy for new users to navigate the exchange’s core functionalities. Additionally, the platform supports use by new investors and small starting capital. In this way, Kraken continues to do its part in terms of large scale crypto adoption.
As part of this support for new users, Kraken integrates a moderate fee structure. The platform’s fees fall in line with its competitors in most categories. However, the network features reduced withdrawal and trading fees. These reduced fees are seen as a significant draw for the network.
Transparency was another primary concern for Kraken’s developers. As such, Kraken was the first exchange in the world to carry out proof of reserves audits. These protocols provide users with a monitoring tool to ensure that the exchange’s operations remain above water. To this day, there are popular exchanges that still haven’t matched this level of commitment to their users.
Kraken also serves a valuable role as a reliable fiat on-ramp into the sector. Currently, the platform accepts various global currencies. This strategy makes Kraken an ideal choice for an international clientele. It also provides global traders with more options regarding how they want to interact with the network.
Kraken users can trade a wide variety of cryptocurrencies and fiat currencies using the platform. The network provides a host of trading activities, including spot and margin trading for more experienced users. Crypto-wise, the platform supports a healthy selection of coins, including Bitcoin, Ethereum, Litecoin, Monero, and numerous other cryptocurrencies.
How Does The Kraken Exchange Work
Kraken is a custodial exchange, meaning that your funds are kept in network wallets directly. The platform introduces a clean and easy to use interface that simplifies trading activities. Notably, there are three distinct account types users must choose between when they register for the exchange. These options are set based on your trading skill level.
The first account type available to new users is the Starter account. This portal allows you to buy and trade crypto on the Kraken network quickly. You will need to provide the system with your full name, email address, primary address, and phone number to get started. Notably, this account level doesn’t permit fiat purchases.
More advanced traders should go with the intermediate account setting. This account provides more options but also requires you to provide more identification. Intermediate users need to supply Kraken with their occupation, social security number, government ID, proof of residence, and face verification. Once approved, intermediate users enjoy lower funding restrictions and purchase crypto directly using fiat currency.
Professional traders must choose between an individual or business account. This style of account unlocks the full potential of the platform. You gain access to powerful features such as margin and over-the-counter trading. Notably, it takes a little longer for these accounts to receive verification. On average, a Pro account takes around five days to verify.
Pro users can leverage their efforts using the margin trading feature. To utilize this feature, you will need to load your account via wire transfers. Kraken currently supports USD, JPY, CAD, and GBP transfers for margin trading.
Kraken also offers professionals the ability to trade futures. Trading futures is an advanced strategy that allows users to bet on a digital asset’s future price. Notably, Kraken users can trade top cryptocurrency futures with up to 50x leverage at this time. Trading futures brings along with it the benefit of low transaction fees. Currently, the exchange supports future trading on Bitcoin, Ether, Litecoin, Ripple XRP, and Bitcoin Cash.
History of The Kraken Exchange
Kraken entered the market in July 2011. It was among the first contenders in the market. Today, it operates as one of the largest Bitcoin exchange service platforms globally regarding Euro market trading value. In recent years, Kraken has expanded its network to include the world’s first brick-and-mortar cryptocurrency bank – Fidor Bank AG.
How to Use The Kraken Exchange
Kraken has a regular signup procedure in line with most major exchanges. To get started trading on this platform, you need to create an Account page on the top right. Here you will be required to fill in the personal information. Next, you will need to create a master key to secure your account. This key gives your account another layer of protection against unauthorized withdrawals. Once you complete this step, you will receive an email with an activation key. Copy and then paste the key into your trading portal and you are all set.
Kraken – Experience and Innovation
Kraken exchange continues to remain a popular option in the market for multiple reasons. The platform’s stellar security record, combined with its many features, makes it ideal for a wide array of traders. You can expect Kraken to remain a top contender in the market moving forward.