- Is Kraken a Reliable Exchange?
- Can all US citizens use Kraken?
- What are the features of the Kraken Exchange?
Out of more than 300 different Crypto Exchanges globally, it is tough to choose one that suits you. Some have security issues, some are not available in your jurisdiction, and some don’t even have the crypto token you want to buy.
That’s where CoinSutra helps. We comprehensively review each and every aspect of the available crypto exchanges and filter the best ones that you can use.
Today, we will review the Kraken exchange, which is one of the top crypto exchanges in the world. Further, it is the best alternative to Coinbase Exchange for US users.
So, let’s dive in and understand more about this exchange.
What is Kraken?
Kraken is one of the leading crypto exchanges in the world. The platform is based in San Francisco, California, established by Payward Inc.
The exchange was established long back in 2011. However, it went live on September 10, 2013.
In 2011, Jesse Powell (Founder and CEO) visited the Mt. Gox offices after the platform’s security breach. He thought of Kraken as a replacement for Mt. Gox.
Read: 51 crypto exchanges hacks : This history will blow your mind
Therefore, the focus was entirely on building the securest platform possible. The Kraken team worked for two years before launching the platform to the public.
Over the years, Kraken has gone through several funding rounds and was valued at around $10 Billion in February 2021. Currently, the exchange offers more than 500 crypto token pairs and has an average 24-hour trading volume of over $3 Billion. Further, the exchange has more than 6 million users.
Now, let’s know more about the man behind Kraken.
Who is the Founder of Kraken Exchange?
Jesse Powell – Linkedin – Twitter
Founder and CEO
Jesse Powell is the man behind Kraken Exchange.
He is based out of San Francisco, California. He has a degree in philosophy from California State University – Sacramento.
Before Kraken, Jesse has had a few other business ventures, such as Internet Ventures & Holdings (Gaming services), Lewt, Inc. (Services for virtual worlds), and Verge Gallery & Studio Project (Commercial fine art gallery).
What are the Components of Kraken Exchange?
The various components of the Kraken Exchange are as follows:
1. Features
Following are the features offered by Kraken to its users:
a) Trading Features
i. Instant Buy
Kraken has an instant buy feature that allows you to buy and sell crypto with fiat currency. Further, it also enables you to convert crypto with crypto.
However, the fees charged by Kraken for instant buying are very expensive. It is better to use the trade feature for spot trading. More on this in the fees section.
ii. Spot Trading
Kraken allows you to spot trade on its platform. More than 160 crypto tokens are available in more than 500 different token pairs.
Further, there are several order types that can be placed, such as:
- Limit order
- Market order
- Stop loss
- Take Profit
iii. Futures Trading
Kraken also allows you to trade derivative futures contracts. Currently, there are more than 25 different contracts available on the platform.
You can either long or short sell a particular contract with these futures.
For more information on Futures Trading on Kraken, click here.
iv. Margin Trading
Kraken allows you to lever your spot trades through Margin Trading. The margin is available up to 5 times.
If you are new to Margin Trading, then you can refer to our Margin Trading Beginner Guide here.
For more information on Margin Trading on Kraken, click here.
Also check out: Best Margin trading exchanges
v. OTC Trading
Kraken offers Over the Counter (OTC) trading for High-Net-worth Individuals (HNIs) and Institutional investors.
OTC trading helps execute large trades at a fixed price without disrupting the exchange’s order book.
You can know more about Kraken OTC Trading here.
vi. Advance trading features
Kraken also offers advanced trading features through Kraken Pro for professional traders. You get access to technical charts and indicators, which helps you with the technical analysis of a crypto token.
All the popular indicators such as Volume, RSI, MACD, Bollinger Bands, etc., are available.
b) Staking – Kraken Earn
Kraken provides staking services for its users. Staking is a process where you can park your funds with the platform and earn a stable passive income.
To learn more about staking, you can refer CoinSutra Staking Guide for Beginners.
Following are the tokens on which staking is available on Kraken, along with their respective rewards:
c) NFT Marketplace
Kraken is in the process of launching an in-house NFT marketplace.
The marketplace will allow users to exchange NFTs without paying any gas fee. However, custody of these NFTs would be helped by Kraken.
To know about the Kraken NFT Marketplace, click here.
d) Fiat Support
Kraken supports the following fiat currencies for deposit and withdrawal on the platform:
- USD (US Dollar)
- EUR (Euro)
- GBP (Sterling Pound)
- CAD (Canadian Dollar)
- JPY (Japanese Yen)
- CHF (Swiss Franc)
- AUD (Australian Dollar)
You can read more about Kraken Funding Options here.
2. Kraken Bank
In September 2020, Kraken got approval from the State of Wyoming to form the world’s first Special Purpose Depository Institution (SPDI), known as Kraken Bank.
Individuals could use Kraken Bank to pay their bills and receive their salaries in digital currencies. Further, it would help a seamless exchange between traditional and digital currencies.
The service will be launched in 2022 in phases to the existing users.
You can read more about Kraken Bank here.
3. Fees
Following are the various types of fees charged by the exchange.
- Instant Buy Fee
For Instant purchases, the following is the fee structure:
| Platform | Fees |
| Kraken Fee | 0.9% for Stablecoins1.5% for Other Coins or Forex pairs |
| Payment Platform | Card – 3.75% + $/€ 0.25 Digital Wallet – 3.75% + $/€ 0.25 Online Banking – 0.5% |
- Spot Trading Fees
The base trading fee for spot trades is as follows:
Maker Fee – 0.16%
Taker Fee – 0.26%
Further, this fee is discounted based on the trading volume of the user as follows:
| 30-Day Volume () | Maker Fee | Taker Fee |
| 0 – 50,000 | 0.16% | 0.26% |
| 50,001 – 100,000 | 0.14% | 0.24% |
| 100,001 – 250,000 | 0.12% | 0.22% |
| 250,001 – 500,000 | 0.10% | 0.20% |
| 500,001 – 1,000,000 | 0.08% | 0.18% |
| 1,000,001 – 2,500,000 | 0.06% | 0.16% |
| 2,500,001 – 5,000,000 | 0.04% | 0.14% |
| 5,000,001 – 10,000,000 | 0.02% | 0.12% |
| 10,000,000+ | 0.00% | 0.10% |
This fee is a bit different for Stablecoins or Wrapped Coins trades.
For Stablecoins (DAI, USDT) and Wrapped Coins (WBTC, WETH), the fees are as follows:
Maker Fee – 0.2%
Taker Fee – 0.2%
Further, this fee is discounted based on the trading volume of the user as follows:
| 30-Day Volume ($) | Maker Fee | Taker Fee |
| 0 – 50,000 | 0.20% | 0.20% |
| 50,001 – 100,000 | 0.16% | 0.16% |
| 100,001 – 250,000 | 0.12% | 0.12% |
| 250,001 – 500,000 | 0.08% | 0.08% |
| 500,001 – 1,000,000 | 0.04% | 0.04% |
| >1,000,000 | 0.00% | 0.00% |
- Futures Trading Fee
The base trading fee for spot trades is as follows:
Maker Fee – 0.02%
Taker Fee – 0.05%
Further, this fee is discounted based on the trading volume of the user as follows:
| 30-Day Volume ($) | Maker Fee | Taker Fee |
| 0 – 100,000 | 0.02% | 0.05% |
| 100,001 – 1,000,000 | 0.02% | 0.04% |
| 1,000,001 – 5,000,000 | 0.01% | 0.03% |
| 5,000,001 – 10,000,000 | 0.01% | 0.03% |
| 10,000,001 – 20,000,000 | 0.01% | 0.02% |
| 20,000,001 – 50,000,000 | 0.01% | 0.02% |
| 50,000,001 – 100,000,000 | 0.00% | 0.01% |
| >100,000,001 | 0.00% | 0.01% |
You can refer to the Kraken Fees Schedule here.
4. Security
Kraken is one of the most secure exchanges in the world.
Some compelling security features worth noting are:
- 95% of the exchange’s funds are kept in cold storage. Further, this offline storage is distributed geographically.
- The exchange’s servers are kept under cages watched by armed guards 24/7.
- All user information and other sensitive information are protected through encryption.
- Kraken team regularly tests its systems for possible threats and attacks. Further, the platform has a Bug Bounty program where programmers are rewarded for highlighting loopholes in the security ecosystem of the exchange.
- User accounts are secured with 2 Factor Authentication (2FA).
To know more about the Security of the Kraken Exchange, click here.
5. Interface
Kraken has a very user-friendly web interface for beginners and advanced users. You get a simple buy or sell interface. Further, you also get an interface with all charts and indicators to enable technical analysis.
In addition to this, Kraken has a fully functional mobile application for iOS and Android devices. On Google Play Store, the app has more than 1 Million downloads and has a rating of 4.6, which is very impressive.
Kraken Exchange Statistics (As of May 2022)
| No. of Tokens (Source) | 167 |
| No. of Token Pairs | 542 |
| No. of Derivative Markets | 29 |
| 24 Hour Trading Volume ($) | $ 3.9 Billion |
What are the Alternatives of Kraken Exchange?
The top alternatives of Kraken Exchange are as follows:
- Coinbase Exchange – Read our complete review of Coinbase Exchange here
- FTX Exchange – Read our complete review of FTX Exchange here
- Binance Exchange – Read our complete review of Binance Exchange here
What are the Pros and Cons of the Kraken Exchange?
The benefits and limitations of the Kraken exchange are as follows:
1. Benefits of Kraken Exchange
Kraken Exchange has the following benefits:
- Security
The exchange has a top-notch security protocol and follows almost all commonly accepted security practices. Further, on the user level, an account can be secured with 2 Factor Authentication (2FA)
- User Interface
The platform has a very user–friendly web interface that is appropriate for beginners and professional users.
Further, the exchange has a mobile application to support its services on the go.
- Token Pairs and Liquidity
Kraken has a large number of token pairs available for trading. Further, the exchange has deep liquidity to support these token pairs.
- Other Benefits
- The exchange a 24/7 customer support to help its substantial user base.
- Kraken is available for US citizens (Except for users from Washington and New York State)
However, there are a few limitations as well.
2. Limitations of Kraken Exchange
Kraken Exchange has the following limitations:
- High Transaction Fee
The transaction fee charged by Kraken is substantially higher (1.5% / 0.9%). However, Kraken pro charges a lower fee (0.16% / 0.26%); it is still higher than some competitors, such as Binance and FTX.
- Limited Fiat Options
Kraken has limited fiat options for deposit and withdrawal. At the time of writing, only seven fiat currencies are supported.
Conclusion – Kraken Exchange Review
Overall using Kraken is a smooth experience. It is a good bundle of security and ease of use. Further, it is available to US citizens.
Except for the instant buy feature, which is very expensive, the exchange is worth trying.
I hope this article helped you decide whether Kraken is a suitable exchange for you.
Nothing said in this post is financial advice. Please Do Your Own Research (DYOR) and consult your financial advisor before making any investment decision.
That’s it for this one. Let us know your feedback and suggestions in the comments section. Subscribe to CoinSutra Newsletter to get your FREE Crypto Trading E-book.
Sources
FAQ
Can US citizens use Kraken?
Kraken is available for US citizens (Except for users from Washington and New York State)
Is Kraken an Exchange or Wallet?
Kraken is one of the leading crypto exchanges in the world. The platform is based in San Francisco, California, established by Payward Inc. The exchange has an in-build custodial wallet.
Who is the CEO of Kraken Exchange?
Jesse Powell is CEO of Kraken Exchange.
Is Kraken a Reliable Exchange?
Yes, Kraken is a reliable exchange.
Digi is a seasoned content writer with over two years of experience writing about blockchain and Cryptocurrencies. Digant’s passion for Bitcoin and cryptocurrencies bloomed in late 2019. Crypto’s technological and economic implications are what interest him most.
He is a Chartered Accountant and Lawyer with over 10 years of experience in the FinTech industry. He likes to read, travel and go for long rides on his bullet bike.
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