Kraken Exchange Review: Safe or a Scam?
What Is Kraken?
If you are interested in reliable cryptocurrency trading, Kraken is the best option. What is Kraken? It is a leading cryptocurrency spot exchange based in the USA, which successfully provides its services since 2011.
Besides digital currency trading, Kraken also carries futures contracts and margin trading for its clients.
The platform was founded by Jesse Powel, who is CEO of the company today. He is also CEO of Payward Inc., which is an official owner of Kraken. Its main office is settled in San Francisco.
Kraken exchange is considered to be one of the most authoritative due to the great team of professionals. For this moment, Kraken’s team comprises around 200 specialists (crypto analysts, IT specialists, managers, etc.).
Kraken Review Summary
San Francisco, USA
GBP, USD, EUR, CAD, AUD, CHF, and JPY
Bank transfer, SEPA, Bank card (VISA) & SWIFT
0,02% - 0,26%
Easy of use
If you choose Kraken exchange, you receive:
The greatest plus of this exchange is that it gives freedom of choice. Users can select the most convenient payment method and cryptocurrency that is the most beneficial for them in a current situation from a really wide range of offered options.
Advantages and Disadvantages
Familiarize yourself with the Kraken exchange review to explore its peculiarities and decide if you need it or not. Thus, Kraken has the following key features:
Kraken Products & Services
Kraken exchange has carried successful trading operations since 2011. It is accessible for traders from many countries and is famous for low fees and great liquidity.
Kraken is a great platform for everyone, including:
The exchange allows clients to buy, sell, and trade cryptocurrency.
It is simple to start using Kraken exchange right now:
The company appreciates audience loyalty. It assures the highest level of security for all customers. Moreover, the Kraken team provides great client support service, which is multilanguage and constant.
Kraken crew has simplified and accelerated depositing and withdrawing procedures to save customers’ time and effort.
Crypto lending is not a common proposal on the market, but Kraken allows using all benefits of this service.
Kraken provides crypto lending or crypto loan, which is the possibility for traders to lend funds at interest to the exchange that disposes of them at its own discretion. Such a service allows investors to receive liquid funds, avoiding selling their cryptocurrency.
Crypto staking is one of the best methods for traders to increase their funds in staking coins and fiat. Even one operation of asset staking gives the possibility to receive staking profits and grow your funds in a very short time.
All you need to do to start crypto staking is to get special staking assets and choose one for a stake. Then, you will receive staking rewards twice a week.
Buy Crypto Assets Using Fiat Currencies
Kraken is a platform that allows trading with the use of both digital and traditional currencies. So, you can buy crypto assets for your fiat funds.
It is convenient that you can purchase any offered cryptocurrency for any fiat currency.
Kraken team has made everything necessary to assure its clients can use a fast and comfortable payment system. All depositing and withdrawing operations are accelerated. You are free to choose any payment method you want to increase convenience.
Moreover, Kraken provides transparent reporting of all transactions, which ensures a high level of financial security.
P2P (peer-to-peer) is the simplest method of transferring money from one private person to another.
Kraken allows using the P2P payment technique. Its clients can transfer money via mobile banking applications between two parties using their debit/credit cards or individual bank accounts.
Kraken tokenized stocks are a type of synthetic security that the platform puts in the blockchain.
Kraken Trading Platform
How to Trade on Kraken?
To start crypto trading, you need to register your personal account on the Kraken exchange and deposit your funds in it. Such investment allows you to join the buying and selling procedures.
There is a simple instruction for newbies to start cryptocurrency trading:
Consider that Kraken offers a variety of trading options and order forms.
Spot trading is one of the most popular services on the Kraken platform. Spot trade, which is also called foreign exchange spot (FX spot), is a convention between two parties about the purchase of a definite currency and selling of another one for a previously agreed value on a determined spot date.
Kraken offers some additional services like margin trading. Kraken margin trading is conduction of trading operations with the use of funds that you have borrowed from the exchange against security of a definite amount – margin.
Margin trading is a great possibility to trade even if you do not have enough funds on your personal account.
Kraken Futures and Derivatives
Futures and derivatives are agreements about buying or selling a definite asset for a determined price and at a stipulated time.
You can trade with these derivatives and change them to digital assets with Kraken leverage, which is up to 50, to receive benefits from price fluctuations and limit your price risk.
Which Countries Does Kraken Support?
Of course, since Kraken is a US company, and its main office is located in California, every US resident is absolutely free to use the platform. In addition, Kraken supports other countries.
Kraken is especially popular with the British as the exchange is accessible for every UK resident.
Though, there could be some restrictions for citizens of definite regions. More often, such restrictions depend on the peculiarities of local relevant legislation.
List of Banned Countries by Kraken
Regardless of the long list of countries, where Kraken is available for use, there are also banned regions by Kraken:
Nevertheless, consider that Kraken is one of the most liberal platforms, and it is always open for international customers.
How to Get Started with Kraken in the UK?
To join crypto trading with Kraken, you need to register first. There are several simple steps you need to make to sign up and create a personal Kraken account:
Kraken registration procedure does not take a lot of time and effort.
Does Kraken Require KYC?
Kraken requires KYC because its main purpose is to assure a high level of security for all clients and avoid fraud. It is possible to trade on kraken without KYC (Know Your Customer) verification. Though, be ready for withdrawal limits and consider that you would not be able to deposit and withdraw fiat currencies.
Depending on your decision to verify or not, you receive the possibility to register a basic or verified account.
Owners of basic accounts are free to trade with all offered cryptocurrencies, but trading with fiat currency is forbidden. In addition, with a basic account, your withdrawal limits would be quite low.
If you provide a verification procedure (KYC or AML), you receive access to a verified account. In this case, you are deprived of privacy because you need to provide your ID for identification. Though, you receive access to all Kraken services.
To verify the account, you need to:
Deposit and Withdrawal Options
How to Buy Crypto on Kraken?
It is possible to make deposits on Kraken with all currencies supported by the platform. In addition, Kraken deposits are unlimited even for those customers who do not have verified accounts.
Of course, if you want to deposit with fiat currency (EUR, GBP, USD, AUD, CAD, and JPY), you need to undergo a KYC verification procedure.
Kraken withdrawal system is not as loyal as a deposit one. There are more strict limits for those clients who do not pass a verification procedure.
You can deposit with a wire transfer or through a bank account. Kraken supports SWIFT for international clients, FedWire for customers from the USA, and SEPA for EU residents. Canadians can deposit with debit and credit cards as well.
Cryptocurrencies Supported by Kraken
Kraken exchange is a platform that allows customers to trade with both crypto and fiat currencies. The platform offers a wide choice of fiat currencies and coins for buying and selling.
There is a list of cryptocurrencies that are available for trading on Kraken:
This list of Kraken coins can be expanded as Kraken offers more than 70 cryptocurrencies for trading.
Take into account the fact that some cryptocurrencies from this list are not accessible for customers from certain countries due to specific local regulations.
Kraken gives the possibility to buy digital currencies for fiat. The list of fiat currencies available on Kraken includes:
Remember that some transactions with fiat currency, such as Kraken GBP withdrawal, are available only for clients who execute verification procedures.
In general, the costs at Kraken are low, and this has a great influence on the popularity of this exchange.
Kraken Trading Fees
Kraken fees are additional payments that the platform requires and charges when you make an order. The amount of Kraken trading fees varies from 0.02% to 0.26% of the total value of your order. Moreover, the fee is influenced by the currency pair you selected.
Kraken Deposit Fees
Kraken charges fees from all deposits in different fiat and cryptocurrencies. A fee of a sum of 0.02% of the deposit amount will be charged by Kraken from the transaction to a deposit address and the deposit sweeping transaction as well.
Kraken Withdrawal Fees
Kraken team has established a minimal fee for every withdrawal. Kraken charges 0.02% of the total sum of the withdrawal from every client.
For UK citizens, there are different withdrawal fees for diverse withdrawal methods:
Kraken provides the system of deposit and withdrawal limits. Such limits are influenced by diverse factors, such as verification level, residency, a sum you want to deposit or withdraw, etc.
There are some peculiarities of Kraken trade limits:
There could be an individual approach to the level of limits if you have a business account or personal Kraken account with Pro limits. Owners of such accounts can contact the Kraken team and increase limits.
A limit purchase is one of the exchange orders that gives customers the possibility to buy and sell cryptocurrency for the best price. Traders use limit buying to wait for the occasion when there would be a perfect moment for purchase or selling.
Regulation and Security
Is Kraken Safe?
A great security system is one of the strong points of the Kraken platform. Due to the professional work of qualified specialists, the establishment of the latest encryption technologies, and the use of the best verification methods (KYC and AML), Kraken exchange is one of the safest platforms on the crypto trading market. Moreover, all operations you make with Kraken currencies are transparent for clients.
Is Kraken Regulated?
Kraken activity is officially regulated by FinCEN in the USA, FCA in the UK and Japan, and FINTRAC in Canada. The platform is registered as MSB (Money Services Business). The Wyoming division of banking regulates Kraken bank.
Furthermore, Kraken complies with all legislation requirements of those regions it operates with.
Could Kraken Be a Scam?
The official website of Kraken exchange is safe and trustworthy as it is regulated by authoritative bodies from different countries. It provides its activity in accordance with the legislation of the countries that the platform supports.
Was Kraken Hacked?
Kraken is a crypto exchange that has never been hacked. Of course, hacking methods are progressing, and there is a risk that your account could be hacked by fraud. Though, the Kraken team updates its security system on a regular basis implementing diverse digital innovations for your safety.
Kraken provides an app that you can use on a desktop or laptop computer. Such a desktop application is a software system that allows you to use the necessary program on a portable computer anytime you need it. Kraken desktop app is appropriate for Windows, macOS, and Linux.
Kraken app for iOS is a great possibility for all iPhone, iPad, and Mac users to receive a full package of Kraken services anytime and anywhere.
Such application is ideal for those who are always on the go. In addition, the interface of the Kraken app is even more user-friendly than the interface of the official website. So, it would be a godsend for beginners.
The platform also provides Kraken Android app. This application is compatible with all devices that are supported by the Android operating system. Kraken app Android gives customers the same package of services that they can get in the browser version.
Apps allow you to choose cryptocurrency pairs, make deposits, and get withdrawals without spending a lot of time on these processes.
Customer Support and User Reviews
In fact, there are a lot of Kraken bitcoin reviews on the Internet due to the availability of a large number of clients. So, it is easy to familiarize yourself with the peculiarities of the exchange functioning in different countries.
There is an advantage mentioned almost in every review. Kraken clients are satisfied with great customer support. Kraken offers 24/7 live chat and help center.
The crypto industry is very popular; so, it is obvious that Kraken has a lot of competitors. Famous Kraken alternatives are Bitpanda, CEX.IO, Coinbase Pro, eToro, Coinmama, and others.
Kraken vs. Coinbase
Coinbase is considered to be one of the largest Bitcoin brokers in 2022; so, it is the main competitor to Kraken.
Both exchanges are US platforms with multi-year experience. Coinbase is allowed to service clients from New York State, but Kraken is not. Though, Kraken offers a wider list of currencies to trade. Moreover, Kraken proposes more altcoins for trading than Coinbase does.
Is Kraken a Wallet?
Kraken is not an electronic wallet, it is a crypto exchange service. Kraken gives customers the possibility to sell and buy cryptocurrency on its platform. The platform has a corporate wallet, which is used for deposit and withdrawal procedures.
You can find more information about the exchange by reading informative Kraken reviews.
How Do I Deposit on Kraken?
To deposit on Kraken, you need to register and create your personal account.
After the signing-up process, you need to decide what depositing payment method to choose. It is possible to deposit with a card, cash, and cryptocurrency.
To deposit, you need to:
The process is very simple.
How Do I Create an API?
API is an equivalent to standard identification keys like password and login. To create it on Kraken, you need to:
The API creation is quite fast.
How Can I Buy Cryptocurrency with Kraken P2P?
Make these simple steps:
How Do I Start Leveraged Trading on Kraken?
Just choose the desired level of leverage in any order form (Intermediate or Advanced) or in the Kraken Pro application and start trading on margin. In addition, Kraken offers you the choice of margin trading pairs.
Can I Withdraw Money from Kraken?
Yes, you can withdraw your money. Follow these steps:
During Kraken withdrawal, remember about limits in accordance with the currency and your region.
Can I Buy Bitcoins on Kraken?
Yes, it is possible to buy Bitcoin on Kraken, as well as other cryptocurrencies. Thus, Kraken offers the list of more than 70 cryptocurrencies for trading.
To acquire Bitcoin on Kraken, you need to follow the instruction:
These steps will also help you to buy another cryptocurrency.
How Do You Buy Bitcoins on Kraken?
You can buy bitcoins and other cryptocurrencies on Kraken only if you are a registered user. So, there are several steps you need to take to buy BTC on the exchange:
You can also buy Bitcoin with the use of a margin trading service.
If you are interested in cryptocurrency trading and want to join the Kraken community but still have some doubts, contact us and ask your questions. Our experts are always ready to give you answers and explain the peculiarities of the work of the Kraken team.
Kraken Review Summary
We have analyzed key features of Kraken based on 3 important criteria for choosing crypto exchange:
Based on researches and our own tests, we have made an independent rating.