Kraken Review

number three bronze medal
Kraken exchange

4.5

4.5/5
Min Deposit: €10

Pros & Cons

Pros

Cons

Kraken In a Nutshell

Founded in 2011, Kraken is one of the oldest cryptocurrency exchanges and has remained a top crypto exchange through the years. The Kraken exchange is based in the United States and must comply with American regulations, giving the exchange more credibility. Kraken currently offers over 50 cryptocurrencies on the platform, and you can get started with as little as $10.

It is possible to get started and open a Kraken account in just a few minutes, as the approval process generally takes less than an hour. Kraken also offers the unique feature of contracts and margin trading, which is not common to see on big cryptocurrency exchanges. In this Kraken crypto review, we will take a deeper look at the platform and its pros and cons to determine if it is worth using the Kraken exchange.

Kraken Review: What is Kraken?

Kraken was founded by Jesse Powell in 2011 and is known for its low transaction fees, unique features and excellent security. Following the well-known bankruptcy of the former gigantic bitcoin exchange MT. Gox, Kraken also assisted in terms of processing the claims for the company.

Kraken is currently available in the United States, European Union, Canada, Japan, and more countries are gradually being added to the platform.

The Kraken exchange was not fully launched until 2013 and has since then raised well over $100 million in funding from multiple reputable investors and currently has excellent security measures, 24/7 live customer support and high liquidity.

Kraken exchange

Kraken Fees

On Kraken, you will be charged a 0.9% fee on stablecoins and a 1.5% fee for any other cryptocurrency or FX pair. Either way, you will also be charged a simple 0.5% fee when using an online bank deposit and a 3.75% + €0.25 (or equivalent) fee for any card payments.

There is also a premium version of Kraken called Kraken Pro, which has a bit of a different fee structure in comparison to the basic account. Let’s take a look at the Kraken Pro fees.

Kraken Pro Fees

Traders on Kraken who has less than $50,000 in monthly volume can anticipate paying a 0.16% maker fee and a 0.26% taker fee. There are also progressive discounts for increased trade volume, and these cap out at $10,000,000 a month, at which point a trader pays no maker fee and only a 0.10% taker fee. See below for the full fee schedule:

30-DAY VOLUMEMAKER FEETAKER FEE
Up to $50K0.16%0.26%
$50K – $100K0.14%0.24%
$100K – $250K0.12%0.22%
$250k – $500k0.10%0.20%
$500k – $1M0.08%0.18%
$1M – $2.5M0.06%0.16%
$2.5M – $5M0.04%0.14%
$5M – $10M0.02%0.125%
$10M+0.00%0.10%

 

Withdrawal Fees

CRYPTOCURRENCYFEE
Bitcoin (BTC)0.0005 BTC
Ethereum (ETH)0.005 ETH
DASH (DASH)0.005 DASH
Ripple (XRP)0.02 XRP
Stellar Lumens (XLM)0.00002 XLM
Monero (XRM)0.0001 XMR
Tether (USDT)5.0 USDT
EOS (EOS)0.05 EOS

Start trading on Kraken today!

You can open an account with Kraken in just a few minutes. Click on “Open Account” and fill in your information.

Min Deposit: €10

Kraken Security

Kraken is currently one of the more secure cryptocurrency exchanges on the market as it has never been hacked. Some of the members part of founding Kraken was personally affected by the Mt. Gox collapse. That hack prompted them to take a number of steps to ensure that Kraken would never leave itself vulnerable to similar exploits.

Kraken claims that “95% of all deposits are kept in offline, air-gapped, geographically distributed cold storage. We keep full reserves so that you can always withdraw immediately on demand.”

Kraken also offers a number of extra security features such as two-factor authentication, withdrawal confirmation emails, IP checks and phone number verification. Most of these steps are common, yet effective measures to ensure that your own personal investments remain safe.

To keep the systems safe, Kraken also has its own internal security team while they also offer rewards for anyone who reports a potential exploit in the code of the exchange. In summary, Kraken is a secure cryptocurrency exchange and offers some of the safest trades on the market, with a long and proven track record.

Kraken Services

Kraken offers an advanced trading platform that includes spot and margin trading for more experienced traders. Kraken’s interface includes plenty of trading options, but it is not the most beginner-friendly platform to use, which is something to consider if you are new to cryptocurrency investing. Now lets take a deeper look at the services offered on Kraken:

Kraken Margin Trading

One of the best features of Kraken is its margin trading support. A risky form of investing that enables you to borrow money to fund investments using your existing investments as security. Furthermore, American customers are not legally allowed to use derivatives trading platforms like BitMEX or Bitfinex, which is why Kraken makes it possible for U.S traders to take out leveraged positions. Unfortunately, due to regulations, New York traders cannot use Kraken.

Margin trading could enable you to see exponentially larger gains, but could also expose you to margin calls that can cause huge losses if prices fall unexpectedly. Margin trading is a less common feature to see on current platforms available in the U.S. as the federal government is currently working out how it’s going to approach cryptocurrencies.

Keep in mind that margin trading comes with some extra costs. Users on Kraken can anticipate paying opening margin fees as well as rollover margin fees. Opening fees are determined when you first open your position and make a purchase. For opening fees on Kraken, the range is from 0.01% to 0.02%, depending on the base currency used.

Kraken Margin Trading

Kraken Futures Trading

Kraken also offers Futures trading or futures contracts. Future trading is, in short, an agreement to buy or sell an asset, in this case, cryptocurrencies, at a later date for a fixed price. The cost of these futures on Kraken is calculated based on the demand of a currency on various exchanges, making the price transparent to all users.

While we do not recommend any new traders to use futures, experienced traders can use futures to maximize returns by using the power of leverage to increase their profits, apply advanced trading strategies and speculate on market trends.

Kraken futures

Kraken OTC & Account Management Service

Kraken offers high volume traders, trading over $100,00, over the counter services that make it possible to execute large trades that won’t disturb the market with personalized service from the Kraken Trade Desk.

Kraken also offers one-on-one support with a dedicated account manager to frequent high volume traders to personally help with questions and requests so you can focus on trading instead of dealing with headaches.

kraken OTC

Kraken Cryptocurrencies

Currently Kraken offers a list of around 50 different cryptocurrencies on the platform and is gradually expanding its offering. Kraken also has strict requirements on which currencies can be listed on the platform to avoid listing malicious cryptocurrency projects.

Here is a list of 15 cryptocurrencies currently on Kraken:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Litecoin (LTC)
  • Aave (AAVE)
  • 0x (ZRX)
  • Enjin Coin (ENJ)
  • Filecoin (FIL)
  • Kava (KAVA)
  • Monero (XMR)
  • Orchid (OXT)
  • Rarible (RARI)
  • Polygon (MATIC)
  • Siacoin (SC)
  • Synthetix (SNX)

Kraken Design

Recently Kraken redesigned its trading dashboard with some cool new features. The trading interface might seem slightly cluttered at first, but it is not too complex once you master it. Like any other trading platform, new traders can choose to ignore some of the trading tools they do not currently use but can use in the future. Under the settings tab in the top right, users can pick between 13 colour schemes and easily change with just one click

kraken Dashboard design

The Kraken dashboard offers user customizations such as expanding the size of screens, drawing tools, retracement tools, Fibonacci extension and more. Users can also quickly get a grip of their current bids, asking prices, as well as trading history directly on the screen. The watch list is also conveniently placed on the screen so users can keep up on the latest movements in the market.

Kraken trading interface

Moreover, the Kraken dashboard can also be modifed in terms of the parameters on charts such as moving Bollinger bands, averages and trading indicators. Additionally, Kraken provides access to CryptoWatch and Dark Pool.

CryptoWatch gives real-time cryptocurrency market data, trading APIs to over 700 markets on over 25 exchanges, and charting.

dark pool trade is normally used by larger traders and is not displayed to the rest of the market. The minimum order size is 50 XBT or 2500 ETH and fees ranges from 0.20% to 0.36%, and are adjusted downward based on trading volumes.

Who Should Use Kraken?

In short, Kraken offers top-notch security, low trading fees, a customizable interface, and a broad selection of cryptocurrencies. We would consider Kraken a good choice for both new and experienced investors but keep in mind that the platform has a steep learning curve and is not as beginner-friendly as its competitor Coinbase.

If you are an experienced cryptocurrency investor, the Kraken platform should make you extra excited as they offer a long list of cryptocurrencies and services such as margin trading, staking, and advanced trading tools. If you join Kraken, you can benefit from its cryptocurrency trading markets and its increasingly low fees as trading volume increases.

Kraken Review: Final thoughts

Kraken is an option well worth considering given its superior security features, fast signup and approval process, and low transaction fees. However, it is not the best option for new traders due to its complicated interface.

Kraken has gained a well-known and good reputation throughout the years, and it doesn’t look like it will going anywhere anytime soon. 

Start trading on Kraken today!

You can open an account with Kraken in just a few minutes. Click on “Open Account” and fill in your information.

Min Deposit: €10

About the author

Gustav Eriksson

Gustav Eriksson

Gustav Eriksson is a cryptocurrency investor and founder of KrispCrypto. He has been a cryptocurrency investor for over ten years and loves personal finance.

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