- Kraken overview – what is Kraken?
- Kraken alternatives
- Kraken pros and cons
- Kaken at a glance
- Are there any fees?
- Conclusion – is Kraken safe and legit?
- Frequently asked questions
Kraken Overview – What is Kraken?
With crypto exchanges pausing withdrawals every month, finding a reliable cryptocurrency exchange can take time and effort. And with cryptocurrencies hitting new highs and lows every week, finding an exchange that you can trust is critical. Kraken fulfills all the criteria for a trustable and secure crypto exchange.
Founded in 2011 in San Francisco, just two years after Bitcoin (BTC), Kraken is one of the oldest cryptocurrency exchanges in the market. In addition, Kraken offers a platform with top-notch security and over 185 cryptocurrencies to trade. The platform supports individual and institutional investors at a price point on the lower side of the average. Also, while Kraken holds a full reserve of customer funds, it employs an independent, cryptographically-verified audit to prove that the funds are properly held. Kraken boasts over 9 million clients in over 190 countries with a quarterly trading volume of over 207 billion.
Kraken Alternatives
Coinbase
Coinbase is one of the world’s largest crypto exchanges, making it easy to buy, sell, and exchange cryptocurrency. Coinbase offers crypto trading solutions to beginner, advanced, and institutional traders alike.
Read our Coinbase review here
Kraken vs Coinbase
- Kraken and Coinbase are centralized exchanges where users can buy and sell cryptocurrencies.
- Coinbase supports more cryptocurrencies than Kraken.
- Kraken and Coinbase allow users to stake their cryptocurrencies for varying interest rates. However, Kraken generally offers a higher interest rate and lets you stake more coins.
- Coinbase only supports spot currency trade, but you can also do futures trading with Kraken.
- Kraken’s trading fees for most trades are much less than that of Coinbase.
- The maximum daily deposit and withdrawal amount are $100,000 on Kraken, while it’s $25,000 on Coinbase.
Gemini
Gemini is a US-based beginner-friendly crypto exchange with a track record of never being hacked. The platform has FDIC protection for USD and is quite easy to use.
Kraken vs Gemini
- Kraken and Gemini are both centralized exchanges for buying and selling cryptocurrencies.
- Kraken supports more cryptocurrencies than Gemini.
- Gemini is available in all US states, including New York, which is not the case for Kraken.
- Kraken has had past security problems where users have lost money due to hackers. On the other hand, Gemini has never been hacked.
- Unlike Kraken, Gemini doesn’t have any staking feature. However, users can earn interest by holding certain cryptocurrencies in their accounts.
- The maximum transfer amount on Gemini is $5,000 daily and $30,000 monthly for deposits, and $100,000 daily for withdrawals. In contrast, it is $100,000 daily on Kraken.
Read our Gemini review here
Binance
Founded in 2017, Binance is the world’s most widely used crypto exchange that offers rock-bottom fees. The platform offers a wide variety of trading features, including useful charts and an intuitive user interface. However, many options and features are not accessible to US customers.
Read our Binance review here
Kraken vs Binance
- Both Kraken and Binance are centralized crypto exchanges that sell, send, receive, and exchange cryptocurrencies.
- Binance supports over 500 cryptocurrencies compared to Kraken, which supports about 185. But US customers can only access around 70 cryptocurrencies on Binance.
- Both exchanges allow users to stake their crypto and other types of transactions.
- Kraken is a US-based exchange, so the platform feels less limited than Binance.
- Kraken fees are higher than Binance.
- Binance has less transparency around fees and security measures than Kraken.
Kraken Pros and Cons
Pros:
- Large selection of digital assets: Kraken supports more than 185 coins, including popular cryptocurrencies like Bitcoin, Ethereum, Cardano, Solana, and Dogecoin.
- Simple User Interface: Kraken is really easy to use, even for beginners with no prior crypto experience.
- High Liquidity Exchange: Kraken is an active exchange which enables customers to buy and sell at market rates.
- Low Fees for Advance Traders: Kraken Pro provides advanced trading services at very low fees.
Cons:
- Limited Funding Options: Kraken only accepts a select few fiat currencies, making it difficult for customers to fund their accounts.
- Limited Availability: Kraken is yet to be available in all 50 US states.
- Higher Fees: The main Kraken platform charges higher trading fees than Kraken Pro.
- Losses Due to Hacks: Some users have made reports of costly hacks with little to no support from Kraken.
Kraken at a glance
| Minimum trade | $10 |
| Trading and transaction fees | Up to 1.5% for most cryptocurrencies, though Kraken Pro offers much lower pricing. |
| Number of cryptocurrencies | More than 185. |
| Crypto-to-crypto trading pairs | 130. |
| Website transparency | On Kraken’s website, you can easily find important information, including investment minimums, supported assets and how to close an account. |
| Storage offering | While Kraken doesn’t insure customers’ crypto, it has a solid track record for digital security. |
| Staking and rewards | Kraken offers customers the ability to stake 20 digital assets, with rates up to 21%. |
| Mobile app | Kraken’s apps for iOS and Android have an average rating above 4 stars. |
| Customer service | Kraken has 24-hour live phone and chat support. |
Kraken Fees
On Kraken, the fees vary greatly depending on the platform you’re using and the type of trade you’re doing. For instance, the fee is 1.5% for instant purchases of most cryptocurrencies and 0.9% for stablecoins. The additional fees depend on how you fund your account. Prices can range from 0.5% for funding with a bank account to 3.75% plus €25 with deceit cards, credit cards, or digital wallets.
Meanwhile, Kraken Pro offers much lower pricing than the main Kraken platform. Kraken uses a maker-taker fee schedule where the trading fees depend on your total trading volume over the last 30 days. And clients trading over $100,000,000 in 30-day volume on spot crypto pairs can enjoy 0.00% maker fees and 0.08% taker fees. In addition, Kraken is currently running free trials on select pairs, and the promotion is valid until February 15, 2023.
Conclusion – Is Kraken Safe And Legit?
To sum it up, Kraken is well worth considering due to its excellent security features and low transaction fees. With Kraken providing separate platforms for different audiences, it is ideal for both beginner and expert cryptocurrency traders and investors. Over the years, Kraken has gained a considerable reputation as a veteran crypto exchange, and it doesn’t seem to be going anywhere anytime soon. However, few users have reported serious account security issues. So, take your time to understand all the risks involved and make sure to secure your account with two-factor authentication.
FAQ about Kraken cryptocurrency exchange
Is Kraken better than Coinbase?
While Kraken and Coinbase offer similar features, Kraken is a better choice for advanced cryptocurrency traders. Kraken offers lower fees for sophisticated traders with larger portfolios. Meanwhile, Coinbase would be a better choice for beginner crypto investors as it charges much lower fees than Kraken for its “Instant Buy” product. In addition, Coinbase is a better choice if you plan on spending or transferring your crypto rather than just using it as an investment.
Is Kraken legal in the US?
Kraken is legal in all US states except Washington and New York. Also, on Kraken, US residents can’t hold, deposit, or trade: ACA, AGLD, AIR, ALICE, ASTR, ATLAS, AUDIO, BSX, CFG, CSM, GLMR, INTR, JASMY, KAR, KILT, KIN, KINT, MC, MV, MOVR, NMR, NODL, NYM, ORCA, OXY, PARA, PERP, PHA, PSTAKE, RAY, REQ, ROOK, SAMO, SDN, STEP, TEER, TOKE, WOO, YGG or XRT.
Can I withdraw USD from Kraken?
Kraken allows its users to withdraw USD from the platform. Other fiat currencies you can withdraw from Kraken include EUR, CAD, AUD, GBP, CHF and JPY.
Which is better, Kraken or Binance?
Binance is better than Kraken in terms of having a smoother user experience. However, Kraken is more transparent about fees and security. Also, Kraken is more responsive to customer service inquiries than Binance.
