Kraken: Bitcoin & Cryptocurrency Exchange | Kraken Review 2023

Cryptocurrencies have gained massive popularity in the last few years and with the growing interest of users, the crypto world is flooded with lots of cryptocurrency exchanges such as Coinbase, Gemini, and eToro.
In the midst of this thriving landscape, Kraken has raised the standards in the crypto industry and has firmly established itself as one of the most reliable, secure, and trustworthy trading platforms, gaining the trust of millions of crypto traders all over the globe. Kraken also holds the honor of listing on Bloomberg Terminal as the first Bitcoin exchange.
Kraken is backed by investors including Tribe Capital, SkyBridge, Hummingbird Ventures, Blockchain Capital, and Digital Currency Group, among others.

History of Kraken Exchange

Launched in 2011 by Jesse Powell in San Francisco, just two years after the creation of Bitcoin, the world's first cryptocurrency , Kraken is one of the oldest and most well-established cryptocurrency exchanges in the world. Jesse Powell served as the CEO of Kraken until 2023 when he was replaced by Dave Ripley.
The name "Kraken" was inspired by the legendary sea creature known for its power and strength which symbolizes the security and reliability Kraken offers.
Kraken is also known for its strong regulatory compliance, following all legal requirements and operating under proper licensing. Kraken offers 24/7 customer support and has great educational resources for beginners to learn crypto trading.
In its early days, Kraken offered trading of only a few cryptocurrencies. However, when it gained enough recognition and popularity, it expanded its services and included various cryptocurrencies like Bitcoin, Ethereum, Ripple, Litecoin, and many others.
Today, Kraken is continuously evolving and adapting to the ever-changing technologies of the crypto landscape and allows users to buy and sell 277 different cryptocurrencies. The exchange also introduced fiat currency trading pairs, allowing users to trade cryptocurrencies against major fiat currencies like the US dollar, the Euro, the British pound, etc.

Opening a Kraken Account

Opening an account on Kraken is very easy, and users can get started by following just a few simple steps. Here's a quick guide on how to do it.
Go to Kraken's official website by typing "kraken.com" into your web browser's address bar.

Look for the "Create Account" or "Sign Up" button on the Kraken homepage and click on it to begin the registration process.

Provide a valid email address and create a strong password for your Kraken account. Your password should be unique and secure to protect your account.
Once you've entered your email address, Kraken will send you a verification email. Check your inbox and click on the verification link to confirm your email.

Once you have created your account successfully, verify your account by clicking "get verified".

Provide your basic information such as your name, city, postal code, etc. in the next step.

With your account set up, now you have to fund your account by clicking on a deposit option. Kraken has various funding options including both fiat currency such as USD and cryptocurrencies.

Once you have funded your account, you can start trading.

Features of Kraken crypto exchange

Kraken offers a variety of trading features for both experienced traders and beginners. Let's look at the features that make it stand out in the competitive cryptocurrency exchange market.

I. Wide range of supported cryptocurrencies

Kraken facilitates the trading of a wide range of cryptocurrencies including Bitcoin, Ethereum, Litecoin, Solana, allowing users to have multiple choices to diversify their portfolio.

II. Fiat currencies support

Kraken supports deposits and withdrawals via multiple fiat currencies such as US Dollars (USD), Euros (EUR), and Canadian Dollars (CAD) with low fees compared to other exchanges. Moreover, funding in Canadian Dollars and SEPA (Single Euro Payments Area) is absolutely free.

III. Advanced trading features

Kraken provides not only simple trading tools for newbies but advanced trading tools for more experienced users, too. Margin trading, stop-loss orders, and conditional close orders are some advanced trading tools that make it one of the top choices of seasoned traders to buy and sell cryptocurrencies.
However, users need to upgrade to Kraken Pro, the exchange's advanced trading platform, to access and fully utilize these advanced trading tools.

IV. Margin trading

Margin trading is a type of trade where users borrow funds to bet on the future prices of cryptocurrencies while depositing cash as collateral for the loan. Kraken offers margin trading up to 5x, which means users can borrow funds five times greater than their deposited funds to magnify their chances of making a profit (or losses).
Kraken currently offers margin trading on these cryptocurrencies:

This platform charges only a 0.02% fixed fee to open a trading position and charges another 0.02% to keep it open for 4 hours.

Kraken also has a unique lending and borrowing feature that allows users to lend their crypto assets to other customers and earn interest on these assets.

V. Futures trading

Futures trading is one of the most popular and convenient methods of trading cryptocurrencies where investors speculate on the future price of a digital currency like Bitcoin. It involves futures contracts where investors bet on the future price of a cryptocurrency without actually owning or holding the cryptocurrency.

Kraken offers futures trading of 40 different cryptocurrencies. Unlike margin trading, which has a maximum leverage of 5x, Kraken allows users to trade cryptocurrencies with a leverage of up to 50x.

VI. Staking

Staking is a process in which investors stake or lock up their assets in a wallet for a specific period of time. These assets are then utilized by validators to validate transactions on the blockchain.
In return, users are incentivized in the form of tokens which can be exchanged for fiat currency or they can choose to compound their rewards by restaking them.
Kraken rewards users with 23% APY on different cryptocurrencies including BTC, Ether, ADA, SOL, and many more.

Interestingly, Kraken does not charge any staking fee.

VII. Kraken NFTs

Kraken's services are not limited to crypto exchange; it has just launched its own NFTs marketplace, which supports 250 different NFTs on the Ethereum, Solana, and Polygon blockchains.

Kraken does not charge any fee for buying and selling NFTs on the platform.

VIII. Trading Fees

Kraken has a different fee structure for maker and taker orders on its cryptocurrency trading platform. The maker fee is applied to traders who provide liquidity to the market by placing limit orders, while the taker fee is charged to traders who remove liquidity by executing market orders.
For stablecoins, Kraken Instant Buy charges a flat fee of 0.9%, and for all other cryptocurrencies, it charges a flat fee of 1.5%. However, these fees are comparatively low for more experienced traders who have access to the Kraken Pro Trading Platform.
The Kraken fee model is given here.

IX. Global Presence and Accessibility

Headquartered in San Francisco, Kraken's services are not limited to US crypto users and customers. Kraken has a huge number of customers in many countries around the globe including Japan, Canada, and Australia, and has already gained licenses for trading virtual currencies in many jurisdictions.

X. Security with Proof-of-Reserves Audit

Through Kraken's Proof-of-Reserves system, Kraken ensures it users that all the user's funds are safe and the company holds all the deposited funds.
These audits play a crucial role in building trust and confidence among users and make it a trustworthy and secure platform to buy and sell cryptocurrencies.

Disadvantages of Kraken

While Kraken is one of the top crypto exchanges in the crypto industry with so many features and advantages, users must also be aware of its potential challenges and disadvantages.

I. Limited User Interface

Some users find Kraken's interface to be less intuitive and user-friendly than other exchanges. New users might find it tough to execute trades and navigate the platform.

II. Customer Support Service Delays

While the Kraken crypto exchange claims to have a 27/7 customer support system, it still has faced continuous criticism for delayed response times from users especially during periods of high trading volumes or technical issues.
This can be frustrating for those users who want immediate assistance regarding their accounts and transactions.

III. Limited Fiat Currency Support

While Kraken supports local currencies for deposits and withdrawals, it still supports few of these currencies as compared to other crypto exchanges.

IV. Centralized exchange

Kraken is a centralized exchange which means that users do not have full control over their assets.

V. Slow verification process

Kraken has a very slow verification procedure and sometimes it can take days which is frustrating for new users who want to trade quickly and want to take advantage of the market.

Is Kraken the right choice for you?

Kraken might be a little confusing for new users due to its relatively complex user interface and the wide range of features it offers. However, if you are an experienced trader who values a platform with a wide range of crypto features, including margin trading with minimum fees and high security, then Kraken can be the perfect trading platform for you.