>Is Kraken a reliable exchange? Can all US citizens use Kraken to trade? What are the Kraken Exchange’s features?
It is difficult to find the right cryptocurrency exchange for you among more than 300 available worldwide. Some are difficult to use, others have security problems, some may not be available in your area, and some might not even have the crypto token that you need.
CoinSutra can help. We thoroughly review all available crypto exchanges, and filter out the best.
We will be reviewing the Kraken Exchange, one of the most popular crypto exchanges worldwide. It is also the best alternative for Coinbase Exchange to US users.
Let’s get to know more about this exchange.
What is Kraken?
Kraken is one the most popular crypto exchanges worldwide. Payward Inc. founded the platform in San Francisco, California.
It was founded in 2011 and has been online since then. It went live on September 10, 2013, however.
Jesse Powell, founder and CEO of Mt. After the security breach, Gox was forced to close its offices. He saw Kraken as an alternative to Mt. Gox.
Read 51 Crypto Exchange Hacks: This History will blow your mind
The goal was to create the most secure platform possible. Before launching the platform to public, the Kraken team worked two years.
Kraken has been through many funding rounds over the years and was valued at approximately $10 billion in February 2021. The exchange currently offers over 500 crypto token pairs, and has an average daily trading volume of more than $3 billion. The exchange also has over 6 million users.
Let’s now learn more about Kraken.
Who founded Kraken Exchange?
Jesse Powell – LinkedinTwitter CEO and Founder
Jesse Powell is behind Kraken Exchange.
He is based in San Francisco, California. He holds a philosophy degree from California State University-Sacramento.
Jesse had a few business ventures before Kraken, including Internet Ventures & Holdings, Lewt, Inc. (Services to virtual worlds), Verge Gallery & Studio Project, (Commercial fine arts gallery), and Internet Ventures & Holdings.
What are the components of Kraken Exchange?
These are the components of Kraken Exchange:
1. Features
These are the features Kraken offers to its users.
A) Trading Features
i. Instant Buy
Kraken Instant Buy Feature
Kraken offers an instant buy option that lets you buy and sell crypto using fiat currency. It also allows you to convert crypto with cryptocurrency.
Kraken charges high fees for instant buying. For spot trading, it is better to use Kraken’s trade feature. You can read more about this in the fees section.
ii. Spot trading
Kraken Spot Trading Feature
Kraken lets you spot trade via its platform. Kraken offers more than 160 cryptocurrency tokens in over 500 token pairs.
There are also several order types that you can place, including:
Limit orderMarket orderStop lossTake profit
iii. Futures Trading
Kraken Futures Trading Feature
Kraken allows you to also trade derivative futures contracts. There are currently more than 25 contracts on Kraken.
These futures allow you to either short-sell or long-sell a specific contract.
Click here for more information on Kraken Futures Trading.
iv. Margin Trading
Kraken lets you leverage your spot trades via Margin Trading. Margin trading is possible up to five times.
You can find our Margin Trading Beginner’s Guide here if you are new to Margin Trading.
Click here for more information about Margin Trading on Kraken.
You might also like: Best Margin trading platforms
v. OTC Trading
Kraken offers Over the Counter trading (OTC) for Institutional and High-Net-worth Individuals.
OTC trading allows large trades to be executed at a fixed price and without disturbing the order book.
Learn more about Kraken OTC trading here.
vi. vi.
Kraken Advanced Trading Features
Kraken Pro offers professional traders advanced trading features. Technical charts and indicators are available to assist you in the technical analysis of crypto tokens.
All popular indicators like Volume, RSI and MACD are available.
b) Staking – Kraken Earn
Kraken Earn – Staking
Kraken offers staking services to its users. You can stake your funds on the platform to earn a steady passive income.
For more information on staking, please refer to CoinSutra’s Staking Guide for Beginners.
These are the tokens that can be staked on Kraken. They also come with their respective rewards.
Kraken Earn – Staking
c) NFT Marketplace
Kraken is currently launching an NFT marketplace in-house.
Users can exchange NFTs on the marketplace without having to pay any gas fees. Kraken would help with custody of these NFTs.
Click here to learn more about Kraken NFT Marketplace
d) Fiat Support
Kraken allows you to deposit or withdraw the following fiat currencies on the platform:
USD (US Dollar)EUR (Euro)GBP (Sterling Pound)CAD (Canadian Dollar)JPY (Japanese Yen)CHF (Swiss Franc)AUD (Australian Dollar)
Learn more about Kraken Funding Options.
2. Kraken Bank
Kraken Bank
Kraken received approval from Wyoming in September 2020 to create the first Special Purpose Depository Institution, or SPDI (Special Purpose Depository Institution), which is now known as Kraken Bank.
Kraken Bank could be used by individuals to pay their bills or receive their wages in digital currencies. It would also facilitate seamless exchange between digital and traditional currencies.
In phases, the service will be available to existing users in 2022.
Kraken Bank is available here.
3. Fees
The following are the fees that the exchange charges.
Instant Buy Fee
The following fee structure applies to Instant Purchases:
PlatformFeesKraken Fee0.9% Stablecoins
Spot trades have a base trading fee of $0
Maker Fee – 0.1%
Taker Fee: 0.26%
This fee can be further reduced based on trading volume.
30-Day Volume ()Maker FeeTaker Fee0 – 50,0000.16%0.26%50,001 – 100,0000.14%0.24%100,001 – 250,0000.12%0.22%250,001 – 500,0000.10%0.20%500,001 – 1,000,0000.08%0.18%1,000,001 – 2,500,0000.06%0.16%2,500,001 – 5,000,0000.04%0.14%5,000,001 – 10,000,0000.02%0.12%10,000,000+0.00%0.10%
The fee for Stablecoins and Wrapped Coins trades is slightly different.
The fees for Stablecoins (DAI and USDT) as well as Wrapped Coins are the following:
Maker Fee – 0.2%
Taker Fee – 0.2%
This fee can be further reduced based on trading volume.
30-Day Volume ($)Maker FeeTaker Fee0 – 50,0000.20%0.20%50,001 – 100,0000.16%0.16%100,001 – 250,0000.12%0.12%250,001 – 500,0000.08%0.08%500,001 – 1,000,0000.04%0.04%>1,000,0000.00%0.00%Futures Trading Fee
Spot trades have a base trading fee of $0
Maker Fee – 0.022%
Taker Fee – 0.05 %
This fee can be further reduced based on trading volume.
30-Day Volume ($)Maker FeeTaker Fee0 – 100,0000.02%0.05%100,001 – 1,000,0000.02%0.04%1,000,001 – 5,000,0000.01%0.03%5,000,001 – 10,000,0000.01%0.03%10,000,001 – 20,000,0000.01%0.02%20,000,001 – 50,000,0000.01%0.02%50,000,001 – 100,000,0000.00%0.01%>100,000,0010.00%0.01%
The Kraken Fees Schedule can be found here.
4. Security
Kraken is one the most secure exchanges around the globe.
These are some compelling security features that you should be aware of:
95 percent of the funds are stored in cold storage. This offline storage is geographically distributed. 95% of the exchange’s funds are kept in cold storage. The platform also has a Bug Bounty program, where programmers get rewarded for pointing out security holes in the exchange’s security system.
Click here to learn more about the Security of the Kraken Exchange
5. Interface
Kraken User Web Interface
Kraken’s web interface is very easy to use for both beginners and experts. The interface allows you to buy and sell. You also get all the charts and indicators you need to perform technical analysis.
Kraken also offers a fully-functional mobile app for both Android and iOS devices. The app is highly rated on Google Play Store with a rating of 4.6.
Kraken Mobile Application
Statistics on Kraken Exchange (As of May 20,22)
No. of Tokens (Source)167No. of Token Pairs542No. of Derivative Markets2924 Hour Trading Volume ($)$ 3.9 Billion
What are the Alternatives to Kraken Exchange?
These are the top options for Kraken Exchange:
Coinbase Exchange – Read our complete review hereFTX Exchange – Read our complete review hereBinance Exchange — Read our complete review hereBinance Exchange – Read our complete review hereBinance Exchange Read our complete review here
What are the pros and cons of the Kraken Exchange
These are the benefits and drawbacks of the Kraken Exchange:
1. Kraken Exchange Benefits
The following benefits are available to Kraken Exchange:
Security
The exchange follows all accepted security protocols and has a top-notch security protocol. An account can also be protected with 2 Factor authentication (2FA) at the user level.
User Interface
It has an easy-to-use web interface, which is suitable for both beginners and professionals.
The exchange also offers a mobile app to help users access its services while on the move.
Token Pairs and Liquidity
Kraken offers a wide range of token pairs that can be traded. These token pairs are supported by Kraken’s deep liquidity.
Other BenefitsKraken is available to US citizens, except for New York State residents.
There are however some limitations.
2. Limitations on Kraken Exchange
The following restrictions apply to Kraken Exchange:
Transaction fees high
Kraken charges a significantly higher transaction fee (1.5% / 0.9%). Kraken pro charges a lower transaction fee (0.6% / 0.26%), but it is still more than other competitors like Binance or FTX.
Limited Fiat Options
Kraken only offers limited fiat options for withdrawal and deposit. Only seven fiat currencies were supported at the time of writing.
Conclusion – Kraken Exchange Review
Kraken is an easy to use tool. It offers security and simplicity of use. It is also available to US citizens.
The exchange is well worth a try, except for the instant buy option, which can be very costly.
I hope you found this article helpful in deciding whether Kraken is the right exchange for you.
This post does not contain any financial advice. Before making any investment decisions, please Do Your Own Research (DYOR).
This concludes the first one. We welcome your comments and feedback. Get your FREE Crypto Trading Ebook when you sign up for the CoinSutra Newsletter
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FAQ
Can US citizens use Kraken?
Kraken is available to US citizens, except for those who are from Washington or New York State.
Kraken is an exchange or a wallet?
Kraken is one the most popular crypto exchanges worldwide. Payward Inc. founded the platform in San Francisco, California. The exchange comes with a custodial wallet.
Who is Kraken Exchange’s CEO?
Kraken Exchange CEO is Jesse Powell.
Kraken is a reliable exchange?
Kraken is a trusted exchange.
