Exchanges are a fundamental part of the cryptocurrency world. While there are many to choose from, not all are safe and secure. That’s why we have to do our homework so we can find a secure crypto exchange best suited to our needs.
Coinbase and Bittrex are two popular cryptocurrency exchanges, as is Kraken. Below is a comprehensive review of the latter.
Founded 7 years ago, and launched to the public in 2013, Kraken is recognized as one of the oldest crypto exchanges. It is a popular choice for an exchange across the board, sparking an interest in both institutions and traders. There is an interest because Kraken is thought to be a secure destination for crypto trading.
What is Kraken?
Kraken prides itself in being the largest crypto exchange in terms of liquidity and euro volume. It is a platform intended for professional and/or intermediate traders. Kraken has had three separate funding rounds, and the exchange has also finalized five acquisitions, including Coinsetter, a BTC exchange.
What Countries are Eligible to Use Kraken?
Kraken is an international crypto exchange. Right now, Kraken is available to residents in the following countries: Canada, the United States, and certain nations in Europe.
The Kraken exchange can be accessed via its website and its iOS application. However, it appears the general consensus for the iOS app is that it has too many glitches and it is unpredictable.
Signing Up and Using Kraken
Kraken may be aimed at professional traders, but its sign up process is still very basic. All an individual is required to do is enter their name, e-mail address, and a password that is at least 8 characters. The characters must include letters, as well as special characters and numbers.
Once a user has set up an account, Kraken will offer two types of accounts. The first is a Basic account, in which a user just has to provide their name, birthday, home address, and mobile number. As for the advanced account, an individual is required to go through a more complex process. For example, that user will be required to upload their ID and set up 2FA. After that, the user will have to fund their account and add the bank account they will be transferring currencies to and from.
Buying and Selling Currency
Kraken accepts five different types of fiat currencies. They are as followed: USD, CAD, GBP, EUR, and JPY. Moreover, Kraken currently supports the following cryptocurrencies: Bitcoin, EOS, Dash, Bitcoin Cash, Ethereum, Gnosis, Ethereum Classic, Iconomi, Melon, Litecoin, Tether, Dogecoin, Augur, Monero, Ripple, Stellar, and Zcash.
Trading on Kraken
Unlike exchanges like Bittrex, Kraken does offer margin trading. However, Kraken only offers it on certain currency pairs. Those pairs are:
While Kraken fees are reasonably cheap, they depend entirely on the tier of your account. Essentially, the higher the tier, the more volume an individual can trade with their account. That’s what you want, as the more volume an individual trades, the lower the fees they will have to pay.
Kraken Trading Limits
It’s crucial to mention that Kraken operates based on a tiered verification system. There are four tiers in total. The first tier allows an individual to deposit, withdraw, and trade in digital and fiat currencies. The second tier allows an individual to deposit and withdraw fiat currencies, but it will depend on where they are located. There is a deposit limit for tier 2 users. Specifically, fiat currency deposits and withdrawals are restricted to $10,000 a month, and $2,000 a day.
Meanwhile, tier 3 users are eligible to deposit and withdraw virtual and fiat currencies. These users can participate in margin trading. Trading limits for tier 3 users include a $25,000 daily limit and a $200,000 monthly limit. If you live in Canada, Japan, Germany, or the United States, you will need to be a tier 3 user if you’re looking to withdraw and/or deposit in fiat currency.
Last but not least, Tier 4 users are required to contact the Kraken support team, as their requirements need to be clarified by a professional.
Pros and Cons of Kraken
Kraken may be one of the oldest exchanges, but that doesn’t mean it has completely mastered its corporate model. Kraken has its advantages, but it also has various disadvantages, which is why it is crucial that you weigh these factors before you set up a Kraken account.
- Easy to use
- Secure company with a good reputation
- In comparison to Coinbase, Kraken has a lower fee structure
- Margin trading is available to users
- Bank transfers are available to users
- Users can look at precise charting through TradingView
- Overall user experience could be improved
- Kraken is not beginner friendly
- Customer support has been known to have slow response times
- The iOS app is full of bugs and is unreliable
- The site has started to become unreliable, with errors being made
The Kraken Review Takeaway
In conclusion, Kraken is a good choice for those looking for low transaction fees and multiple security features. If you’re an experienced trader, this is an option worth considering. However, if you’re a beginner, many recommend staying away from Kraken due to its complicated interface. What’s more, Kraken has come under fire this year for errors that were made on its site. However, those errors were supposed to be fixed.
Overall, it’s recommended that you use Kraken with caution.
Featured Image: Twitter