Kraken Review 2024: Crypto Exchange for US Traders

Kraken, founded in 2011, is one of the most established cryptocurrency exchanges, serving over 10 million users in more than 190 countries.

The platform offers over 200 cryptocurrencies and sophisticated trading features like margin trading, staking, and advanced order types, appealing to novice and experienced traders.

Kraken is known for its strong security measures and 24/7 customer support, though it has some limitations, such as restricted funding options and varying availability in the US.

Despite these, Kraken’s long-standing reputation and comprehensive features make it a top choice for many crypto enthusiasts.

Product Offerings: What Is Kraken Exchange All About?

Kraken offers diverse cryptocurrency products and services to cater to various trader needs.

The platform provides multiple ways to engage with digital assets, from advanced futures trading to simple spot transactions, staking opportunities, and NFT support.

Futures

Kraken’s futures trading platform lets you speculate on cryptocurrency price movements without owning the underlying assets. You can trade perpetual contracts, which don’t have an expiry date, on major cryptocurrencies like Bitcoin and Ethereum.

Leverage options up to 5x are available, enabling you to amplify your potential gains (and losses). For example, with a $1,000 investment and 5x leverage, you could control a $5,000 position.

A typical futures trade might involve shorting Bitcoin when you expect the price to fall. If Bitcoin drops from $30,000 to $29,000, your chosen leverage would magnify your profit. To learn more check this Kraken leverage trading guide.

Spot

Spot trading on Kraken involves buying and selling cryptocurrencies at current market prices. The platform supports over 200 cryptocurrencies for spot trading, including popular options like Bitcoin, Ethereum, and Cardano.

When executing a spot trade, you can see the current market price and place market or limit orders. For instance, you might buy 1 ETH at $2,000 using USD from your Kraken account.

Kraken’s user-friendly interface makes it easy to view order books and price charts and execute trades quickly. The platform also offers advanced order types like stop-loss and take-profit orders to help manage your risk.

Staking

Kraken’s staking service allows you to earn rewards on your cryptocurrency holdings. You can stake a variety of coins, including Ethereum (ETH), Polkadot (DOT), and Cardano (ADA).

Staking rewards are paid bi-weekly, providing a regular income stream from your crypto assets. The annual percentage yield (APY) varies by cryptocurrency and market conditions.

For example, at the time of writing, staking Ethereum on Kraken could earn you around 4-7% APY. If you stake 10 ETH (worth about $20,000 at $2,000 per ETH), you could earn approximately $800-$1,400 in annual rewards.

NFTs

Kraken supports trading non-fungible tokens (NFTs), allowing you to buy, sell, and store these unique digital assets. The platform focuses on popular Ethereum-based NFT collections.

You can browse NFT collections directly on Kraken’s marketplace. For instance, you might find NFTs from well-known projects like Bored Ape Yacht Club or CryptoPunks available for purchase.

Kraken’s NFT platform integrates with its existing crypto trading and custody services. You can use your Kraken account balance to buy NFTs and store them securely in your Kraken wallet.

 

Kraken Review Supported Coin List

Kraken offers an extensive selection of over 200 cryptocurrencies for trading. You’ll find all the major coins like Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA) available on the platform.

Some popular altcoins supported include:

• Litecoin (LTC)
• Polkadot (DOT)
• Solana (SOL)
• Dogecoin (DOGE)
• Ripple (XRP)

Kraken lists many emerging and lesser-known cryptocurrencies, giving you access to various investment options.

When comparing Kraken’s offerings to those of competitors like Binance, you’ll find a similar breadth of choices. While Binance may have a slight edge in the total number of coins listed, Kraken still provides ample variety for most traders.

Here’s a quick comparison of supported coins:

Exchange	Total Coins	Major Coins	Emerging Coins
Kraken	200+	All	Many
Binance	350+	All	Extensive

You can easily search and filter coins on Kraken’s platform to find the cryptocurrencies you’re interested in trading. New coins are added regularly, so be sure to check for updates.

 

Kraken Review Order Types

Kraken offers several order types to suit different trading strategies. The main options include market, limit, and stop orders.

Market orders execute immediately at the best available price. You’ll get quick fills but may experience slippage in volatile markets.

Limit orders let you set a specific price to buy or sell. Your order only executes if the market reaches your chosen price. This gives you more control but may result in unfilled orders.

Stop orders trigger at a predetermined price and then execute as market orders. They help limit losses or secure profits on existing positions.

To place an order on Kraken:

1. Select the trading pair
2. Choose your order type
3. Enter the amount and price (for limit orders)
4. Review and submit

Here are some scenarios for using different order types:

• Use market orders when you need immediate execution, like during breaking news events.
• Place limit orders to buy dips or sell rallies at specific price targets.
• Set stop losses below your entry price to protect against unexpected downturns.

Kraken also offers advanced order types for experienced traders, including stop-limit orders and trailing stops. These provide additional flexibility for complex trading strategies.

Remember always to consider your risk tolerance and market conditions when selecting order types. Proper order placement is critical to executing your trading plan effectively.

 

Kraken Review’s Liquidation Mechanism

Kraken employs a robust liquidation mechanism to manage risk in leveraged trading. You must maintain a certain margin level when you open a margin position.

If your margin level drops below the maintenance threshold, typically around 40%, Kraken initiates an automated liquidation process. This helps protect both you and the exchange from excessive losses.

You can use risk management tools like stop-loss and take-profit orders to avoid liquidation. These allow you to set predetermined exit points for your trades.

Here’s a simplified example of a liquidation event:

1. You open a 5x leveraged long position on BTC/USD
2. The market moves against you, reducing your margin level
3. Your margin level falls below 40%
4. Kraken automatically closes your position to prevent further losses

Kraken charges a liquidation fee, typically 0.5% of the position size, to cover the costs of forced closure. This fee is deducted from any remaining margin in your account.

Monitoring your positions closely and adding funds if needed to maintain adequate margins is crucial. Understanding Kraken’s liquidation mechanism allows you to trade more responsibly and minimize your risk of unexpected losses.

 

Kraken Review Trading Fees

Kraken employs a maker-taker fee structure for its trading platform. Maker fees start at 0.16%, while taker fees begin at 0.26%.

Your trading fees on Kraken depend on your 30-day trading volume. As you trade more, your fees decrease.

Here’s a breakdown of Kraken’s fee tiers:

30-Day Volume (USD)	Maker Fee	Taker Fee
< $50,000	0.16%	0.26%
$50,000 – $100,000	0.14%	0.24%
$100,000 – $250,000	0.12%	0.22%
$250,000 – $500,000	0.10%	0.20%
$500,000 – $1M	0.08%	0.18%
$1M – $2.5M	0.06%	0.16%

For high-volume traders, fees can be even lower. If you trade $10 million in 30 days, your maker fee drops to 0.02% and your taker fee to 0.12%.

Kraken Pro offers slightly lower fees than the central platform. You can reduce your costs by staking Kraken’s native token, KRX.

Remember, these fees apply to spot trading. Futures and margin trading have different fee structures.

 

Kraken Funding Rates/Fees

Kraken offers competitive funding rates for futures contracts. These rates are essential for traders engaged in leveraged positions.

Funding rates on Kraken are typically calculated every 8 hours. They can be positive or negative, depending on market conditions.

You’ll find that Kraken’s funding rates generally align with industry standards. They’re designed to keep perpetual futures prices close to the spot market.

Here’s a simple example of how funding fees work:

• Contract value: $10,000
• Funding rate: 0.01%
• Fee calculation: $10,000 * 0.01% = $1

In this case, you’d pay $1 if the rate is positive or receive $1 if it’s negative.

Kraken’s fee structure for spot trading is tiered based on your 30-day trading volume. Maker fees start at 0.16% and can go as low as 0% for high-volume traders.

Taker fees begin at 0.26% and decrease to 0.10% for the highest volume tier. These rates are competitive within the cryptocurrency exchange landscape.

For margin trading, you’ll encounter additional fees. Kraken charges 0.01% to 0.02% to open a position and a rollover fee every 4 hours.

Bank transfers often come with low fees, making them an attractive funding option. Kraken also supports various digital wallet funding methods for your convenience.

 

Kraken Deposit & Withdrawal Fees

Kraken offers various deposit methods to fund your account. Bank transfers are popular, with low fees of around $3 for SWIFT deposits.

They support significant currencies like USD, EUR, and CAD.

For cryptocurrencies, Kraken typically doesn’t charge deposit fees. However, network fees may apply depending on the blockchain.

Withdrawal fees vary by cryptocurrency. For example:

• Bitcoin (BTC): 0.0005 BTC
• Ethereum (ETH): 0.0035 ETH
• Litecoin (LTC): 0.001 LTC

These fees are subject to change, so always check Kraken’s fee schedule before making transactions.

When you deposit via bank transfer, funds usually arrive within 1-5 business days. Crypto deposits are faster, often crediting within minutes after network confirmations.

To withdraw, you select your preferred method and enter the amount. Crypto withdrawals process quickly, while fiat withdrawals may take 1-3 business days.

Kraken implements temporary holds on certain deposits for security.

First-time ACH purchases, PayPal, debit/credit card, and digital wallet deposits trigger a 72-hour withdrawal hold. ACH Plaid deposits have a 7-day hold.

You can review your transaction history and fee details in your Kraken account. This helps you track costs and plan future trades effectively.

 

Kraken Review Account Types & Kraken KYC Tiers & Limits

Kraken offers several account types to cater to different trading needs.

You can access Spot trading to buy and sell cryptocurrencies directly. Futures accounts allow you to trade cryptocurrency derivatives.

Margin trading is available for leveraged positions. For large transactions, Kraken provides Over-The-Counter (OTC) trading services.

Kraken uses a tiered Know Your Customer (KYC) system with levels ranging from Tier 0 to Tier 5. Each tier has specific verification requirements and corresponding limits for deposits and withdrawals.

At Tier 0, you can only look around the platform. Tier 1 requires basic personal information and allows crypto deposits and withdrawals.

Tier 2 needs additional verification, including proof of residence. This tier enables fiat currency funding and higher limits.

Higher tiers (3-5) are designed for institutional clients and require more extensive documentation. These tiers offer significantly higher transaction limits and access to personalized services.

To increase your tier, enter your account and select “Get Verified” under your name. You’ll see your current level and the requirements for upgrading.

Remember, verification levels are similar to opening a bank account. Higher tiers provide greater functionality and limits, allowing you to make more significant transactions on the platform.

 

Kraken Trading Platform & Tools

Kraken offers two distinct trading interfaces to cater to different user needs. The standard Kraken platform provides a straightforward experience for beginners, while Kraken Pro caters to advanced traders.

On Kraken Pro, you’ll find a wealth of sophisticated tools. The interface features customizable layouts, allowing you to arrange your workspace efficiently.

Advanced charting tools give you access to multiple timeframes and technical indicators. You can perform in-depth technical analysis to inform your trading decisions.

Kraken supports API integration, enabling automated trading strategies and portfolio management. This feature is handy for high-frequency traders and those looking to implement complex algorithms.

Real-time market data keeps you updated on price movements and order book depth. You can quickly react to market changes and execute trades with precision.

Using these tools, you might analyze a cryptocurrency’s price trend using moving averages on different timeframes.

Combine this with volume indicators to gauge market sentiment and identify potential entry or exit points.

Kraken also provides futures and margin trading options for experienced users. These advanced trading types allow for leveraged positions and hedging strategies.

Mobile apps are available for Android and iOS, ensuring you can monitor your portfolio and execute trades on the go. To learn about how to trade on the exchange, check this Kraken tutorial.

 

Kraken Insurance Fund

Kraken maintains an insurance fund to protect user assets in the event of extreme market volatility or other unforeseen circumstances.

This fund helps ensure that traders’ positions are not unfairly liquidated during periods of high volatility.

The exchange contributes a portion of trading fees to build up the insurance fund over time. As of 2024, Kraken’s insurance fund contains over $100 million in assets.

In past extreme price swings, Kraken has used the insurance fund to cover negative balances and prevent socialized losses among users. This provides an important safety net for traders using leverage.

Kraken’s insurance fund is relatively modest compared to other major exchanges.

For example, Binance and BitMEX maintain significantly larger insurance funds exceeding $1 billion. However, Kraken’s fund is still substantial enough to offer meaningful protection.

You should know that the insurance fund is not a guarantee against all losses. It’s primarily designed to prevent cascading liquidations during black swan events. For day-to-day trading, you’re still responsible for managing your own risk.

 

Kraken Deposit Methods

Kraken offers a variety of deposit options to fund your account. You can choose from cryptocurrencies, fiat currencies, and bank transfers.

Send your preferred digital assets to your unique Kraken wallet address for crypto deposits. The process is quick and usually incurs no fees.

Fiat currency deposits are available through several methods. Bank transfers like SWIFT and wire transfers are popular choices, often with low or no fees.

ACH transfers are an option for US customers.

To deposit funds, log in to your Kraken account and navigate to the “Funding” tab. Select your preferred deposit method and follow the on-screen instructions.

When choosing a deposit method, consider factors like:

• Processing time
• Fees
• Availability in your region

For example, a bank wire might be best if you need funds quickly. For more significant amounts, SWIFT transfers could be more cost-effective.

Kraken also supports some users’ deposits via PayPal and credit/debit cards. These methods are convenient but may have higher fees or limits.

Remember, first-time deposits using specific methods may trigger a temporary hold on withdrawals for security purposes.

 

Kraken Security Features

Kraken prioritizes your account safety with robust security measures. You can enable two-factor authentication (2FA) to add an extra layer of protection when logging in or making transactions.

The exchange stores most user funds in offline cold storage, safeguarding them from potential online threats. This approach significantly reduces the risk of large-scale hacks.

Kraken employs dynamic encryption for data protection. Your sensitive information is encrypted both in transit and at rest, making it much harder for unauthorized parties to access.

You can set up a master key for your account, providing an additional safeguard even if your 2FA device is compromised. Kraken recommends using a Yubikey or authenticator app for optimal security.

The platform undergoes regular security audits by third-party firms. These assessments help identify and address potential vulnerabilities before they can be exploited.

Kraken’s security protocols have earned positive feedback from users. Many appreciate the platform’s proactive approach to protecting their assets and personal information.

Continuous monitoring systems are in place to detect and prevent suspicious activities. This real-time surveillance helps maintain a secure trading environment for all users.

Remember always to follow best practices for your account security, such as using strong, unique passwords and keeping your 2FA devices secure.

 

Kraken Customer Support

Kraken offers 24/7 customer support through multiple channels. You can reach their team via live chat, email, or phone for assistance with your account or trading issues.

Many users report positive experiences with Kraken’s support responsiveness. The exchange aims to provide timely help, especially for urgent matters.

Let’s say you’re having trouble changing an account setting. You could submit a support ticket explaining the issue. A Kraken representative would likely respond within a few hours to guide you.

Some key features of Kraken’s customer support include:

• Round-the-clock availability
• Multilingual assistance
• Dedicated team for account security concerns

While most reviews praise Kraken’s support, a few users have reported longer wait times during peak periods. It’s advisable to check Kraken’s status page for any known issues before contacting support.

You might find Kraken’s extensive knowledge base and FAQ section helpful for complex inquiries. These resources can often provide quick answers to common questions about trading, account management, and security practices.

 

Is Kraken a Legal & Safe Platform?

Kraken operates as a legitimate cryptocurrency exchange in many countries worldwide. You can trade on Kraken legally in the United States, Canada, and most European nations.

The exchange holds licenses from regulatory bodies in several jurisdictions. This includes registration with FinCEN in the US and authorization from the UK’s Financial Conduct Authority.

Kraken has built a reputation for security and reliability in the crypto industry. The platform employs robust security measures to protect user funds and data.

Security Features:

• Two-factor authentication
• SSL encryption
• Cold storage for the majority of assets

Kraken regularly undergoes security audits and has a dedicated compliance team. They work to meet regulatory requirements and respond promptly to inquiries from authorities.

User trust in Kraken remains high, with positive ratings on various review platforms. The exchange has a track record of addressing customer concerns and maintaining transparent communication.

Kraken’s proactive approach to compliance is evident in their actions. For example, they ceased operations in certain regions to align with local regulations.

While no platform is entirely risk-free, Kraken’s commitment to security and legal compliance makes crypto trading a relatively safe choice. Always exercise caution and follow best practices when using any financial platform.

Conclusion