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The Kraken platform offers a number of pros and cons which should both be heavily weighed. Starting with pros, Kraken is appealing to new cryptocurrency users as the site guides you through every step. Furthermore, they offer a live chat support system that is always available making it easier to get assistance. Besides this, they also have high-security levels across their platform keeping all users and their currencies safe. As for cons, you can expect to pay slightly higher fees than through some competitor sites, and they offer slightly fewer cryptocurrencies than some competitors.
Kraken is a cryptocurrency exchange and bank, which is designed to be an affordable exchange market, as well as being suitable for people who aren’t as experienced in the cryptocurrency industry and how crypto trading works. This post will look at the pros and cons of using Kraken, the security features, fees, trading experiences, the top features and which coins are available.
In terms of pros, Kraken has immediately placed itself as the ideal guide for people who are new to Bitcoin and cryptocurrencies in general, with thorough explanations for each aspect of cryptocurrency, its types and what blockchain technology is. By being able to provide those types of thorough explanations, users will feel as though they have support through each stage of their cryptocurrency journey. Kraken employ a live chat support system that is available 24/7, meaning that, wherever you are in the world, there is always support available if you need it. Kraken’s intensive and thorough security measures are highly lauded and are continually developing and the user interface of the platform make it easy to use, particularly for novices.
As with any form of cryptocurrency or crypto trading market, there are cons and disadvantages to be aware of, and Kraken is no exception to this. Some of Kraken’s trading fees are higher than some of their leading competitors, nor do they offer as many cryptocurrencies as some of the larger exchange sites do. With that being said, they are a fantastic exchange platform to use if you are inexperienced with the crypto world.
Kraken boasts of incorporating a high-level security system to their exchange, having hired a team of experts to build measures to prevent money and/or data theft. Kraken themselves have stated that they have assembled a global team to deal with any security threats that can occur, particularly as there is vulnerable data available on the site. The features incorporated in the security package include (but are not limited to) a two-factor authentication process for logging in, a configurable account timeout, SSL (secure sockets layer) encryption, real-time monitoring for suspicious activity and sensitive data being fully encrypted.
Kraken’s counteraction to any threats that can occur consist of the following:
Kraken states that “95% of all deposits are kept in offline, air-gapped, geographically distributed cold storage.” What this means is that, even though deposits are completed when you are online, the processing of these deposits is completed in an offline, secure platform that prevents hackers from being able to access them. Kraken also keeps full reserves of the money that you invest meaning that, if you need to make an immediate withdrawal, you can.
Kraken refers to the storage of their servers as “secure cages” – this allows the servers to be under 24/7 surveillance and supervision. This kind of supervision means that Kraken strictly control any access to the servers and any activity that takes place on the servers is scrutinised again and again.
As you would expect, any information that passes through the server is highly sensitive data and needs to be encrypted to the highest level. Because of that, the sensitive account information is encrypted and encoded at rest at both the system and data level. What that means is that, even when the data isn’t necessarily being used, it is still being encoded and encrypted to ensure that it is kept safely. Kraken state that “access is strictly controlled and monitored” and that is simply because of the sensitivity of the data involved.
Penetration testing is a process where a dedicated team test the security system by constructing a false attack on the system to analyse how the firewalls and protection structures cope with the attack. Kraken describe this as a “bug bounty program,” which can be further developed by recruiting further members of the security team all over the world, to ensure that the system is protected on a 24/7 basis.
There are, of course, ways in which you as a user can increase the security of your account. You can do this by changing your password regularly (and perhaps consider using ones that you don’t usually use for other websites). Always avoid accessing Kraken when accessing public Wi-Fi (unless you are using a reputable VPN) and consider creating a guest network on your own router if multiple people have access to your router (if you live in a house of multiple occupancy.) Kraken do provide tips on how best to secure your account, as it is vitally important that you take these steps.
Where the fees are concerned, there are several different fees that you need to be aware of and that these fees apply in different ways. These fees are broken down as follows:
Generally, there are zero fees when depositing cryptocurrency into Kraken, but there are a few exceptions to this (EWT, ETH, ETC). There can be fees applied when depositing cash into Kraken, but this does depend on which currency and deposit method that you are using.
When using these functions, there is a flat fee of 1.5% for each transaction. If you decide to purchase a stablecoin with another stablecoin (or if you’re using US Dollars), the flat fee is at 0.9%, which is competitive compared with other exchanges.
This is a function that is not available in the United States, but you can use Kraken to buy cryptocurrency directly using a credit or debit card. As the purchases are made in Euros, you need to ensure that your bank or credit card issuer are able to process currency conversions. There is a flat fee of 3.75% + €0.25 for using this depositing method.
The withdrawal fees on Kraken can vary depending on which coin you’re withdrawing and there is a flat fee to cover the transaction costs of moving the coins in your Kraken account. There is important information to consider when making withdrawals. Withdrawals (into cash) can be made in Dollars (US, Canadian and Australian), Euros, British Pound Sterling, Japanese Yen and Swiss Francs. There are different withdrawal options available based on the currency that you choose.
There are different kinds of trading fees to consider when using Kraken and it is important to know about them all.
Spot trading, a form of trading which involves directly purchasing assets, involves fees which start at 0.16% for makers (someone that buys and sells securities for their own accounts) and 0.26% for takers (people who are looking to make the purchases). Once you have been trading for 30 days, these fees do decrease.
These fees are applied as an addition to the trading fees at the beginning and closing of market positions on the platform. The beginning fees vary from between 0.01% and 0.02% and there is also a supplementary rollover fee of 0.02% per four hours of trading.
Futures trading feeds start at 0.02% for 0.05% for takers. The fee rate can be reduced for high-volume traders, which makes Kraken a highly accessible platform to use for cryptocurrency trading.
The trading experience of Kraken and the user interface of the platform is certainly one of its advantages and pros. Before you start any trading, you need to verify the account and there are several options that you have for this, based on the type of trading that you’d like to do. If you want to use the professional tier, be prepared to wait a few working days and provide a considerable amount of financial information. Starter and intermediate accounts require personal information and ID and take up to five minutes to verify.
Once you have verified your account, you are able to start trading (and it is important to consider all of the information that has already been included in this article). On the home page of the website, Kraken offers new users options and tailored guides as to what you need. You can then purchase the cryptocurrency you want to trade with, using both a simple and advanced view. The advanced view allows you to place conditions on the purchase, such as stopping loss, taking profit, stopping loss limit or taking profit limit. You also have the additional options for the start and expiry of your purchase. The selling option on the screen provides you with the same options in both views.
Once you have got to grips with what cryptocurrency and you’re ready to trade seriously, Kraken offers a market cap view which simplifies the transition between your currency (e.g. USD) and the cryptocurrency of your choice. This market cap view gives you the option to buy and sell your option. The user interface of this section makes it easier for novices to navigate the trading screens.
If you are keen to keep a track of the recent trades that are taking places using your home currency, you can use the Classic Charts View, which looks into the spread and depth of the trading. By showcasing the volume and price and consistently updating, traders are able to see where the main trading activity is.
Kraken provides a live trading market graphic and platform that demonstrates where traders can see where the main trading activity is taking place. The complexity of this feature is clearly designed for those who are experienced in market trading and understand where the cryptocurrency leads are. This tool uses what Kraken describe as “detailed candlestick charts” and do use a range of drawing tools.
There is a considerable range of cryptocurrencies available on Kraken (although some users have stated that they would like a wider choice of cryptocurrency, particularly as it is an industry that is expanding continuously, especially in the difficult times of the Covid-19 pandemic). These range from popular cryptocurrencies such as Bitcoin, Bitcoin Cash to Tether and Zcash. Kraken also offers the option of using infrastructure cryptocurrencies such as Cosmos, Tezos and Tron. In addition to those, there is also the potential to use financial cryptocurrencies such as Kava, a service cryptocurrency such as Orchid and media and entertainment cryptocurrencies as the Basic Attention Token. A full list of cryptocurrencies is available here (with explanations of what each type means), but this does show the diversity of what is available on Kraken.
Kraken is a platform that is ideal for novices in the cryptocurrency industry, particularly if this is something that you’re keen to incorporate as a hobby. The friendliness of the user interface makes it easier to use if you do find that using computers is not always easy for you. Kraken’s use of tailored guides and a 24/7 support system allows users to feel safe and secure as they continue to trade on the system. Every user will have a different purpose for using Kraken and they have been quick to identify that. They also ensure that users are aware of the risks that are involved with market trading and allow the users to place their own conditions on investments that they make. Where it may need improvements is on the amount of cryptocurrencies that are available but, with that being said, it is clear that Kraken would be able to expand their capabilities to include new currencies and could become a leading platform in crypto market trading.
