Cryptocurrencies are creating some ripples around the finance world and if you ask my point of view, it is for the right reasons. It’s riding on the back of dragon signifying the change in progress.
While you want to be a part of it, you might be thinking how?
Some of you have already figured that part out and have ample knowledge about the exchanges in existence.
However, For those who are curious to step onto the tidal wave of crypto world, you would be looking for various exchanges to get started.
Digital Exchanges are the place you go to buy, sell and trade in cryptocurrencies. You can buy bitcoins or altcoins using Fiat currencies or sell the same in return for Fiat currencies (USD, Pound, Euro, etc).
Exchanges are sought based on service, support, security and many other factors provided by them.
So, Today I will give you a detailed Kraken review, which is considered as one of the pioneers amongst the cryptocurrency exchanges.
- 1 What is Kraken?
- 2 Pros & Cons
What is Kraken?
Kraken is one of the first bitcoin exchanges, that came into existence around early 2011. It is a popular digital exchange platform, based out in San Francisco – USA. It is often marked by its diverse nature, regional outreach, and security.
Kraken is unique and quite hyped too, probably because it is never been attacked by hackers. It is recognized and has collaborations with some leading countries and banks around the world. The involvement of banks makes this exchange much more secure.
At the same time, Kraken is a private firm and does not let its collaboration with governments and banks demean the decentralized nature of cryptocurrencies.
Features of Kraken Exchange:
Kraken, surely has some of the best features, as mentioned below:
1. Low transaction fees
Starting from 0% to a maximum of upto 0.16% for maker and 0.10% to 0.26% for the taker.
You can transact in different pairs like ETH, BTC, USD, EUR and they also have many altcoins to trade, other than bitcoins.
3. International Recognition
It has an international presence – which is far superior to any other exchange. While other exchanges are finding it hard to expand and scale regions, Kraken is surely up and running in many countries of Europe, North America, Asia and Australia.
4. Margin Trading
With bitcoin margin trading, it provides some leverage on trading by allowing upto 5* shorting. This is a pretty rosy scene at the moment for bitcoin buyers. Bitcoin prices are rising and using the leverage at this point, combined with margin trading drastically helps them short 5 times, bringing them larger profits.
Deep, marina trench type liquidity, (that is the deepest). CryptoCurrency itself is a highly liquid asset. Kraken further keeps crypto assets stable for buying in most situations.
It is the most secure exchange available as of now. Its vaults have never been breached by hackers!
Automation of orders is now integrated within its system. This helps in giving you time for studying market dynamics and not making a decision in haste.
How is Kraken different from other exchanges?
Now, in the current timeline of the dynamic crypto world, we have many exchanges in existence. So, what gives Kraken the edge over other exchanges and what has kept is at this top position since it was imbibed?
Kraken’ vision from the start has been to promote bitcoins and altcoins. To promote it all over the world with no geographical limits, and still keeping its austerity intact.
Along with the mentioned fact above, it is also integrating its platform with tools and features that are evolving constantly as per the market needs. While it is one the most widespread exchange, it still has miles to go.
If your country/region is still to be scaled by Kraken, your Kraken account would be marked as ‘pre-verified’.
Different Currencies available for transaction!
Diverse digital coins and fiat currencies are available for trading over Kraken.
Some of them are appended below:
There are various cryptocurrencies which you can trade on Kraken. In total it allows you to trade more than 20 cryptocurrencies including Bitcoin.
- Bitcoin Cash
- Ethereum Classic
- Stellar Lumens
- Pound Sterling
- Japanese Yen
- Canadian Dollars
How secure is Kraken?
While most of the exchanges and bitcoin wallets have been breached in the past, Kraken boosts of never been falling into this trap.
It is the topmost security encrypted cold storage. All your trading funds are digitally stored in Kraken’ vault and are saved by cryptographic codes of the highest degree. It makes the storage and impenetrable fortress.
It also has two-step authentication process for the basic account holders in terms of securing their accounts. (You can further secure your account, with the guidelines provided over Kraken site here.)
How do I verify my account?
There are different types of verification on Kraken and based on your type of account (or which tier you belong to), you are required to provide proof of verification.
Different tiers of verification also mean, different type of accounts and trading limits.
You cannot trade in any currency or deposit. This would simply need your e-mail address for verification.
This type requires your basic details like, name, date of birth, contact number and country. In this you can trade in any currency, but withdraw and/or deposit in only digital coins.
You can withdraw, deposit and trade in digital currency and based on your location also in case of fiat currencies. This tier requires your address proof.
From this tier and upwards you can withdraw and deposit through your bank, but that is also geo location based. (For more information on fees for deposit or withdrawal through bank, visit Kraken’ site here.)
The stakes (aka funding limits) are higher now, and for verification, you would need to provide proof of residence and also be asked to upload a ‘valid’ government Id. In some cases, you might even be asked for a photo verification where you need to click a picture of yours holding your ID.
This tier requires a filled and signed KYC document and application form. It has two sunsets under it, one for individuals and other for the corporates.
Other verification requirements are similar to that of ‘Tier 3’, though as expected, the funding limits are higher than ‘Tier 3’.
What is the compatibility status of Kraken?
With all its tools, it is said to be an exchange for the experienced and professional traders. In any way, that does not mean that if you are a beginner you would burst your brains out.
It is a very user-friendly platform. As far as using tools over this exchange involves, then I would recommend it, because it’s extremely diverse and secure. In the end, it’s always on you to trade as per your choice of platform and volume. Kraken has something for everyone!
What is the transaction fees of Kraken?
Being in existence for longer than most of its counterparts, it provides low transaction fees along with the great security. The transaction fees can be as low as 0% to the maximum limit of 0.26%.
It all depends on whether you are a maker or taker, and also on the amount of value being traded.
Pros & Cons
- High Liquidity
- Margin Trading
- Wide regional presence
- Great trading tools for traders
- Many Altcoins avialable
- It can be intimidating for a novice trader
- Slow support service.
- Does not accept Credit card, Debit card, Paypal
My Take on Kraken Review
Kraken provides you with security and reliability along with liquidity, margin trading and shorting. It has very large user base and is spread across diverse regions, still adding more to it. Not to forget, it’s been in business from a year earlier than it’s competitor ‘Coinbase’.
It now lets us automate orders, which is indeed a very interesting feature.
Yes, there are a few hiccups in the modes of payment and sometimes slower support, but that’s what it costs sometimes for better security and a larger spread.
Now, We’d love to hear from you!
Do leave us comments if you find this article useful and also what you feel is missing! We are always ready to learn and improvise as per our community’s interests!
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