Kraken was founded in 2011 and is one of the most popular, albeit, oldest cryptocurrency exchanges. The platform has built quite a reputation for being a secure destination for cryptocurrency trading. The exchange is a notable international exchange serving Canada, the US, Japan, and other European nations. It outdoes competition by dealing in fiat currencies, including the Canadian dollar, US dollar, Euro, Japanese Yen, and British Pound.
This quick guide will touch upon the pros and cons of Kraken while detailing its background, trading fee, funding options, and other features.
Why Should Beginners Choose Kraken?
It is transparent. Publishes compliance reports after conducting reserve audits
Offers a wide range of services such as staking, margin trading, and shorting among others
Has never been hacked, employs 2FA and several other security features.
Round the clock live customer support
Fees/charges are decent for the level of services and security offered
What’s not to like?
Not extremely beginner-friendly
In case the exchange is ever hacked, there is no FDIC insurance, SAFU or other compensation schemes
Limited range of cryptocurrencies
Brief Background of Kraken
Current Kraken CEO Jesse Powell founded the platform in July 2011. It was officially launched in September 2013. Kraken is based in San Francisco and has some noteworthy achievements under its belt. 2014 was the pivotal year for Kraken pushing it to rank first based on Euro trade volume. It also led the first verifiable cryptographic proof of reserves audit system in the same year.
What is the Trading Fees on Kraken?
The trading fee is based on a maker/taker fee structure. The exchange charges a small percentage of each transaction you make on the platform. The charges vary as per the volumes and types of digital assets you buy or sell.
The platform generates income through the difference in the fee charged to makers (buyers) and takers (sellers). This is also called “spread”.
The standard trading fee for taker (seller) is 0.26% and 0.16% for the maker (buyer) for transactions ranging between $0 and $50,000. The transactions should be executed over a 30-day period. The fee becomes progressively cheaper if you trade more.
There are separate fees charged for dark pool trades, margin trading, and stable coin trades. Margin trade charges range between 0.01% and 0.02% as an opening fee. A rollover fee is also charged every 4 hours ranging between 0.01% and 0.02%.
You should also know that Kraken charges a one-time address setup fee on certain cryptocurrencies. This setup fee is for first-time deposits that are used to create new deposit addresses. This type of fee is generally not charged by other exchanges.
Which funding options are accepted by Kraken?
Kraken uses fiat currency that makes it the perfect option for beginners. The following fiat currencies are supported:
US Dollars (USD)
Japanese Yen (JPY)
Canadian Dollars (CAD)
British Pounds (GBP)
Swiss Franc (CHF)
You do not have to visit third party wallets or exchanges to convert your fiat currency into crypto with Kraken. You can simply start trading. In fact, you can also convert your fiat currency into another on Kraken.
Is Kraken Versatile in Terms of Trading?
Kraken is a little advanced where trading is concerned. It includes various options like margin trading and spot trading for experienced users. There are plenty of options offered by the interface, which is not readily beginner-friendly.
Currently, there are 31 cryptocurrencies supported by Kraken:
1. Augur (REP)
2. Basic Attention Token (BAT)
3. Bitcoin (XBT)
4. Bitcoin Cash (BCH)
5. Cardano (ADA)
6. Chainlink (LINK)
7. Cosmos (ATOM)
8. Dash (DASH)
9. Dai (DAI)
10. Dogecoin (XDG)
11. EOS (EOS)
12. Ether (ETH)
13. Ether Classic (ETC)
14. Gnosis (GNO)
15. ICON (ICX)
16. Lisk (LSK)
17. Litecoin (LTC)
18. Monero (XMR)
19. Nano (NANO)
20. OmiseGo (OMG)
21. PAX Gold (PAXG)
22. Qtum (QTUM)
23. Ripple (XRP)
24. Siacoin (SC)
25. Stellar Lumens (XLM)
26. Tether USD (USDT)
27. Tezos (XTZ)
28. USD Coin (USDC)
29. Watermelon (MLN)
30. Waves (WAVES)
31. Zcash (ZEC)
How User-Friendly is Kraken?
Kraken has a trading interface that is divided into three different parts – Simple, Intermediate, and Advanced. The only drawback is that newbies find themselves struggling with the “Simple” interface as well. The trading platform is available for web, mobile, Windows, and Mac.
Kraken also offers an app for both iOS and Android. However, there have been several bugs reported on the app and the interface is not everyone’s cup of tea. App user experience is improving over time and literally, the current scenario boils down to individual preferences.
Kraken Customer Service
There is an extensive support guide featured on the website, which covers everything a beginner needs. You will also find several useful step-by-step video guides. You can use the site’s built-in chat to speak to a live customer service representative if you need help. The service is fast and efficient.
The Bottom Line
Kraken is a big platform, which does not readily come across as a beginner-friendly crypto exchange. However, if you don’t mind the cluttered and complicated interface, this may well be the exchange for you. It supports all the important cryptocurrencies and offers fiat trading options as well.