Kraken is one of the world's oldest and most reputable cryptocurrency exchanges. Established in 2011 under U.S. jurisdiction, it has built a strong reputation for security, reliability, and user-friendly services. The platform supports over 120 cryptocurrencies, which are paired for convenient trading. Kraken also supports major fiat currencies, allowing users to trade directly without needing to convert assets first. Among its popular features are staking, margin trading, and futures contracts.
The exchange's large user base can be attributed to its low fees, high reliability, robust security measures, and intuitive interface.
How Does Kraken Work?
Kraken is designed to appeal to a broad range of users, from beginners to experienced traders. Its simple and intuitive interface makes it easy for newcomers to navigate the platform. More advanced users are drawn to its staking and margin trading opportunities. Additionally, Kraken offers 24/7 live chat support in multiple languages.
The platform’s main features include:
- 120+ Cryptocurrencies: Kraken focuses on the most popular and liquid cryptocurrencies, ensuring that every listed coin is widely available on other major platforms. The exchange regularly reviews and adds new assets.
- Low Trading Fees: Kraken’s fees are below the industry average. Maker fees start at 0.16%, and taker fees at 0.26%. Fees decrease as trading volume increases, with top-tier traders paying as low as 0.0% for maker orders and 0.10% for taker orders.
- Specialized Services: Instead of trying to offer every possible service, Kraken focuses on excelling in specific areas to attract targeted user groups. Key services include margin trading, futures trading, staking, and over-the-counter (OTC) transactions.
Key Features and Advantages of Kraken
To meet the requirements of U.S. regulators, Kraken has implemented several features that distinguish it from other exchanges. These include:
- Support for 120+ cryptocurrencies.
- Below-average trading fees with a scalable fee structure.
- Reliable and user-friendly mobile applications for iOS and Android.
- The ability to buy cryptocurrencies directly with fiat currencies.
- Options for placing both instant and future trade orders.
- Staking in crypto and fiat for stable yields.
- 24/7 multilingual customer support.
- Kraken Terminal for advanced charting and analysis.
- Forex trading capabilities.
- OTC desk for large transactions.
- Margin and futures trading.
What Services Does Kraken Offer?
Choosing a cryptocurrency exchange can be overwhelming due to the abundance of options. However, Kraken’s long-standing presence and resilience through market fluctuations make it a trusted choice. Below are the key services offered by the exchange.
Low Trading Fees
Kraken’s fee structure is highly competitive. Takers pay 0.26%, while makers pay 0.16%. The platform uses a tiered fee system based on the user’s 30-day trading volume, allowing high-volume traders to reduce their fees significantly.
Diverse Cryptocurrency Selection
Kraken avoids listing low-quality or short-lived cryptocurrencies. Instead, it focuses on 120+ established coins with high liquidity and market stability. This approach appeals to institutional traders, banks, and investment funds that require reliability.
Every cryptocurrency on Kraken is also available on other major platforms, making arbitrage and transfers between exchanges seamless.
Mobile Applications for iOS and Android
Kraken offers three dedicated mobile apps, each tailored to specific user needs:
- Kraken App: A general-purpose app with over 500,000 downloads and a 4.2-star rating. It provides all essential features for monitoring and executing trades.
- Kraken Pro: Designed for advanced traders, this app includes enhanced analytical tools and supports 5x leverage for margin trading.
- Kraken Futures: A specialized app for futures trading.
Buying Cryptocurrencies with Fiat
Kraken supports seven fiat currencies, allowing users to buy cryptocurrencies directly without intermediate conversions. Users can purchase crypto at a fixed rate or place limit orders at their desired price. The availability of trading pairs varies by fiat currency, with USD offering the broadest options.
Instant Crypto Purchases
For traders who prefer simplicity or need quick transactions, Kraken offers an instant buy/sell feature. This service is ideal for beginners and arbitrage traders but comes with a 1.5% fee. Standard market orders retain the default fee structure.
24/7 Customer Support
Many top exchanges lack responsive customer support, but Kraken invests heavily in its support infrastructure. Its live chat feature ensures quick and competent assistance for technical issues and general inquiries.
Kraken Terminal
Kraken Terminal is an advanced trading interface with customizable charts, indicators, and drawing tools. It also provides data on trade volumes and order books. Experienced traders, particularly those from a Forex background, find this feature highly valuable.
Margin and Futures Trading
Margin trading allows users to leverage their positions with up to 5x leverage but is available only to fully verified users. Kraken’s futures market supports major cryptocurrencies like Bitcoin, Ethereum, and Litecoin with up to 50x leverage. Both services involve additional fees.
Staking
Staking on Kraken lets users earn yields on their crypto holdings. A unique feature is the ability to stake fiat currencies, which, although offering lower interest rates, allows for frequent compounding. Payments are made twice weekly, enabling reinvestment or withdrawals.
OTC Desk
For transactions exceeding $100,000, Kraken provides an OTC desk. This service ensures privacy, personalized consultation, and favorable execution terms for high-volume traders and institutions.
Forex Trading
Kraken offers nine Forex pairs, catering to traders who prefer traditional currency trading. Trades are conducted in units rather than lots, with a minimum of 10 units per transaction. All Forex transactions are transparent and compliant with FinCEN regulations.
Does Kraken Offer a Wallet?
Kraken primarily functions as a trading platform and does not provide a dedicated cryptocurrency wallet for external payments. However, withdrawals to external wallets are supported seamlessly.
Kraken Fees Explained
Kraken’s fee structure varies depending on the type of transaction. Below is a breakdown of its major fees.
Deposit Fees
Most cryptocurrency deposits are free, but exceptions exist. Fiat deposit fees depend on the currency and payment method. For example, USD deposits via FedWire (through MVB Bank) are free, while the same method via Synapse incurs a $5 fee. Updated fee details are available on Kraken’s support page.
Instant Buy Fees
Transactions executed outside the order book, such as instant buys, incur a 1.5% fee. This covers the risk of price fluctuations during the transaction. Stablecoin-to-stablecoin or fiat conversions carry a 0.9% fee.
Credit Card Purchase Fees
Buying crypto with a credit card incurs a 3.75% fee plus €0.25. This service is unavailable to U.S. residents.
Withdrawal Fees
Crypto withdrawal fees cover network transaction costs and vary by currency and network. Fiat withdrawal fees depend on the currency and payment processor.
Trading Fees
Trading fees are a critical consideration for traders.
Spot Trading
Default fees are 0.26% for takers and 0.16% for makers. These fees decrease with higher trading volumes.
Margin Trading
Margin trades involve an additional 0.02% fee for opening and rolling over positions every four hours. Some coins offer reduced fees.
Futures Trading
Fees start at 0.02% for makers and 0.05% for takers, decreasing with higher volumes.
Pros and Cons of Kraken
Like any platform, Kraken has its strengths and weaknesses.
Pros
- High reliability since its establishment in 2011.
- User-friendly interface suitable for beginners.
- Unique features like Forex trading and an OTC desk.
- Support for 120+ cryptocurrencies and 7 fiat currencies.
- 24/7 live chat support in multiple languages.
Cons
- Some fees are higher than those of competitors.
- A narrower selection of cryptocurrencies compared to some exchanges.
Frequently Asked Questions
Is Kraken a legal exchange?
Yes, Kraken is fully legal and regulated by FinCEN. It complies with all regulatory requirements in the jurisdictions where it operates.
How secure is Kraken?
Kraken prioritizes security, storing over 95% of assets in cold storage. Its servers are located in highly secure facilities with armed guards and continuous monitoring.
Has Kraken ever been hacked?
No, Kraken has never been hacked since its launch in 2011. Its robust security measures have successfully prevented breaches.
What cryptocurrencies can I trade on Kraken?
Kraken supports 120+ cryptocurrencies, including major coins like Bitcoin, Ethereum, and Litecoin, as well as popular altcoins.
Does Kraken offer customer support?
Yes, Kraken provides 24/7 live chat support in multiple languages, ensuring prompt assistance for users.
Can I stake cryptocurrencies on Kraken?
Yes, Kraken offers staking for multiple cryptocurrencies and even allows staking in certain fiat currencies.
Final Thoughts
Kraken is a leading global cryptocurrency exchange known for its security, reliability, and user-friendly services. It offers 120+ cryptocurrencies, 7 fiat currencies, and unique features like Forex trading and an OTC desk. While its coin selection is narrower than some competitors, it focuses on high-liquidity assets, reducing risk for traders.
Whether you are a beginner or an experienced trader, Kraken provides a robust platform for trading, staking, and investing. Its commitment to security and compliance makes it a trusted choice for millions of users worldwide.
For those looking to explore advanced trading tools, Kraken offers a comprehensive suite of options. 👉 Discover advanced trading strategies to maximize your potential on the platform.