Kraken

Introduction

Mt.Gox was once the biggest bitcoin exchange in 2011, and it used to manage more than 75% of bitcoin transactions in different countries. Jesse Powell (presently the co-founder of Kraken) visited its office and found some potential errors. Then, he started working on an exchange to prevent any security issue, and it led to the origin of Kraken in 2011.

Since the launch of bitcoin in 2009, there is a trend of trading in decentralized digital currencies. However, in due course, several digital currencies have been introduced. Crypto trading marketing is increasing every year, and it has resulted in the development of crypto exchanges. There are several small and large exchanges, and Kraken is one of them.

Kraken is one of the highly functional crypto exchanges that you can use at a low charge. This US crypto exchange offers technically advanced tools to make your trading easier and safer. It claims to be the most secure platform for cryptocurrency traders. You can try out this platform after reading the review.

How to create an account

It is easy to create an account at Kraken and trade in cryptocurrencies.

Visit the official site and go to the Create Account option.

You will find fields to enter your basic details, like username, email, and password. Tick the box to agree to the T&Cs. Then, hit the Create Account button. You will receive an activation code in your email. 

Open your email to click on the given link.  Pass the captcha test and activate your account.  You will receive another email that describes the services available to you. By clicking on the link, you will reach the Kraken website for 2-factor verification.

When you have chosen Google Authenticator for the 2FA option, you have to click on the right button. It will display the QR code that you must scan using the app.

After activating 2FA, you will reach the dashboard. Up to this step, you have undergone Tier 0 verification. You may check the website, but you cannot engage in trading activities. For the account verification, choose the button- Get Verified.

You will find this screen to decide on the account type from the options, like-

• Starter
• Pro
• Intermediate

You will get detailed information about each of these types. Learn about the monthly limit and the availability of fiat trading options.

After choosing the account type, you have to fill this form. Submit the form and wait 24 hours for verification. 

Advanced features for traders

Kraken is an exchange, offering features, like

• Margin
• Crypto short sales
• Stop orders

You may also call it a dark pool, as traders can stay anonymous while trading currencies. The Pro clients can trade in $500,000. However, margin trading has some risks, as you have to borrow money for investment.

Security

While other crypto exchanges have security issues, the Kraken owner has tried to solve the problem with a highly advanced structure. As Powell found the security risks in its competitor (Mt.Gox), he took the best step to secure the traders’ assets and data. It is one of the reasons, for which Kraken has gained the trust of several traders.

The major security features of Kraken include-

• Cold wallets– More than 90% of the amount you have deposited in Kraken remains stored in the offline mode. Thus, your funds will have no risk, when the servers fail and hackers have attacked the platform.
• Information security– Sensitive information and other account-related details stay protected due to the encryption technology. 
• Server security– The caged Kraken’s servers under 24-hour surveillance have the ultimate protection. Moreover, video monitors and armed guards take care of the servers. Thus, Kraken has tightly regulated servers.
• Testing– There is a dedicated Kraken team to test the potential of cyber-attack.
• Email confirmation at the time of withdrawing money
• Encrypted, PGP signed emails.
• Account recovery process- Done with SMS to the registered phone number.
• 2-factor authentication with Google Authenticator
• Multi-tiered verifications

 Kraken users have to go through the multi-tiered verification process. There are some limits at every tier. In most cases, users rely on tier 1 and tier 2 verifications. Those who think of engaging in a higher volume of trading must use higher tiers. Find the brief details of these tiers before signing up with Kraken.

• Tier 0– You need an email address in this tier. You can navigate the website and check out the ways in which it works. However, you have no option for trading cryptocurrencies in this tier.  
• Tier 1– You need to use Tier 1 for the deposit and withdrawal of cryptocurrencies. The platform helps to trade in both fiat and digital currencies. However, you have to enter your basic details, like name, country, date of birth, and mobile number. 
• Tier 2– When you have gone through this tier, you can deposit funds, withdraw it, and trade in cryptocurrencies.  You may also use fiat currencies based on your location. 
• Tier 3– In this tier, you can trade in a high amount of fiat currency. But, you must submit your residence proof and government ID. Traders from countries, like Canada, Germany, Japan and the US must undergo Tier 3 verification for the fiat currency transaction.
• Tier 4– Professional traders like to set the highest funding limit, and thus, they must use this tier. Tier 4 is for both corporations and individuals, and they can contact customer representatives to learn more about Kraken. 

Install iOS and Android app

Kraken is a unique cryptocurrency exchange, as it has released 3 mobile apps. Based on your needs, you can select the right one. Kraken has redesigned its basic app for a better interface. The 3 versions are Android and iOS-friendly

 The intuitive basic app helps in buying, selling, and converting crypto. Kraken Pro is for professional traders who like to engage in trading at any time. There are different order types, like

• Stop Loss
• Take Profit
• Stop Loss Limit
• Take Profit Limit
• Settle Position

Kraken Future is an advanced option, and you can find better service in the future. You can create your mobile token and scan the QR code using the app.

Supported currencies

Kraken provides a range of choices for cryptocurrency traders. The US traders can find about 60 coins on the list. The popular ones include Bitcoin, Litecoin, and Ethereum. There are also 3 stablecoins. Moreover, you may trade in fiat currencies, like-

• US Dollars 
• Canadian Dollars 
• Japanese Yen 
• British Pounds 
• Australian Dollars 
• Euros 
• Swiss Franc 

Supported countries

Kraken’s exchange is available to traders belonging to different countries. Traders from the US, India, Japan, Canada, Afghanistan, Greece, Germany, and several other countries can join Kraken.

Fees

The trading fee at Kraken is lower than several other exchanges. Although it is not the cheapest available option, you will find reasonable charges. The maker-taker fee is especially low. Based on the choice of exchange, you can find differences in the rates. Moreover, your monthly trading amount is another factor causing differences in the cost. The transaction fee at Kraken can be up to 0.26%.

Withdrawal and deposit money

You can choose between wire transfer and bank to deposit and withdraw funds. However, you have no option for using credit cards, debit cards, digital wallets, like Skrill and PayPal. The exchange has restricted their usage, as cryptocurrency transactions are irreversible. There is a chance of fraudulence in the transaction.

However, you have to check out the fees for the chosen deposit method.

Deposit fees-

• EUR SEPA- For EEA countries (free deposit)
• EUR Bank Wire- €10- For countries outside the USA
• USD Bank Wire- Charge for deposit 5 USD
• USD Bank Wire- $10 USD- Countries outside the USA
• CAD Wire- No charge 
• JPY Bank deposit- No charge- Minimum deposit- ¥5,000 

Withdrawal fees-

• EUR SEPA- For EEA countries- Charge €0.09-
• USD Bank Wire- $60 USD- Countries outside the USA
• USD Bank Wire- 5 USD- For the USA
• EUR Bank Wire- €60- Countries outside the USA
• JPY Bank- ¥20
• CAD EFT- $10 CAD for Canadians

The deposit and withdrawal limits can vary with Tiers. Tier 1 has no deposit limit, while the daily withdrawal is 2,500 USD. Similarly, for Tier 2, it is 5,000 USD. The Tier 3 deposit and withdrawal limit is 25,000 USD per day. The Tier 4 users will find a higher funding limit.

Pros and Cons

Pros

• Highly secure platform
• A range of several cryptocurrencies
• Reasonable charges
• Advanced trading tools

Cons

• Starter account with limited options
• Account funding is slow

Summary

Overall, it can be said that Kraken has made it easy to create an account and verify it. The user-friendly dashboard and fast verification process are some reasons for choosing Kraken. When you become familiar with the interface, you can easily use the trading tools. You can easily deposit and withdraw funds. However, those who have starter accounts cannot withdraw their fiat currency from Kraken. Moreover, the strong security measures have made Kraken a reliable platform.