Exchanges / Kraken

Kraken Exchange Review

Kraken accepts users from United States

Quick Summary

Pros and cons of using Kraken

  •   It can be used to trade against fiat options.
  •   Reasonable spot trading fees.
  •   Has a wide range of trading pairs and a reasonable number of listed cryptocurrencies.
  •   Supports fiat deposits and withdrawals.
  •   Not a very beginner-friendly interface.
  •   Some of its fiat deposit and withdrawal processes attract high fees.
  •   Mobile apps don’t support deposit and withdrawal functionalities.
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Overview and Reputation

Kraken was founded in 2011 and has a strong presence in US, Japan and Europe. Its popularity as a leading cryptocurrency exchange throughout the world has seen its user base rise to 4 million spread in approximately 200 countries. ). In 2018, the Kraken exchange volume surpassed 85 billion US dollars.

If you are struggling with trust issues for exchanges, which are often based offshore etc, then Kraken is one of the more regulated and blue chip type of exchanges

Our Rating: 7/10
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Trading Fees

For Kraken, “The more you trade, the lower your rate.” Trading fees charged by Kraken are based on the trading volume for the past one month.

Fees vary depending on whether you are a maker (limit orders) or taker (market orders).

For normal spot trading, makers pay between 0.02 percent and 0.16 percent if they have a 30-day trade volume of between $0 and $10,000,000 while trades valued over $10,000,000 are free.

Takers pay between 0.10 percent and 0.26 percent in fees when their trade volume ranges between $0 and $10,000,000, while trades valued at over $10,000,000 attract a taker fee of 0.01 percent.

30 Day VolumeMakerTaker
Up to $50,0000.16%0.26%
$50,000 to $100,0000.14%0.24%
$100,000 to $250,0000.12%0.22%
$250,000 to $500,0000.10%0.20%
$500,000 to $1,000,0000.08%0.18%
$1,000,000 to $2,500,0000.06%0.16%
$2,500,000 to $5,000,0000.04%0.14%
$5,000,000 to $10,000,0000.02%0.12%
Over $10,000,000Free0.10%

However, the trading fees on Kraken change when the trade involves a stablecoin or a fiat currency. In such a scenario, makers and takers with a trade volume of between $0 and $1,000,000 are charged a fee of between 0.04 percent and 0.20 percent while trade volumes exceeding $1,000,000 are charged a fee of 0.00 percent. Note that, in this case, the fee is similar for both makers and takers in each category.

Fees on Kraken dark pool

In 2015, Kraken wanted to separate heavy Bitcoin traders from the rest of the traders on its platform leading to the creation of the Kraken dark pool. Although its name suggests something outlawed, it’s not. Dark pool is simply an order book hidden from traders placing small BTC orders and only visible and accessible to traders placing large Bitcoin trades. Kraken’s main reason to create such an order book is to prevent large Bitcoin trades from affecting the price of Bitcoin on the “normal market.”

According to Kraken: “Typically, outsized orders, when seen by other traders will cause the market to move unfavorably, making it more difficult to fill the order at the desired price. This unfavorable price movement may be avoided in a dark pool. The dark pool will accept orders for trading between Bitcoins and EUR, USD, JPY, or GBP. Dark pool pairings are designated by a ‘.d’ extension (e.g. XBT/EUR.d or XBT/USD.d)”

Although the fees are adjusted according to the 30-day trade volume, dark pool fees are higher than for other trade types on the Kraken cryptocurrency exchange.

For instance, makers and takers with a BTC trade volume of between $0 and $50,000 in the last month pay a 0.36 percent fee while those with a trade history of $10,000,000+ pay a 0.20 percent fee.

Margin trading fees

Margin trading fees are calculated differently compared to other fee schedules. Here, traders incur both the opening fee and the rollover fee, which, in most cases, are capped at the same rate. Also, margin fees on Kraken are influenced by the currency.

For example, margin positions with either Bitcoin (XBT), Tether (USDT), and USD Coin (USDC) as the base currency and EUR or USD as the quote currency, attract an opening fee of 0.01 percent and a rollover fee of 0.01 percent per 4 hours. Other margin position with either Cardano (ADA), Bitcoin (XBT), Bitcoin Cash (BCH), DASH (Dash), EOS, Ether (ETH), etc. as the base currency and paired with EUR, USD, ETH, XBT, CAD, GBP, and or USDT as the quote currency attract an opening fee of 0.02 percent and a rollover fee of 0.02 percent per 4 hours.

While the rollover fees may seem small, it greatly eats into your profits when a position is maintained for a whole day. For instance, let’s assume a trader maintains an XBT/USDT position open for an entire day (24 hours). The fee will be applied six times (24/4=6), making it 0.06 percent (0.01 percent *6) per day. Or it can be 0.12 percent per day (0.02 percent *6). Note that margin fees are deducted from the borrowed funds.

Also, while the trading fees charged are influenced by a trader's 30-day trading volume, the actual fee calculation is done on a per trade basis. Additionally, the fee structure is meant to encourage traders to frequently trade on the platform in order to benefit from lower fees. Apart from traders, this fee structure is meant to drive liquidity into the Kraken digital asset exchange.

Our Rating: 5/10
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Available Coins

Kraken does not have an expansive list of available cryptocurrencies compared to Binance and Bitfinex. Also, it supports a fewer number of fiat currencies. There are 38 listed coins on Kraken. However, not all cryptocurrencies are available for trading on the exchange platform. As seen in the section on fees charged on Kraken, the exchange supports fiat currencies such as USD, EUR, CAD, JPY GBP, CHF, and AUD. The crypto-fiat list on Kraken has 37 cryptocurrencies, with a majority of them paired against the USD and the EUR. Only Bitcoin (XBT), Ethereum (ETH), and Tether (USDT) are paired to all the fiat currencies available on Kraken.

Kraken use the new international currency standards which dictates that currencies not associated with a country should start with an X. They therefore use XBT for Bitcoin, where many exchanges use BTC

For crypto to crypto pairs, all 38 available cryptocurrencies form the base currencies with XBT, ETH, USDT, DAI, and USDC being the quote currencies. Note that most base currencies only have XBT or ETH as the quote currency. Bitcoin, for example, is paired with USDT, DAI, and USDC. Bitcoin Cash (BCH) is paired with XBT, ETH, and USDT, while ETH is paired with all base currencies.

Some of the key coins tradable on Kraken are below

Bitcoin
Ethereum
XRP
Bitcoin Cash
Cardano
Litecoin
Chainlink
EOS
Tezos
Stellar
Monero
Tron
Cosmos
Ethereum Classic
Dash
ZCash
Dogecoin
Basic Attention Token
ICON
OMG Network
Augur
Qtum
+ 3 more

For margin traders, Kraken offers 16 base currencies and seven quote currencies. But, not all margin trading pairs on Kraken have the same leverage cap. For instance, the margin pair between Augur (REP) and EUR, XBT, or ETH, only unlocks a 2X leverage. A trading pair between XBT and USD or EUR opens a 5X leverage while an XBT/CAD allows maximum leverage of 3X.

Like many exchanges, most of Krakens volume is with XBT/EUR and XBT/USD trading pairs accounting for 14.16 percent and 11.69 percent of the exchange’s trading volume which translates to $44.73 million and $36.91 million respectively.

Our Rating: 7/10
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Permitted Countries

Kraken cryptocurrency exchange is a global platform. However, due to regulatory concerns and the costs of doing business in some jurisdictions, the exchange does not accommodate traders from some geographical areas.

United States
United Kingdom
Australia
New Zealand
Canada
Ireland
South Africa
France
Italy
Sweden
Denmark
Netherlands
Austria
Spain
Hong Kong
China
South Korea
Poland
Portugal
Bulgaria
Romania
Serbia
+ 17 more

Kraken in USA

For example, while Kraken offers its services to traders in the United States, it excludes users in Washington state and New York.

According to the exchange, “the cost of maintaining regulatory compliance in some states can be very high, forcing us to make hard choices about whether cost justifies doing business in the state.”

In hopes that the platform will allow residents from these states to actively access the platform, Kraken encourages them to submit verification details for pre-verification

Additionally, US residents in the states of New Hampshire (NH) and Texas (TX) are restricted from all EUR-paired cryptocurrencies, including depositing or holding EUR.

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Deposit Methods

USA

Compared to withdrawals, depositing fiat on Kraken is cheap and, in most cases, free. For example, dollar-designated deposits for traders in the United States have a fee of $4 for those using FedWire (MVB Bank or Signature Bank) and SWIFT (Signature bank) while those using FedWire through Synapse pay $5. Those using SWIFT (Etana Custody) or FedWire (Etana Custody) enjoy $0.00 in fees for deposits not falling below $150.

Europe

Euro deposits are free provided a trader is within the SEPA region and using either Fidor, Etana Custody, Bank Frick, or InCore Bank. However, SEPA deposits through InCore Bank excludes traders from Iceland and Cyprus.

For global deposits on Kraken, Euro deposits are free for those using SWIFT (Etana Custody), while those using SWIFT (Bank Frick) and SWIFT (Fidor) have to pay 3 EUR and 5 EUR in fees respectively.

Canada

Depositing using the Canadian dollar (CAD) is free for traders in Canada and using domestic wire transfer and global SWIFT (Etana Custody). Other deposit options such as In-person cash or debit through Canada Post and SWIFT (Bank Frick) pay a fee of 1.25 CAD+0.25 percent and 3 CAD, respectively.

Australia

Australian-dollar deposits through a bank transfer and Japanese-Yen deposits through SWIFT (Etana Custody) are free. Swiss Franc deposits carry a 0.75 CHF fee for traders in both Liechtenstein, Switzerland, and globally. Pound Sterling deposits on Kraken attract a fee of between 0.0 and 21 GBP depending on the method/processor user with CHAPS (Clear Junction) being the most expensive at 21 GBP.

Our Rating: 5/10
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Withdrawals

USA

Kraken’s deposit and withdrawal fees vary depending on the asset involved with most crypto deposits being free. Dollar-deposits attract a cost of between $0 and over $35 depending on the transfer type used with FedWire-Etana Custody (US users) and SWIFT-Etana Custody (Global) charging the highest at $35+0.125 percent. The differences in fiat withdrawal fees depend on the provider or method used. For instance, withdrawal using FedWire through MVB Bank costs $4, while a withdrawal through Etana Custody costs $35.

Europe

Euro withdrawals can be made using SEPA or SWIFT through Fidor (an open banking platform), InCore Bank, or Bank Frick. When withdrawing from Kraken in the European Union, a trader will pay between 0.09 EUR and 35 EUR. With this option, withdrawing using SEPA (Fidor) is the cheapest at 0.09 EUR with SEPA (Etana Custody) and SWIFT (Etana Custody) charging the highest at 35 EUR with a minimum withdrawal amount capped at 150 EUR.

Canada

Withdrawing using the Canadian dollar also has a different withdrawal fee. For example, those using EFT are charged 0.25 percent and wait for between two and five days before the money arrives in their account. Those who prefer SWIFT (bank Frick) have to cough 13 CAD for their withdrawal request to be honoured and wait for between one and five days before the funds reflect on the account.

UK

Traders withdrawing fiat in pound sterling, enjoy near-instant withdrawals at a fee of 1.95 GBP only if they’re located in the United Kingdom or Gibraltar, and use FPS through Clear Junction. Those using CHAPS through Clear Junction have to part with 21 GBP as the withdrawal fee, and the withdrawal is likely to take a maximum of 24 hours. Unfortunately, traders withdrawing using SWIFT through Bank Frick or Etana Custody pay 13 GBP and 35 GBP, respectively, as the withdrawal fee. However, despite the high withdrawal fees, the funds land in a trader’s bank account within one to five business days.

Other

Withdrawals involving the Swiss Franc (CHF) attract a flat fee of 1 CHF, whether using SIC or SWIFT through Bank Frick. However, SIC withdrawals are only available to traders in Liechtenstein and Switzerland, while SWIFT is available globally.

Japanese traders on Kraken are only treated to SWIFT withdrawals through Etana Custody. To successfully initiate a withdrawal in Japanese Yen (JPY), a trader pays 35 USD in its JPY equivalent. However, Japanese traders have the option to choose whether the withdrawal is instant or to wait for up to five business days.

Our Rating: 5/10
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Verification

Kraken has three personal account levels; Starter, Intermediate, and Pro. Each level determines the amount of funds a trader can deposit and or withdraw. Also, these levels determined the documents needed before being allowed to trade on the platform. Below are the limits applied to each account level for both fiat and cryptocurrency deposits and withdrawals.

Kraken Starter level

This is the basic level that a new user is gifted when they first register on the exchange. The level allows for unlimited cryptocurrency deposits in both 24 hours and 30 days. To join this level, a trader only needs to provide their names, phone number, email address, date of birth, and physical address. Unfortunately, the less the information a user provides, the more restriction they have on the platform. Starter level traders on Kraken have no access to fiat deposits and withdrawals on both a daily and a monthly basis. Being verified for the Stater level is automated and takes a maximum of 60 minutes. Apart from restrictions on withdrawals and deposits, Starter-level traders have very low limits when they want to trade on margin. Also, they have low API call rate limits and can generate a maximum of 16 API keys.

Kraken Intermediate Level

Kraken users on this level have higher limits for margin trading. Also, Intermediate-level traders have access to the Kraken Futures platform provided they are not located in the US, Canada (Ontario province), Ukraine, Vietnam, and about 20 other countries.

To get to this level, a Kraken user has to provide what he does for a living (choose between employed and unemployed), social security number for US users, a face photo (users in South Africa, Germany, and the USA), a government-issued ID (only a passport, drivers licence or national identification card is accepted), and a proof of residence in addition to everything provided in the Starter level.

Valid documents for proof of residence can either be a bank statement, a tax document, an insurance document, a residence certificate, a credit card statement, a payroll statement, or a utility bill.

Once Kraken verifies everything, a trader on this level will have access to unlimited crypto deposits for both 24 hours and 30 days. However, while this level attracts unlimited monthly cryptocurrency withdrawals, it puts a $5K cap on daily withdrawals.

For fiat deposits and withdrawals, Intermediate-level traders have their daily deposits and withdrawals capped at $100K, and their monthly deposits and withdrawals capped at 500K. It’s important to note that fiat deposits are calculated in United States dollar regardless of the traders’ currency. Therefore, when depositing amounts exceeding $100K, the transaction is put on hold. This scenario is likely to happen if a deposit involves euros. To avoid it, a trader can first check the USD-EUR conversion rate before funding their fiat account to avoid the funds from being held. Note that Intermediate-level verifications take not more than 10 minutes and are automated.

Kraken Pro Level

This is the highest level of personal Kraken exchange accounts. Here, a trader almost has unlimited access to deposits and withdrawals. For example, a trader has unlimited 24-hour crypto deposits and unlimited 30-day deposits and withdrawals. However, it puts a $10 million cap on daily withdrawals.

A pro-level trader dealing in fiat will have to put up with $10 million+ cap on daily withdrawals/deposits and $100 million ++ limit on monthly deposits and withdrawals. However, to get to this level, a trader has to provide, in addition to Intermediate-level requirements, financial statements, and complete a know-your-customer (KYC) questionnaire. Verification for the Pro level is manual and takes anywhere between one and five days.

Traders on this level enjoy the highest limits on margin trades, have access to the dark pool, can trade on the exchanges Futures platform (excludes residents of countries stated on the Intermediary section), can trade on the Kraken OTC desk, can generate up to 25 API keys and have the highest limit on API call rate.

Our Rating: 8/10
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Security

Like many other cryptocurrency exchanges today, Kraken puts a keen eye on the security of its users’ accounts. Methods used to provide the much-needed security include:

Two-factor authentication (2FA)

Simply put, two-factor authentication adds an extra layer of security on a user’s account apart from just a username and a password. However, the strength of the second layer depends on the type of 2FA employed.

Kraken’s 2-factor authentication can be enacted using two methods; hardware security key and an authenticator app.

Kraken security key for 2FA

This is considered the most secure 2FA method used by Bitcoin exchanges like Kraken and Binance. Kraken supports YubiKey to activate this extra layer of security on an account. Currently, Kraken supports the Yubico OTP protocol with other protocols such as FIDO U2F and FIDO2 to be added later.

YubiKey hardware models supported by Kraken are YubiKey 5 series, YubiKey 5 NFC, YubiKey FIPS series, YubiKey 4, YubiKey 4 Nano, and YubiKey NEO NFC. Note that a trader using the YubiKey 5 NFC and YubiKey NEO NFC can be able to authenticate access even on a mobile device since these two YubiKeys support near field communication (NFC). However, this works with the YubiKey Authenticator app installed on the mobile device.

2FA through an authenticator app

An authenticator app provides medium security because the 30 seconds window provided to generate a new code can still be used by sophisticated malicious actors to steal the code or pull a phishing attack. It’s available for use to Kraken traders using either Android or iOS-powered smartphones. With this method, as with the security key option, a trader has to select it on their account’s security tab to connect the app with their account. While using an authenticator app, extra permissions must be activated on the mobile phone to provide for remote access and erasing in case the phone gets lost or falls into the wrong hands.

2FA in Deposit and withdrawal

Apart from being used to provide an extra layer when signing in into Kraken, these two-factor authentication methods provide an extra layer of protection when depositing, withdrawing, trading, or as a master key. A master key has a different use on Kraken. For instance, it must be provided each time a trader wants to change their account password without the need to go through the email part. Also, it allows a trader to turn off the global settings lock and by-pass the 2FA method when signing in.

For this option to work, a trader needs to activate the global settings lock. Activating a 2FA method when depositing and or withdrawing funds prevents malicious individuals from hijacking the process even when the exchange’s security is under attack.

For deposits, a 2FA method must be invoked when generating a new deposit address. Such addresses stay active until a new address has been generated. For withdrawals, a 2FA method is required each time a trader moves funds out of their account or sends funds to their Futures wallet. However, transfer of funds from the Futures wallet to the regular spot trading wallet does not require a trader to go through 2FA verification. Withdrawal 2FA is also needed when creating a new withdrawal address, but global settings lock must first be enabled.

2FA for trading

The two-factor method can also be enabled for trading. With this option on, a trader requires to provide a 2FA code before a trade is activated. This provides an extra layer of security in case someone or the systems wants to tamper with a position or the balance. Unfortunately, when this option is active, it presents a barrier when a trader needs to immediately cancel a trade to prevent losses.

Has Kraken ever been hacked?

Yes. In 2016, some users took to social media to complain that their accounts had been compromised and funds stolen. But, the exchange never openly admitted that Kraken security had been breached. Instead, the exchange said it was a phishing attack.

In a statement, Kraken said: “We have no reason to believe that Kraken itself has been breached. The vast majority of reports of hacked accounts so far have admitted to reusing credentials across services, and have not used two-factor authentication on login. Some hacked accounts had two-factor set only on withdrawals but had not enabled the settings lock, which left open the opportunity for an attacker to remove the settings upon logging in.”

Kraken’s failure to admit that it was on fault angered a section of its users, forcing them to create a mail group to form a public petition directed to the FBI with the aim of getting a refund for funds lost.

Our Rating: 8/10
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User Interface

Although Kraken started as a spot trading platform, it has since evolved to address Futures and margin trading needs that have been on the rise in the cryptocurrency community. When cryptocurrency newcomers first land on the platform, they’ll need to sign up and provide personal information such as their full name, date of birth, address, and a current phone number. However, additional information required depends on the trading level; Starter, Intermediate, or Pro.

Apart from the level of verification required in these levels, each level has its limitations on trading volume, daily, and monthly deposits and withdrawals both in cryptocurrency and fiat.

After creating an account on Kraken, a new user is welcomed with a screen requesting the user to verify their account and show all balances in fiat equivalents and in individual cryptocurrencies starting with Bitcoin. Below the individual balances is the total margin currency balance, the trade balance combined with unrealized profits or losses (Equity), total margin amount used in open positions (Used Margin), usable margin balance (equal to equity minus margin), and percentage ratio of equity to used margin (Margin Level).

On the Simple interface, a user has to first select a trading pair on the upper far left corner under “Market.” They then select the price and the order type; Market or Limit. Note that a market order is fulfilled at the current market price while a limit order is filled at a trader’s preferred price.

The process gets a bit complicated in the Intermediate section. Here, a trader has to choose the trading pair, amount, order type (either market or limit), total, leverage, start, expiry, and the fee currency.

The advanced tab has all the functionalities of the Intermediate tab only that it adds flexibility to the order type. Here, a trader can choose between limit, market, stop loss, take profit, stop loss limit, take profit limit, and settle position. Additionally, the advanced tab allows a trader to take full control of the order type chosen by allowing them to set the prices.

Expiry of orders on Kraken can be custom set, or a trader can select between good until cancelled, good this day, good this week, or good this month.

Our Rating: 5/10
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Customer Support

A look at reviews on Kraken’s customer support paints a picture of both love and hate, with most reviews indicating unsatisfactory customer support. For example, reviews from Trustpilot the exchange a rating of 2.3 out of 5 compiled from 400 reviews.

One of those who left a review on the platform complained that the “[customer] support is impossible and slow.” Another one noted that they have had it smooth on the exchange, and they “can’t really understand how they’re so underrated.”

Kraken exchange forums such as the Kraken exchange Reddit and other Reddit crypto communities portray the same hot-cold relationship with the exchange. For example, a Kraken user on Reddit like the platform for the fact that they do not accept “onerous and invasive regulations.” However, not everything is smooth on Kraken; some users have taken to social media to complain about the exchange’s complex user interface.

Those with a technical eye love Kraken for its use of Rust programming language in their backend. This programming language is known to be secure.

Our Rating: 5/10
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Other Features

Compared to many exchanges, Kraken does not offer very much additional functionality beyond the basics

Staking

Kraken supports both on-chain and off-chain staking for popular cryptocurrencies. Currently, the exchange supports on-chain staking for Tezos (XTZ), with Cosmos (ATOM) and Dash (DASH) next on the line. Also, the exchange supports off-chain staking for USD, EUR, and Bitcoin. Stakers earn rewards twice a week.

Rest API

API’s on Kraken can be used to initiate both public and private functionalities. For example, they can be used to get public market data such as server time, asset information, tradable asset pairs, ticker information, order book, and recent trades.

Also, a Kraken API can be used to get a users’ account balance, open orders, trade balance, closed orders, orders information, trades history, open positions, add standard orders, get deposit methods/addresses, among others.

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Mobile App

For traders on the go, Kraken provides two versions of mobile applications for both Android and iOS-powered mobile devices. The exchange has two apps; one for futures trading while the other is for spot trading.

Android

To be able to install the Kraken exchange Android app, a trader needs to have a phone with the latest Android version or version 7 and above to download the Kraken Pro app and version 4.4 and above to download the Kraken Futures app on Play Store. However, if the smartphone is powered by a lower Android version, traders can still access Kraken’s mobile-friend website through their browser.

Note that instead of the normal sign-in, the Kraken Pro app interfaces with a trader’s Kraken account through an API key. However, the API key is only used for the first login.

The Kraken BTC exchange app provides three tabs; Markets, Trade, and Balances. The markets section displays all the 184 markets available on Kraken. These markets are grouped according to their base currency. The markets can be sort either by volume or alphabetical. The “Trade” tab shows all the open orders, margin positions, and trades carried out in the last 24 hours. This section also allows for the placement of new orders, whether spot or margin.

The app has a good rating on the App Store with a rating of 4.7 out of 5.

IOS

Kraken presents a similar interface of the Kraken Pro app on iOS devices as it is on Android devices. On the App Store, the Kraken app has a rating of 4.7 out of 5 calculated from over 500 ratings.

Our Rating: 5/10
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Conclusion

In the United States, Kraken is competing with other major exchanges like Coinbase. When pitting these two exchanges together, Coinbase can the better option for very new cryptocurrency buyers owing to its user-friendly interface. However, Kraken wins on other fronts, such as having a higher number of tradable coins, lower fees and the ability to offer Futures and margin trading.

On the world stage, the Kraken exchange platform can be compared to Binance. Each has its strengths, but Binance has more listed and tradable coins, lower trading fees, has its own coin (Binance Coin), which drives trading fees even lower, and is more beginner-friendly.

Kraken Rating Summary
Overview and Reputation
7/10
Trading Fees
5/10
Available Coins
7/10
Deposit Methods
5/10
Withdrawals
5/10
Verification
8/10
Security
8/10
User Interface
5/10
Customer Support
5/10
Mobile App
5/10
TOTAL
6.0/10
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FAQ

Is Kraken exchange regulated?

Kraken operates within a legal framework in the US and Canada, where it is registered as a Money Services Business (MSB). Although it’s registered with FinCEN in the US and FINTRAC in Canada, its Futures platform is governed by UK’s financial watchdog; the Financial Conduct Authority. In Australia, the exchange adheres to operating guidelines set by the Australian Transaction Reports and Analysis Centre (AUSTRAC). Note that Kraken exchange UK and Kraken Australian were born through the acquisition of CryptoFacilities and Bit Trade Pty Limited, respectively. Also, Kraken complies with all set regulatory guidelines on all jurisdictions where they operate.

Is Kraken exchange insured?

In the United States, deposits on Kraken are not insured by the Federal Deposit Insurance Corporation. Kraken doesn’t see the need to be insured as it argues that deposit insurance programs are meant for savings institutions. However, to cover for potential losses, the exchange maintains an insurance fund with over $100 million.

How safe is Kraken exchange?

Apart from the security hitch in 2016, Kraken has maintained a clean security record since then, making it one of the most secure cryptocurrency exchanges in the world. Also, their insisting on using 2FA methods and a master key ensures user accounts are safe. However, Kraken adds that “no amount of security on our end can make up for poor personal security.”

Is Kraken a good crypto exchange?

Yes. Especially for pro crypto traders looking to use leveraged trading and those keen to save on spot trading fees.

Does Kraken report to the Internal Revenue Service (IRS)?

Yes. Cryptocurrency exchanges operating in the United States like Kraken report to the IRS. However, whether the IRS is aware of your involvement with cryptocurrencies or not, a trader in the US is supposed to declare their crypto holdings in the annual tax forms.

Which is better between Coinbase and Kraken?

It depends on what services you are looking for and your level of experience in trading cryptocurrencies. If you are a beginner, then the ease of use and beginner-friendly features of Coinbase are the best. But, if you are a sophisticated trader looking to trade on margin and Futures, then Kraken is your best bet.

Does Kraken accept credit cards or PayPal?

Kraken only supports debit card deposits for its users in Canada through Canada Post. The exchange does not accept credit cards or PayPal methods for deposits and withdrawals.

Is Kraken a Bitcoin Wallet?

No. Kraken is a Bitcoin exchange. As such, funds on the Kraken exchange wallet should only be used for trading and not for safekeeping. Also, this means that Kraken users cannot receive airdrops or coins from hard forks, and funds deposited to the wrong account cannot be recovered. Also, users cannot transfer cryptocurrencies between Kraken accounts.

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