KRAKEN

    Kraken is the USA based cryptocurrency trading platform. The platform allows users to buy, sell, trade and store the digital currencies; such as Bitcoin (BTC), Ethereum (ETH) and 380 other currencies. Its user-friendly interface serves both the freshers and experienced traders. The platform offers a secure, and easy way to interact with the crypto market. 

    History and Background

    The platform Karaken was founded in 2011 by Jesse Powell in San Francisco, USA; and started operating in 2013. As it is among the oldest exchange platforms, it ensures safety and reliability. Today, the platform has achieved 10 million users and operates in 190 countries, almost around the world. CEO of Kraken - David Ripley has done great efforts to boost the global adoption of blockchain. 

    Kraken’s Global Presence and Reputation

    Kraken is one of the highly respected platforms in the world, as it is never once hacked. This shows its top-notch security. The platform follows strict regulation and follows the guidelines from FinCEN, USA. The platform indulges with over $207 Billion in trading every quarter and is among the top favorites of the crypto users around the world. 

    Why is Kraken One of the Top Exchanges?

    Kraken not just offers affordable fees, but provides a wide variety of cryptocurrencies, and a strong security interface. Its easy-to-use platform is great for beginners, while its advanced features appeal to experienced traders. Kraken’s dedication page for information and helpful learning materials makes it a reliable and trusted choice.

    Key Features of Kraken

    Kraken exchange offers exciting features to meet different needs of various users:

    • More Cryptocurrencies: Kraken offers 380+ crypto coins to trade, popular coins such as Bitcoin (BTC), Ethereum (ETH), and stablecoins like USDT and USDC are also available.
    • Low Fees: Kraken offers pocket-friendly trading fees with its pro feature, starting at only 0.16% for makers and 0.26% for takers.
    • Advanced Tools: Live charts, order books, and analysis features support traders in making informed decisions.
    • Passive Income: Users can earn extra money by staking coins like Ethereum and Polkadot.
    • Kraken Pro: A platform for skilled traders with lower fees and enhanced tools.
    • NFT Marketplace: Used to let users buy, sell, and create NFTs, but Kraken started closing this feature in November 2024.
    • Educational Resources: Kraken’s Learn Center provides guides and videos for beginners.
    • Mobile and Desktop Apps: User-friendly apps enable trading on the go.
    • 24/7 Customer Support: Assistance is available via live chat, email, or support tickets.

    Getting Started on Kraken

    Creating an Account

    To create an account on Kraken user needs to follow the below steps: 

    • Visit the official website at Kraken.com 
    • Click on - “ create account” button 
    • Provide email id, select an appropriate username and set a strong password
    • Choose the country of residency 
    • User will receive the activation code on the registered email
    • Activate the account through the received email 
    • Log into the account and access the various features on dashboard

    Completing KYC/Verification

    Kraken mandates Know Your Customer (KYC) verification to unlock full functionality:

    • Starter: Allows crypto deposits/withdrawals but no fiat transactions.
    • Express (USA only): Permits limited fiat deposits.
    • Intermediate: Offers higher limits for fiat and crypto, requiring ID and proof of address.
    • Pro: Provides the highest limits, necessitating additional financial details.
      Verification typically completes within hours to a few days.

    Enabling Security Features

    Users enhance account security by:

    • Activating Two-Factor Authentication (2FA) with Google Authenticator or Yubikey.
    • Setting a Master Key for account recovery.
    • Enabling the Global Settings Lock (GSL) to prevent unauthorized changes.

    Overview of the Dashboard

    • Kraken exchange platform’s dashboard offers a clean, intuitive and easy to navigate design. 
    • Users can find options for crypto trading, funding, staking, and many more. 
    • The “Trade” tab facilitates the crypto buying and selling feature 
    • The “Funding” tab helps manage deposits and withdrawals.

    Funding a Kraken Account

    Depositing Fiat Currency

    Kraken accepts 6 fiat currencies, which are - USD, EUR, GBP, CAD, CHF, and AUD. Deposit methods include:

    • Via Bank Transfer: Free or low-cost (e.g., SEPA for EUR, ACH for USD).
    • Using Credit/Debit Card: Higher fees apply (3.75% + $0.25).
    • Through P2P (Kraken Pay): Allows free transfers of fiat or crypto between Kraken users.
    • Via Wire Transfers: Suitable for large deposits via SWIFT for international transactions.

    Depositing Crypto

    To deposit crypto from an external wallet or exchange, a user:

    • Go to the “Funding” tab and click “Deposit.”
    • Pick the cryptocurrency (e.g., Bitcoin or Ethereum).
    • Choose the right network (e.g., Bitcoin network for BTC, Ethereum network for ETH).
    • Copy the wallet address or scan the QR code.
    • Send crypto from their external wallet.
      Note: Users must verify the network to prevent fund loss (e.g., sending ETH via BEP20 instead of ERC20).

    Understanding Deposit Networks

    Kraken lists the networks it supports for each coin, and users need to choose the correct network when depositing to prevent mistakes. Cryptocurrencies use different blockchain networks, such as ERC20 for Ethereum or BEP20 for Binance Smart Chain, etc. 

    Buying and Selling Crypto

    Using “Buy Crypto” Options

    Kraken’s “Buy Crypto” feature simplifies the buying process for freshers:

    • Using Credit/Debit Card: Purchase crypto coins right away, but pay higher fees (3.75% + $0.25).
    • Bank Transfer: Lower fees, but processing takes 1-5 days.
    • P2P: Buy crypto directly from other Kraken users.

    Trading on the Spot Market

    The spot market enables trading of crypto pairs (e.g., BTC/USD). A user:

    • Accesses the “Trade” tab and selects “New Order.”
    • Chooses “Simple” for basic trading or “Intermediate/Advanced” for additional options.
    • Chooses the crypto pair to trade (e.g., ETH/USD).

    Market, Limit, and Stop-Limit Orders

    • Market Order: Executes instantly at the current market price.
    • Limit Order: Sets a specific price to buy or sell.
    • Stop-Limit Order: Places a limit order when the price reaches a certain level.

    Converting Small Balances (Dust)

    Kraken lacks a direct “dust” conversion feature, but users can manually trade small balances into a single coin (e.g., BTC) on the spot market.

    Kraken Wallets Explained

    Kraken employs distinct wallets for different purposes:

    • Spot Wallet: Stores assets for trading.
    • Funding Wallet: Manages deposits and withdrawals.
    • Earn Wallet: Holds assets for staking and passive income.
    • Futures Wallet: Supports futures trading (for advanced users).

    Transferring Between Wallets

    To transfer funds, a user need to follow the below steps 

    • Visit the “Funding” tab.
    • Select “Transfer” and specify the source and destination wallets.
    • Enter the amount and confirm the same
    • Kraken also offers a non-custodial Kraken Wallet, supporting over 1,000 cryptocurrencies and NFTs, ideal for secure external storage.

    Withdrawing Funds from Kraken

    Withdrawing Crypto

    To send crypto to an external wallet, or to withdraw the funds, users need to follow the below steps 

    • Go to “Funding” > “Withdraw” and select the cryptocurrency.
    • Add a new withdrawal address (requires email confirmation).
    • Enter the amount, confirm it with 2FA, and pay the network fee (varies by coin).

    Withdrawing Fiat

    To withdraw to a bank account, a user has to follow the below steps: 

    • Select “Withdraw Cash” and choose the currency (e.g., USD).
    • Pick a method (e.g., ACH, wire).
    • Add a bank account details, enter the amount, and confirm the same

    Common Withdrawal Errors

    • Wrong Network: The withdrawal network must match the destination wallet.
    • Unverified Account: Higher verification levels are required for fiat withdrawals.
    • 72-Hour Lock: New deposits may face a temporary hold.

    Kraken Earn: Making Passive Income

    Kraken facilitates staking for earning rewards:

    • On-Chain Staking: Users lock coins (e.g., ETH, ADA) to support networks, earning up to 23% annually.
    • Opt-In Staking: Available for assets like BTC or USD in select regions.
    • Flexible Staking: Allows unstaking anytime without lockup.
    • Locked Staking: Offers higher rewards for longer commitments.
      To begin, a user navigates to the “Earn” section, selects a coin and staking option, enters the amount, and confirms.

    Advanced Features (Optional for Beginners)

    • Futures Trading: Enables trading with up to 50x leverage (high risk).
    • Margin Trading: Allows borrowing funds to amplify trades.
    • OTC Trading: Facilitates large trades for high-net-worth individuals.
    • API Access: Supports building custom trading bots or apps.
    • Kraken Pro Tools: Offers advanced charting and order types (e.g., iceberg orders).
      Beginners may defer exploring these until mastering basic trading.

    Kraken Mobile App Overview

    Kraken provides two mobile apps (iOS and Android):

    • Kraken App: Supports buying, selling, and portfolio management.
    • Kraken Pro App: Offers advanced trading with real-time charts.

    Key Features

    • Trading on the go.
    • Price and balance monitoring.
    • Deposit/withdrawal functionality.
    • Access to staking and support.

    Pros of the App

    • Intuitive design.
    • Over 1 million downloads.
    • Security consistent with the web platform.

    Safety, Security & Support

    Kraken SAFU Equivalent

    Kraken maintains top-tier security, storing 95% of funds in offline cold storage and avoiding any hacks. It employs:

    • 2FA and Master Key for account protection.
    • PGP encryption and SSL for data security.
    • Global Settings Lock to block unauthorized changes.

    Tips to Secure an Account

    Users should:

    • Use a strong, unique password.
    • Turn on Two-Factor Authentication (2FA), but don’t use SMS-based options.
    • Be cautious of phishing emails and fake websites.

    Accessing Support

    Kraken offers 24/7 support through:

    • Live Chat: For urgent issues.
    • Email/Ticket System: For detailed inquiries.
    • Help Center: Comprehensive FAQs and guides.

    Pros and Cons of Using Kraken

    Pros

    • Low trading fees, especially on Kraken Pro.
    • Unblemished security record with no hacks.
    • Extensive cryptocurrency selection.
    • Beginner-friendly with advanced options.
    • Staking opportunities for passive income.

    Cons

    • Customer support may lag during peak periods.
    • Higher fees for instant buys (1.5% vs. 0.26% on Pro).
    • Unavailable in some US states (e.g., New York, Washington).

    Kraken for Different User Types

    • Beginners: Benefits from a simple interface and educational resources.
    • Traders: Accesses low fees and advanced tools via Kraken Pro.
    • Investors: Utilizes staking and Earning features for long-term holding.
    • NFT Enthusiasts: Could engage with NFTs until the marketplace’s phase-out in 2024.
    • Developers: Leverages API access for custom tools.

    Final Thoughts + Useful Resources

    Is Kraken Right for Users?

    Kraken suits those seeking a secure, reliable exchange with low fees and diverse features. It accommodates beginners while scaling for experienced users. However, individuals in restricted regions or needing faster support may consider alternatives like Coinbase.

    What to Explore Next

    Users can:

    • Experiment with Kraken’s staking for passive income.
    • Transition to Kraken Pro for cost savings.
    • Deepen knowledge via Kraken’s Learn Center.

    Resources

    • Kraken Learn Center: Free guides and videos (kraken.com/learn).
    • Community Forums: Reddit’s r/Kraken for user insights.
    • YouTube Channels: Search “Kraken tutorial” for video guides.

    FAQs

    1. Is Kraken legal in my country?

    Kraken operates in 190 countries but faces restrictions in some US states (e.g., New York, Washington). Users should consult Kraken’s website for regional availability.

    2. How long does verification take?

    Verification typically takes hours to a few days, depending on the country and document requirements.

    3. Why is a deposit/withdrawal delayed?

    Delays may stem from network congestion, bank processing, or incomplete verification. Users should contact support if issues persist.

    4. Can funds sent to the wrong address be recovered?

    Crypto transactions are irreversible, so users must double-check addresses and networks.

    5. What is the difference between Kraken and other exchanges?

    Compared with Coinbase, Kraken offers lower fees but with a con of a beginner-friendly interface. Relative to Binance, it supports fewer coins but excels in security and US regulatory compliance.