Kraken Review and Other Crypto Competitors 2024

 

Kraken Review and Other Crypto Exchange 2024

Kraken stands as one of the venerable entities within the realm of digital assets. Established in 2011 and situated in San Francisco, California, it has expanded considerably since its inception, emerging as a leading figure in the sector.
From its inception, Kraken's primary goal has been to hasten the integration of digital assets by offering a platform that is dependable, secure, swift, and versatile.

Table of Contents

Looking back at the platform's history, we can identify several key achievements:

🖥️ Initial Recognition on Bloomberg Terminal: Kraken was among the earliest cryptocurrency exchange platforms to be featured on Bloomberg Terminal, underscoring its credibility and trustworthiness in the financial sector.

🔒Advanced Security Measures: Kraken has implemented stringent security protocols, making it one of the few platforms to have never experienced a major security breach.

🌍 Worldwide Presence: The platform is active in over 190 countries and is actively growing its global footprint, adjusting to local laws and providing a broad spectrum of financial services.

📈 Trading Activity: By the end of 2023, Kraken had reported a quarterly trading volume exceeding $207 billion, solidifying its position as a leading cryptocurrency exchange platform on a global scale.

Key Features of Kraken

When evaluating any cryptocurrency platform, the diversity of assets it offers for trading is a crucial factor.

In this instance, Kraken boasts an extensive selection of assets, with over 230 options.

Standout features:

➜ Bitcoin (BTC) : The most well-known and utilized cryptocurrency globally.

➜ Ethereum (ETH) : Favored for its smart contracts and decentralized applications.

➜ Tether (USDT) : Offers a stablecoin backed by the US dollar.

➜ Solana (SOL) : Renowned for its swift transaction speeds.

➜ Polkadot (DOT) : Lauded for its ability to facilitate interoperability across blockchain networks.

➜ Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), among others.

Types of accounts on Kraken

As is typical with this kind of platform, there are various account options available to users. These accounts are customized to fit your profile, simplifying your trading experience.

Kraken offers:

➡️ Starter account: This account enables you to engage in basic trading activities with minimal verification requirements.

➡️ Intermediate account: Here, you need to provide more thorough verification and proof of address, along with higher limits for withdrawals and deposits.

➡️ Pro account: Designed for sophisticated or institutional users, this account not only increases your limits but also grants access to advanced features like futures and margin trading.

What trades can you make on Kraken?

One of the aspects I appreciate most about Kraken is its wide range of clear trading options. This means you won't face the confusing interfaces that can lead to misunderstandings.

💻 Interface and user experience: Kraken has focused on creating user-friendly and efficient interfaces for different user types:

✔️ Kraken: Perfect for newcomers, this interface features a straightforward and simple layout, making it easy to navigate and carry out basic transactions.

✔️ Kraken Pro: Tailored for experienced traders, it allows for the customization of widgets, detailed analysis through TradingView, and real-time monitoring of orders and markets. Kraken Pro's interface is highly adaptable, allowing users to customize their trading environment to meet their specific needs.

Additionally, there are mobile applications available for both Android and iOS, which provide a seamless experience without compromising on features or quality compared to the web version.

Most common trading activities on Kraken:

👉 Spot: This feature facilitates the direct buying and selling of cryptocurrencies.

👉 Margin: It enables users to trade with leverage (up to 5x), expanding market exposure without the need to have all the necessary funds.

👉 Futures: Kraken supports futures trading with up to 50x leverage, allowing traders to speculate on the future value of cryptocurrencies.

Asset Staking in a separate section, as, for some clients in certain countries like the USA, this service has been temporarily suspended. Although it remains operational in other countries, it might have undergone changes by the time you read this.

✚Other notable services

Additional services and tools are often seen as crucial when evaluating any financial service, especially in the cryptocurrency sector, where there's a need for more education and training in a relatively new area.

👉 Education & Resources: A broad selection of educational materials 📚, including articles, videos, and webinars, are available to assist users in learning about cryptocurrencies and trading.

👉 Analysis Tools: Advanced market analysis tools, featuring detailed charts and historical data.

Safety Features of Kraken

Kraken stands out not only for its innovative features but also for its robust security measures, making it one of the top-rated crypto platforms available.

Among its safety features are:

🛡️ Two-factor authentication (2FA) : Kraken enables users to safeguard their accounts with 2FA, utilizing tools such as Google Authenticator or physical devices like YubiKey, steering clear of vulnerable options like text messages.

🛡️ Cold Storage : A significant portion, approximately 95%, of user funds are kept in cold (offline) wallets, shielded by stringent security protocols and requiring thorough verification steps for access.

🛡️ DDoS Defense : Kraken is equipped to fend off distributed denial of service (DDoS) attacks, ensuring its services remain operational even in the face of major disruptions.

🛡️ Data Encryption : Every piece of sensitive information, whether at rest or in motion, is encrypted, guaranteeing its protection from interception or unauthorized access by external parties.

Security Background and Accreditations

Kraken boasts an impressive security history, having never experienced a major breach that put user funds at risk.

Kraken is known for its commitment to transparency, with regular audits and reserve tests.

Reserve tests are conducted periodically to demonstrate that the platform has the necessary funds to protect user deposits. These independent audits are available for users to review.

Furthermore, Kraken maintains an active bug bounty program, which rewards members of the community for identifying security vulnerabilities.

In terms of security, Kraken has earned recognition from various international bodies, including:

➡️ ISO/IEC 27001:2013: This certification shows Kraken's adherence to global best practices in managing information security.

➡️ SOC 2 Type 1: This certification verifies Kraken's compliance with stringent security and data protection standards.

Regulatory and Compliance Efforts

In addition to its strong security measures, Kraken excels in regulatory and compliance areas.

📜 This includes the implementation of Know Your Customer (KYC) and Anti-Money Laundering (AML) policies. These measures are in place to prevent fraud and ensure the transparency of all transactions.

🏛️Kraken has secured several critical licenses and registrations, highlighting its dedication to legality and security.

Regulatory Approvals

In the US, Kraken is registered as a Money Services Business (MSB) and adheres to FinCEN regulations.

In the UK, the platform complies with FCA regulations to operate legally.

In France, Kraken is registered with the AMF, ensuring it meets local standards and regulations.

In Australia, Kraken meets AUSTRAC regulations, ensuring its operations are safe and legal.

Commission and Fees

When it comes to the financial aspect, Kraken offers competitive pricing.

While the cost of services varies based on individual circumstances.

Instant Buy: This service comes with higher fees, with a 1.5% fee for most cryptocurrencies and a 0.9% fee for stablecoins like USDT. Additionally, a 3.75% + $0.25 fee is applied if a credit card or digital wallet is used.

Kraken Pro: This service provides more affordable fees, utilizing a maker-taker model. Fees are based on trading volume over the past 30 days, with makers paying higher fees and takers paying lower fees.

Trading Volume Range :

Maker and Taker Fees on Kraken (2024)

Trading Volume Range	% for Makers	% for Takers
$0 – $50,000	0.16%	0.26%
$50,001 – $100,000	0.14%	0.24%
$100,001 – $250,000	0.12%	0.22%
$250,001 – $500,000	0.10%	0.20%
$500,001 – $1,000,000	0.08%	0.18%
$1,000,001 – $2,500,000	0.06%	0.16%
$2,500,001 – $5,000,000	0.04%	0.14%
$5,000,001 – $10,000,000	0.02%	0.12%
More than $10,000,000	0.00%	0.10%

 In comparison to other cryptocurrency platforms, the average fees are generally more reasonable:

👉 Coinbase: Charges instant purchase fees ranging from 1.49% to up to 3.99% and extra charges for certain payment methods.

👉 Binance: Offers competitive pricing with fees starting at 0.10% for both buyers and sellers, though these can be further reduced by using the native Binance BNB token for payments.

Kraken Fees and Commission Table (2024)

💸Instant Purchase

Cryptocurrencies: 1.5%

🪙For the majority of cryptocurrencies

Stablecoins: 0.9%

🏦For stablecoins like USDT

Credit/debit card: 3.75% + $0.25

💳Extra charge for credit/debit cards

Digital Wallet: 3.75% + $0.25

📱Extra charge for digital wallets

Bank transfer: 0.5%

🏦No extra charge for bank transfers

💰Deposits

Bank transfer (EUR): Free

💶For deposits in EUR

Bank transfer (USD): $10

💵For deposits in USD

💰Withdrawals

Bank transfer (EUR): €0.09

💶For withdrawals in EUR

Bank transfer (USD): $4 – $35

🏦Varies based on the receiving bank and location

Bank transfer (USD and other currencies): $60

💵For withdrawals in USD and other currencies

Kraken PRO Specific Fees

📊Trading (Maker/Taker)

Important Points to Note:

✅ Spreads: Instant purchases may also include a spread, which is the difference between the purchase and sale prices. This spread can fluctuate based on market conditions and other factors.

✅ Additional fees: Kraken might impose extra charges depending on the payment method and the user's location, as detailed above.

Deposits and Withdrawals on Kraken

This aspect is crucial in evaluating Kraken, as it introduces a potential drawback: the inability to deposit using credit/debit cards. Let's explore this further.

The most common and usually most affordable way to deposit is through a SEPA transfer.

💸Kraken is capable of processing SEPA transfers for deposits in Euros (EUR) and FedWire transfers for deposits in US Dollars (USD). The associated costs are typically minimal or even free, varying based on the specific transaction method and the currency involved.

You can also put money into your account using certain online wallets, but this varies by location, so it's important to review the rules carefully on the website.

Indeed, you can transfer digital coins from your wallet to the platform for free, as long as they are recognized assets from the over 200-item list.

📌Now, the question arises: Kraken does not process payments through credit cards, debit cards, PayPal, or similar platforms. This also applies to withdrawal options, meaning you cannot take out fiat money using these methods. Nonetheless, you are able to transfer funds to your account if you are in Europe, using SEPA, or if you are making a withdrawal in dollars, using FedWire. While there are fees involved, as indicated in the commission table, they are relatively low. However, it's important to note that SWIFT might impose higher fees.

Certainly, you're also able to move your cryptocurrencies back to your wallet. Please be aware that the constraints apply to traditional currency.

⏱️ The times it takes for transactions to be completed can vary based on the method chosen:

✔️ Bank transfers (SEPA) : Typically, these are processed within 1-3 business days.

✔️ Bank Transfers (FedWire) : Usually, these take 1-5 business days, depending on the bank receiving it.

✔️ SWIFT : It could take 1-5 business days, depending on the receiving bank's location.

✔️ Cryptocurrencies : Transactions involving cryptocurrencies are usually finished within minutes, though they might take longer if the blockchain is busy.

Customer Support

📞 This platform provides a variety of tools for reaching out to customer support and solving issues.

The primary methods are:

➡️ Online chat : Available around the clock, this allows you to start addressing your technical support needs right away.

➡️ Telephone support : Currently, the platform is not offering telephone support. Previously, it was available 24/7 but was facing issues with congestion.

➡️ Ticket system : Users can submit support requests through Kraken's website and expect detailed replies via email. This system is quicker than most competitors.

Advantages of Kraken

👍 A broad range of cryptocurrencies: Kraken supports trading in over 230 cryptocurrencies, providing a wide array of choices for investors.

👍 Affordable fees: The fees for Kraken Pro are low, which appeals to both seasoned traders and beginners, making it a competitive option.

👍 Strong security: Kraken has a solid security framework, including regular audits to ensure customer balances are backed by real assets.

👍 Compliance and openness: The platform is known for its adherence to regulations and its transparent operations.

👍No frusting on transactions like other competitors such as Binance where  you often have to complete facial verification before you transfer your funds.

👍 Easy KYC to complete

👍No stupid temporal suspension of account while trading like Binance.

👍Direct SEPA exchange to Crypto Vice versa through Etana

Disadvantages of Kraken

👎 Limited support options: Although Kraken is available 24/7, the absence of direct phone support might be a downside for some users.

👎 Expensive for certain transactions: Services like instant purchases have higher fees, which might not be ideal for those trading casually.

👎No BEP20 blockchain for usdt transaction but you can always use Tron20 Blockchain

💸Kraken is capable of processing SEPA transfers for deposits in Euros (EUR) and FedWire transfers for deposits in US Dollars (USD). The associated costs are typically minimal or even free, varying based on the specific transaction method and the currency involved.

With the overall review Kraken is highly recomanaded than other competitors.