Kraken Review 2021

Kraken is a huge platform for selling/buying cryptocurrencies, and it is rather popular yet cumbersome. Well, it will not seem complicated to the experienced crypto traders. However, newbies may find this service a bit tricky. It requires some knowledge and skills like being able to interpret graphs and stats on your own. Anyway, this exchange is very popular and secure. It is time-tested by millions of users around the world. Below, you can see a review on this platform that will help you to realize if it works for you.

Advantages

   - Safe and trusted

   - Many fiat money accepted

   - Low fees

Disadvantages

   - Complexity

   - Lack of client support responsiveness

Brief Introduction to Kraken

Jesse Powell is an enthusiast of cryptocurrency from California, and the idea to create Kraken visited him after his attendance of Mt. Gox offices. The same day, the company was hacked as it was poorly operated. Keeping in mind the example of this exchange service, Jesse decided to create his own platform for Bitcoin trading that would be much more secured and protected. The main focus of the company is still safety and credibility. Thanks to these qualities, the brand is included in the Bloomberg Terminal list. This tool is rather popular among bankers and finance professionals. Kraken only had difficult times in 2017-2018. Since then, it has upgraded the security measures significantly. 

Defining Kraken

At Kraken, one can buy and sell crypto currencies in two ways: with the fiat money (e.g., GBP, USD, EUR) and other digital coins. Interesting fact: the platform has the greatest Euro trading volume of any other exchange. On the whole, it made 38 cryptocurrencies available for trading. 

Benefits of Choosing Kraken

Fiat money accepted

Less and less exchange services that specialize in crypto accept fiat money. With this feature, you should not necessarily have any tokens already. You can buy your first altcoin with traditional money.

Safety and reliability

Kraken has a rather high credibility. The platform looks massive and persuasive, and it is one of the oldest exchanges out there. It has never been hacked or compromised despite minor issues in 2017-2018 when it was temporarily unavailable. 2-factor authentication is another excellent proof of highly secured system. While a customer decides on the first passcode, another one is generated by a smart application like Yubikey and is impossible to guess.

Fees

Despite the loud name and high security level, Kraken does not impose high fees. Its goal is to make the service accessible for everyone. The maximum fee is 0.26 percent. It depends on the crypto itself and its volume. 

Selection

The platform offers one of the longest lists of crypto currencies on the web, including the most up-to-date ones. However, it still cannot beat Binance in this aspect.

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The company has a perfect reputation among both clients and crypto experts. It is basically thanks to the level of security that they provide. Another secret of success is the so-called proof-of-reserves audit that Kraken passes regularly. 

Help

FAQ and other types of customer support are doing pretty well at Kraken. If the FAQ section lacks some answers, do not hesitate to contact the support team via Help → Support whenever you need it. 

Mobile 

The mobile software is also available as a native app, which is fully optimized. It is even simpler to use than a desktop version. The developers of this version added some special trading features. 

What About the Bad Sides?

The negative aspects are present as well. Otherwise, everyone would choose Kraken, right?

Reliability

Kraken was never hacked like some of its direct competitors, but it faced some issues back in 2017. It could not handle the flow of customers. More and more people joined, and, soon, the platform was overwhelmed. They were closed for one week then. It taught the company to dedicate more time to certain nuances in 2018.

Client care

You won’t find a phone number to reach out to the company’s reps. The agents are available via live chat, but it may take hours to wait for a reply due to the large flow of queries. Anyway, it is one of the most secured exchanges services, so you have nothing to worry about in particular.

Get Started to Trade

After you decide that this platform suits you, move to the official site where you can find the button motivating guests to become the clients.

 

   - Think about a strong password. Provide a real email address that is active. 

   - Check your inbox to copy the activation code. Insert it in the required field and pick Activate Account. 

   - Verification is the next stage. The service possesses 5 tiers of confirmation. Prove who you are by sending some documents and a selfie with them. The initial 3 levels will mostly ask for a passport, ID, or driver’s license. That is it. However, the last couple of phases are severer. After you attach the requested docs, click Get Verified. Do not forget to type in personal details, including your birthdate, in the corresponding fields. With the first tier, users can deposit and/or withdraw with crypto. Kraken has set some restrictions for users’ security. Every day, it is possible to retrieve no more than $2,500. To raise the limit, send them a document verifying your current address. Always pick Get Verified in the end. 

   - With a second tier, users obtain a right to deposit and/or withdraw fiat currencies. The limitations then are $2,000 daily. Cryptocurrency withdrawals are limited to $5,000 per day. There is no limit on cryptocurrency deposits. The last two levels of verification may take several days or even a week. It depends on the clarity of information provided and quality of the images you send. In some countries, you can trade only with at least tier 3.

   - Pass a 2-factor authentication. Pick Security and then select Two-factor authentication → Setup. Do not deny or turn off this protective measure as it will help to keep your funds safe.

   - Begin to trade. Find the Funding section. Drop some money. Choose whether to pay with crypto or fiat money. Be ready for some fees. Users from the EEA zone may drop and withdraw money in EUR at no charge. If they decide to deposit in USD, the fee will then be five dollars. Just keep on moving and proceeding with your transaction by clicking on Trade → New Order

Simple, Immediate, Advanced - those are three levels that Kraken offers for trading. Even if you are a pro, start with the first one to see how the system works as it might be different from your previous exchange services. Trading on this site might be a challenge even for the experts!

When purchasing bitcoins, think about whether you wish to use a limit or market order. It is better to choose the second option as it is way faster and easier. In the first case, you order a cryptocurrency for a set price, which is not that beneficial.

In the end, push the BUY WITH button.

How to Keep Your Tokens?

We do not recommend registering wallets at the same place where you buy coins. At least, avoid holding your cryptocurrencies there for a while. The safest method is not a “hot” but rather “cold” storage, which means keeping your treasure offline (e.g., on a special device or hardware). As a hardware wallet, you may use your USB. The private/public keys for accessing your crypto will then be saved there as well. Once you decide to claim some of your money as fiat ones, be raedt to pay some fees.

Fees for Withdrawing Your Funds

The main factor that impacts the charge is your location. For instance, the citizens of the United States can pick their money in USD by paying just five dollars as a commission. Others would have to spend extra sixty dollars. However, if you decide to retrieve your funds on crypto, the fees are way lower.

Who Will Benefit from Trading on Kraken?

Kraken is not suitable for dummies. It requires certain skills and level of experience. However, you may start with studying the system and using the Basic plan first. Start small even if you are a pro to learn all the nuances that we could skip in this review. With the tier 2, you might already feel like a king, being able to deposit money within a couple of minutes. It also depends on the preferred payment method. 

Kraken has plenty of features that make it stand out from the rest of its rivals. It makes it possible to do margin trading and short selling. It is possible to borrow currency to trade if you do not have one or have insufficient funds. In contrast, short selling is borrowing currency and then selling it, hoping that the price will go down. You then buy it back to make a profit.