Kraken Review 2024

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Revisor

Last update: 6 months ago

Our veredict

Kraken stands out in the cryptocurrency exchange market due to its strong emphasis on security and regulatory compliance, which has garnered it a reputation for trust and safety among users. Known for its robust security measures, Kraken has successfully avoided any major hacking incidents a noteworthy achievement in the volatile crypto industry. This track record of security, combined with its comprehensive range of available cryptocurrencies and sophisticated trading features like futures and margin trading, makes it a favored choice for both novice and experienced traders seeking a reliable trading platform.

However, while Kraken excels in security and features, it has been noted for its less-than-intuitive user interface, which can be a barrier for beginners. Additionally, some users have reported slow customer service responses during peak times, which can be a significant inconvenience. Despite these drawbacks, Kraken’s advantages in security, asset variety, and advanced trading options solidify its position as a formidable player in the cryptocurrency exchange landscape. Its commitment to adhering to regulatory standards and protecting user assets makes it a trustworthy platform for digital asset trading.

Pros

Cons

4,9

Threenvest Score

Fees

0,16%/0,26%

U.S Legal

With the confidence of Threenvest

Security Methods: Kraken’s commitment to security is unparalleled, utilizing state-of-the-art security measures such as two-factor authentication, SSL encryption, and cold storage of the majority of assets. This rigorous approach minimizes the risk of hacking and unauthorized access, making it a trusted platform for trading cryptocurrencies.

Reputation and Reviews: Kraken has maintained a strong reputation within the crypto community for over a decade. Its track record of security, user-focused services, and operational resilience has garnered positive reviews from users and industry analysts alike, reinforcing its standing as a reputable exchange.

Transparency: Kraken is known for its transparency in operations, frequently updating users on system upgrades, security measures, and changes in regulatory compliance. This openness builds trust and ensures that users are well-informed about their trading environment.

Trading Volume and Liquidity: Kraken is one of the largest exchanges in terms of trading volume and liquidity. This allows users to execute large trades without significantly affecting the market price, which is critical for both retail and institutional traders.

Possible Regulation: Kraken adheres to regulatory requirements in all jurisdictions in which it operates, enhancing its credibility and reliability. Compliance with these regulations not only ensures the legality of its operations but also provides a layer of security for its users’ investments.

Best Crypto Exchanges

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About Kraken

Introduction to Kraken

Kraken is renowned as one of the leading cryptocurrency exchanges in the world, providing a platform for trading various digital assets. Established with a focus on security, reliability, and innovation, Kraken caters to both novice and experienced traders, offering a range of features to enhance their trading experience.

What is Kraken?

Kraken is a cryptocurrency exchange that allows users to buy, sell, and trade a variety of cryptocurrencies securely. It supports fiat currency transactions and provides advanced trading options like futures and margin trading.

Background and History

Kraken was founded in 2011 by Jesse Powell, in response to the security vulnerabilities exposed by the infamous Mt. Gox hack. Officially launched to the public in 2013, Kraken placed an emphasis on robust security measures and user safety from the start. Over the years, it has grown to become one of the most respected and widely used cryptocurrency exchanges globally, known for its comprehensive range of coins and fiat currencies.

Founders

The visionary behind Kraken, Jesse Powell, was an early advocate of cryptocurrency. Before starting Kraken, Powell visited the offices of the then-largest Bitcoin exchange, Mt. Gox, and was inspired to create a more secure and well-rounded exchange. His background in technology and a deep understanding of the crypto market have propelled Kraken to the forefront of the crypto exchange industry.

Interesting Facts

Kraken was one of the first Bitcoin exchanges to be listed on Bloomberg Terminal.
The exchange played a pivotal role in attempting to recover funds lost by investors during the Mt. Gox bankruptcy.
Kraken is known for its cryptic and engaging puzzles that it shares with the crypto community.

Fun Facts

Jesse Powell is an avid collector of crypto paraphernalia and fantasy art.
Kraken once offered an ‘over-the-counter’ trading service for large-volume traders.
The platform is named after the mythical sea monster, symbolizing its powerful impact on the crypto markets.

Through its continuous improvements and a strong emphasis on security and regulatory compliance, Kraken has not only expanded its offerings but has also played a significant role in shaping the cryptocurrency trading landscape. Its founders’ commitment to transparency and innovation continues to drive its growth and popularity among the global crypto community.

Why Choose Kraken?

Choosing Kraken as your cryptocurrency exchange offers a blend of security, diverse trading options, and user-focused features, making it a top choice for both beginners and seasoned traders. Kraken’s commitment to security is unmatched, with comprehensive measures in place to protect user assets, which is vital in the often volatile cryptocurrency market. This makes it particularly appealing for those who prioritize the safety of their funds. Additionally, the exchange is known for its strict adherence to regulatory guidelines, further enhancing its reliability and trustworthiness.

Kraken also provides a broad array of cryptocurrencies and trading options, including futures and margin trading. This variety not only allows traders to diversify their portfolios but also gives them the flexibility to engage in more sophisticated trading strategies. The platform’s interface, while complex, offers powerful tools and analytics that cater to more experienced traders looking to take advantage of market movements, making it a dynamic trading environment.

Lastly, Kraken’s global reach and strong regulatory standing make it an ideal platform for traders in various jurisdictions seeking a reliable exchange that offers high liquidity and competitive fees. Whether you’re looking to trade mainstream cryptocurrencies or explore newer altcoins, Kraken provides a comprehensive platform with robust trading capabilities and exceptional security measures, ensuring a superior trading experience for all its users.

Where it falls short

Complex Interface: Kraken’s user interface is often cited as complex and not very intuitive, particularly for those new to cryptocurrency trading. This can deter novice traders or those transitioning from more user-friendly platforms. Improvement: Kraken could streamline its interface, making it more accessible to beginners by incorporating a simplified dashboard that focuses on essential features. Offering a customizable interface could also allow users to tailor their trading environment to their experience level, balancing complexity and usability.

Customer Service Variability: While Kraken offers customer support, the response times can be inconsistent, especially during periods of high market volatility when users most need swift assistance. Improvement: To address this, Kraken could expand its customer service team and implement advanced training to ensure that all team members are well-equipped to handle queries efficiently. Additionally, introducing more automated support features, such as chatbots for common queries, could free up human resources to tackle more complex issues.

Features	Explanation
Minimum Trade	Kraken allows relatively low minimum trade volumes, making it accessible for beginners.
Trading and Transaction Fees	Competitive fees, though slightly higher for low volume traders; discounts for high volume.
Number of Cryptocurrencies	Offers a wide selection of cryptocurrencies, catering to diverse trading preferences.
Crypto-to-Crypto Trading Pairs	Extensive range of trading pairs, though some less popular pairs have lower liquidity.
Website Transparency	High transparency about fees, security measures, and operational status updates.
Credit/Debit Card	Kraken does not offer an exchange card for customers to use for in-store purchases and receive benefits.
Storage Offering	Excellent security with a majority of funds held in cold storage; provides peace of mind.
Staking and Rewards	Offers staking options with competitive rewards, although not available for all assets.
Mobile App and Desktop	Both platforms are robust and fully-featured, though the interface can be complex for new users.
Customer Service	Customer service is reliable but can experience delays during high demand periods.
Deposit and Withdraw	Efficient deposit and withdrawal processes, though options may vary by region.

Xavier Tarrasó

EIP and Cryptocurrency Investor

As an expert in the crypto market, I highly recommend Kraken for its strong regulatory compliance, comprehensive range of features, and commitment to security. Kraken excels in providing advanced trading options, including spot, margin, and futures trading, making it ideal for both beginner and professional traders. Its industry-leading security measures, including regular Proof of Reserves audits, ensure that user funds are fully backed and secure. Additionally, Kraken’s global reach, operating in over 190 countries, combined with a wide variety of cryptocurrencies and fiat options, makes it a highly accessible and reliable platform for crypto investors.

Fees

Kraken’s commission structure is designed to be competitive and favorable for both low and high-volume traders. The exchange employs a tiered fee schedule that rewards users with lower trading fees as their trading volume increases over a 30-day period. Fees vary depending on whether you are a maker (creating a new order on the book) or a taker (filling an existing order), with maker fees generally being lower than taker fees to encourage liquidity. While the fees are relatively low for high-volume traders, those trading smaller amounts may find the fees slightly higher compared to other platforms. Additionally, Kraken charges flat fees for fiat deposits and withdrawals, though these can vary based on the method and currency used. Overall, Kraken’s fee structure is transparent, with details readily available on its website, helping users to anticipate and calculate potential trading costs effectively.

Pros

Tiered Fee Schedule: Kraken's tiered fee system benefits active traders by reducing trading fees as their 30-day trading volume increases, encouraging more frequent trading and liquidity.
Transparency: Kraken provides clear, upfront information about its fee structure on its website, ensuring that users can easily understand and calculate their potential trading costs without any hidden charges.
Lower Maker Fees: The platform incentivizes market-making by offering lower fees for makers compared to takers. This not only supports market liquidity but also rewards users who help maintain an active market.

Cons

Higher Costs for Low Volume Traders: Traders with lower volumes may find Kraken's fees comparatively higher than those of other exchanges, which can be a deterrent for new or infrequent traders.
Variable Withdrawal Fees: The fees for fiat withdrawals vary depending on the currency and the method used, which can lead to unpredictability in the total cost of transactions, particularly affecting those who need to process frequent withdrawals.

Overview of Trading Commissions

Kraken operates on a maker-taker fee schedule, a common pricing model in the cryptocurrency exchange world. This model is intended to encourage liquidity on the platform. Makers, who add limit orders to the exchange, are charged lower fees because they add liquidity to the market. Takers, who fulfill existing orders, usually pay higher fees because they remove liquidity from the market. The fees vary based on the 30-day trading volume, and each tier in the volume structure is subject to different fees. For instance, taker fees start from about 0.26% for traders with a 30-day volume of less than $50,000, and can drop to as low as 0.10% for those with volumes exceeding $10 million. Maker fees, on the other hand, start from 0.16% and can go as low as 0.00% at the highest volume tiers. These fee levels make Kraken an attractive option for high-volume traders due to the potential for significant reductions in trading costs.

Hidden and Additional Fees

Beyond trading commissions, Kraken also imposes other fees that traders should be aware of:

Deposit and Withdrawal Fees: These fees can vary significantly depending on the method of deposit or withdrawal, and the type of currency. For fiat currencies, the fees depend on the payment method, such as wire transfers or SEPA. For cryptocurrencies, Kraken generally charges a flat fee to cover the transaction costs of moving the cryptocurrency out of your account. These fees are typically in line with or slightly higher than those charged by other major platforms.
Stablecoin & FX Pair Fees: Trading with stablecoins or participating in foreign exchange pairs on Kraken could also incur fees that vary from the standard crypto trading fees, generally on the lower end, encouraging the use of these pairs for trading.
Margin Trading Fees: For those who engage in margin trading, Kraken charges an opening fee and a rollover fee. The opening fee is charged when the position is opened and the rollover fee is charged every four hours the position is open. This can add up, especially for positions held open over multiple days.

Comparative Analysis with Other Exchanges

When compared to other leading cryptocurrency exchanges, Kraken’s fees are generally competitive, particularly for higher volume traders. For instance, some major exchanges offer slightly lower entry-level maker-taker fees but do not reduce these fees as steeply as Kraken does for high-volume traders. This makes Kraken more appealing to serious traders whose large transaction volumes can qualify them for the lowest fee tiers. Furthermore, while some exchanges use a hidden fee model in their pricing structures, Kraken’s transparency about its fee structure is a significant advantage. It provides detailed information about all potential costs associated with trading on its platform, including service fees for different operations and conditions under which certain fees apply. This transparency is crucial for traders to plan their investment strategies without fearing hidden costs.

Conclusion

In conclusion, Kraken’s fee structure is designed to facilitate a high degree of liquidity while rewarding both high-volume traders with lower fees and market makers with reduced costs. This approach not only supports trading strategies that can take advantage of lower fees at higher volumes but also contributes to a more liquid and stable trading environment on the exchange. Kraken’s commitment to transparency regarding its fee structure should be a model for the industry, particularly as complexity and variability in fee structures can be significant barriers to entry for new traders. By maintaining a clear, detailed, and easily accessible fee schedule, Kraken empowers its users to make informed trading decisions, which is an essential aspect of fostering trust and reliability in the competitive space of cryptocurrency exchanges.

Product selection

Kraken offers a comprehensive suite of services and products designed to meet the needs of a diverse range of traders and investors. As a leading cryptocurrency exchange, it supports the trading of various cryptocurrencies, including major coins like Bitcoin, Ethereum, and many altcoins, across numerous trading pairs with fiat currencies. Kraken not only facilitates spot trading but also offers margin trading with up to 5x leverage, appealing to traders looking for greater exposure with less capital. For advanced traders, Kraken provides futures contracts and staking services, which allow users to earn rewards on their holdings.

Additionally, the exchange is known for its high security with robust measures such as cold storage of assets, strict verification procedures, and two-factor authentication. Kraken also caters to institutional clients with specialized services, including OTC trading and tailored account management. The platform enhances user experience with a sophisticated trading interface, mobile app for trading on the go, and detailed reporting features for tracking trading performance and managing portfolios efficiently.

Pros

Diverse Trading Options: Kraken provides a wide array of trading services including spot, margin, futures, and staking, which caters to both beginners and experienced traders looking for various investment opportunities and strategies.
Institutional Services: Kraken offers specialized services for institutional clients, such as OTC trading and tailored account management, which support larger transactions and provide more personalized service.
High Security Standards: With robust security measures including cold storage for the majority of assets, strict verification procedures, and two-factor authentication, Kraken ensures high levels of security for its users' funds and personal information.

Cons

Complex Platform Interface: While Kraken offers advanced trading features, its platform interface can be complex and intimidating for new users, potentially deterring those unfamiliar with trading platforms.
Limited Educational Resources: Compared to some other leading exchanges, Kraken offers fewer educational resources for beginners. Enhancing its educational offerings could help new users become more comfortable and proficient in trading.

Read more about product selection in Kraken

Kraken is a comprehensive cryptocurrency exchange offering a wide array of services and products tailored to meet the diverse needs of its user base, from beginners to advanced traders and institutional clients. Below is an extensive overview of the features and services provided by Kraken:

Leveraged Tokens and Margin Trading: Kraken allows traders to engage in margin trading, offering up to 5x leverage. This means traders can borrow funds to increase their buying power, potentially amplifying profits (and losses). Leveraged tokens, which automatically leverage exposure to various cryptocurrencies, are not currently offered, focusing instead on traditional leverage methods.
Futures and Derivatives: Advanced traders can participate in futures trading, which involves contracts that bet on the future price of cryptocurrencies. This is beneficial for hedging and speculating in different market conditions.
Staking: Kraken offers staking services where users can stake their coins directly through the platform to earn rewards or interest on their holdings. This is akin to earning interest in a traditional bank savings account but typically at higher rates.
Cryptocurrency Spot Trading: The core service of Kraken is its cryptocurrency exchange platform, where users can buy, sell, and trade a variety of digital assets and fiat currencies in real-time.
Kraken Debit Card: While Kraken has not yet launched a debit card, such offerings are typical for exchanges looking to bridge the gap between fiat and crypto expenditures, allowing users to spend their cryptocurrency holdings directly.
Mobile App: Kraken offers a mobile application that allows users to trade cryptocurrencies on the go. The app includes key features of the desktop interface, ensuring a seamless trading experience.
Kraken’s Own Cryptocurrencies and Network: Unlike some other exchanges, Kraken does not have its own blockchain or native cryptocurrency. It focuses instead on providing robust trading services across existing cryptocurrencies.
Financial Products and Research: Kraken provides various financial analytics and research tools to help traders make informed decisions. These resources are crucial for both new and experienced traders to understand market trends and potential investment opportunities.
API Access: For tech-savvy users and institutional clients, Kraken offers API access, enabling automated trading strategies and integration with custom software solutions. This is particularly useful for algorithmic trading, which involves programming computers to buy and sell based on pre-set criteria.
Educational Resources: Kraken places a strong emphasis on education with its comprehensive range of articles, guides, and tutorials designed to help users understand cryptocurrency and blockchain technology. This educational content is valuable for empowering users to navigate the complexities of crypto trading.
Kraken Earn: While Kraken does not specifically label any services as “Earn,” its staking features act similarly, allowing users to earn returns on assets they hold and stake through the platform.
Promotions and Referral Codes: Kraken occasionally offers promotions and referral incentives, allowing users to earn bonuses for referring new users to the platform or participating in trading activities during promotional periods.
Trading View Integration: Kraken integrates with TradingView, a popular tool for advanced charting and trading analytics. This integration allows traders to use professional-grade technical analysis tools to study and predict market movements.
Liquid Swap and Yielding Pools: Currently, Kraken does not offer liquid swap features or yielding pools typical of decentralized finance (DeFi) platforms, focusing instead on traditional exchange and staking services.
Wallet Services: Kraken provides secure wallet services with robust security measures, including cold storage for the majority of assets, ensuring that user funds are protected from online threats.
Loans and Demo Account: As of now, Kraken does not offer crypto-backed loans or demo accounts for practice trading. These services can be beneficial for users looking to leverage their holdings or practice trading strategies in a risk-free environment.

By offering a broad spectrum of trading tools and services, Kraken caters to a wide audience, ensuring that both novices and professionals have the resources and functionalities they need to effectively engage with the cryptocurrency market.

Account opening

Opening an account with Kraken is a straightforward and secure process designed to get users trading as quickly as possible while adhering to regulatory standards. Initially, prospective users must visit the Kraken website and click the “Create Account” button, where they are required to provide basic personal information such as name, email address, and a strong password. After this initial setup, an email confirmation is sent for account verification. Following email verification, users are prompted to increase their account security by setting up two-factor authentication (2FA), which adds an extra layer of security beyond just the password.

Kraken also requires users to complete various levels of identity verification depending on the features they wish to access; this includes submitting government-issued ID documents and possibly proof of residence, especially for higher tiers that allow larger transaction limits. Once verified, users can fund their accounts using multiple methods, including bank transfers and crypto deposits, and begin trading. The entire process emphasizes security and compliance, ensuring user data and funds are protected from the outset.

Pros

Security Focus: Kraken's account opening process includes robust security measures such as mandatory email verification and two-factor authentication (2FA). These features greatly enhance the security of user accounts, reducing the risk of unauthorized access and ensuring a safe trading environment.
Streamlined Verification Process: Kraken has streamlined its KYC process to be as efficient as possible, using clear instructions and a straightforward online interface. This makes it easier for users to complete necessary verifications and start trading quickly.
Tiered Account Options: Kraken provides multiple account types (Starter, Intermediate, Pro), allowing users to select the level that best suits their trading needs and goals. This flexibility enables users to start with basic features and upgrade as their experience or trading requirements grow.

Cons

Complexity for Beginners: For someone new to cryptocurrency, the process can seem daunting. The need for various security setups and multiple verification levels might overwhelm new users unfamiliar with such procedures.
Time-Consuming for Higher Verification Levels: While the initial setup can be quick, obtaining higher verification levels—which are necessary for higher trading limits and features like fiat transactions—can be time-consuming and requires submitting several pieces of personal information and documents.

Read more about account opening in Kraken

How to Sign Up on Kraken

Signing up on Kraken is designed to be intuitive and user-friendly, particularly for newcomers to the cryptocurrency space. Here’s how you can get started:

Visit the Kraken Website: Open your internet browser and go to the Kraken official website.
Create Your Account: Click on the “Create Account” button usually located at the top right corner of the homepage.
Enter Your Details: Fill in the required fields, including your email address, a username, and a strong password. The password should be unique and secure, ideally using a combination of letters, numbers, and symbols.
Email Verification: After submitting your details, Kraken will send a verification email to the address you provided. Open this email and click on the verification link to activate your account.
Enable Two-Factor Authentication (2FA): For added security, Kraken will prompt you to set up 2FA. This will require you to input a code sent to your phone or generated through an authenticator app every time you log in or perform significant account actions.

Opening an Account

After your email verification, you’ll need to complete the following steps to fully activate your account:

Identity Verification (KYC): Depending on your intended account type, you may need to undergo a Know Your Customer (KYC) process. This involves submitting identification documents such as a passport, driver’s license, or government-issued ID, and sometimes proof of residence like a utility bill or bank statement.
Choose Your Account Type: Kraken offers different levels of account types based on verification level, trading needs, and withdrawal limits. You’ll choose the one that best suits your trading goals and complete any additional verification requirements.

How to Buy Your First Cryptocurrency

Once your account is set up and verified, buying cryptocurrency is straightforward:

Log In and Navigate to Funding: Log into your account, go to the “Funding” tab where you can see options to deposit fiat currency or cryptocurrency.
Deposit Funds: Choose your preferred method of deposit to add fiat money like USD, EUR, or GBP to your account. (Details on deposit methods will be discussed in the next section.)
Buy Cryptocurrency: Once your funds are deposited, navigate to the “Trade” section, select the pair you wish to trade (e.g., USD to Bitcoin), and enter how much you want to buy. Confirm the transaction details and execute your trade.

Account Types

Kraken offers several account types tailored to different user needs:

Starter: This account requires basic personal information verification and allows you to deposit, exchange, and withdraw cryptocurrencies.
Intermediate: This includes additional KYC details for higher deposit and withdrawal limits and the ability to use fiat currencies.
Pro: Aimed at advanced traders and institutions, offering the highest limits and access to OTC trading, futures trading, and other advanced features.

How to Use Kraken?

Using Kraken involves navigating its trading interface, which can be accessed via its website or mobile app. After logging in, you’ll find options to view markets, place trades, manage orders, and track your portfolio. For beginners, it’s advisable to spend time on the “Learn” section of Kraken, which offers tutorials and resources about using the platform and understanding crypto trading basics.

Registration and KYC

The registration process on Kraken is your first step towards trading. It’s designed to ensure your security and compliance with regulatory requirements. KYC is a crucial part of this process, especially for users who wish to use fiat currencies. It involves verifying your identity to prevent fraud, money laundering, and other illicit activities. In the next section, we’ll discuss how to deposit money into your Kraken account to start trading, detailing each method available.

Security

Kraken is highly regarded for its robust security measures, which are among the most stringent in the cryptocurrency exchange industry. The platform employs comprehensive security protocols such as SSL encryption to safeguard communication, two-factor authentication (2FA) for all accounts, and global settings lock to prevent unauthorized changes to account settings. A significant portion of client funds is held in cold storage, which are offline vaults that are virtually impervious to online hacking attempts. Furthermore, Kraken conducts rigorous penetration testing and employs a dedicated security team to continuously monitor and update its systems against emerging threats. The platform also supports PGP/GPG encryption, adding an extra layer of security for email communications. This dedication to security not only protects users’ investments but also enhances their confidence in the platform, positioning Kraken as a trusted leader in the market for secure cryptocurrency trading.

Pros

Extensive Use of Cold Storage: Kraken ensures the safety of user assets by storing the vast majority of its funds in cold storage. These offline storage facilities significantly reduce the risk of theft by hackers, as the funds are not accessible via the internet.
Continuous Security Audits and Monitoring: Kraken invests in regular security audits and has a dedicated security team that continuously monitors and updates its defense mechanisms. This proactive approach ensures that the platform's security measures are always ahead of potential threats, maintaining a secure trading environment.
Two-Factor Authentication (2FA) and Additional Security Features: Kraken mandates the use of two-factor authentication for all its users, enhancing account security substantially. Additionally, features like PGP/GPG email encryption and global settings lock further secure user data and prevent unauthorized account changes.

Cons

Complexity for Users: While Kraken's extensive security measures are beneficial, they can also make the platform intimidating and cumbersome for new users. The requirement for various forms of verification and security settings might be overwhelming, potentially deterring less tech-savvy individuals.
Potential Delays Due to Security Protocols: The rigorous security checks and protocols, although necessary for protecting user assets, can sometimes lead to delays in transactions and account verification. This can be frustrating for users who need to execute timely trades or wish to quickly access their funds.

Is Kraken Legit?

Kraken is not only legit but also one of the most respected and well-established names in the cryptocurrency exchange industry. It has built a reputation for security, reliability, and transparency, which underpins its legitimacy as a trusted digital asset exchange.

Regulation and Licensing

Kraken is based in the United States and complies with legal and regulatory requirements applicable in the jurisdictions where it operates. It is registered as a Money Services Business (MSB) with FinCEN in the USA and FINTRAC in Canada. These registrations require Kraken to comply with several financial services and consumer protection laws, enhancing its legitimacy and reliability as a financial service provider.

Is Kraken Safe?

Kraken is considered one of the safest cryptocurrency exchanges in the market. Its commitment to security is evident through its rigorous operational practices and the security measures it implements.

Security Methods

Cold Storage: A significant portion of the customer funds is held in cold storage, which are offline wallets that significantly minimize the risk of theft because they are not connected to the internet.
Two-Factor Authentication (2FA): Kraken mandates the use of 2FA for all users, adding an extra layer of security by requiring a second form of verification in addition to the password.
SSL Encryption: To safeguard data transmission, Kraken uses SSL encryption, which ensures that all data passed between web servers and browsers remain private and integral.
PGP/GPG Encryption: For added security, Kraken supports PGP/GPG for email encryption, allowing users to encrypt their emails, thereby securing the communications from unauthorized access.
Global Settings Lock: This feature prevents any changes to account information for a specified period, which protects users from unauthorized account changes if their account is compromised.

History of Security

Since its inception in 2011, Kraken has maintained a strong security record with no major hacks. This exemplary track record in an industry often targeted by cyber-attacks highlights Kraken’s effectiveness in safeguarding user assets and information.

Why It Is a Secure Crypto Exchange

Kraken’s layered security approach, regulatory adherence, and proactive surveillance of its operational environment make it one of the most secure platforms in the cryptocurrency space. It continuously updates its security measures in response to evolving cyber threats and maintains transparent practices regarding its security protocols, further cementing its reputation as a secure place to trade digital assets.

Conclusion

In conclusion, Kraken is a highly secure and legitimate cryptocurrency exchange that places a strong emphasis on the safety of its user’s funds and personal information. Its regulatory compliance, advanced security features, and a clean historical record of handling user assets responsibly all testify to its robustness as a secure trading platform. If Kraken were ever considered not safe, it would likely be due to an unprecedented breach in its extensive security measures, which it actively works to enhance to prevent any such occurrences.

Customer service

Kraken’s customer service framework is designed to offer comprehensive support to its users, featuring multiple channels of assistance including live chat, email support, and a detailed FAQ section. The platform is well-regarded for its educational resources, such as the Kraken Academy, which further aids users in navigating the complexities of cryptocurrency trading. Customer reports and feedback consistently highlight the responsiveness and helpfulness of Kraken’s support team, though there are mentions of delays during peak trading times, a common challenge in the fast-paced crypto exchange landscape. Overall, Kraken’s commitment to user education and its multichannel support approach underscore its dedication to providing a supportive trading environment. Despite occasional wait times for assistance, the exchange maintains a positive reputation among its customers, largely attributed to the quality of support received and the wealth of resources available for both new and experienced traders.

Pros

Multiple Support Channels: Kraken offers a variety of support options including live chat, email support, and a comprehensive FAQ section. This diversity ensures that users can choose the communication method that best suits their preferences and needs.
Responsive and Knowledgeable Support Team: Customer feedback often praises the expertise and responsiveness of Kraken's support team. The staff is well-equipped to handle a range of issues from technical support to trading inquiries, contributing to a reliable support experience.
Educational Resources: Kraken places a strong emphasis on educating its users, featuring extensive resources such as Kraken Academy. This initiative helps users understand trading concepts, platform functionality, and the broader cryptocurrency ecosystem, enhancing user experience and satisfaction.

Cons

Delays During High Volume Periods: During periods of high trading volume or significant market movements, users have reported delays in receiving support. Such delays can be critical when urgent assistance is needed, impacting user trading strategies and overall satisfaction.
Complex Navigation for Support: Some users find navigating the customer support system, particularly the extensive FAQ and help sections, to be overwhelming and not intuitive. Newer users may struggle to find specific information quickly, which could delay problem resolution and detract from the overall user experience.

Read more about customer service in Kraken

Customer Support at Kraken

Kraken’s customer support is structured to provide comprehensive assistance to both new and experienced traders. The exchange understands the importance of reliable support in the fast-paced world of cryptocurrency trading and has invested in creating a robust customer service system.

Reputation and Customer Feedback

Kraken has built a solid reputation over the years for its customer support quality. Feedback from users often highlights the professionalism and helpfulness of the support team. However, like many large platforms, Kraken has faced criticism during times of extreme market volatility or technical updates, when users have experienced slower response times. Overall, though, the community feedback is positive, especially regarding the detailed and helpful nature of the responses provided by the customer service team.

Methods of Contact

Kraken offers several methods for users to seek assistance:

Live Chat: For immediate assistance, Kraken provides a live chat service directly on their platform, allowing users to quickly connect with a support agent.
Email Support: Users can contact Kraken support via email, which is suitable for more detailed inquiries that do not require instant feedback.
Social Media: Kraken is active on several social media platforms, where they respond to customer inquiries and post updates.
Help Center: A comprehensive FAQ and Help Center on their website includes articles and guides that cover a wide range of topics, from account management to trading strategies.

Response Time

The response time for Kraken’s customer support can vary:

Live Chat and Social Media: Responses are typically quick, often within a few minutes, depending on the queue and the complexity of the issues presented by users.
Email Support: Responses via email may take longer, ranging from a few hours to a couple of days. The response time can extend during periods of high demand or significant market events.

Additional Considerations

When contacting Kraken support, it’s beneficial for users to have their account details readily available and to provide a clear and concise description of their issue, which can significantly expedite the resolution process. Users are also encouraged to utilize the extensive resources available in the Help Center before reaching out to support, as many common issues and questions are thoroughly addressed in these articles. For users needing specialized assistance, such as with account verification or security concerns, Kraken’s support team is well-equipped to handle such inquiries with discretion and expertise. The platform continues to evolve its customer service capabilities, aiming to reduce response times and increase customer satisfaction as it scales to accommodate a growing user base.

In summary

Kraken’s commitment to providing effective customer support is evident in its multi-channel approach and the depth of resources available. While there are occasional delays during peak times, the overall user feedback underscores a dependable support system crucial for navigating the complexities of cryptocurrency trading.

Is Kraken Right for You?

Your Experience Level: Kraken offers a wide range of trading options, including advanced trading features such as futures and margin trading, which are ideal for experienced traders. However, the platform can be complex and may be overwhelming for beginners. If you are new to cryptocurrency trading, you might need to utilize Kraken’s educational resources extensively. On the other hand, if you are an experienced trader looking for advanced trading tools, Kraken’s comprehensive offerings and competitive fee structure could be highly beneficial.
Security Priorities: If the security of your funds is a top priority, Kraken’s strong emphasis on security measures and its proven track record could make it a compelling choice. With features like two-factor authentication, SSL encryption, and cold storage of the majority of assets, Kraken is suited for security-conscious users who need peace of mind regarding the safety of their investments.
Liquidity and Trading Volume Needs: Kraken is known for its deep liquidity and a wide selection of trading pairs. This feature is crucial if you plan to execute large trades or trade less common cryptocurrencies without significantly affecting the market price. High liquidity also ensures that you can easily enter and exit positions, which is ideal for traders who need to move quickly based on market conditions.

By evaluating these aspects of Kraken, you can better decide if it meets your specific trading style, security requirements, and liquidity needs. Whether you’re looking for a platform with robust trading tools and security measures or need an exchange that supports a wide range of cryptocurrencies, Kraken offers features that cater to a diverse user base.

Kraken compared to other crypto exchanges

Threenvest score

4,9

Fees

US Legal

Security

High 4,9/5

On the exhange website

Threenvest score

4,9

Fees

US Legal

Yes

Security

High 4,9/5

bybit

Threenvest score

4,8

Fees

US Legal

Security

High 4,9/5

Available cryptocurrencies and countries available

Available Cryptocurrencies and Countries on Kraken: Kraken offers an extensive array of cryptocurrencies, catering to a diverse trading audience with varying preferences. Among the most traded and prominent cryptocurrencies available on Kraken are Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Cardano (ADA). These popular assets are complemented by a wide selection of altcoins and stablecoins, allowing traders to diversify their portfolios effectively.

However, it’s important to note that some sought-after cryptocurrencies are not currently available on Kraken. These include newer or region-specific tokens such as Theta (THETA), VeChain (VET), and certain DeFi tokens that might have regulatory uncertainties or have not met Kraken’s listing criteria yet.

Accessible Countries and Excluded Regions: Kraken serves customers globally, with broad accessibility in countries such as the United States, Canada, Japan, and various nations across Europe. The platform is particularly known for its strong presence in the European market, providing services in compliance with local regulations and offering trading opportunities in EUR.

Despite its wide reach, Kraken does have geographical restrictions. Notably, residents from countries like Iran, North Korea, Cuba, and Syria are unable to open accounts due to U.S. sanctions and regulatory challenges. Additionally, certain services of Kraken might not be available in specific U.S. states because of local regulatory frameworks that differ from federal guidelines.

Main cryptocurrencies available

Bitcoin
Ethereum
Litecoin
Ripple (XRP)
Bitcoin Cash
Cardano
Polkadot
Chainlink
Stellar
Uniswap
Dogecoin
Solana
Avalanche
Cosmos (ATOM)
Aave
SushiSwap
Tezos
Monero
VeChain
Algorand

Main countries where you can open an account

United States
Canada
United Kingdom
Germany
France
Australia
Japan
Netherlands
Singapore
Switzerland
Spain
Italy
Brazil
South Korea
New Zealand
Belgium
Sweden
Norway
Finland
Austria

FAQs

1. How secure is Kraken?

Kraken is renowned for its stringent security measures. It employs two-factor authentication (2FA), cold storage for the majority of its funds, and rigorous security protocols to protect user assets and data. These measures make it one of the most secure exchanges in the industry.

2. What cryptocurrencies can I trade on Kraken?

Kraken supports a wide range of cryptocurrencies, including popular options like Bitcoin, Ethereum, Litecoin, and Ripple, as well as numerous altcoins. This variety allows users to diversify their portfolios with ease.

3. How can I deposit and withdraw funds on Kraken?

Kraken offers multiple deposit and withdrawal options, including bank transfers, credit/debit cards, and various cryptocurrencies. While deposits are generally free, some withdrawal methods may incur fees.

4. What are the trading fees on Kraken?

Kraken’s trading fees are competitive, typically ranging from 0% to 0.26% depending on the trading volume and type of transaction (maker or taker). Fees are lower for higher volume trades, providing an incentive for active traders.

5. Does Kraken offer customer support?

Yes, Kraken provides customer support through several channels, including email and live chat. However, response times can vary, and the support team is continuously working to improve service efficiency.

6. Can I use Kraken on mobile devices?

Absolutely. Kraken offers robust mobile apps for both iOS and Android devices, allowing users to trade, deposit, withdraw, and monitor their portfolios on the go with a user-friendly interface.

7. What is Kraken's verification process like?

Kraken’s verification process is thorough to ensure compliance with regulatory standards and enhance security. Users need to submit identification documents and proof of residence. While this process can be cumbersome, it is essential for maintaining the platform’s integrity and security.

Final opinion on Kraken

In concluding our comprehensive review of Kraken through Threenvest’s lens, it’s clear that Kraken stands as a formidable player in the cryptocurrency exchange landscape. Known for its robust security measures, wide range of cryptocurrencies, and advanced trading features, Kraken appeals especially to traders who prioritize safety and a diverse portfolio. These strengths are complemented by its deep liquidity and competitive fee structure, making it a preferred choice for serious traders. However, its complex interface and sometimes slow customer service response times during peak periods could pose challenges, particularly for newcomers to cryptocurrency trading.

Compared to other exchanges, Kraken’s commitment to regulatory compliance and security is notably strong, positioning it as one of the safer trading environments in an industry fraught with security concerns. On the flip side, its user interface and learning curve may not be as appealing to beginners as some other platforms that focus more heavily on user-friendliness and simple navigation.

For users of Threenvest looking to engage in sophisticated trading strategies or those who value a highly secure trading platform, Kraken is undoubtedly a top contender. However, those new to the market might consider starting with platforms that offer more guidance and a more intuitive trading experience.

How do we review crypto exchanges?

At Threenvest, we conduct a thorough review process to evaluate and rank the world’s leading crypto exchanges. Our goal is to offer an unbiased assessment, providing you with the information you need to make informed decisions on which ones best suit your needs. We strictly adhere to the guidelines of our editorial policy.

We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

For more details on the categories considered when rating brokers and our process, read our full methodology.

Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.