Is It a Safe Crypto Exchange to Trade?

Kraken is a popular cryptocurrency exchange that has been operating since 2011. It is well-liked due to its high-security measures, support for various cryptocurrencies, and advanced trading features. The exchange is licensed in the U.S. and Europe and has high-level security features such as 2FA and cold storage.

Many crypto traders prefer Kraken due to its regulatory compliance and various options for trading, such as spot trading, futures, and margin trading. Some users, however, find its fee structure a bit expensive compared to other exchanges. It also features a Kraken Pro version for experienced traders with lower fees and additional features.

In this guide, we will give you our honest Kraken exchange review and cover what is it and what are the best features of Kraken. We will also discuss what are trading fees on Kraken, how to open a new account to buy and sell crypto on Kraken, and whether Is Kraken a safe and legit exchange.

Kraken review: What is it?

Kraken is the best cryptocurrency exchange established in 2011. You can buy, sell, and trade various digital currencies. The platform supports more than 300 cryptocurrencies, like Bitcoin, Ethereum, and Solana. You can also make trades using traditional fiat currencies like USD, EUR, or GBP. Kraken has over 13 million users and serves clients in more than 190 countries. It processes over $207 billion in quarterly trading volume.

Kraken provides various trading features, according to your requirements. This includes spot trading, where you simply buy one asset for another at the current or limit price, and margin trading, which enables you to borrow funds. The platform also offers futures trading with 50x leverage, through which you can make predictions on future prices of cryptocurrencies.

The exchange is very secure and involves measures such as two-factor authentications and even keeps most money in offline storages to reduce the risk associated with hacks. Plus, Kraken has never experienced a major security breach, which definitely adds to its reputation as a very safe platform.

Are you a new user? Use our Kraken referral link to register and get a $200 free sign-up bonus.

Where is Kraken crypto exchange based?

Kraken crypto exchange is based in San Francisco, California, USA. It was established in the year 2011 by Jesse Powell. The company operates in more than 190 countries and caters to millions of users. According to US rules and regulations, it is also registered with FinCEN under the Money Services Business. The offices of the exchange are also located in multiple locations in Europe and Asia.

Is Kraken available in the US?

Yes, Kraken is available in the United States and active in most states, serving 47 states’ customers. The company is registered as a Money Services Business with FinCEN and has its subsidiary, Kraken Financial, for digital asset custody services registered as a Wyoming-chartered Special Purpose Depository Institution. 

The company does not provide services to the residents of Washington State (WA), New York (NY), or Maine (ME) because of those states’ strict crypto regulations. Plus, U.S. users are restricted from having access to flexible staking, fiat P2P services, or derivatives trading. And, residents of Texas, New Hampshire, and Massachusetts cannot use EUR for deposits, withdrawals, or trading.

What are the pros and cons of Kraken?

Kraken pros

The pros of Kraken are strong security measures, supports over 300 cryptocurrencies, advanced trading features such as margin and futures, 24/7 customer support, and is available in 47 U.S. states where many exchanges are restricted.

• Strong Security: Kraken has never been hacked. It has an offline cold storage system, two-factor authentication, and encryption to keep your money secure. It is the safest exchange for trading.
• Supports Many Cryptocurrencies: Kraken offers over 300 cryptocurrencies. This means that you can trade popular coins like Bitcoin and Ethereum, besides smaller altcoins. So, in the end, you have so many options to trade.
• Advanced Trading Features: Kraken includes margin trading, futures trading, and staking. It helps those who will need more than just basic buying or selling.
• Live Chat and 24/7 Email Support: Kraken support is available to you via the live chat on the website anytime and also support via email the whole day if you encounter an issue. It is also very responsive and helpful.
• Acceptable in 47 U.S. States: Kraken operates in 47 U.S. states. Many crypto exchanges such as Bybit, Bitget, and MEXC aren’t accessible within the U.S. This makes Kraken a great option for American traders.

Join Kraken today—claim your $200 bonus!

Kraken cons

The cons of Kraken are unavailability in Washington, New York, and Maine, higher trading fees (0.25% maker, 0.40% taker) than competitors like Binance, and limited features for U.S. users, including no flexible staking, fiat P2P services, or derivatives trading.

• Not available in Washington State, New York, and Maine: Kraken doesn’t operate in these three U.S. states due to strict regulatory restrictions.
• Higher Trading Fees Than Competitors: Kraken charges 0.25% for makers and 0.40% for takers. Binance, a major competitor, charges only 0.10% for both. Thus, Kraken is quite more expensive for new traders.
• Limited Features for U.S. Users: U.S. traders cannot use flexible staking, fiat P2P services, or derivatives trading. Other regions have access to these features. This restricts the number of opportunities available to American users.

What are the best features of Kraken?

The best features of Kraken Exchange are the Kraken Pro app with advanced trading tools and customizable layout, a mobile app for Android and iOS devices, and staking services with up to 17% APR.

Kraken Pro

Kraken Pro is a professional-level cryptocurrency trading interface. Here, you’ll get to access a unified interface where you can find spot trading, margin trading which allows up to 5x leverage, and staking in one place. It’s highly customizable and you can choose, resize, and arrange various types of trading modules to make a layout that suits you best.

The Pro version also allows you to switch instantly between spot trading, margin trading, and staking. It also includes a consolidated portfolio view to track your performance. You can quickly browse markets by categories like top gainers, losers, top traded, and newly listed assets. Also, you can pin your favorite markets for quicker access.

To analyze trends, Kraken Pro offers full-featured charting tools, technical indicators, and the ability to compare up to four markets at once. You can also monitor live order books. And, there are advanced order types, include stop loss, take profit, immediate or cancel (IOC), reduce-only, and trigger options for managing trades.

Kraken Pro is available both on the web and mobile platforms. For bigger trades over $100,000, Kraken provides an OTC service. The premium service allows for access to deep liquidity and minimal slippage.

What is the difference between Kraken and Kraken pro?

The difference between Kraken and Kraken Pro is that Kraken’s standard platform is best for beginners, who can easily buy crypto with a card and cash out instantly with the simple interface. 

Kraken Pro is best for professional traders who get advanced charting and trading functionalities, lower fees on trades, margin trading, and customizable layouts. Kraken is easy to use, but Kraken Pro gives more control over trades, different order types, and professional-grade experience.

Here is a quick comparison:

Is Kraken Pro free?

Yes, Kraken Pro is free. You don’t need to pay any account or subscription fees to use the platform. Trading fees will apply depending on the order type and volume traded. However, the fees are lower compared to those of the standard Kraken platform.

Kraken Mobile App

Kraken has a mobile app for both Android and iOS devices. The Kraken app is also beginner-friendly; you can use it to buy, sell, and exchange cryptocurrencies using your cards or ACH online banking. It further allows you to deposit and withdraw cash and crypto, track prices, and monitor your portfolio.

You will need to verify your account to Intermediate or Pro level before you can start using the Kraken app. The Kraken app is compatible with Android 8.0 and up, as well as iOS 13 and up. You can get the Kraken app from either the Google Play Store or the Apple App Store.

Now, for experienced traders, it also offers the Kraken Pro app. It has margin trading with up to 5x leverage, futures trading with up to 50x leverage, automated OTC trading is also supported for orders over $100,000, as well as advanced order types, multiple charting tools, and the ability to stake and unstake cryptocurrencies.

Kraken also provides the Kraken Wallet app where you can store and manage your crypto, NFTs, and multiple Defi wallets. It features portfolio tracking with multichain support and WalletConnect integration.

Staking

Kraken offers a staking service, where you can earn rewards by holding and “staking” certain cryptocurrencies. When you stake, you help secure the network of the cryptocurrency you hold. In return, you receive rewards, which are like earning interest. 

Kraken supports staking for various assets, including Ethereum (ETH), Solana (SOL), and Polkadot (DOT). The annual rewards vary depending on the asset. For instance, one may earn 1% to 3% annually with ETH staking, SOL brings 5% to 8%, and DOT gives 6% to 11% APR. 

It is up to you to select between flexible staking, you can unstake at any moment, or bonded staking when your assets will be locked in for a definite term. You can choose the asset you wish to stake, determine how much you want to stake, and whether you want flexible or bonded terms. Kraken doesn’t charge a transaction fee for staking or unstaking but will charge a commission, up to 20%, on the rewards you earn.

What are trading fees on Kraken?

Kraken fees include trading fees with a maker-taker structure starting at 0.25% for makers and 0.40% for takers, with no deposit fees for most methods, and withdrawal fees depending on the currency and method used.

Trading fees

Kraken Pro uses a maker-taker fee model. You are a maker and pay a low fee if you add liquidity to the market by placing a limit order that doesn’t match right away. If your order matches on the exchange immediately, you are a taker and pay a higher fee. 

For most trades, maker fees start at 0.25%, and taker fees start at 0.40%. As your 30-day trading volume increases, these fees decrease. For example, if a volume of $10,000 is achieved, maker fees decrease to 0.20% and taker fees to 0.35%. For high-volume traders or crypto investors, fees may reach as low as 0% for makers and 0.10% for takers. Also, a 3% fee applies when converting balances (crypto-to-crypto trading) using the “Convert small balances” feature.

Deposit fees

Kraken does not charge any deposit fees in most cases, but there are some exceptions. Cash deposit fees vary with method and currency; for example, depositing in U.S. dollars through FedWire is free of charge, but a SWIFT deposit may incur a 3 EUR fee. 

Here are a few deposit fee examples:

Withdrawal fees

Kraken does not charge crypto withdrawal fees, but you need to pay network fees to cover gas costs on respective blockchains. For Bitcoin withdrawal via the Bitcoin network, it is 0.00001 BTC. On the Ethereum network, for the withdrawal of Ether, the fee is 0.00013 ETH.

For fiat currency withdrawals, fees depend on the method and currency. For instance, using SEPA attracts a withdrawal charge of 1 EUR while withdrawals using SWIFT cost 5 EUR.

What is Kraken withdrawal limit?

Kraken withdrawal limits depend on the verification level of your account. For Intermediate accounts, the cryptocurrency daily withdrawal limit is $500,000 and the monthly withdrawal limit is $15 million. For Pro accounts, daily withdrawal limits can reach $10 million or more while the monthly ones are unlimited.

Cash withdrawal limits also vary. The Intermediate KYC accounts have a daily limit of $100,000 and a monthly limit of $500,000. Pro accounts have much higher limits, often exceeding $10 million daily.

Why are Kraken fees so high?

Kraken’s fees are higher because it is a highly regulated exchange and often compares itself with more regulated exchanges like Coinbase and Crypto.com, which are also known for having high fees.

The low trading fees crypto exchanges, such as Bitget, Bybit, and MEXC, are mostly not accessible in the U.S. or are non-regulated in major crypto jurisdictions. Also, the exchange maintains its regulatory status and offers high security with these fees. For lower fees, you can also check out our guide on the best zero-fee crypto exchanges.

Trade on Kraken! Sign up now & grab $200

How to open a new account to buy and sell crypto on Kraken?

To open a new account on Kraken and buy or sell crypto, you need to complete steps like creating an account, verifying your identity, and depositing funds.

Step 1: Create a Kraken Account and Complete KYC

Go to Kraken’s official website and click on “Sign Up”. You will be required to provide your email address, create a strong password, and select your country of residence. After filling out these details, you will receive an activation email; click it to activate your account. As a new user, you can use our Kraken referral code or referral link during registration to get a $10 USD crypto sign-up bonus.

Now, you’ll need to fulfill the Know Your Customer (KYC) requirements to comply with the regulations. It involves some personal information about yourself, which includes your full name, date of birth, physical address, and occupation. 

You will also be required to upload a valid government-issued ID and proof of address document, which may include a utility bill or bank statement. Sometimes, you might be required to upload a face photo. Ensure that all your documents are clear and readable for the verification process to take place faster.

Step 2: Deposit Funds

Now, you need to go to the “Deposit” page. On this page, you can deposit fiat money or crypto into your Kraken account. Kraken will accept various funding methods: bank transfers, credit cards, and deposits in cryptocurrencies. Depositing fiat is easy, find your preferred fiat currency and select one of the deposit methods that suit you best. Now, follow the provided instructions carefully to deposit fiat.

For deposits of cryptocurrency, you must select the asset you wish to deposit, generate a deposit address, and transfer the funds from your external wallet to the Kraken address.

Step 3: Buy and Sell Crypto

Once you have cash in your wallet, you then go to the “Trade” section to place buyand sell orders for any cryptocurrency. From there, select the trading pair that matches the asset you wish to buy or sell and the currency you are using.

For instance, if you want to buy Bitcoin with US dollars, you would choose the BTC/USD pair. You can place various types of orders, including market orders for immediate execution or limit orders to set a specific price. Enter the amount you want to trade, review the details, and confirm the transaction. Your new assets will appear in your Kraken account balance once the trade is executed.

How many cryptocurrencies does Kraken offer?

Kraken offers over 300 cryptocurrencies for trading. This includes well-known coins like Bitcoin, Ethereum, and Litecoin. The platform also adds new coins regularly, including some popular meme coins like TRUMP, NEIRO, DOGS, GOAT, etc.

Is Kraken safe and legit?

Yes, Kraken is a safe and legitimate crypto trading platform with many security measures in place. It uses strong encryptions, two-factor authentication, and stores most of the user funds offline in safe cold storage wallets. 

Kraken also regularly undergoes audits to have transparency and trustworthiness among customers. In addition, it follows strict security policies, being ISO/IEC 27001:2013 certified and having passed a SOC 2, Type 1 check.

Kraken has a license both in the United States and in Europe, hence showing that the exchange follows clear rules. In the United States, it is registered as a Money Services Business by FinCEN. In Europe, it is an E-Money Institution, licensed by the Central Bank of Ireland, and a Virtual Asset Service Provider, as well, at the Bank of Spain.

Who are Kraken’s competitors?

The best Kraken crypto exchange competitors are Crypto.com, Bybit, eToro, and Coinbase. The top Kraken alternatives are summarized in the comparison table below: