Kraken Exchange Review: Global Bitcoin Exchange
Kraken is a bitcoin exchange that operates globally and allows you to buy and sell bitcoin. It can be accessed on the web or via mobile apps supported in many languages.
Kraken is an exchange that enables you to buy, sell, and trade bitcoinWhat’s Dollar Cost Averaging (DCA)?. It supports multiple payment options, including bank transfers, debit/credit cards, Apple Pay, and Google Pay. The account can be funded with traditional currencies or bitcoin sent from other wallets or exchanges, for example, Luno and Coinbase. Kraken provides an API for developers to integrate with their platform and a wide range of features, such as margin trading, futures trading, and staking. Furthermore, it supports the Lightning Network for faster and cheaper transactions.
How Kraken Works
To start using Kraken, create an account on the platform’s official website or use an app for iOS or Android devices. Verify your email address, enter a PIN or choose the biometrics option to open the app every time you use it. After that, set up a two-factor authentication (2FA) via the authenticator app or security key (you can choose hardware wallets like Trezor or Ledger for this).
The next step is to verify your identity to access more features and higher limits. There are the following levels: Starter, Express (available in the US only, excluding NY, TX, WA, and overseas US Territories), Intermediate, and Pro. Fund your account with a payment method available in your country in USD, EUR, CAD, JPY, GBP, CHF, or AUD and buy or sell bitcoin.
We strongly advise removing your bitcoin from exchanges as soon as possible after purchasing or selling bitcoin. Moving your bitcoin to a noncustodial wallet protects you from losing your fund. There are many exchanges that have collapsed with users’ funds.
- Kraken Pro. It is an advanced trading platform for professional traders, available on both web and mobile devices. It offers a range of features, including margin trading, advanced order types, and access to the Kraken OTC desk.
- Futures. Bitcoin futures allow you to invest in the future price of bitcoin and make a profit if the difference in its value has been correctly predicted. The advantage of bitcoin futures contracts among the platform users is the ability to make profits in a short period of time.
- Staking. It is a feature to earn passive income investing bitcoin. The exchange offers bets on various financial instruments; the reward is received twice a week.
- Margin trading. Kraken can lend you money for further investment. This is done by allowing you to trade with more funds than you have in your account. If you profit on the trade, you get to keep the profits minus the interest you owe the platform. However, if the trade goes against you, you will be responsible for covering the losses plus the interest you owe Kraken.
- Recurring buys. Invest a fixed amount of money at regular intervals following the DCA strategy to reduce the impact of market volatility.
Kraken Verification Level and Limits
Kraken has a variety of trading limits based on the user’s trading volume and verification level. For example, a Starter account holder can only withdraw up to $2,500 per day, while an Intermediate account holder can withdraw up to $500,000 per day.
Kraken offers three verification levels catering to users with varying needs. The Starter Level, requiring only an email and password, permits basic trading with limited daily transaction amounts. The Intermediate Level involves additional verification steps, such as providing a government ID and proof of address, offering increased limits and access to features like margin trading and staking. The Pro Level, with stringent requirements like enhanced verification documents, provides the highest limits and comprehensive access to all Kraken features, including margin trading, staking, Dark Pool trading, and priority customer support.
Kraken exchange fees are determined by a “taker/maker” fee schedule and depend on transaction size, payment method, and market conditions. The taker fee is applied when placed orders are immediately filled against existing orders on the order book. The maker fee is applied when placed orders are not immediately filled against current orders on the order book. The fees range from 0% to 0.26% for takers and 0% to 0.16% for makers.
Makers are individuals who place orders that are not immediately matched. They are willing to wait until someone is ready to trade at their specified price. Takers, on the other hand, are individuals who place orders that are instantly filled. They prefer not to wait for someone else to match their desired price.
Kraken Supported Countries
Kraken supports clients from around the globe, although there are a few specific exceptions based on international and local financial regulations. Depending on your verified residency, your account may have certain restrictions in place. For example, some regions are not yet able to use debit or credit cards. Here’s the full list of countries supported by Kraken.
Kraken SEPA: Kraken is of the exchanges that you can use to sell and buy bitcoin with SEPA. It does not charge a fee for SEPA deposits or withdrawals. However, your bank may charge a fee for SEPA transfers. Kraken does not charge a fee for SEPA deposits or withdrawals. However, your bank may charge a fee for SEPA transfers.
Is Kraken Safe?
Kraken is known for the strengths in its platform security. It has never succumbed to a major security breach. The platform implements robust security practices such as cold storage for 95% of user funds, two-factor authentication, and regular security audits.
However, Kraken faces certain weaknesses that merit attention. In November 2023, the U.S. Securities and Exchange Commission (SEC) charged Kraken with illegally operating as an unregistered securities exchange, broker, dealer, and clearing agency. This legal action raises concerns about potential legal troubles and regulatory compliance issues, posing a challenge to Kraken’s reputation and stability. The SEC further alleges that Kraken commingles customer funds with its own, potentially introducing risks in the event of insolvency.
Alternatives for Buying Bitcoin With SEPA
If you are in Europe, you can buy bitcoin with SEPA using Kraken. However, there are other options as shown below.
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