Kraken Review • Pros, Cons, Features & More • Benzinga

Kraken Quick Summary

What Is Kraken?

Kraken, founded in 2011 by Jesse Powell, is one of the oldest and most reputable cryptocurrency exchanges in the world. Launched in the wake of the growing interest in digital currencies, Kraken quickly distinguished itself by offering a wide range of cryptocurrencies and advanced trading features. The exchange gained significant recognition when it became one of the first to provide spot trading for Bitcoin and other altcoins, and it was also the first to be listed on the Bloomberg Terminal in 2014.

Over the years, Kraken expanded its services to include futures trading, margin trading and various fiat currency pairs. The platform has prioritized security, implementing robust measures to protect user assets, which has helped it maintain a strong reputation in the often tumultuous world of cryptocurrency. As of now, Kraken supports users from over 190 countries. The company continues to adapt to regulatory changes and evolving market demands, solidifying its position as a leader in the industry.

Kraken Exchange Key Features

• Staking: Staking provides a yield to secure certain crypto networks. Access staking on the Kraken Pro interface by selecting specific assets and the type of staking you prefer. You could earn up to 13% yearly on your cash and crypto and be paid twice weekly. Staking is unavailable to clients from the United States.
• Rewards: Although unavailable to clients from the United States and the United Kingdom, Kraken offers rewards through staking on eligible assets like Algorand (ALGO), Cardano (ADA), Cosmos (ATOM), Ethereum (ETH), Polygon (MATIC) and more. Receive earnings weekly, and keep access to your assets. You just have to turn it on and Kraken will manage the process for you. This is essentially a simple form of staking, accessible to users who don’t have Kraken Pro. 
• Flexible buying options: Whether you want to build a portfolio over time with recurring buys or create custom orders to automatically execute trades at your target price, the high-liquidity exchange offers maximum flexibility to support your trading strategy.
• Institutional offering: Kraken recently launched an institutional product that will help institutions like asset managers and trading firms trade and stake assets. Institutions can access Kraken’s highly liquid order books and speedy, low-latency digital asset trading.
• Futures trading: Trade futures with low fees and leverage, which gives you capital efficiency. Manage your risk flexibly with different margining choices and express views using over 95 perpetual futures.
• NFT marketplace: Kraken’s NFT marketplace is a platform to explore and securely trade NFTs with zero gas fees and 200+ funding options. 

Kraken does not charge fees for transferring funds to and from a futures wallet, storing funds or account inactivity. However, the platform’s fee structure is broken down into three main categories: funding fees, trading fees and instant-buy fees.

• Funding fees: These are fees charged when you fund or withdraw from your account with cryptocurrency, cash or card. The charges vary depending on the mode of payment and the payment merchant. 

For example, though crypto withdrawals and deposits are free in most cases, a few cryptocurrencies like Mina, Terra Classic and Terra (USD) Classic, are charged an address setup fee or deposit fee.

• Trading fees: These are fees charged when your order is executed (matched with another client’s order). Fees typically range from 0% to 0.4% of the total cost (value) of your order and depending on your 30-day trading volume (in USD), the currency pair being traded and whether your order is maker, which provides liquidity, or taker, which takes liquidity.

• Instant-buy fees: These are charges that you pay in the form of spreads when buying, selling or converting your assets. Spreads are the difference between the price you can buy and sell at. Spread fees may be determined based on a combination of factors, including market conditions, assets, order size, type of trade, participation in Kraken’s VIP program and custodial activity. Also, depending on your payment method, you may pay additional fees. 

Regardless of the platform’s fee structure, if you want to enjoy lower fees, you should sign up for Kraken Pro.

Kraken currently supports over 50 unique coins, providing investors with a diverse range of digital assets to explore. Kraken’s cryptocurrency offerings vary from major crypto projects (like Bitcoin and Ethereum) to smaller, more volatile assets (like Dogecoin and The Graph).

In addition to cryptocurrency market access, Kraken also offers futures trading on 5 major cryptocurrency and fiat currency pairs. Investors can access up to 50x leverage when trading crypto futures with Kraken.  

Kraken offers a beginner-friendly platform and Kraken Pro for advanced users to support trading cryptocurrencies. The process of signing up is pretty simple, and educational resources are available to support getting to know the platform. 

The multiple platforms may be slightly confusing. On the web, in addition to the Kraken app and Kraken Pro, you can access the NFT marketplace and Kraken Classic.

Kraken supports a handful of digital and fiat funding options through options like transfers from bank account or payment cards. Whether you’re executing a spot trade, setting up a custom order or scheduling a recurring buy, the platform makes it easy to buy and sell crypto from anywhere in the world.

The Kraken mobile app is convenient for simple conversions or buys and sells, while the Kraken Pro app has a fully featured order form system. It may look more complicated and cluttered, but has complete functionality for advanced traders. 

The Kraken app boasts an impressive rating of 4.6 out of 5 on Google Play. It achieves an even higher rating of 4.7 out of 5 on the App Store. These ratings reflect strong user satisfaction and confidence in the mobile app’s performance.

Kraken prioritizes and invests heavily in security. The platform also has a web page dedicated to advising its users on how to secure their accounts. You can secure your account through a two-factor authenticator (2FA). This can be combined with multiple passkeys for extra security. You can also set up a master key to add an extra layer of protection from password resets. 

Kraken uses an external auditor to perform a proof-of-reserves audit, which boosts confidence that it actually holds the assets it claims for clients. The infrastructure it uses conforms to high international security standards.

Kraken runs a 24-hour, 7-day-per-week customer service. Users can contact customer service agents via different options, such as live chat, phone and email. There is also a support library that provides answers to common user questions. The customer support team is spread across different countries globally and fluent in a wide range of languages. 

Kraken offers advanced traders personalized customer support through its next-level account management program. If you use Kraken consistently, you’ll get assigned an account manager who can oversee your requests and issues so that you focus on trading.

Kraken vs. Competitors

Kraken has similar competitors, such as Coinbase, Binance and eToro, which are among the largest crypto exchanges. These platforms all offer crypto trading services. They also provide advanced trading options like spot trading, margin trading and staking. 

There are differences in terms of fees, number of cryptocurrencies, features and geographical spread. Here’s how Kraken stacks up against its competitors:

Kraken and Coinbase have their unique strengths and weaknesses. Kraken offers advanced trading features, lower fees, and a wider range of cryptocurrencies, making it ideal for experienced traders, while Coinbase is beginner-friendly but has higher fees and fewer options. Both platforms are secure, but Kraken has a stronger reputation in the industry.

Kraken and eToro both allow users to buy, sell, and trade various cryptocurrencies. However, Kraken is primarily a cryptocurrency exchange providing a wide range of coins with advanced trading features for experienced traders. In contrast, eToro is a social trading platform that not only offers cryptocurrency trading but also includes traditional assets like stocks and commodities.

Kraken earns a solid rating of 4 because of the range of features available on the platform, a strong commitment to security and an extensive selection of supported cryptocurrencies. The exchange has also taken preemptive steps to provide separate spaces for beginners and advanced traders through Kraken and Kraken Pro. 

Kraken faces regulatory uncertainty from a Securities and Exchange (SEC) lawsuit and has withdrawn its staking and rewards offering for U.S. investors. It also can’t operate in all U.S. states, but it has developed a strong OTC trading presence in Europe.

Frequently Asked Questions