Key takeaways
- Access to over 200 cryptocurrencies with competitive maker-taker fees starting at 0.16%.
- Strong security measures, including cold storage, 2FA and insurance coverage for digital assets.
- Diverse trading options: spot, margin (5x leverage), derivatives (50x leverage) and opt-in rewards.
- Poor customer support ratings despite 24/7 live chat, email and phone support options.
Founded in 2011 by Jesse Powell, Kraken is a United States-based cryptocurrency exchange. Initially headquartered in San Francisco, California, the company has since transitioned to a remote-first model, operating without a central physical headquarters.
Kraken distinguishes itself from other cryptocurrency exchanges, offering a professional-grade trading platform with competitive fees, particularly benefiting high-volume traders.
In terms of geographical reach, Kraken accepts users from over 190 countries and 250 different regions, more than many competitors, such as Binance, Coinbase and Bybit, which have tighter geographical restrictions.
Despite this, the exchange has had numerous run-ins with regulators, settling a $1.25-million fine from the Commodity Futures Trading Commission in 2021 and being charged by the Securities and Exchange Commission for operating as an unregistered securities exchange.
Nevertheless, as of Jan. 8, 2025, Kraken ranks 15th among cryptocurrency exchanges worldwide, with a 24-hour trading volume of approximately $1.82 billion.
Today, we jump in to understand why.
User experience
Users can access the Kraken exchange through its web interface or official mobile applications for both iOS and Android devices.
The Kraken apps have been praised for facilitating quick and convenient crypto transactions, allowing users to buy with payment cards or automated clearing house online banking, deposit and withdraw cash and crypto, monitor prices, and track their portfolios.
Additionally, Kraken provides API access, enabling third-party services such as trading bots, mobile apps and portfolio management services to integrate seamlessly with Kraken accounts.
Kraken’s platform is definitely on the minimalist side, with an interface emphasizing ease of navigation, making it accessible for newcomers. Moreover, users can customize themes to tailor the visual experience to their preferences, enhancing overall usability.
Creating an account on Kraken is straightforward. Prospective users need to provide their email address, create a username, and set a secure password. After submitting these details, Kraken sends a confirmation email containing an activation code. Entering this code activates the account, allowing users to explore the platform. However, to access trading features, users must complete additional verification steps.
Indeed, to comply with global Anti-Money Laundering (AML) regulations, Kraken mandates that all clients complete a Know Your Customer (KYC) questionnaire. This process involves providing personal information, including full name, date of birth, physical address and occupation details.
Depending on the verification level — Intermediate or Pro — users may need to submit supporting documents such as a valid government-issued ID, proof of address and, for US clients, a Social Security Number or Tax ID. A face photo may also be required.
As with many exchanges, completing the KYC process is essential to gain full access to Kraken’s products and services.
Did you know? In June 2015, Kraken introduced the first-ever Bitcoin dark pool, a private exchange where investors can trade large volumes without publicly revealing their intentions, thereby minimizing market impact.
Trading experience
Pairs, fees and speed
Kraken provides access to over 200 cryptocurrencies, including major assets such as Bitcoin (BTC) and Ether (ETH), as well as smaller altcoins, while supporting deposits and withdrawals in a range of different fiat currencies.
With more than 700 trading pairs, users have a broad range of combinations, although niche traders may find the pairings less extensive compared to some newer exchanges.
The exchange’s fee structure is tiered, with maker fees starting at 0.16% and taker fees at 0.26% for traders with monthly volumes under $50,000.
High-volume traders benefit from reduced fees, but occasional users should be aware that Instant Buy services come with noticeably higher fees.
Regarding Kraken’s trade execution speed, it’s known to be generally reliable, even during market spikes, but like most platforms, users may experience delays during extreme market surges.
Instruments on offer
Kraken supports a range of trading instruments to suit different strategies. Spot trading and margin trading (up to 5x leverage) are available, but margin offerings are less competitive compared to exchanges offering 10x or higher.
Derivatives with up to 50x leverage are an option for those seeking more aggressive trades, though caution is necessary.
Opt-in rewards are another feature, with users earning rewards directly on the platform, though yields can vary based on the asset.
Kraken’s over-the-counter (OTC) desk is helpful for large-scale transactions, but it may not offer as much flexibility or anonymity as some competitors. Overall, Kraken offers a reliable experience for most users, though high-frequency traders and niche asset enthusiasts may find better fits elsewhere.
Did you know? While Kraken has a wide geographical reach, it does not offer services to residents of certain US states, such as New York, Maine and Washington.
Security measures
Kraken’s security record is strong, although somewhat tainted by an incident in June 2024 where certain users were able to artificially increase their balances without fully completing deposits. As such, nearly $3 million was drained from the treasury.
However, this can be considered minor when compared to the fallout of attacks on other, competing exchanges. Here’s how Kraken has maintained its relatively spotless security record:
Fund security
- Cold storage: The majority of user funds is stored in offline, air-gapped cold storage, reducing exposure to potential online threats.
- Insurance: Kraken maintains insurance coverage for digital assets held on the platform, providing an additional layer of protection against potential losses.
- Asset segregation: User funds are segregated from the company’s operational funds, ensuring that client assets are not used for corporate purposes.
Account security
- Two-factor authentication (2FA): Kraken strongly encourages users to enable 2FA to add an extra layer of security to their accounts.
- Withdrawal whitelisting: Users can set up a list of approved withdrawal addresses, preventing unauthorized transfers to unfamiliar addresses.
- Anti-phishing measures: Kraken provides users with tools to combat phishing attempts, including customizable anti-phishing codes that help verify the authenticity of emails from Kraken.
Regulatory compliance
Despite facing regulatory challenges, Kraken complies with key standards across different regions.
- It is registered with the Financial Conduct Authority (FCA) in the United Kingdom and follows local regulations in its areas of operation.
- The exchange holds an ISO/IEC 27001:2013 certification, indicating adherence to recognized security protocols.
- Kraken is also working to align with the upcoming Markets in Crypto-Assets (MiCA) Regulation in the European Union, which seeks to improve investor protection and transparency.
Did you know? In September 2020, Kraken became the first cryptocurrency exchange to receive a special purpose depository institution (SPDI) charter in Wyoming, allowing it to operate as a bank within the United States.
Customer support
Kraken offers several support channels:
- Users can access live chat through the Kraken website or mobile apps for real-time assistance.
- Email support is available for less urgent inquiries, with response times varying based on inquiry volume.
- Phone support is also available 24/7, with dedicated support specialists ready to assist users.
It’s difficult to ascertain the true effectiveness of Kraken’s support channels, as those who have had a negative experience are far more likely to write a review than those who have had a positive experience.
Nonetheless, it’s important to note that Kraken’s customer support receives generally poor reviews across various platforms. On Trustpilot, it holds a low rating of 1.4 out of 5 stars based on 2,657 reviews, with users frequently citing issues such as slow response times and delays in fund withdrawals.
Similarly, on the Better Business Bureau website, Kraken has a rating of 1.44 out of 5 stars from 27 customer reviews, reflecting concerns over customer service quality.
Additional features of note
Kraken offers a variety of services beyond standard cryptocurrency trading:
- Opt-in rewards: Kraken provides opt-in rewards services, allowing users to earn rewards by participating in the network validation of supported cryptocurrencies. As of January 2025, Kraken relaunched its onchain opt-in rewards product for US clients in 37 states and two territories, enabling rewards for assets such as Ether (ETH), Solana (SOL), Polkadot (DOT) and Cardano (ADA).
- Derivatives trading: Kraken offers derivatives trading, allowing users to gain exposure to cryptocurrency price movements without holding the underlying assets. This enables strategies such as hedging and speculation with leverage.
- NFT marketplace: Kraken launched its non-fungible token (NFT) marketplace in November 2022, featuring a curated selection of over 110 high-volume NFT collections. However, in December 2024, Kraken announced plans to shut down the NFT marketplace by Feb. 27, 2025, to reallocate resources toward new projects. Users were advised to transfer their NFTs to their Kraken Wallet or another preferred self-custodial wallet before the closure.
Final thoughts
Over the years, Kraken has solidified its position as a reliable and cost-efficient exchange, offering a combination of competitive fees, advanced trading instruments and strong security protocols.
Its broad geographical reach and diverse services, including margin trading, opt-in rewards and derivatives, make it an attractive choice for experienced and high-volume traders.
With low maker-taker fees, access to over 200 cryptocurrencies and tested safety measures such as 2FA and cold storage, the platform prioritizes cost-effectiveness and user security.
For beginners, Kraken’s minimalist and customizable interface provides a navigable starting point, though the comprehensive verification process and advanced trading tools may require a learning curve.
As such, Kraken remains a strong contender for traders worldwide.
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FAQs
1. What is Kraken, and how does it work?
Kraken is a cryptocurrency exchange that allows users to buy, sell and trade various digital assets. It offers advanced trading features, including margin trading and derivatives contracts, catering to both beginners and experienced traders.
2. Is Kraken a safe and secure platform for trading cryptocurrencies?
Yes, Kraken is considered one of the securest cryptocurrency exchanges. It employs robust security measures, such as two-factor authentication (2FA), cold storage for the majority of assets and regular security audits to protect user funds and data.
3. How do I create and verify my Kraken account?
To create a Kraken account, visit the official website and sign up with your email address. After registration, you’ll need to verify your identity by providing necessary documents, such as a government-issued ID and proof of residence, to comply with regulatory requirements.
4. What cryptocurrencies can I trade on Kraken?
Kraken supports a wide range of cryptocurrencies, including popular ones such as Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and XRP (XRP), as well as various altcoins and tokens. The platform regularly updates its listings to include new and emerging digital assets.
5. What are the fees associated with trading on Kraken?
Kraken’s fee structure varies based on the type of transaction and trading volume. Generally, it employs a maker-taker model, with fees ranging from 0% to 0.26%. Detailed information about fees can be found on Kraken’s official fee schedule page.
6. Does Kraken offer a mobile app for trading?
Yes, Kraken offers a mobile app available for both iOS and Android devices, allowing users to trade cryptocurrencies on the go. The app provides features such as real-time price tracking, order placement and portfolio management.
7. How can I deposit and withdraw funds on Kraken?
Kraken supports various funding methods, including bank transfers (SWIFT, SEPA), cryptocurrency deposits and select fiat currencies. Withdrawal options are similarly diverse, enabling users to transfer funds back to their bank accounts or external crypto wallets.
8. What is Kraken’s customer support like?
Kraken provides 24/7 customer support through multiple channels, including live chat and email. Additionally, it offers a comprehensive support center with articles and guides to assist users with common issues and questions.
9. Does Kraken offer opt-in rewards services?
Yes, Kraken offers opt-in rewards services for various cryptocurrencies, allowing users to earn rewards by participating in network validation processes. Supported opt-in rewards assets and their respective rewards can be found on Kraken’s opt-in rewards page.
10. Is Kraken available in my country?
Kraken operates in numerous countries worldwide, but availability may vary based on local regulations. It’s advisable to check Kraken’s official website or contact support to confirm if the exchange’s services are accessible in your region.
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