Kraken is a cryptocurrency exchange in San Francisco where people can trade different cryptocurrencies. Participants can buy or sell cryptocurrencies using U.S. dollars, Canadian dollars, euros, and Japanese yen, among other fiat currencies. On the Kraken exchange, you can buy and sell popular virtual currencies like Ethereum (ETH) and bitcoin (XBT), as well as newer ones like EOS (EOS) and Monero (XMR) (XMR).
The platform makes it easy for people to move money to and from their linked bank accounts and to move crypto-coins from their Kraken-linked trading accounts to and from their digital wallets.
As crypto-mania spread around the world in 2014, Kraken exchange and the Coinbase exchange were chosen to give the Bloomberg terminal market data on bitcoin trading.
Getting involved with the top market data provider helped Kraken exchange become more well-known among traders. Then, Bloomberg clients were able to see prices, charts, news, and social media posts for virtual currencies through the right Bloomberg services and terminals.
Features of Kraken
Instant Buy
Kraken exchange has a feature called “instant buy” that lets you buy and sell crypto with cash. Also, you can use it to exchange crypto for crypto. Kraken’s fees for instant buying, on the other hand, are very high. For spot trading, it’s better to use the “trade” button.
Futures Trading
You can also buy and sell derivative futures contracts on Kraken. More than 25 different contracts are available on the platform right now. With these futures, you can either buy or sell a certain contract.
OTC Trading
Kraken exchange offers Over the Counter (OTC) trading for High-Net-worth Individuals (HNIs) and Institutional investors. OTC trading helps execute large trades at a fixed price without disrupting the exchange’s order book.
Advanced Trading Features
Kraken exchange also offers advanced trading features through Kraken Pro for professional traders. You get access to technical charts and indicators, which helps you with the technical analysis of a crypto token. All the popular indicators such as Volume, RSI, MACD, Bollinger Bands, etc., are available.
Benefits of Kraken Exchange
Kraken exchange is a trading platform with a lot of features for both individual cryptocurrency fans and large trading firms. It has different types of accounts to meet the needs of all traders and investors.
Kraken is one of the best cryptocurrency exchanges because of its advanced order system and trading tools. These include a variety of stop-loss and profit-taking order types, leverage and margin-based trading, automated strategy trading, and a large pool of cryptocurrencies to trade in.
Disadvantages of Kraken Exchange
Kraken Exchange has the following limitations:
High Transaction Fee
The transaction fee charged by Kraken exchange is substantially higher (1.5% / 0.9%). However, Kraken pro charges a lower fee (0.16% / 0.26%); it is still higher than some competitors, such as Binance and FTX.
Limited Fiat Options
Kraken has limited fiat options for deposit and withdrawal. At the time of writing, only seven fiat currencies are supported.
Trading Experience
Kraken exchange gives its users two ways to trade: Kraken and Kraken Pro. Anyone with a Kraken exchange account can use Kraken Pro, which has lower prices.
Beginners should start on the Kraken platform in the middle. With a verified account, you can quickly buy cryptocurrency from a linked bank account, and it’s just as easy to sell or switch between currencies in your account. After making an account and logging in, entering an order takes only a few seconds using a simple form.
With this system, you can buy crypto directly with the money in your bank account. There’s no need to put money in your account first. You can not only buy and sell cryptocurrency, but you can also stake it and earn up to 23% interest, depending on the currency. Make sure to turn on two-factor authentication (2FA) to keep your account safe. This makes it impossible for anyone to log into your account without your device and a randomly generated code.
What is Kraken Pro
Kraken Pro is an active trading platform accessible by the web browser or mobile device. The UI may be intimidating for crypto and trade novices, but it may be worthwhile to learn. It contains additional asset information, including live charts and an overview of open orders. Kraken Pro is available to everyone with a valid Kraken account. Lower fees may be more significant than an elaborate interface. If you execute the identical trade using Kraken Pro as opposed to the standard interface, you will pay less.
If you exercise good internet security, fraudsters attempting to drain your Kraken account balances should be unable to do it. Once an account has been funded, it is highly recommended to implement two-factor authentication. Different two-factor codes can be generated for sign-in, account withdrawals, and transactions. If you have reason to believe that your account has been compromised, you can also freeze your account to prevent any changes.
While the majority of customers report a favorable experience, some users claim hacked accounts in which the owner lost everything and had no recourse to retrieve the lost assets. Due to the irreversibility of blockchain transactions, crypto accounts are a prominent target for fraud. When utilizing Kraken or any other exchange, be aware of the following dangers.
How to Create an Account on Kraken
Creating a Kraken exchange account is the first step toward accessing the services that Kraken offers.
- Make sure you are visiting the official Kraken site.
- Click on the Create Account button in the upper-right corner.
- Enter your email address, a username (see username tips & requirements), and a strong password (see password tips & requirements) on the signup form. Note: the username cannot be changed.
- Read our Terms of Service and Privacy Policy, tick the agree box (if you agree), and then click the Create Account button. If you receive an error after clicking on the Create account button, see this guide.
- You should receive an activation email containing an activation key. If you do not receive an activation email, please try these troubleshooting steps.
- Enter your activation key on the account activation form or alternatively complete activation by clicking the link in the email.
- Confirm your password, complete the captcha if asked, and click the Activate Account button.
- Congratulations! You have successfully created your Kraken account and you’re ready to get started.
Frequently Asked Questions About Kraken Exchange
What is the Difference Between Kraken and Kraken Pro?
Kraken provides users with two trading platforms: Kraken and Kraken Pro. Anyone with a Kraken account has access to Kraken Pro, which has lower pricing. Kraken or Kraken Pro may be preferred depending on your cryptocurrency and active market trading experience.
Is Kraken Pro Safe?
Kraken has never been hacked, to my knowledge. Yes, that’s correct. Instead of the loss of thousands of dollars’ worth of cryptocurrency at other exchanges due to hacking, Kraken can maintain its reputation as a safe cryptocurrency exchange.
Is Kraken better than Coinbase pro?
When it comes to fees, Kraken takes the win with slightly lesser fees that range between 0% and 0.26%, while Coinbase Pro fees range between 0% to 0.5%. Overall, both platforms offer competitive fee structures that reward market makers who generate higher trading volumes per month.
Is Kraken Good For Day Trading?
The Kraken trading engine is known for being safe, and user-friendly, and for its high liquidity. With this and the possibility to use several advanced strategies like margin and leverage, Kraken is very well suited to day trading crypto
Conclusion
Kraken continues to be one of the most widely used platforms for trading virtual currencies. Despite the fact that it is not unusual for even well-established stock exchanges to experience temporary disruptions, trading cryptocurrency is notoriously difficult due to the fact that cryptocurrencies are both decentralized and anonymous.
Trading exchanges and marketplaces will need to strike a balance between the regulations imposed by real-world regulators and the unknown and uncontrolled valuation mechanism of the various digital currencies. This is despite the fact that cryptocurrencies remain, for the most part, outside the purview of government regulation.
