Comprehensive Kraken Exchange Review: Security, Fees, and Features

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Introduction

Kraken, established in 2011 in San Francisco, is one of the world's oldest and most reputable cryptocurrency exchanges. This review provides a detailed analysis of Kraken's company background, security measures, global ranking, trading volume, supported countries, platform features, user evaluations, and its advantages and disadvantages.

Kraken Exchange Overview

Kraken operates as a centralized cryptocurrency exchange, offering services including virtual currency trading, over-the-counter (OTC) transactions, margin trading, and futures trading. It supports over 190 countries and territories with more than 180 cryptocurrencies available for trading.

The platform is available in multiple languages, including English and Chinese, and has gained significant trust within the financial industry. It was among the first crypto exchanges to be integrated into the Bloomberg Terminal for cryptocurrency data provision, enhancing its credibility.

Key Facts

Is Kraken Trustworthy and Safe?

Kraken is a legitimate centralized exchange and not a scam platform. It is regulated and complies with strict security standards. To verify an exchange's legitimacy, check if its application is available on official app stores like Google Play or the App Store. Kraken's app is listed on both, confirming its authenticity.

Company Background and History

Kraken was founded by Jesse Powell, an advocate for cryptocurrencies and an expert in online payments and fraud prevention. Powell established Kraken after witnessing the security shortcomings of Mt. Gox, which suffered a major hack in 2011.

In 2014, Kraken was selected as the official asset distributor following Mt. Gox's bankruptcy, further solidifying its reputation. By 2020, Kraken Financial obtained a bank charter in Wyoming, becoming the first crypto company to offer regulated banking services, including deposits, custody, and trust services.

Security Measures and Proof of Reserves

Kraken prioritizes security with features such as:

The exchange undergoes semi-annual Proof of Reserves audits conducted by Armanino LLP, an independent accounting firm. These audits ensure Kraken maintains a 1:1 ratio of user assets, demonstrating full transparency and solvency. As of February 2022, Kraken held $19 billion in BTC and ETH reserves.

Kraken has never experienced a successful hack or loss of customer assets, making it one of the most trusted exchanges globally. However, users should remain cautious of phishing sites impersonating Kraken.

Global Ranking, Trading Volume, and Supported Countries

Kraken consistently ranks among the top cryptocurrency exchanges worldwide. It is particularly dominant in the United States, where it is one of the largest compliant exchanges.

Global Ranking and Market Share

According to CoinMarketCap, Kraken ranks third globally based on comprehensive evaluations. Its 24-hour spot trading volume averages around $690 million, with an exchange score of 8.5. While it trails behind market leaders like Binance in trading volume and web traffic, it maintains a significant market presence.

Kraken's market share is estimated at approximately 5%, placing it behind competitors like Coinbase. Binance remains the dominant player, accounting for over 50% of the global market share post-FTX collapse.

Supported Countries and Restrictions

Kraken services over 190 countries, including the United States, United Kingdom, Canada, Germany, France, Hong Kong, Taiwan, Singapore, South Korea, Malaysia, Philippines, and Australia.

However, Kraken restricts access to certain countries, including Japan (services terminated in January 2023), Cuba, Congo, and Syria. Users should verify availability based on their residency.

Platform Features and User Reviews

Kraken offers a range of services tailored for both retail and institutional investors. Its core offerings include spot trading, futures trading, margin trading, and staking services.

Advanced Trading with Kraken Pro

Kraken Pro is the exchange's professional trading platform, offering advanced charting tools, order types, and leverage of up to 50x for margin and derivatives trading. The platform is accessible via desktop and mobile applications for iOS and Android devices.

Staking Services and NFT Marketplace

Kraken provides staking-as-a-service, allowing users to earn rewards on over 20 cryptocurrencies with annual yields of up to 20%. However, staking services for U.S. customers were discontinued in February 2023 following regulatory actions by the SEC. Non-U.S. clients continue to have access.

The exchange also features an NFT marketplace where users can buy and sell popular collections like Bored Ape Yacht Club (BAYC), Azuki, Moonbirds, and Doodles.

User Reviews and Feedback

User feedback from platforms like PTT highlights Kraken's reliability and trustworthiness, often comparing it favorably to other established exchanges like Coinbase. However, some users criticize its higher fee structure and limited range of tradable assets compared to competitors.

Registration, Verification, and Fee Structure

Account Registration and Verification

Registering on Kraken requires an email address, username, and password. To lift trading limits, users must complete intermediate verification by submitting:

  1. Identity Proof: Government-issued ID, passport, or driver's license.
  2. Proof of Residence: Utility bills, bank statements, or phone bills issued within the last three months.

Documents must clearly display the user's full name, address, and issue date.

Fee Breakdown

Kraken's fee structure is tiered based on 30-day trading volume. While competitive for high-volume traders, fees for retail users are generally higher than those of some rivals.

Spot Trading Fees:

Futures and Contracts Fees:

Additional fees apply for fiat conversions (0.2%) and withdrawals, which vary by method and currency.

Advantages and Disadvantages

✅ Advantages

❌ Disadvantages

Quick Summary

Kraken excels in security and regulatory compliance, with a flawless track record since its inception. It is an ideal choice for users prioritizing safety and professional trading tools. However, its fees and limited asset variety may deter cost-sensitive traders and beginners. For those seeking lower fees, broader asset selection, and better multilingual support, alternatives like Binance or OKX may be more suitable. 👉 Explore advanced trading platforms

Frequently Asked Questions

Is Kraken available in the United States?
Yes, Kraken is available in the U.S. and is one of the largest compliant exchanges in the country. However, staking services are discontinued for U.S. residents.

What are the withdrawal fees on Kraken?
Fiat withdrawal fees range from $24 to $140, while USDT withdrawals via TRC-20 cost 2.5 USDT. Fees vary based on currency and method.

Does Kraken support margin trading?
Yes, Kraken offers margin trading with leverage of up to 50x through its Kraken Pro platform, catering to advanced traders.

How does Kraken ensure the security of user funds?
Kraken employs 2FA, cold storage for 95% of assets, multi-signature protocols, and regular Proof of Reserves audits by independent firms.

Can I use Kraken in Taiwan or Hong Kong?
Yes, Kraken supports users in Taiwan, Hong Kong, and many other countries. Always check the latest list of supported regions on their website.

What is the minimum deposit amount on Kraken?
Kraken does not enforce a minimum deposit for cryptocurrency transfers. Fiat deposit minimums vary by currency and method.

Conclusion

Kraken stands as a pioneering and secure cryptocurrency exchange, ideal for users valuing transparency and advanced trading features. While it faces competition from exchanges with lower fees and more assets, its unwavering commitment to security and compliance makes it a top choice for serious investors. Always conduct personal research and consider your trading needs before selecting an exchange.