Kraken, one of the largest and oldest cryptocurrency exchanges, has been serving over 10 million clients across more than 190 countries since its inception in 2011. Based in the US, this highly regulated platform offers a wide range of crypto services, including spot trading, margin trading, futures, staking, and an NFT marketplace.
As a top-tier exchange known for its robust security measures and compliance with legal requirements globally, Kraken aims to accelerate crypto adoption while providing financial inclusion. This comprehensive review will explore Kraken’s asset variety, liquidity, trading tools, fees, user protection, and overall accessibility in 2024.
Asset Variety and Liquidity
Extensive Cryptocurrency Offerings
Kraken stands out for its extensive range of cryptocurrency offerings. As of 2024, the platform supports trading for over 210 different cryptocurrencies on its Kraken Pro platform. This includes major coins like Bitcoin and Ethereum, as well as a diverse selection of altcoins. Additionally, Kraken allows users to stake various crypto assets, with the potential to earn up to 23% in annual yields for 13 different assets.
High Liquidity and Trading Volume
One of Kraken’s key strengths is its high liquidity and trading volume, especially for major trading pairs like BTC-USD and ETH-USD. Over the past three months, Kraken has ranked as the second-largest exchange by ETH-USD volume and third for BTC-USD volume, with a staggering quarterly trading volume of over $207 billion. This high liquidity is attributed to factors such as low fees that incentivize market makers, more funding options, and a large active trader base.
Trading Pair | Kraken’s Ranking | Quarterly Trading Volume |
---|---|---|
ETH-USD | 2nd | Over $207 Billion |
BTC-USD | 3rd | Over $207 Billion |
Kraken’s extensive asset offerings, combined with its high liquidity, make it an ideal choice for lower-intermediate to intermediate-level traders seeking maximum flexibility and quick entry and exit into the market.
Security and User Protection
Robust Security Measures
Kraken is renowned for its industry-leading security measures, which have enabled the exchange to maintain an unblemished record of never being hacked. The platform employs a comprehensive security approach to safeguard cryptocurrency investments and user identity. This includes utilizing advanced encryption techniques, implementing multi-factor authentication, and adhering to strict internal security protocols.
Qualified Custody for Institutional Clients
In 2020, Kraken obtained a state-chartered banking license, allowing the exchange to unveil a qualified custody service for institutional clients in the crypto-friendly state of Wyoming. This service ensures that institutional investors’ assets are securely stored and managed, adhering to stringent regulatory requirements.
Custodial Platform with Enhanced Security
Kraken Pro operates as a custodial platform, meaning users do not hold the private keys to their cryptocurrencies. While this approach may not appeal to some users who prefer self-custody, it provides an additional layer of security by entrusting the safekeeping of funds to Kraken’s robust security infrastructure. Furthermore, Kraken Pro offers immediate access to crucial trading data and a comprehensive set of trading features and security measures.
Trading Tools and Features
Advanced Trading Platform: Kraken Pro
Kraken offers an advanced trading platform called Kraken Pro, designed for experienced traders seeking advanced tools and features. Kraken Pro provides access to sophisticated trading tools like TradingView charts, customizable order books, and in-depth analytics. It allows traders to quickly browse markets by category, top gainers/losers, newly listed assets, and more.
Margin and Futures Trading
Kraken Pro enables margin trading with up to 5x leverage, allowing traders to amplify their trading positions. Additionally, it offers cryptocurrency futures trading with leverage up to 50x for hedging spot trades. These advanced trading options cater to experienced traders seeking higher risk and potential rewards.
Trading Tools and Features
- Full-featured charting with technical indicators
- Ability to compare up to 4 markets simultaneously
- Advanced order types (stop loss, take profit, IOC, reduce-only)
- Maker-taker fee model, rewarding liquidity providers
- Smart order routing for optimal execution quality
- Crypto lending capabilities to earn interest
Feature | Description |
---|---|
Over-the-Counter (OTC) Trading | Personalized service for executing large trades over $100,000 |
Staking | Earn returns by staking supported crypto assets (non-US users) |
Indices | Real-time and reference rate indices for accurate pricing |
Kraken Pro offers a comprehensive suite of trading tools and features tailored for experienced traders, including advanced charting, order types, and margin/futures trading capabilities. However, it’s important to note that certain features like futures trading may be geographically restricted due to regulations.
Fees and Accessibility
Competitive Trading Fees
Kraken Pro offers competitive trading fees, catering to both beginner and experienced traders. The fees start at 0.26% and decrease based on monthly trading volume. Kraken employs a maker-taker fee model, incentivizing liquidity providers with lower maker fees ranging from 0.25% for trades under $10,000 to 0.00% for trades over $10,000,000. Taker fees range from 0.40% for trades under $10,000 to 0.10% for trades over $10,000,000.
Trading Volume | Maker Fee | Taker Fee |
---|---|---|
Under $10,000 | 0.25% | 0.40% |
Over $10,000,000 | 0.00% | 0.10% |
For users with large trading volumes, Kraken recommends the OTC (Over-the-Counter) service, providing a more cost-effective and personalized experience.
Accessible Funding Options
Kraken offers a wide range of fiat and crypto funding options with low processing times. Users can instantly buy, sell, or convert cryptocurrencies through Kraken.com and the Kraken App. However, it’s important to note that the Kraken App is currently only available in select countries listed in the ‘Requirements’ section.
Transparent Fee Structure
One of Kraken’s strengths is its transparent fee structure. The exchange does not charge deposit fees, withdrawal fees, account maintenance fees, or inactivity fees. Additionally, Kraken provides competitive, investor-friendly fees, with maker fees as low as 0% and taker fees ranging from 0.10% to 0.26%.
Conclusion
In summary, Kraken stands as a prominent cryptocurrency exchange, offering a comprehensive suite of trading features, robust security measures, and a diverse range of digital assets. Its extensive asset offerings, coupled with high liquidity and advanced trading tools, make it an attractive choice for experienced traders seeking maximum flexibility and quick market access.
While Kraken’s custodial platform may not appeal to those preferring self-custody, its robust security infrastructure and regulatory compliance provide an additional layer of protection for users’ investments. With competitive trading fees, transparent pricing, and accessible funding options, Kraken continues to be a reputable and user-friendly platform, well-positioned to facilitate the growing adoption of cryptocurrencies across global markets.