Kraken Review

Summary: Kraken is a leading digital asset exchange that allows users to buy, sell, and trade 200 cryptocurrencies on both spot and futures markets with leverage up to 5x. It has grown to become one of the largest and most respected trading platforms worldwide, recognized for its robust security measures, high liquidity, and diverse product offerings.

Licensed in several jurisdictions, including the US, Europe, the UK and Australia, Kraken is best-in-class for customer security and regulatory compliance.

What is Kraken?

Kraken is a globally recognized cryptocurrency exchange known for its high security, diverse range of features and long operational history. Founded in 2011 by Jesse Powell, it offers a comprehensive platform for buying, selling, trading and staking over 200 digital assets. Navigating through the interface is straightforward, even for crypto novices. Users can effortlessly deposit, trade, and withdraw crypto within minutes of creating an account.

Kraken's commitment to global regulatory compliance sets it apart, operating in the United States (excluding New York due to the BitLicense requirement), Canada, the EU, Japan and 180 additional countries. In these jurisdictions, it is fully registered and compliant with relevant financial authorities, giving users peace of mind. As a globally accessible platform, it can be used in several languages, including Italian, Spanish, Portuguese, and Mandarin.

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Key Features

The exchange offers various advanced features, including a suite of trading options such as spot, futures, and margin, making it versatile for different trading strategies. It also offers staking services, enabling users to earn passive rewards on their crypto holdings. Refer to the below for a detailed overview of the products and services offered on Kraken:

1. Multiple Trading Types: Buy or sell a token with spot markets or trade margin and derivatives contracts with up to 5x leverage.
2. Crypto Staking: Earn up to 24% APY (Annual Percentage Yields) on 17 cryptocurrencies with both flexible and fixed terms.
3. Multilingual Customer Support: Use the Kraken platform and contact the support team 24/7 via live chat in eight languages, including English, Spanish, Chinese, French and more.
4. OTC Desk: Institutional investors can access a premium service to trade cryptocurrency directly with a dedicated account manager for tighter spreads.
5. NFT Marketplace: Trade thousands of NFTs with zero gas fees directly through the Kraken platform. Buy and sell popular projects like BAYC, Azuki, Moonbirds and Doodles.
6. Mobile App: Buy, sell, hold and stake various cryptocurrencies through the Kraken mobile app, which provides the same features as the web platform. It can be downloaded on both iOS and Android devices.
7. Kraken Pro: Trade futures and more with the Kraken Pro platform, a highly customizable exchange offering an all-in-one interface with access to spot, margin and derivatives trading.
8. Proof of Reserves: Kraken publishes its proof of reserves every quarter to highlight that they hold all of their users assets 1:1 on the exchange. 

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Is Kraken Regulated?

Kraken operates with a commitment to compliance and regulatory adherence across various jurisdictions, ensuring a secure environment for digital asset trading and related services. In the U.S., it's registered as a Money Services Business with FinCEN and has established Kraken Bank under a Wyoming SPDI charter, enabling interstate digital asset-related services. Kraken is also registered with FINTRAC in Canada. 

In Europe, Kraken is recognized by the UK's Financial Conduct Authority as a Registered Cryptoasset Firm, authorized to operate a Multilateral Trading Facility and provide various investment services. Additionally, it operates as a Virtual Asset Service Provider in Italy with OAM. In the APAC region, Kraken is registered as a Digital Currency Exchange in Australia with AUSTRAC. In the Middle East, within the Abu Dhabi Global Market, it holds an FSP from the FSRA for digital asset custody and trading facilities.

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Is Kraken Safe?

Yes, Kraken is considered safe with a commendable track record, devoid of significant security breaches or asset mismanagement incidents. The exchange regularly publishes its reserve holdings to highlight that all users’ funds are held on a 1:1 basis and accessible at all times. Additionally, it implements advanced security measures, such as two-factor authentication (2FA), email confirmations for withdrawals, and Cloudflare Firewall Enterprise Edition to detect malicious traffic and attacks.

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Fees Schedule

Kraken is known for its tiered based fee structure, with costs varying based on the user's 30-day trading volume. Lower fees are offered to high-volume traders, making it a popular choice for both casual and professional traders. It follows a maker-taker model, rewarding those who add liquidity to the market. For spot trading, the maker/taker rebate is 0.16%/0.26% and for futures trading it is 0.02%/0.05%. There are no fees to deposit funds to the platform.

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Kraken Staking Options

There are currently 17 tokens available to stake on Kraken, all with differentiating yields (returns) depending on how long you lock up your asset. If you choose flexible staking terms (meaning you can withdraw your funds at any time), you will get a lower rate. But if you choose a longer staking period, you will receive a higher yield on your token. Refer to the below list for a quick summary of the available staking options on Kraken.

• Algorand (ALGO): 1% - 4%.
• Cardano (ADA): 3% - 6%.
• Cosmos (ATOM): 6% - 10%.
• Ethereum  (ETH): 1% - 4%.
• Flare (FLR): 0.1% - 2%.
• Flow (FLOW): 1% - 4%.
• Kava (KAVA): 3% - 6%.
• Kusama (KSM): 9% - 13%.
• Mina (MINA): 12% - 18%.
• Polkadot (DOT): 7% - 11%.
• Polygon (MATIC): 1% - 3%.
• Secret (SCRT): 6% - 10%.
• Solana (SOL): 3% - 5%.
• Tezos (XTZ): 4% - 7%.
• The Graph (GRT): 4% - 6%.
• Tron (TRX): 1% - 4%.

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Bottom Line

Kraken is a leading cryptocurrency exchange offering a rich portfolio of digital assets and advanced trading features suitable for a range of investors. It prides itself on stringent security measures and regulatory compliance, providing a dynamic trading environment. As Kraken continues to evolve, it remains at the forefront of market trends, ensuring a comprehensive trading experience for its users.