Kraken is a well-known crypto exchange, also offering several other products such as staking.
But is Kraken a scam?
No, it is not: According to our experience and review, Kraken is a safe crypto exchange.
Tell us about your experience with Kraken and share your comment below this review.
Table of Contents
Key Takeaways
- Kraken is safe because it offers licensed and regulated exchange services in many countries. Plus, the platform uses state-of-the-art technology like Cold Storage, 2FA, and Multi-Signature Wallets to protect your funds
- Benefits of using Kraken include Kraken Pro, an advanced trading tool to earn profit with low fees. The service offers Futures Trading, Margin Trading, OTC Trading, and more products
- In this Kraken exchange review, we will explore every pro and con of the exchange as we explain in detail why this cryptocurrency trading platform is worth your time
About the Company
Jesse Powell, a student from California State University, co-funded Kraken in 2011 with partners Thanh Luu and Michael Gronager.
Powell was working for Mt. Gox as a consultant when he envisioned Kraken as a replacement, foreseeing the Gox shutdown. Indeed, Gox failed security audits and collapsed in 2014.
| Name | Kraken |
|---|---|
| Website | kraken.com |
| Company | Payward Trading Ltd. |
| Address | c/o SHRM Trustees (BVI) Limited, Trinity Chambers, Ora et Labora Building, Road Town, Tortola, VG1110, British Virgin Islands |
| CEO | Jesse Powell |
| Founder | Jesse Powell, Thanh Luu |
| Founded | 2011 |
| Contact | Live Chat, Ticket System, Phone |
| Cryptocurrencies | 185+ |
| Markets | Spot, Margin, Derivates |
| Services | Staking, NFTs, Learn, API |
| Promotions | none |
| FIAT | USD, EUR, CAD, JPY, GBP, CHF, AUD, AED |
| Payment Methods | Credit Cards, Wire Transfer |
| Fees | 0% to 0.16% maker fees, 0.10% to 0.26% taker fees, several discount options, other fees might apply for different services |
| App | Kraken – Buy Bitcoin & Crypto, available for iOS and Android |
| KYC | 4 verification levels: Starter, Express, Intermediate, Pro |
| Languages | English, Spanish, Filipino, French, Italian, Portuguese, Russian, Vietnamese, Turkish, Ukrainian, Chinese, Japanese |
The previous year, in September 2013, the team had launched Kraken in San Francisco, California, offering options to trade Bitcoin and Ethereum, among others
Kraken received an investment from Hummingbird Ventures and Bitcoin Opportunity Fund worth $5 million, and it would become one of the first exchanges listed by Bloomberg Terminal.
Throughout 2016, Kraken purchased and acquired other exchanges, like Coinsetter, CleverCoin, and Glidera. By December 2017, the Kraken exchange platform was gaining 50,000 new Kraken users daily.
In early 2024, Kraken has over 10 million users in more than 190 countries, amounting to $2,089,309,032 daily trading volume.
Kraken is one of the most successful cryptocurrency exchanges. According to a 2023 report from Bloomberg, the company has plans to offer services beyond cryptocurrency, including trading in US-listed stocks.
Safety and Regulation
Kraken provides exchange services in diverse countries backed by proper licenses issued by renowned regulatory institutions in the crypto world.
In the United States, the Financial Crimes Enforcement Network (FinCEN) approved the exchange as a Money Services Business under Payward Ventures, Inc.
Similarly, the Wyoming Division of Banking licensed the Kraken Bank as a Special Purpose Depository Institution charter to provide asset-related services interstate.
In Europe, Kraken also offers services as a Registered Cryptoasset Firm registered with the Financial Conduct Authority (FCA).
Besides legal licenses, Kraken employs diverse security measures to protect your account and assets.
For example, the Kraken crypto exchange uses Two-Factor Authentication (2FA) to increase account security and Cold Storage to store your funds offline and safe from hackers.
We also like that Kraken offers multi-signature wallets, a technology that requires multiple signatures to grant access to your funds.
Security at Kraken is top-notch, making it one of the few cryptocurrency exchanges that hasn’t been hacked or suffered security breaches yet.
Previous Kraken customer reviews highlighted a few issues with the platform. Most prominently, they mentioned how the Kraken platform often takes longer than expected to verify the account or to process withdrawal requests. In our experience, these two issues occur from time to time.
Fortunately, Kraken addresses these problems and recommends using customer support methods to reach an agent. We requested assistance for a delayed withdrawal, and the team promptly solved the issue, adding our funds quickly.
Accepted Countries
While Kraken is available worldwide, some countries don’t allow access to this exchange or other cryptocurrency platforms. Let’s review some countries and whether you can access Kraken’s platform from these locations —
- Australia — Sign-up is available with some restrictions
- Canada — Sign-up is available with some restrictions
- Ghana — Sign-up is available
- Hong Kong — Sign-up is available
- India — Sign-up is not available
- Ireland — Sign-up is available
- Kenya — Sign-up is available
- New Zealand — Sign-up is available
- Nigeria — Sign-up is available
- Pakistan — Sign-up is available with funding restrictions
- Philippines — Sign-up is available
- Singapore — Sign-up is available with some restrictions
- South Africa — Sign-up is available
- United Kingdom — Sign-up is available with some restrictions
- United States — Sign-up is available (except in Washington and New York)
Some restrictions imposed on many countries consist of the inability to use Kraken features like the Opt-In Rewards, the Referral Program, or Futures Trading. If you live in a fully restricted country, the penalties for using the service can be a complete shutdown of your account or confiscation of your funds.
Trading Offer
With over 600 trading pairs and more than 200 coins available on Kraken, regular Kraken and Kraken Pro users can trade with the most popular and rising cryptocurrencies.
These cryptocurrencies include Bitcoin, Tether, Ethereum, Solana, XRP, Cardano, Dogecoin, Avalanche, and more coins in the world of crypto assets. As for the trading pairs, you will find trading opportunities with the following cryptos —
- BTC/USDT
- ETH/BTC
- USCD/USDT
- ETH/USDT
- BTC/USDC
- SOL/BTC
- SOL/USDT
- ETH/USDC
Trading Types
At Kraken, you can find some of the most common types of trading to ensure you can develop your own trading strategy successfully. These are the different crypto trading types available for you —
Margin Trading
Kraken offers a variety of benefits for crypto investors who prefer Margin Trading. For example, you receive leverage of up to 5x, stable rollover fees for your margin positions, and advanced order options.
Futures Trading
This type of trading allows you to go long and short, trade with leverage, and find convenient contracts to earn profit. Likewise, the fees for futures trading operators are low, usually at around 0.01% for the taker.
OTC Trading
With OTC Trading, Kraken offers the chance to receive a single quote for orders worth thousands of dollars. This trading option also gives you access to all asset pairs and the ability to settle trades in 24 hours. Overall, this type of trading is flexible and accommodates your objectives.
Trading Software
Kraken has a partnership with TradingView, which provides the exchange with some of the most advanced chart services in the crypto industry.
As a result, the exchange platform has detailed market charts to evaluate prices, trending cryptocurrencies, and more. This crypto exchange software also allows you to place orders, including orders to sell or buy crypto at specific prices or to sell your crypto asset collection on the spot.
Other Products
Additionally, the Kraken catalog includes diverse products that may interest you. These are some of those products —
- Crypto Staking
- VIP Services
- API
- Trade NFTs
Crypto Staking
Hold your cryptocurrency or FIAT assets for some time, and Kraken will reward you with prizes. These rewards are available two times per week and can amount to 26% in profits per year. Only selected cryptocurrencies are eligible for staking.
VIP Services
The exchange has a VIP Portal available for eligible traders operating with the Kraken Pro software. Through this product, you can receive insightful data like trading data, granular crypto trading statistics, and contact details about the account manager.
Fees
The trading fee structure at Kraken varies between the services offered. For Spot trading, the exchange calculates the fees for the maker and taker based on a 30-Day Volume. Check out the chart below —
| 30-Day Volume | Maker Fee | Taker Fee |
|---|---|---|
| $0 – $50,000 | 0.16% | 0.26% |
| $50,001 – $100,000 | 0.14% | 0.24% |
| $100,001 – $250,000 | 0.12% | 0.22% |
| $250,001 – $500,000 | 0.10% | 0.20% |
| $500,001 – $1,000,000 | 0.08% | 0.18% |
| $1,000,001 – $2,500,000 | 0.06% | 0.16% |
| $2,500,001 – $5,000,000 | 0.04% | 0.14% |
| $5,000,001 – $10,000,000 | 0.02% | 0.12% |
| $10,000,000-$100,000,000 | 0.00% | 0.10% |
The Instant Buy service also allows you to trade crypto, but the fees are usually higher. In this case, you must pay a 0.9% flat fee for trading stablecoins and a 1.5% flat fee for other coins.
This means that learning to use the Kraken Pro and its advanced trading features will help you save money on fees.
Deposits don’t carry fees, but Kraken charges a small amount for withdrawals. For example, 0.003 ETH, 0.0004 BTC, 1 ADA, and 0.005 DASH, to name a few. If you request FIAT withdrawals, the fees vary from 4 USD to 35 USD, depending on the payout method.
Payment Methods for Deposits and Withdrawals
Kraken supports payments made with a payment card, Google Pay, and Apple Pay.
These payment methods are available in every country that allows Kraken, with a minimum deposit amount of $10.00 and a weekly limit of $5,000. In most cases, Kraken allows deposits in crypto instantly or in a few minutes.
Withdrawals are available through diverse methods, such as ACH, FedWire, and SWIFT payments.
The minimum withdrawal varies depending on the method chosen, with ACH requiring the lowest withdrawal minimum at 1 USD. After submitting a withdrawal request, the funds are usually available in up to 5 business days.
There are a few disadvantages we found while withdrawing funds.
First, you can’t withdraw money through cash, checks, credit cards, debit cards, or third-party processors like PayPal.
Also, Kraken doesn’t allow you to withdraw 100% of your first deposit before 72 hours for safety reasons.
Mobile app
The Kraken mobile app is available for iOS and Android devices to help you manage your funds remotely. Depending on your experience, you can download one of two versions of this app.
- If you’re a beginner, the standard Kraken App will provide the essential functions to start your trading journey. Use this app to deposit or withdraw crypto, monitor prices, and more.
- On the other hand, the Kraken Pro App offers advanced order types, margin trading with up to 5x leverage, and stake features, among other features.
In any case, the app is easy to use due to its intuitive interface.
Registration and Verification
Creating an account on Kraken is an easy process that takes only a few minutes. Plus, you can create an account using the platform and mobile app. Here’s the process in detail —
- Go to the Kraken website and click Create Account
- Provide an email, username, and a password
- Accept the Terms of Service and Privacy Policy
- Submit the verification code sent to your email
- Confirm the password and complete the captcha
- Activate the account
On the other hand, verifying your Kraken account is a tad more challenging. Completing the account verification is necessary to buy and sell cryptocurrencies and receive benefits like higher deposit and withdrawal limits.
- Log into your Kraken account, and click on the Verify Identity tab button
- Provide the details required, like your name, date of birth, address, phone number, etc
- Enter details about your job
- Select your preferred identity document for verification and upload it
- Submit the verification for review
Kraken has three verification levels: Intermediate, Pro – Personal, and Pro – Business. Each time, the estimated time to verify your Kraken account is two days.
By this point, crypto investors may use all of the features available on Kraken without complications. We recommend starting up with the Kraken Futures Trading Demo or Test Accounts function. This feature will allow you to practice trading strategies and be familiar with the exchange.
Bonus for New Customers
Kraken doesn’t have a welcome bonus like other established crypto exchanges, but you can still earn a little extra using the Referral Program. Under this program, you can create an account using another person’s referral link and win $10.
The conditions for this bonus are affordable and accessible.
Create an account, buy or sell $100 in crypto within 30 days, and both you and the referral link owner will receive $10 as a reward.
Customer Support and Languages
If you need assistance or have doubts about the service, Kraken has a range of communication lines to answer your inquiries.
| Live Chat | available at https://support.kraken.com/hc/en-us |
|---|---|
| Contact Form available at https://support.kraken.com/hc/en-us/forms | |
| Ticket System | available |
| Phone | +353 1 223 8162 |
| Help Section | available at https://support.kraken.com/hc/en-us |
You can contact a representative using the live chat, email contact, ticket system, or phone number. In our experience, the Kraken customer support was satisfying, as it delivered accurate solutions to our problems.
Conclusion
Kraken is not a scam or fake. If anything, Kraken is a well-established exchange and one of the longest-running crypto platforms from the past decade. The legitimacy of the exchange is unquestionable, backed by millions of beginning crypto investors and experienced traders.
Overall, we found that Kraken is a modest, reliable, and trustworthy cryptocurrency exchange. If you’ve used this platform before, we would like to read your opinion. So, leave your comment in the section below and let us know what you think.
Frequently Asked Questions
The following are some common questions regarding Kraken.
Is Kraken safe and secure?
Yes, Kraken is safe and secure. The exchange employs a variety of features to guarantee your account, personal details, and funds are safe from theft or hackers. Learn more about how Kraken can secure crypto and your account by reading the Safety and Regulation section.
How long does the verification take with Kraken?
Verifying your Kraken account can take from one to two days. Nonetheless, the verification time will depend on factors like the quality of the documents submitted and whether you comply with the requirements. Find more about how to verify your account in the Registration and Verification section.
How can I deposit money at Kraken?
You can deposit money at Kraken using a card, Google Pay, or Apple Pay. Likewise, you must deposit a minimum amount of $10.00 to ensure you meet the requirement. We talk about payment methods more in-depth in the Payment Methods for Deposits and Withdrawals section.
How long does it take to withdraw money at Kraken?
Withdrawing money from Kraken may be instantaneous if you withdraw crypto or a couple of days for FIAT withdrawals. Find more details about these transactions by reading the Payment Methods for Deposits and Withdrawals section.
How does Kraken work?
Kraken is a US-based cryptocurrency exchange offering margin trading, futures trading, and OTC trading, among other services. Products like staking, API, and NFTs are also available. Discover how the exchange works by checking out the Trading Types and Other Products sections.
I'm part of the crypto space since 2013 and I strongly believe in it. But I also know how it feels to get scammed and to realize financial losses. With my website Cryptoscam.info I want to support you to stay safe and to give you a platform to share your experiences.
