Kraken review 2024: Features, pros and cons

Our Verdict

Our Verdict

Kraken, established shortly after Bitcoin (BTC), is among the longest-standing cryptocurrency exchanges. Although age doesn't always guarantee quality, Kraken provides a highly secure platform offering over 200 coins for trading in the U.S. Moreover, it boasts competitive pricing compared to the industry average.

Pros

• A broad array of educational resources is offered
• Various customer service options are provided
• Advanced functionalities such as margin trading are available
• Various customer service options are provided

Cons

• Not accessible in every state within the United States
• Staking services are no longer accessible to customers based in the U.S
• Kraken solely supports a limited number of fiat currencies

4.7

Our ratings take into account a product's cost, features, ease of use, customer service and other category-specific attributes. All ratings are determined solely by our editorial team.

Spot trading volume

$772,303

Cryptocurrency trading platform

Kraken serves primarily as a cryptocurrency trading platform

Cryptocurrency exchange services

Kraken's exchange services provide liquidity

Who benefits from using Kraken?

Kraken serves customers globally and is accessible to most residents in the United States, except for those in New York and Washington states. It's important to note that Kraken supports only a limited number of fiat currencies, which could result in additional conversion fees for users from certain countries. However, since U.S. dollars are accepted, residents in the U.S. don't face this concern.

What are the positive aspects of choosing Kraken?

Kraken is a solid choice for both novice and seasoned investors due to its robust security measures, competitive trading fees, and diverse selection of cryptocurrencies. While beginners may find the platform user-friendly, advanced traders can leverage the Kraken Pro platform for lower fees and access to a broader range of trading markets. Additionally, margin trading capabilities are available, although limited to users with substantial account balances in the U.S.

Kraken’s disadvantages

Kraken's introductory trading service, Instant Buy, imposes relatively high trading fees, particularly for novice crypto investors who may not be fully aware of the fee structure. With a charge of 1.5% for all trading pairs and 0.9% for stablecoin trades, users should exercise caution when engaging in basic crypto trading on Kraken or similar platforms.

Kraken features

Kraken offers different fee structures for its Instant Buy option, which may be more appealing to beginners unfamiliar with maker/taker models.

While Instant Buy allows for quick crypto purchases, its fees are significantly higher compared to the Kraken Pro trading platform. Users are encouraged to learn how to use the trading platform to minimize costs.

For Instant Buy, Kraken charges a fee of 0.9% for stablecoins and 1.5% for other cryptocurrencies. Additionally, users face a 0.5% processing fee if they use an online bank account for purchases, and different fees apply for credit or debit card transactions.

On the other hand, Kraken Pro offers substantially lower fees. It imposes a 0.16% maker fee and a 0.26% taker fee for trades of $50,000 or less, based on activity within the last 30 days.

Here's a breakdown of the pricing tiers for Kraken Pro:

Security

Over time, cryptocurrencies have faced significant vulnerability to hacks, resulting in substantial losses. While many hacked exchanges have reimbursed clients for lost funds, it's crucial to avoid crypto platforms with inadequate cybersecurity measures that could expose your assets to risk.

Kraken demonstrates a strong commitment to security, earning the second rank on the crypto exchange security review site CER. Notably, Kraken has not experienced any major hacking incidents. However, there have been user complaints on online forums regarding individual accounts being compromised.

Kraken prioritizes secure coin storage, with 95% of deposits stored offline in cold storage units worldwide. Additionally, the platform ensures platform security by housing its servers in secure facilities under 24/7 surveillance by armed guards and video monitoring.

Beyond physical security measures, Kraken employs encryption protocols to safeguard sensitive user information at both the system and data levels. Regular vulnerability testing is conducted to ensure system integrity. Kraken's security efforts were recently recognized with the CSO50 Award.

Opening a Kraken account

Using Kraken's Instant Buy platform may not be the most cost-effective method to enter the crypto market, but it's accessible to newcomers without any significant barriers. Verification typically occurs within minutes.

On the other hand, obtaining authorization for Kraken Pro can be a lengthier process, often taking several days due to manual document review requirements.

Once verified, users can deposit fiat currency, like U.S. dollars, into their accounts and commence purchasing cryptocurrencies. Kraken accepts credit card and debit card payments for funding.

New investors might find Kraken's assumption of customer knowledge somewhat overwhelming, although the platform does provide educational resources. However, when it comes to actual investing, users are mostly left to navigate on their own.

It's important to note that while Kraken operates in the U.S., it does have geographic limitations. Residents of New York and Washington cannot access the platform.

Cryptocurrencies available on Kraken

Kraken provides access to over 200 cryptocurrencies in the United States. Below are some of the prominent cryptocurrencies available for trading on the Kraken platform:

How Kraken can enhance its services?

Increase fiat currency options

Kraken presently supports only eight fiat currencies, including major ones like the U.S. dollar, British pound, and euros. However, this limited support may inconvenience users from populous countries like India, who might need to convert their currency to a supported one or cryptocurrency, incurring additional fees.

Reduce instant buy charges

While Instant Buy offers convenient access to trading, its high fees can erode users' funds. With fees of 0.9% for stablecoins and a flat 1.5% fee for other cryptocurrencies, these costs can accumulate quickly. New users might benefit from making only a few trades before transitioning to Kraken Pro, where maker/taker fees are clearer.

Methodology

To evaluate the rankings of crypto exchanges, we thoroughly examined the features and offerings of nearly 25 platforms providing crypto trading services, including exchanges, trading apps, and brokerage platforms. To determine the best overall crypto exchanges and those suitable for beginners, we scrutinized the features and options of these platforms. Our editorial team established a standardized methodology, analyzing 10 essential benchmark features and variables to evaluate the quality of each platform.

Basic trading features were one of the factors considered in both overall and beginner rankings. Additionally, other factors such as platform availability, customer service, educational resources, security and storage, staking, and rewards were taken into account.

For each ranking, the weighted values of these key factors were calculated to assign an overall rank to each brokerage or exchange. Notably, margin trading, platform lending, and advanced trading were not factors considered when selecting the best crypto exchanges for beginners.