Kraken: Who Is It For?
Kraken is a well-equipped crypto exchange platform that is suitable for both new and seasoned cryptocurrency investors. With its wide selection of tradable cryptos, reduced trading costs, and top-tier security, Kraken is a good alternative to those who want to explore the cryptocurrency world. However, like with Coinbase, it is not advised to stay in beginner mode for too long that you risk losing substantial amounts of money to fees while training.
However, if you are in the search for a cheaper site to make fast crypto purchases Binance.US might be more suitable for you. Compared to Kraken’s immediate purchasing interface that takes around 2 percent, Binance.US is a lot cheaper with a rate of 0.5 percent. Nonetheless, this method of buying and selling is not advised given its high costs.
Investors who have been in the market for quite some time might be interested in what Kraken is offering. A wide range of coins and margin offerings. Especially the latter one had been the differentiating feature of this platform. However, in the US this feature has been restricted for investors with extremely substantial sums of assets, though it remains available to any investor that lives outside of America.
Frankly, even basic trading on any cryptocurrency exchange platform should be approached with caution by all investors. Don’t make investments if losing them will affect you greatly.
What kind of features is Kraken offering?
In addition to being one of the original bitcoin trading platforms, some of Kraken’s most notable aspects are listed below.
When dealing with online assets there is always the risk of losing your funds due to security breaches, hackings, etc. Cryptocurrencies are no different. In the past, they have shown that they are especially vulnerable to hackers. Even though many of the breached Exchanges have compensated their clients for their losses, no one wants to leave their assets vulnerable, on a platform that has poor security measures.
Bearing in mind that Kraken has not had a major breach in its system for its almost 11-year history, it might be the most secure crypto exchange out there. Scoring first on CER, the platform has shown that it takes cybersecurity seriously.
Kraken holds more than 90% of its deposits offline in locations throughout the globe and has server security cages that are monitored and guarded all day every day. Kraken also regularly tests its own security measures in case there is a vulnerability in the system.
Practicality of Kraken
Kraken has four types of users, the highest being Pro, which takes a relatively long amount of time because it requires physical documents and Kraken reviews the documents manually. But if you are a newbie investor it is possible to get verified in minutes.
After your account has been confirmed you may purchase cryptocurrencies using fiat currencies such as EUR, AUD, etc. While most of the biggest crypto sites now permit this, there are those that do not. On these kinds of platforms, investors have to acquire bitcoin somewhere else to be able to make transactions.
Keep in mind that Kraken employs third-party organizations to finalize these fiat fund transfers and all of these organizations have different costs of executing transactions, and this could get confusing if you are not an experienced investor. The key point when exchanging is being diligent and meticulous.
Kraken’s presumption of user knowledge may make new investors feel a bit confused, but it does offer excellent instructional information, but when it comes to actual investing, you’re basically on your own.
Kraken’s app for mobile devices has made its debut in the United States except for New York and Washington, though you can use Instant Buy and trade with other methods, the app currently doesn’t support traditional payment methods such as debit and credit card payments.
Features Concerning Experienced Traders
Kraken also has some features for investors that possess substantial amounts of funds in their accounts. With margin trading, investors are able to purchase cryptocurrencies using the investments they already have as collateral. Margin trading is a high-risk operation and should be approached with caution. This is not a common method of trading in the United States as the federal government is not sure how this feature can affect crypto.
Margin trading entails some additional expenses. Users of Kraken can expect extra fees such as opening margin and rollover fees when using this kind of trading. The fee that Kraken charges investors ranges from 0.01 percent to 0.02 percent.
In the meantime, rollover margin fees are charged for preserving your place four hours after you open it. After that, they are reapplied once every four hours. These fees range from 0.01 percent to 0.02 percent, contingent on the base currency.
Kraken, like most other cryptocurrency exchanges, mainly employs a maker and taker fee model. Basically, this means that if you add liquidity to the market rather than remove it, you will be charged a lower fee.
The platform does not charge a fee until your purchase is completed, or until it is aligned with the order of another investor. Your fee will range from 0.0 percent to 0.26 percent depending on whether you are a maker or a taker (something that you won’t know until the purchase is completed). Kraken determines the fees in three ways; whether you’re a maker or a taker, the currency you’re trying to trade, and your trading history. More trading equals lower fees on Kraken. The more volume you bring to the platform, the more it will reward you.
Though the Kraken site does not state how much, there may be a small amount of trading fee if you’re utilizing this technique to make small-value investments.
Aside from these, there are various fees for using the Instant Buy option, which may appeal to newbie investors who are unfamiliar with the market. Though it allows you to purchase crypto instantly, it is better to learn how to use Kraken to reduce these additional fees.
Available Cryptocurrencies on Kraken
Some of the cryptocurrencies on the platform are listed below.
- 0x (ZRX)
- 1inch (1INCH)
- Aave (AAVE)
- Algorand (ALGO)
- Ankr (ANKR)
- Aragon (ANT)
- Augur (REP)
- Balancer (BAL)
- Bancor (BNT)
- Band Protocol (BAND)
- Chainlink (LINK)
- Chiliz (CHZ)
- Compound (COMP)
- Cosmos (ATOM)
- Covalent (CQT)
- Curve (CRV)
- Dogecoin (DOGE)
- dYdX (DYDX)
- Enjin Coin (ENJ)
- Ethereum (“Ether”) (ETH)
- Ethereum Classic (ETC)
- Flow (FLOW)
- Karura (KAR)
- Kava (KAVA)
- Ocean (OCEAN)
- Polkadot (DOT)
- Polygon (MATIC)
- Qtum (QTUM)
- Rarible (RARI)
- Raydium (RAY)
- REN Protocol (REN)
- Ripple (XRP)
- Serum (SRM)
- Shiden (SDN)
- Solana (SOL)
- Stellar Lumens (XLM)
- Sushi (SUSHI)
- Synthetix (SNX)
- tBTC (TBTC)
- Tezos (XTZ)
- The Graph (GRT)
- The Sandbox (SAND)
- Tron (TRX)
- Uniswap (UNI)
- Wrapped Bitcoin (WBTC)
- Yearn Finance (YFI)
- Zcash (ZEC)
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