Kraken is a cryptocurrency platform that offers two trading platforms. Its major asset is the security of its users’ accounts.
Kraken welcomes traders as well beginners than seasoned traders. It offers different services available to its users. This platform can be considered as one of the challengers in the field of cryptocurrency, facing Binance or Gemini. However, many of us are still unaware of this. This is precisely why we thought it useful to make a complete file in order to discover everything on the platform. Thus, we will take an overview of Kraken by offering to see its two trading platforms, the different costs incurred by the operations. We will end the review by offering a simple account opening guide and an investment guide on the platform.
What is Kraken?
When we say kraken, we think directly of the fearsome mythological beast. But here, we dive into a completely different environment. It’s about a trading platform more than a hundred cryptocurrencies. Indeed, Kraken allows its users to buy, as well as sell cryptos such as Bitcoin, Ethereum and Dogecoin. Kraken also offers margin accounts as well as futures contracts.
The platform has existed in several countries around the world since 2011, the year it was founded in San Francisco. The platform welcomes both individual and institutional traders. It is also suitable for novice traders, via the central Kraken platform. As for the experts, there are Kraken-Pro which offers advanced features.
Apart from Bitcoin and the other most used cryptocurrencies, Kraken also has other cryptos such as Cardano, Polygon, Stellar Lumens or Sushi. However, a few stablecoins including USD Coin, Tether and Dai are also supported by the platform. You can convert currencies. However, not all currencies are available in all countries where Kraken is available.
Kraken’s two trading platforms
Kraken has two trading platforms. While the central platform is suitable for beginners, Kraken Pro is specially aimed at experts, with reduced fees.
Kraken, for beginners
Kraken Core Platform is Best Suited for Traders beginners. This makes it easy to buy crypto through a linked bank account. The same is true for sales and currency conversions. Kraken provides its users with a simple and quick form for this.
When one has a bank account linked to the Kraken account, thesupply of the latter beforehand is no longer necessary. That’s the whole advantage. Additionally, depositing cryptocurrency for staking can earn money, up to 23% interest, depending on the currency.
As for Kraken Pro, this platform is accessible via a browser as well as a smartphone. This can be confusing for beginners. But it is also easy to use, once you have acquired the principles of its operation. Indeed, Kraken Pro offers reduced fees with an advanced interface.
The platform presents the information on the assets in a more detailed. This also includes active charts and an overview of open orders. This advanced form is thus more profitable and easier to use, provided you have mastered its details.
How to open an account on Kraken?
Opening an account on Kraken is easy like on most trading platforms. You just need to have all the information on hand and fill in the necessary boxes. To do this, it is sufficient to provide contact information such as name, address, telephone number, etc. In general, knowledge requirements or KYC are required.
others Additional Information are to be completed in order to be able to verify the account, but also to access the trading features of the platform. These include, in particular, the copy of an identity document with a photo holding the original of the document. The email address is also needed to verify that the newly created account is actually active. Once everything is verified, the user can use the account as they wish, without forgetting to to secure.
How to invest on the platform?
Investing on Kraken is of several types. Currently, there are precisely 4: crypto assets, futures trading, margin trading and over-the-counter or OTC trading. Apart from that, Kraken also has other orders.
Aside from cryptocurrencies, Kraken offers its customers the ability to transact with fiat currencies. These are different from crypto currencies in that they are governed by regulations. As physical assets, fiat currencies are subject to the control of a central financial institution and are authorized by governments.
Till now, Kraken supports 7 fiat currencies including US Dollar,euro and the Japanese yen among others. The platform charges deposit fees, the value of which depends on the currency deposited in the user’s account.
In addition, Kraken offers futures contracts. These come with a web platform as well as 2 mobile apps that are aimed at futures traders.
Such contracts also allow borrowing up to 50 times each client’s balance for trading. In contrast, margin trading options only offer borrowing up to 5 times the trader’s account balance. The latter can make investments in a maximum of 16 assets.
Does Kraken offer security to your account?
Kraken offers some security provisions that must be followed carefully if you want to have a protected account. One of the best practices for securing an account is thetwo-factor authentication. It is also convenient and safe for connection, as well as operations and transactions.
This authentication system prevents anyone from accessing your account without your express consent. This agreement materializes by sending a random code to your device.
There have been reports that some Kraken users have been hacked. They thus lost everything on their account without being able to proceed with any recovery. Like all other accounts, the one created on Kraken can suffer from these frauds. Only, with two-factor authentication, it is more than certain to keep your account away from cybercriminals.
Furthermore, it is also possible to opt for the additional functionality that allows lock account of any form of change, piracy in this case.
About fees and commissions
We have already seen previously that the two platforms of Kraken offer different fees. The one intended for the pros is much more profitable. Costs spread constitute a common point for the two platforms. However, each of the two has specificities that we will see below:
Fees on Kraken
The central platform charges an instant purchase fee of 1.5% for cryptocurrencies in general. The percentage is lower for stablecoins that use US dollars or other stablecoins. The costs in this case amount to 0.9% of the value of the transaction.
There are additional fees, called extra charge. The value of these is calculated based on how the user finances the purchase. The price variation is from 0.5% to 3.75% if the financing is done via a bank account. 25 euro cents are charged in addition if he used a credit card, debit card or digital wallet.
Fees on Kraken Pro
Compared to the main platform, this one offers much lower fees. Indeed, it is based on total trading volume during the last 30 days of each user. Transaction fees are also subject to catch fee which is 0.26% as well as a maker fee of 0.16%. Note that the fees are inversely proportional to the trading volume.
Taker fees are established based on orders corresponding to a pending order of another user on the market. Which implies higher fees, however the difference is minimal.
Advantages and disadvantages of the platform
Like any other cryptocurrency platform, Kraken has its advantages, but it is not an industry panacea. First of all, it now has more than 120 coins including the most popular cryptos like Bitcoin, Cardano and Ethereum.
Also, with its two separate platforms, all traders can join its community, whether beginner, experienced or hardcore. Just choose the one that is more appropriate at the level of each user. Another advantage at Kraken is that the platform allowsexchange liquidity. It is an active exchange on which one can buy and sell at market rates.
However, a number of weaknesses handicap this platform. First and foremost is the higher fees it charges when using the main platform. Which is rather unfavorable for novice traders. In addition, there are losses due to piracy. Despite all this, Kraken is a cryptocurrency platform that gathers more and more traders.