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What’s Kraken? Exploring Features, Fees, and Security in 2024

Curious about “What’s Kraken?” Kraken is one of the most trusted and well-established cryptocurrency exchanges in the market today. With a reputation for strong security, a broad selection of cryptocurrencies, and an intuitive platform, it appeals to both new and experienced traders. In this post, we’ll explore Kraken’s history, key features, and why it might be the right exchange for your trading needs.

What’s Kraken?: History and Background of Kraken

When asking, “What’s Kraken?”, it’s essential to understand the platform’s roots. Kraken was founded in 2011 by Jesse Powell, a well-known figure in the cryptocurrency space. Powell envisioned a secure, transparent, and reliable cryptocurrency exchange following the infamous security breaches in other exchanges during the early years of digital currency trading.

Kraken officially launched to the public in 2013 and quickly gained a reputation for its robust security features and regulatory compliance. One of its first major milestones was becoming one of the first exchanges to pass a cryptographically verifiable proof of reserves audit. This set a new standard in transparency and customer protection within the industry. For more on Kraken’s history and its role in shaping the crypto market, check out this detailed analysis: Kraken’s Journeyin the Crypto World.”

Kraken’s development accelerated after securing partnerships with banks in Germany and Japan, allowing it to offer fiat currency trading. Over the years, it has expanded its offerings beyond just trading, including services like staking, futures trading, and margin trading, becoming a global platform accessible to millions of users.

Today, Kraken is considered one of the most trusted and longest-running cryptocurrency exchanges in the world. With a strong focus on security, low fees, and extensive cryptocurrency options, Kraken has become a popular choice among both beginner and seasoned traders.

What’s Kraken?: Kraken’s Key Features

When people ask, “What’s Kraken?”, they often want to know what sets it apart from other cryptocurrency exchanges. Kraken offers a range of key features designed to cater to both beginners and advanced traders, making it a versatile platform for various types of users.

1. Wide Range of Supported Cryptocurrencies

Kraken supports over 150 cryptocurrencies, from well-known options like Bitcoin and Ethereum to smaller altcoins. This gives users a broad selection of assets to trade, hold, or stake on the platform.

2. Advanced Security Measures

Security is a top priority at Kraken. The platform uses a combination of cold storage for the majority of user funds, two-factor authentication (2FA), and encrypted data transmission to ensure user accounts are well-protected. Kraken is also known for its early adoption of proof of reserves audits, which verify that it holds the assets it claims to.

3. Low Fees

Kraken is competitive when it comes to fees. It offers tiered fee structures based on trading volume, making it more affordable for users who trade in larger amounts. For standard users, trading fees are typically between 0.16% and 0.26%, with even lower fees for high-volume traders.

4. Staking Options

Kraken provides a robust staking platform that allows users to earn rewards on a variety of cryptocurrencies, including Ethereum, Polkadot, and Cardano. Staking on Kraken is simple and accessible, with rewards paid out regularly.

5. Futures and Margin Trading

For advanced users, Kraken offers futures trading on various cryptocurrencies and margin trading with up to 5x leverage. This gives traders the ability to speculate on price movements and maximize their potential returns.

6. User-Friendly Interface

Kraken’s interface is designed to be easy to use, making it simple for beginners to start trading. At the same time, advanced features like Kraken Pro offer more tools and insights for experienced traders.

7. Mobile App

Kraken also has a mobile app, enabling users to trade, monitor prices, and manage their portfolios on the go. The app offers the same functionality as the desktop version, with a user-friendly design that’s easy to navigate.

8. Regulatory Compliance

Kraken is fully compliant with regulations in various jurisdictions, adding an extra layer of security and trust. It holds licenses in numerous countries, ensuring that it adheres to local laws regarding cryptocurrency trading and anti-money laundering (AML) practices.

What’s Kraken? Kraken’s Security Measures

When asking, “What’s Kraken?”, many users want to know if their funds and personal information are secure. Kraken has earned a strong reputation for its focus on security, implementing some of the most advanced safety measures in the cryptocurrency industry. Here’s a look at how Kraken keeps its users protected:

1. Cold Storage of Funds

Kraken stores the majority of user funds in cold storage, meaning that these assets are held offline and out of reach from hackers. Only a small percentage of assets are kept in online “hot wallets” to maintain liquidity, minimizing the risk of loss due to cyberattacks.

2. Two-Factor Authentication (2FA)

Kraken encourages all users to enable two-factor authentication (2FA) to add an extra layer of security to their accounts. This feature requires users to input a one-time code from an authentication app, in addition to their password, when logging in or performing sensitive account actions.

3. Encryption of Sensitive Data

Kraken ensures that sensitive information, including personal details and account credentials, is encrypted at both the system and data levels. This makes it extremely difficult for unauthorized parties to access or intercept user data.

4. Proof of Reserves Audit

Kraken was one of the first exchanges to undergo a cryptographically verifiable proof of reserves audit. This process verifies that Kraken holds the assets it claims and that user funds are backed 1:1, providing transparency and trust.

5. Global Security Team

Kraken has a dedicated global security team that continuously monitors for threats, responds to suspicious activity, and regularly updates the platform’s defenses to stay ahead of new attack methods.

6. Master Key and PGP/GPG Encryption

Users can add an additional “Master Key” to further secure their accounts. This key adds another layer of authentication to prevent unauthorized password resets or account changes. Kraken also uses PGP/GPG encryption for email communications, ensuring that sensitive account information shared via email remains protected.

7. Account Timeouts and Lockdowns

Kraken offers users the ability to set account timeouts and lock periods, adding another level of protection. These features temporarily disable account actions if suspicious behavior is detected, preventing unauthorized access.

To learn more about how Kraken ensures transparency and security through regular audits, visit this in-depth guide: How Kraken continues to lead the way in transparency and trust.

What’s Kraken? Available Cryptocurrencies on Kraken

One of the most common questions new users ask is, “What’s Kraken?” and specifically, “What cryptocurrencies are available on the platform?” Kraken offers a wide range of digital assets, making it a versatile exchange for both beginner and advanced traders.

What's Kraken? Available Cryptocurrencies on Kraken

1. Major Cryptocurrencies

Kraken supports trading for all the major cryptocurrencies that most people are familiar with, including:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Litecoin (LTC)

These major cryptocurrencies offer high liquidity and are favored by many users for both trading and long-term investment.

2. Altcoins

Beyond the big names, Kraken also supports a broad selection of altcoins, which are alternative cryptocurrencies that can offer significant growth potential. Some popular altcoins available on Kraken include:

  • Cardano (ADA)
  • Polkadot (DOT)
  • Chainlink (LINK)
  • Solana (SOL)

These altcoins cater to users looking to diversify their portfolios with emerging blockchain technologies.

3. Stablecoins

Kraken offers several stablecoins, which are digital currencies tied to a stable asset, usually the US dollar. These include:

  • Tether (USDT)
  • USD Coin (USDC)
  • Dai (DAI)

Stablecoins are commonly used by traders to protect against market volatility or as a gateway to entering and exiting other crypto positions.

4. DeFi Tokens

For those interested in decentralized finance (DeFi), Kraken provides access to various DeFi tokens that power decentralized platforms and applications. Some notable DeFi tokens on Kraken include:

  • Uniswap (UNI)
  • Aave (AAVE)
  • Synthetix (SNX)

These tokens are used for decentralized exchanges, lending platforms, and other blockchain-based financial services.

5. New and Upcoming Cryptocurrencies

Kraken regularly adds new and emerging cryptocurrencies to its platform, keeping its offerings fresh and relevant. This allows users to trade and invest in the latest projects before they become widely available on other platforms.

What’s Kraken? Kraken’s Fee Structure

When people ask, “What’s Kraken?”, they’re often curious about the cost of using the platform. Kraken offers a competitive and transparent fee structure, which varies depending on the type of transaction and the user’s trading volume. Here’s a breakdown of how Kraken’s fees work:

1. Trading Fees

Kraken employs a maker-taker fee model, which incentivizes liquidity on the platform. The fees depend on whether you are adding liquidity (maker) or removing it (taker):

  • Maker Fees: For users who add liquidity to the market by placing limit orders, the fee ranges from 0.00% to 0.16%. High-volume traders can enjoy zero maker fees at higher tiers.
  • Taker Fees: For those who take liquidity by executing market orders, the fees range from 0.10% to 0.26%, depending on the trading volume over the past 30 days.

2. Kraken Pro Fees

For more advanced traders using Kraken Pro, the fee structure is based on a tiered system. The more you trade, the lower the fees:

  • Tier 1 (up to $50,000 in 30-day trading volume): 0.16% maker fee and 0.26% taker fee.
  • Tier 2 and Above: Reduced fees based on trading volume, going as low as 0.00% for maker fees and 0.10% for taker fees for users with over $10,000,000 in trading volume.

3. Instant Buy Fees

For users who prefer to buy cryptocurrencies instantly using Kraken’s “Buy Crypto” feature, fees are slightly higher:

  • A 1.5% fee for most cryptocurrencies and 0.9% for stablecoins purchased with USD or another stablecoin.
  • Additional processing fees apply for credit/debit card purchases (3.75% + €0.25 per transaction) and for online banking (0.5%).

4. Deposit and Withdrawal Fees

Kraken offers a variety of deposit and withdrawal methods, and fees depend on the method and currency:

  • Cryptocurrency deposits are typically free, although certain networks may require a small fee.
  • Fiat currency deposits (USD, EUR, GBP, etc.) may incur fees depending on the bank and method. For example, ACH transfers in the U.S. are often free, while SWIFT transfers may have associated costs.
  • Withdrawal fees vary based on the method and currency. Cryptocurrency withdrawals incur a network fee, and fiat withdrawals depend on the banking method chosen.

5. Staking Fees

Kraken allows users to stake their cryptocurrency holdings to earn rewards. The platform does not charge a direct fee for staking, but it takes a small commission (usually around 15%) on the rewards earned by users. This makes staking a straightforward way to earn passive income, although the commission reduces the total reward.

6. Futures Trading Fees

Kraken offers futures trading with a separate fee structure, which is also based on the maker-taker model. Fees range from 0.02% to 0.05%, depending on the volume traded and whether you’re a maker or taker.

What’s Kraken? User Experience and Interface

When users first ask, “What’s Kraken?”, they often want to know how easy it is to navigate the platform and whether it offers a good user experience. Kraken is designed to cater to both beginners and experienced traders, and its interface reflects this balance. Here’s a breakdown of what to expect in terms of usability:

What's Kraken? User Experience and Interface.

1. Kraken’s Dashboard

Kraken’s main dashboard is clean and intuitive, making it simple for new users to start trading quickly. The layout focuses on ease of navigation, with clear options for buying, selling, and managing portfolios. The dashboard provides a real-time overview of market prices, your balances, and recent trades, giving users all the important information at a glance.

2. Kraken Pro for Advanced Users

For more experienced traders, Kraken offers Kraken Pro, which is an advanced version of the platform. Kraken Pro features in-depth charting tools, order types, and real-time data that cater to users who want more control over their trading strategies. Despite the advanced functionality, the interface remains user-friendly, ensuring that even complex tools are accessible.

3. Mobile App

Kraken’s mobile app offers the same features as the web version, allowing users to trade, monitor portfolios, and deposit/withdraw funds while on the go. The mobile app is designed to be user-friendly, with an easy-to-use interface that mimics the web platform. It’s available for both iOS and Android, ensuring accessibility for a wide range of users.

4. Customization Options

Kraken allows users to customize their experience to fit their needs. Users can adjust their dashboard layout, select different order types, and access a range of charting tools to suit their personal preferences. This customization makes Kraken more flexible for different types of traders, whether they prefer simplicity or more detailed insights.

5. Account Management

Managing your account on Kraken is straightforward. Users can easily deposit and withdraw funds, view transaction history, and set up security features like two-factor authentication from the account settings. The design is intuitive, reducing the learning curve for those new to cryptocurrency trading.

6. Customer Support Integration

Kraken’s platform includes easy access to customer support, with a help center that features FAQs, guides, and live chat. This integration ensures that users can get assistance quickly without navigating away from the trading interface.

What’s Kraken? Kraken’s Staking and Earning Options

When users ask, “What’s Kraken?” they often want to know how they can earn passive income through the platform. Kraken provides a variety of staking options that allow users to earn rewards on their crypto holdings. Here’s a breakdown of how Kraken’s staking and earning options work:

1. What Is Staking?

Staking is a process where users hold a specific cryptocurrency in their account to support the operations of a blockchain network. In return for staking their coins, users earn rewards. Kraken simplifies this process by allowing users to stake directly from their account without needing any technical expertise.

2. Cryptocurrencies Available for Staking

Kraken offers staking for several popular cryptocurrencies. Some of the most notable staking options include:

  • Ethereum 2.0 (ETH2)
  • Polkadot (DOT)
  • Tezos (XTZ)
  • Cardano (ADA)
  • Solana (SOL)

The variety of supported assets ensures that users with different portfolios can participate in staking.

3. On-Chain vs Off-Chain Staking

Kraken offers both on-chain and off-chain staking options:

  • On-Chain Staking: Involves directly participating in a blockchain network, which helps validate transactions. Users earn rewards from the blockchain protocol.
  • Off-Chain Staking: These rewards come from Kraken itself, as users earn interest on assets held with the platform, much like a traditional savings account.

Both staking methods are designed to be user-friendly and require no active participation beyond holding assets in your Kraken account.

4. How Rewards Are Distributed

Rewards from staking on Kraken are distributed regularly, with most assets offering payouts twice per week. For example, Ethereum 2.0 staking rewards are distributed every few days, while others, like Polkadot, may vary slightly. Kraken automatically compounds rewards, meaning you earn rewards on your previously earned rewards, maximizing your earnings over time.

5. Staking Fees and Commission

Kraken does not charge a direct fee for staking, but it does take a small commission on the rewards earned. The commission rate is generally around 15%, which is deducted from the staking rewards before they are credited to the user’s account. Despite this, Kraken’s staking rewards remain competitive compared to other platforms.

6. Earning with Kraken’s Parachain Auctions

In addition to staking, Kraken users can also participate in parachain auctions, particularly for Polkadot (DOT) and Kusama (KSM). By supporting these networks, users earn tokens from newly launched parachains, further expanding their earning opportunities.

What’s Kraken? Kraken Pro vs Kraken

If you’re wondering “What’s Kraken?” and how its different versions compare, it’s essential to examine Kraken Pro vs Kraken. While both offer powerful trading features, they are designed for different types of users, from beginners to advanced traders.

1. User Interface

  • Kraken: The standard Kraken platform is designed with simplicity in mind. Its user-friendly interface makes it ideal for beginners or casual traders. The dashboard focuses on easy navigation, offering basic buy and sell options with minimal complexity.
  • Kraken Pro: Kraken Pro, on the other hand, is tailored for more experienced traders who require advanced tools. It features a detailed interface with customizable charting options, real-time order books, and advanced order types. Despite the extra features, Kraken Pro still maintains a clean, organized layout, so it doesn’t feel overwhelming.

2. Trading Fees

  • Kraken: Trading fees on Kraken’s basic platform are slightly higher than on Kraken Pro. For users buying or selling cryptocurrencies instantly, fees are around 1.5% for most transactions, which is convenient for quick trades but more expensive for frequent trading.
  • Kraken Pro: Kraken Pro uses a tiered fee structure based on your 30-day trading volume. The more you trade, the lower your fees. For example, maker fees start at 0.16% and go down to 0.00% for high-volume traders, while taker fees range from 0.26% down to 0.10%. This makes Kraken Pro a better choice for active traders who want to minimize costs.

3. Trading Tools and Features

  • Kraken: The regular Kraken platform offers basic trading functionality, allowing users to buy, sell, and convert cryptocurrencies easily. It also supports staking and provides an overview of your portfolio.
  • Kraken Pro: Kraken Pro provides advanced trading tools like margin trading with up to 5x leverage, a detailed order book, multiple chart types, and over 13 order types including stop-loss, take-profit, and limit orders. These tools allow traders to develop more complex strategies and react quickly to market movements.

4. Mobile App

  • Kraken: The standard Kraken mobile app mirrors the simplicity of its web platform, allowing users to trade, deposit, and withdraw on the go with ease. It’s great for users who prefer a streamlined experience.
  • Kraken Pro: Kraken Pro also has a mobile app, but it offers more detailed market data, real-time charts, and customizable trading features. The Kraken Pro app is best for users who need advanced tools on mobile without sacrificing functionality.

5. Who Should Use Kraken?

Kraken’s standard platform is perfect for:

  • Beginners: If you’re new to cryptocurrency, Kraken offers an easy way to start buying and selling digital assets.
  • Casual Traders: Those who trade occasionally and prefer a simple, hassle-free interface will find Kraken’s platform more than sufficient.

6. Who Should Use Kraken Pro?

Kraken Pro is ideal for:

  • Advanced Traders: Users who require detailed charting tools, advanced order types, and lower fees will benefit from Kraken Pro’s robust feature set.
  • High-Volume Traders: If you’re trading large amounts, Kraken Pro’s tiered fee structure will save you money over time.

What’s Kraken? Customer Support and Service

A key factor in understanding “What’s Kraken?” is looking at the quality of its customer support and service. Kraken offers a range of support options to ensure that users can get help whenever they need it, from live chat to a comprehensive help center.

1. 24/7 Live Chat Support

Kraken offers 24/7 live chat support, making it easy for users to get real-time assistance, no matter where they are. This feature is especially useful for urgent issues, like troubleshooting account access or clarifying trading errors. Live chat support is available directly through Kraken’s website and mobile app, ensuring that help is always at hand.

What's Kraken? Customer Support and Service

2. Email Support

For less urgent inquiries, Kraken provides email support where users can submit tickets regarding technical issues, account problems, or general questions. Response times are generally quick, though live chat is recommended for time-sensitive matters. Email support is ideal for users who prefer detailed responses and need to submit screenshots or other documentation to resolve their issues.

3. Comprehensive Help Center

Kraken’s Help Center is an extensive knowledge base that covers almost every topic related to using the platform. It includes FAQs, step-by-step guides, and articles on topics like account setup, security features, and how to trade cryptocurrencies. Users can quickly search the Help Center for answers to common questions without needing to contact support directly.

4. Social Media and Community Support

Kraken maintains an active presence on social media platforms like Twitter and Reddit, where users can ask questions or keep up with the latest updates and announcements. While these platforms aren’t a direct support channel, they can provide quick tips or direct users to official resources.

5. Multilingual Support

Kraken offers support in multiple languages, making it accessible to a global user base. This is especially important for international users who may face language barriers when seeking assistance in English-only platforms. Having multilingual support helps Kraken better serve its diverse range of customers.

6. Dedicated Account Managers

For high-volume traders and institutional clients, Kraken offers dedicated account managers who provide personalized support. These managers help with everything from account setup to advanced trading strategies, ensuring that Kraken’s top-tier users receive specialized attention.

7. User Feedback and Improvements

Kraken actively listens to user feedback and continuously works on improving its customer service. The platform regularly updates its help center content and enhances customer support features based on common user requests. This approach shows Kraken’s commitment to delivering a positive user experience.

What’s Kraken? Regulatory Compliance and Licensing

When discussing “What’s Kraken?”, one of the most important aspects is understanding the platform’s regulatory compliance and licensing. Kraken has built its reputation as a trusted cryptocurrency exchange by adhering to strict global regulations and maintaining the necessary licenses to operate legally.

1. Global Regulatory Compliance

Kraken operates in numerous countries around the world and complies with the financial regulations in each of those jurisdictions. The platform ensures that its operations meet the standards set by global regulatory authorities, including:

  • KYC (Know Your Customer): Kraken requires users to verify their identities before they can trade, which helps prevent fraud and money laundering. This KYC process is part of Kraken’s broader commitment to legal compliance.
  • AML (Anti-Money Laundering): Kraken follows strict anti-money laundering policies, reporting suspicious activities and ensuring that its users follow regulations designed to prevent illegal activities on the platform.

2. Licensing in Key Regions

Kraken holds several important licenses that allow it to legally operate in different regions. These licenses demonstrate Kraken’s commitment to being a fully compliant cryptocurrency exchange:

  • United States: Kraken is registered as a Money Services Business (MSB) with the U.S. Financial Crimes Enforcement Network (FinCEN), allowing it to operate legally across most states.
  • European Union: Kraken complies with regulations in the European Union and holds appropriate licenses to operate in countries within the EU, adhering to the General Data Protection Regulation (GDPR) to ensure privacy and data protection.
  • Japan: Kraken is licensed by Japan’s Financial Services Agency (FSA), one of the most stringent regulatory bodies in the cryptocurrency world. This license allows Kraken to offer its services to Japanese residents while adhering to strict local regulations.

3. Security Standards

As part of its regulatory compliance, Kraken implements stringent security protocols to safeguard user data and funds. This includes:

  • Proof of Reserves Audits: Kraken was one of the first exchanges to conduct cryptographically verifiable proof of reserves audits. This ensures that Kraken holds user assets in full and is a key part of its transparency efforts.
  • Data Privacy Compliance: Kraken complies with international data privacy standards, such as the GDPR in Europe, ensuring that user data is stored and processed securely and transparently.

4. Working with Regulatory Bodies

Kraken actively engages with regulators and lawmakers to shape the future of cryptocurrency regulation. The platform has a history of advocating for clearer, fairer regulations that protect consumers without stifling innovation. Kraken’s proactive approach has earned it respect within the regulatory community.

5. Transparency and User Trust

Kraken’s strong emphasis on regulatory compliance builds trust with its users. By maintaining high standards and working within legal frameworks, Kraken provides a safe and reliable environment for cryptocurrency trading. The platform regularly updates users on any changes to regulations that might impact their experience.

Final Thoughts on What’s Kraken?

In conclusion, Kraken has proven itself as a reliable and robust cryptocurrency exchange, consistently delivering value to both novice and experienced traders. Whether you’re interested in its vast selection of cryptocurrencies, advanced security measures, or low-fee trading options, Kraken provides an all-in-one platform tailored to a wide range of user needs.

Kraken’s dedication to regulatory compliance and licensing across different regions further strengthens its reputation as a trusted and secure exchange. Additionally, with features like Kraken Pro for advanced trading, staking options for passive earning, and 24/7 customer support, Kraken continues to set a high standard in the cryptocurrency space.

If you’ve been wondering, “What’s Kraken?” — it’s a platform that not only prioritizes security and transparency but also offers flexibility and innovation for those looking to navigate the ever-growing world of cryptocurrency. From beginners taking their first steps in crypto trading to seasoned traders seeking advanced tools, Kraken remains a top choice.