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What is Kraken Exchange | How to Register, Buy and Sell on Kraken
In this post, you'll learn What is Kraken Exchange, How to Register, Buy and Sell on Kraken Exchange?
1. What is Kraken Exchange?
Kraken is an all-around decent exchange, as it’s accessible to beginners but can scale to more advanced investors/traders, and you can trade more than 65 cryptocurrencies. The exchange says it prioritizes security and maintains dedicated protection for your investments.
Kraken claims to be one of the first exchanges to offer spot trading on margin and other advanced products. Unlike many other exchanges, it does not offer a wallet option. The platform is unavailable in New York and Washington states, and other areas may have restrictions. It was founded in 2011 and launched in 2013.
This cryptocurrency exchange is a good fit for: Experienced investors who will make the most of margin trading and other advanced features.
Pros
- Security
- Range of cryptocurrencies
- Advanced trading features
- Reasonable fees
Cons
- Not for beginners
- Limited starter account
- Slow account funding
- Questionable customer service
- No tax support
Top perks
Kraken is a reputable cryptocurrency exchange that's been around for almost a decade. It's a solid option with a lot going for it.
- Security
Founded in 2011 and launched in 2013, Kraken is one of the largest and oldest exchanges in the world. And it's had its eyes on security from day one. The fact that it hasn't been hacked in eight years speaks for itself.
The U.S.-based exchange has consistently led the industry in security. It boasts both physical security and financial stability. Plus, it pushes users towards healthy security habits.
- Range of cryptocurrencies
Kraken has almost 60 coins and deals with seven fiat currencies. That's not the biggest selection of digital currency you'll find, but it's comparable to some of the best cryptocurrency exchanges. And it's a step up from many brokers that only offer a handful of well-known coins. Kraken also boasts a high liquidity, meaning it is easier to buy and sell at a fair price.
Kraken works using currency pairs and not all of its currencies are exchangeable for the others. What is a currency pair? Imagine you're taking a vacation in Germany and you need to exchange your dollars for euros. That's a currency pair. If you're using dollars to buy Bitcoin or Bitcoin to buy Ethereum, you're always swapping one currency for another.
Advanced trading features
Kraken is one of the few exchanges that offers margin, stop orders, and crypto short sales. It also has something called a dark pool where high-volume investors can trade anonymously. Kraken lets you leverage a currency pair by up to 5x and allows eligible pro clients to access up to $500,000 in margin. Before you get too excited, margin trading can be risky. You're essentially borrowing money to invest.
Let's say you invest $100 in Ethereum. You decide to use that 5x margin. If Ethereum goes up in value, you'll multiply your gains by 5. But if Ethereum loses value, your losses will also be multiplied. Cryptocurrencies are already a risky investment, and using margin exponentially increases that risk.
Reasonable fees
Kraken's fees are on par with several exchanges. It isn't the cheapest, but its maker-taker fees are lower than, say, Coinbase. Trading fees differ from exchange to exchange and often depend on how much you trade each month. Look at how much it will cost you to deposit and withdraw money as well as what you'll pay for each transaction.
| Minimum trade | 0.0001 BTC |
| Trading and transaction fees | 0.9% to 2% |
| Number of cryptocurrencies | 92 |
| Crypto-to-crypto trading pairs | 130 |
| Website transparency | On Kraken’s website, you can easily find important information, including investment minimums, supported assets and how to close an account. |
| Can use your own digital wallet? | Yes |
| Mobile app | Kraken's apps for iOS and Android have an average rating of 4.2 stars. |
| Customer service | Kraken has live phone support from 6 a.m. to 6 p.m. Eastern time, and 24-hour chat support. |
2. How Kraken works
Kraken is pure crypto exchange. It doesn't try to offer savings accounts or loans. And it doesn't even have a wallet.
It's a centralized exchange that you can access online. Its mobile app is not yet available in the U.S. As we've discussed, qualified users can access margin, stop orders, and crypto short sales on Kraken. It also lets you stake coins to earn interest if you leave that currency untouched in your account.
To set up a basic account, you'll need to provide information, such as your name, date of birth, and address. You need to be over 18 and live in a supported area (anywhere in the U.S. apart from Washington and New York).
It has three levels of verification:
- Starter: This basic account lets you deposit, exchange, and withdraw cryptocurrencies, but you can't do much more. You can't withdraw or deposit fiat currencies, so you'll need to upgrade if you want to move dollars into crypto.
- Intermediate: To upgrade to an Intermediate or Pro account, you'll need to provide a valid photo ID (such as a passport or driver's license), proof of residence (such as a utility bill), and your Social Security number or ITIN. Once you've upgraded, you'll be able to deposit fiat and trade on Kraken futures.
- Pro: The Pro level unlocks higher account limits and also gives access to the anonymous "dark" trading pool and over-the-counter desk. The desk facilitates large orders without causing price disruption on the public exchange.
To fund your Kraken account, you'll need to make a transfer -- see the fee structure below. You cannot use your debit or credit card to buy cryptocurrencies with Kraken in the U.S. Funding can take up to five days to process.
Is your cryptocurrency safe with Kraken?
Security is one of Kraken's founding principles. It hasn't been hacked since it launched in 2013 and is widely recognized as one of the most secure cryptocurrency exchanges. That said, cryptocurrency security is a hotly debated topic and any exchange can be susceptible to hacks. Here's more on Kraken's approach to security.
- Coin storage: Kraken says 95% of its crypto assets are kept in cold storage (essentially offline and protected against hacks). It also boasts full reserves and has undertaken an external proof of reserves audit.
- Platform and information security: Its physical servers are kept under 24/7 surveillance. Sensitive information is encrypted at both a system and data level.
- Security testing: Ongoing penetration tests protect Kraken's systems, both via its internal team and bug bounty program. The bug bounty programs incentivize ethical hackers to find and report bugs.
- User security features and education: Kraken's website points out that, "No amount of security on our end can make up for inadequate personal security." It has two-factor authentication, secure emails, and security locks. More than that, it supplements its security by teaching users how to protect their accounts.
Other security features:
- Two-factor authentication (Google Authenticator and Yubikey) to keep your account secure
- No phone/SMS account recovery, so it’s all in your hands
- Email confirmations for withdrawals with self-serve account lock
- Configurable account timeout for added protection
- Customizable API key permissions with range boundaries
- Global settings time lock for when you’re away
- Pretty Good Privacy (PGP) signed and encrypted email for secure communication
- Secure Sockets Layer (SSL) encryption to protect you when browsing Kraken
- Constant, real-time monitoring for suspicious activity
- 24/7 live chat and email support for urgent concerns
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3. Kraken Fees
Like many exchanges, Kraken uses a maker-taker fee structure. It gives reductions to those with large trading volumes.
Fees for cryptocurrency deposits and withdrawals depend on the currency. For example, you'd pay 0.00015 BTC to withdraw Bitcoin with a minimum of 0.00050 BTC.
Funding fees
| TRANSACTION | MINIMUM | FEE |
|---|---|---|
| FedWire (MVB Bank / Signature Bank) | $1 | Free |
| FedWire(Synapse) | $20 | $5 |
| FedWire (Silvergate) | $100 | $10 |
| FedWire(Etana Custody) | $150 | Free |
| Instant buy | -- | 0.9% fee for stablecoins* and FX pairs. 1.5% fee for any other crypto |
| Cryptocurrency deposit/withdrawal | Depends on currency | Depends on currency |
Maker-taker fees
| 30-DAY VOLUME | MAKER | TAKER |
|---|---|---|
| $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+ | 0.00% | 0.10% |
Stablecoin and FX pairs
Fees are slightly higher to trade Stablecoin and FX pairs:
| 30-DAY VOLUME | MAKER | TAKER |
|---|---|---|
| $0 - $50,000 | 0.20% | 0.20% |
| $50,001 - $100,000 | 0.16% | 0.16% |
| $100,001 - $250,000 | 0.12% | 0.12% |
| $250,001 - $500,000 | 0.08% | 0.08% |
| $500,001 - $1,000,000 | 0.04% | 0.04% |
| $1,000,000+ | 0.00% | 0.00% |
4. How to Use Kraken Exchange
Below, you will find a step-by-step guide (with screenshots) on how to buy bitcoin using US dollars via wire transfer.
4.1. Sign up for an Account
First, you need to go to www.kraken.com, click on “Create Account” and register by providing a user name, email address and a password.
Click on the verification email that is sent to you as part of the registration process, and you are ready to sign onto the trading platform.
4.2. Get Verified
Once you have signed up, you will need to undergo account verification to adhere to the platform’s KYC requirements. To receive “Starter Level” verification status, which suffices to buy several thousand dollars worth of cryptocurrency, you need to provide your name, email address, physical address, and phone number.
The “Starter” verification process is automated and usually takes less than one hour.
Once you are verified to trade, you can access the overview section of your trading dashboard to click on “Buy” to make your first cryptocurrency purchase. However, before you can buy any digital asset, you will need to fund your account.
4.3. Deposit US Dollars via Etana Custody
Currently, Kraken enables traders and investors to fund their accounts using 29 cryptocurrencies and five fiat currencies, including USD, CAD, EUR, GBP, and JPY.
For the purpose of this guide, we will purchase bitcoin (BTC) with US dollars via wire transfer to the exchange’s fiat currency funding partner, Etana Custody.
To be able to send funds in fiat currency to your Kraken trading account, you will first need to set up a “venture” (i.e., an account) with Etana Custody. This will enable you to transfer funds between Etana and Kraken instantaneously.
To register for Etana, you need to click on “Deposit” on the US dollar row in the funding section on Kraken, and then click “Take Me There” on the Etana Custody page on your dashboard. That will take you to the Etana registration page, where you can sign up for an account and go through the platform’s mandatory KYC process.
Once you have set up an Etana “Venture” and have deposited US dollars in it, you can transfer it to your Kraken trading account. Then, you will be ready to make your first trade on Kraken.
4. Buy Bitcoin
Now, all you need to do is return to the trading dashboard and click the “Buy” button under the “Buy Cryptocurrency” section.
Then, it will ask you the amount of BTC you want to buy using the fiat currency of your choice. We will choose U.S. dollars at which point you will be shown the following order input window.
4. Buy Bitcoin
Now, all you need to do is return to the trading dashboard and click the “Buy” button under the “Buy Cryptocurrency” section.
Then, it will ask you the amount of BTC you want to buy using the fiat currency of your choice. We will choose U.S. dollars at which point you will be shown the following order input window.
For our example, we will choose to buy 0.1 BTC at market (which means at the best possible market price), which will cost us $873.39 USD at the time of the trade. Now, we click “Buy XBT (bitcoin) with USD” and then confirm the trade by clicking “Submit Order” on the next page.
With a market order for 0.1 XBT (bitcoin/BTC), it will only take a matter of seconds for it to get filled. The 0.1 XBT (bitcoin/BTC) that you have just purchased will now be credited to your BTC wallet in your Kraken trading account. And voila, you have purchased bitcoin using U.S. dollars on Kraken.
If you prefer to self-custody (holding your own private keys) your crytoassets versus having Kraken hold them for you, you can transfer your newly purchased bitcoin to a personal crypto wallet, such as a Trezor, or Ledger Nano hardware wallet.
Overall, Kraken is a reputable option for qualified margin traders, however, the strict eligibility requirements exclude most retail traders. While the fees are competitive, there are better exchanges that have a larger selection of trading pairs.
Thank you for reading!
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Kraken Exchange: How to Buy, Sell & Trade Crypto | UPDATED 2021!
In this video, we walk-through how to buy and sell Crypto on the cryptocurrency exchange: Kraken. You will learn how to use Kraken to buy and sell bitcoin, ethereum, xrp or any other crypto with USD / FIAT currency, so let’s check it out!
What is Kraken?
Kraken is not just a legendary sea-monster, but Kraken is also a cryptocurrency exchange. You can buy, sell, trade and learn about various crypto’s on their exchange. They allow you to deposit and withdrawal funds with multiple methods.
The platform was founded in 2011 and it is one of the oldest and most reliable cryptocurrency exchanges in the world. Kraken is really focused on security and superb customer support. You simply will not find another exchange that is more secure and offers better support for their customers than Kraken. You can make big money on Kraken, they offer leverage meaning that you can trade with more money than you have deposited
There are a lot of really great things that I love about Kraken and I’m an avid user of the Kraken exchange myself. Kraken is one of my favorite exchanges and I think there is something to be said about having access to multiple exchanges.
📺 The video in this post was made by Will Walker
The origin of the article: https://www.youtube.com/watch?v=4Pc25hItDdY
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
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Kraken Exchange: How to Deposit & Withdraw Funds on Kraken | UPDATED 2021!
In this video, we walk-through how to deposit and withdraw funds to your account on the cryptocurrency exchange: Kraken. You will learn how to deposit USD into Kraken, how to deposit other FIAT into Kraken, fund your account with crypto and more! Then, we review step-by-step how to withdraw money from Kraken, withdraw any FIAT from Kraken, as well as how to withdraw crypto such as Bitcoin from Kraken. Come check it out!
What is Kraken?
Kraken is not just a legendary sea-monster, but Kraken is also a cryptocurrency exchange. You can buy, sell, trade and learn about various crypto’s on their exchange. They allow you to deposit and withdrawal funds with multiple methods.
The platform was founded in 2011 and it is one of the oldest and most reliable cryptocurrency exchanges in the world. Kraken is really focused on security and superb customer support. You simply will not find another exchange that is more secure and offers better support for their customers than Kraken. You can make big money on Kraken, they offer leverage meaning that you can trade with more money than you have deposited
There are a lot of really great things that I love about Kraken and I’m an avid user of the Kraken exchange myself. Kraken is one of my favorite exchanges and I think there is something to be said about having access to multiple exchanges.
📺 The video in this post was made by Will Walker
The origin of the article: https://www.youtube.com/watch?v=-VUDECzX3mU
🔺 DISCLAIMER: The article is for information sharing. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Not investment advice or legal advice.
Cryptocurrency trading is VERY risky. Make sure you understand these risks and that you are responsible for what you do with your money
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