Kraken Crypto Exchange Review: How It Compares to Binance?

by | Last updated Apr 7, 2022

The Kraken platform is a decent choice for experienced traders and investors because of its regulatory enforcement and American HQ. Since it has more advanced characteristics, such as margin and prospect, it also enhances the attractiveness of more advanced traders.

Kraken Crypto Exchange Review: Ultimate Guide

This honest review of Kraken explores the best features of this crypto platform. We will explore the pros, cons, and options and compare them to Binance.

What Are Some Important Aspects of Kraken Cryptocurrency Platform?

It provides customers with a sophisticated trading platform that includes place and margins for experts. The design offers a lot of choices, but when you’re new to cryptocurrencies, it isn’t simple to learn. Let’s explore it in detail.

1.The Ease of Use

It provides many cryptocurrency services that go well beyond the purchase and sale of coins and tokens. It is also straightforward to get started. Let’s focus on a couple of our personal favorites introduced by the brokerage to facilitate opening an account.

Account Setup

It is an ideal option for beginners searching for a crypt o-currency intermediary. You can open your account in just five minutes, and authentication is also a quick operation. The exchange also has special protection features that make the assets better than most cryptocurrency exchanges.

This platform keeps over 99% of its coins and tokens in an offline and air-tight cold storage facility. Moreover, it holds stocks online, so users can still automatically withdraw the money. The servers live in armed surveillance-controlled cages, and the broker also conducts assault checks periodically to make sure nobody accesses your cash.

Staking

Staking helps you collect a profit on your portfolio regularly with cryptocurrency or fiat currencies. It provides one-stop shopping, sales, and staking portal for some of the most common digital currencies. Buy cryptocurrencies from this exchange, like Ethereum’s Ether, and put it in a few moments. You will quickly hit the field and receive prizes weekly or two-weekly, based on the assets you have bought.

Order Placement

It is the only exchange that offers three order placement levels:

  • Novice
  • Intermediate 
  • Advanced

You will welcome the great ordering process, which restricts clients to the simple details required to execute the transaction if you search for a simple and rapid way to buy or sell cryptocurrency. More seasoned users can position orders through the advanced purchasing mechanism that gives them greater access to extra charges, flexibility, and implementation possibilities.

Kraken review the ultimate guide

2.Availability

It can be used by any American citizen, except for New York and Washington. There are limits on all traditional countries as to foreign clients. So, it is available in all countries except:

  • Afghanistan
  • Iran
  • Congo
  • Libya
  • Cuba
  • North Korea
  • Iraq
  • Tajikistan
  • Syria

Oddly, Japanese traders cannot use this platform as there are beneficial laws to assist Japan with a booming cryptocurrency market. The approach to foreign clients is nevertheless very progressive, and it can be used by a lot of individuals around the world.

3.Customer Support

It provides service and supports 24 hours, 365 days per year. The customer support team of Kraken can be reached via online chat whenever needed. Visit this exchange and tap on the chat button in the lower right corner to talk to tech support.

It provides the most commonly asked questions at a robust assistance service. Customer support is not available by phone or email at the moment. In the future, customers would like to see the team introduce more solutions for customer support for visually impaired people.

The official website contains a comprehensive support document that includes everything from verification to investing. In certain cases, you will find what you want. If you need assistance, you can still send a support ticket or speak to a real representative using the built-in chat on the web. For additional tips, check our post about the most common risks of investing in bitcoin to ensure securing your assets. The major advantages reside in minimal costs, innovative functionality, and a high level of protection. In general, the quality of support and platform reliability has changed since the portal was updated not long ago.

4.Fee Structure

This exchange is concerned with giving customers access to their platform-based variable fees, funds sold, the number of transactions they make per month, and the margin used. Upon payment of the transaction, users who purchase, sell or convert major encryption currencies through the Instant Buy function pay a fee of 3.75% of their overall trading value plus a minor payment.

No extra charge applies to orders placed with funds on your account. When executing the contract, all orders provide variable distribution. So, the team cannot monitor these propagations, and the broker does not monitor changing terms of the industry.

Depending on the overall amount of exchange put within 30 days, the pro users are exposed to a variable fee system. You pay the company’s fees when you do a liquid-based transaction (e.g., ordering that does not quite correspond to the previous order). Maker charges begin at 0.16% and can be as minimal as 0% of your overall purchase price. The Post Limit Order function enables you to guarantee that the order is completed at the creator price or cancelled.

5.Cryptocurrency Options and Payments

The exchange actively sponsors more than 50 separate coins, offering a variety of digital commodities to traders. It provides a range from large crypto project ventures (such as Bitcoin and Ethereum) to more unpredictable smaller properties, such as the Dogecoin.

Fiat Currencies

It also provides potential trading on five big cryptocurrencies and fiat options, in addition to cryptocurrency international trade. Trading crypto futures enables shareholders to have access to up to 50x exposure. The platform offers the following fiat currencies:

  • US dollars (USD)
  • Japanese yen (JPY)
  • Canadian dollars (CAD)
  • Euros (EUR)
  • Australian dollars (AUD)
  • Swiss franc (CHF)
  • British pound (GBP)

Deposits and Withdrawals

As you would imagine, crypto deposits can be made with ease in any coins you fund. Even for investors not checked with a KYC, it permits unrestricted cryptocurrency deposits. However, there are just restricted withdrawals. The exchange accepts Fiat deposits, but a KYC check must be completed before a trader is invested in fiat. It offers offering USD, GBP, EUR and CAD funding. They provide a range of options for depositing these currencies.

Cash transactions can be made by SEPA, SWIFT, or wire transfers. Payment methods can take nearly 1–5 business days in almost all situations, and the typical deposit usually takes up to 24 hours. Most approved cryptocurrencies are free to invest in, although there is a nominal fee for implementations in some cases.

SEPA transactions are free of charge concerning fat deposits, and it is particularly handy if you are in the European Union. Bank wire transfers within the US cost $5 to $25, while comparable transfers between the United States are less than $10.
Kraken Available Cryptocurrencies

6.Margin Trading Support

One of the strongest qualities is its support for margin trading. As the legitimate use of derivative trading systems like Bitfinex by US customers is not permitted, it is great for them to have a forum that allows them to use leveraged positions. Regrettably, merchants in New York cannot use it.

7.Mobile Application Support

Many people use mobile devices, so the mobile application is no shock. How does this app fare in terms of modern applications? The users considered the mobile app to be simple and easy. The pro package is a well-designed app with a smooth business experience, monitoring options, and accessibility to more than 100 cryptocurrency pairs. The mobile app is technically unavailable to consumers in the United States.

What Are the Cons of Kraken Cryptocurrency Platform?

There are also a handful of cons to using this platform. However, these are limited in number and do not pose any real challenges.

Limited Customer Support for Increasing Customers

There are no responsive customer service services. This is because the number of visitors on the web is increasing. Multiple trade platforms provide weak customer service, one of them being Kraken. The business appears to do its utmost to change this, though. It is important to note that exchanges of cryptocurrencies are not banks. So, if you have a concern, you cannot call a mobile number or go to a place. You are on your own.

Reliability Issues

Kraken had some difficulties in 2017. The exchange was not capable of handling the number of registered customers. It was also subjected to several cyber threats. These problems caused the platform to close in January 2018 for around a week. Afterwards, though, the protection came back even stronger.

Pros

  • High security
  • Reasonable Fees
  • Complete Transparency
  • Beginner-Friendly
  • Excellent Reputation
  • Liquid Market

Cons

  • Limited Customer Support
  • Arbitrary closure of Accounts
  • Slow Connection
  • Slow Account Verification

How Secure Is the Kraken Exchange Platform?

The implemented measures prohibit hackers from endangering the network. It has never experienced any serious security violations and is considered one of the strictest safety protocols on all exchanges for cryptocurrencies. ‘Cold storage’ is used to safeguard assets from possible cyber threats with customer balances and additional funds stored on non-online accounts. The accountability of the trade as unbiased regular audits is also admirable. This exchange in cryptocurrencies has always tried to stick to the same norms as conventional regulated exchanges.

Since they’ve never been exploited before and are very worried about security, it is a secure exchange for commerce. They constitute one of the largest trade volumes in the US and are commonly acknowledged to be accurate in terms of volume auditing. Here are some of the topmost security facilities offered by Kraken:

  • Universal 2nd Factor (U2F) Authentication: This authentication mechanism is the most secure method to safeguard your account with hardware authentication devices, such as certain keys, etc. It offers U2F to all its customers without any charges.
  • Two-Factor Authentication: This is yet another amazing security feature that it offers to its customers. It is widely popular for protecting logins, trades, and activities performed using the native API.
  • Master Account Lock: Kraken offers master lock options to its customers to always secure their assets, and no one can access them from remote locations.
  • Info-Leakage Protection: This safety feature ensures that login and password recovery attempts will not result in revealing sensitive account info or the existence of that account.
  • PGP/GPG Encryption: This encryption method ensures that your emails to and from the company are secure and non-accessible to third parties.
  • Isolated Systems: All the sensitive user verification documents are secure on remote and secure systems rather than easily exploitable servers. Moreover, this data is also encrypted. Hackers cannot decrypt it without accessing multiple security systems simultaneously, which is quite improbable.
  • Global Settings Lock: This safety feature guarantees that no one can change user account info without your prior approval. So, a third party cannot change your account information even if they get access to your account.

The cryptocurrency exchange also tends to take a series of mechanisms to ensure compliance with the law, protection of the system, and financial protection if the above is not sufficient. This includes regular upkeep of full monetary reserves and the daily retention of data, combined with cryptographically controlled proof of funds audits, considerably lowering the risk of loss of money for customers.

Kraken vs Binance and How Does Kraken Fare Against Binance?

Binance is a much larger exchange with more cash flow and a choice of currency. However, fewer coins are considered better because an exploit is less likely to happen. In truthfulness, Kraken also has Binance beat. Since this is the only platform that has ever shown 100% of reserves, you can be assured that your coins can be withdrawn anytime you would like. Binance has never confirmed its reserves, and it is impossible to know if all user deposits are available at a particular period.

Kraken has always been pro-bitcoin in a manner that Binance doesn’t have. Kraken struggles a little here, but with a lengthy response time over chat and email alone, Binance is highly responsive. Both are very low with respect to rates, without either offering lower fees than the other since the fees at the moment of trading rely on the exchange demand and volatility.

Kraken vs Binance

Binance is known for providing great service to its customers, and it draws a better customer experience than Kraken. The Binance trading app is easier to use but has fewer options than Kraken. So, it’s very important, whether you are a novice or developed trader, in selecting who has a better user experience.

Kraken and Binance provide seasoned dealers with very sophisticated trading capabilities. However, the Kraken user experience is much slimmer than Binance. Unlike Binance, which has declined to conduct a reserve audit of any kind, Kraken has confirmed its resources.

Kraken Frequently Asked Questions (FAQs)

Is Kraken Legit?

It is legit and offers amazing options to users. It can be said that the outstanding safety features and reasonable transaction costs make this a choice worth exploring. However, owing to its more advanced design, it is not the perfect choice for beginners. This seasoned trading platform has gained tremendous credibility over the years and appears to go nowhere soon.

For both novice and experienced investors, it is 100% a legit cryptocurrency exchange. Its wide range of features, inexpensive charges, simple user interface, and flexibility are certainly an appeal. It is, however, not the cheapest way to buy cryptocurrencies easily because it does not accept deposits with bank cards.

Is Kraken Safe?

You want to see that the exchanges you invest in maintain cash safe if you invest in cryptocurrencies. You don’t want to give your money to anybody you didn’t believe, would you? Exchanges must be subject to the same laws. There are still people who will take items that are not theirs in this weird internet world and even reality. Therefore, always holding the cryptocurrencies secure is highly essential. So, the answer to these questions is that the Kraken cryptocurrency exchange platform is safe.

Is Kraken a Wallet?

Kraken is a service that is an exchange and not a wallet. They provide customers with the opportunity to invest money in their company wallet to protect themselves when money is traded or used to trade or purchase. They do not offer a direct wallet service.

Like other exchanges, assets are sent to cold storage and hot wallets to exchange accounts. The hot wallet and the deposit address are used to manage transactions. So, it is not a wallet service but a simple trading platform.

Is Kraken a Bank?

Kraken is the first cryptocurrency company in the United States to become a bank. The Wyoming Banking Board decided in the year 2020 to approve a special charter depository institution (SPDI) proposal for crypto-exchange located in San Francisco. It is now Wyoming’s first SPDI bank. 

Is Kraken Available In New York?

No. it is not yet available in New York or Washington.

How to Fund Kraken Account?

You can use SEPA, SWIFT, or wire transfer to deposit funds into your Kraken account. However, the company states that it may take up to five clear business days to deposit the funds into your account. This platform sponsors both the fiat currency and crypto-asset reserves. The supply of fiat deposits and withdrawals can be limited according to your country of residence and authentication standard. There are several methods for depositing fiat, but it relies on your residence.

Users in the United States can use Fedwire to invest US Dollars in their accounts, while users in Europe may use SEPA & SWIFT to finance their charges. Australian users may choose for account bank transfers. You may choose the cryptocurrency to invest in, and an address will be provided for that cryptocurrency. You may either copy the address or scan the QR code and insert the information on your money transfer tab.

Does Kraken Secure My Personal Data?

Kraken security staff has ensured that their users’ data are secure by their committed development efforts. The encrypted and confidential customer data cannot be accessed from their portal. Around the same time, the coded client data will almost not be decrypted. To get the personal customer data into the hand, a hacker would first have to penetrate some highly encrypted networks.

All user records are copyrighted concerning content confidentiality, and these records cannot be used somewhere else. A possible case for account-specific compliance controls is customer-specific data leakage. Only if anyone can reach the login credentials is this possible. The platform also placed a precaution in this case so that only little details can be used.

What Is the Bottom Line Here?

There is plenty of amazing perks about the Kraken trading network with an integrated trading platform, a wide variety of sponsored coins, and security facilities around the clock. Although the billing schedule can be irritating or misleading for investment managers accustomed to flat rates, the rates are cheaper than rivals for many consumers.

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