📘 General information about the Kraken exchange
Kraken is one of the oldest and most recognizable crypto exchanges. Launched in 2011, the platform has steadily built a reputation as a secure, regulated, and technologically resilient venue for trading digital assets.
- Operator — Payward Inc.; historically headquartered in the U.S., expanding through international subsidiaries.
- Focus on security, infrastructure resilience, and regulatory compliance.
- Strong presence in the U.S. and Europe, with fiat support (USD, EUR, GBP, etc.).
- Oriented toward long‑term trust: conservative asset listings, regular PoR audits.
🔍 Regulation and licenses
Kraken positions itself as a regulated global crypto platform with legal presence in key jurisdictions. The company complies with KYC/AML and actively engages with regulators.
- USA: MSB registrations (FinCEN), operations in most states; past settlements with regulators concerning margin and staking; launch of the SPDI (Kraken Bank) in Wyoming.
- Europe and the UK: European licenses/registrations, MiCA alignment; registration in crypto‑company registers; works with the FCA (UK) under local requirements.
- Other regions: Australia (AUSTRAC), Canada (FINTRAC), etc.; some products (derivatives, staking) are not available in all countries.
💼 Kraken products and services
Kraken covers the full baseline of trader and investor needs: from buying cryptocurrency with fiat to derivatives, staking, and solutions for institutional clients.
💱 Spot trading
The spot market features hundreds of assets and pairs against fiat (USD, EUR, etc.). The Kraken Pro terminal implements a maker/taker model, advanced orders (limit, stop, take‑profit), trade tape, order books, and TradingView charts.
- Interfaces: simplified “Buy Crypto” (quick buy/sell) and professional Kraken Pro for full‑featured trading.
- Fiat gateways: bank transfers (SEPA, SWIFT, ACH/FPS), support for several fiat currencies.
- Liquidity: high on majors (BTC/EUR, BTC/USD, etc.); tight spreads in fiat pairs.
📊 Margin trading
Margin trading on spot is available with leverage up to 5× for selected pairs. Access requires verification and is subject to geo‑restrictions.
- Margin modes: cross/isolated; fixed opening fees and borrow rates.
- Negative balance protection and margin level alerts.
- Recommendation: use stop orders and conservative leverage.
📈 Futures and derivatives
The derivatives platform Kraken Futures (formerly CryptoFacilities) offers perpetual swaps and futures on top assets with leverage up to 50× (geographic restrictions apply).
- Fees: roughly 0.02% (maker) / 0.05% (taker) with VIP discounts.
- Funding rate: recalculated every 8 hours, anchoring the price to spot.
- Infrastructure: separate futures wallet, insurance fund, protection against extreme liquidations.
🌱 Staking and passive income
The exchange supports on‑chain staking for a range of PoS assets (ETH, ADA, SOL, DOT, ATOM, XTZ, etc.), showing current yield targets directly in the interface. For U.S. residents, retail staking is disabled.
- Reward accrual — per each protocol’s schedule; the exchange’s commission is taken out of rewards.
- Liquid ETH staking: deposits/withdrawals of staked funds are supported.
- Risk disclaimer: token price and protocol rules affect final returns.
🤝 OTC and pro solutions
For large trades and institutions, Kraken offers an OTC desk (from ~US$100k), the Kraken Prime platform (dedicated manager, deeper liquidity), custodial services, and banking infrastructure via Kraken Bank (SPDI, Wyoming).
- API: REST/WebSocket/FIX; high stability, convenient for bots.
- Kraken Pro Desktop: a trader’s workstation with extended customization.
📱 Mobile apps
Two apps are available: Kraken (for simple operations, DCA, portfolio) and Kraken Pro (full terminal). Both are available on iOS/Android with 2FA and notifications.
🧩 Additional services
- Education: the Learn section and Kraken Intelligence research.
- NFT: a marketplace was launched and later closed; NFT storage is supported at the wallet level.
- Extensions: separate products and indices via the derivatives platform.
💸 Fees and limits
Trading fees
- Spot (Kraken Pro): a progressive maker/taker schedule; for small volumes fees are higher, for large volumes they decrease down to 0% maker / 0.10% taker.
- Convert/“Buy Crypto”: higher convenience fee for instant purchases; to save, trade via Pro.
- Margin: fixed opening fee + borrow rate (by asset); closing without a separate fee.
- Futures: around 0.02%/0.05% with VIP tiers and possible maker rebates.
Deposits/withdrawals
- Cryptocurrencies: deposits without exchange fees; on withdrawal — network fee only (depends on the blockchain).
- Fiat: SEPA/FPS — generally cheap or free; SWIFT/ACH — small fixed fees.
- OTC: fees are embedded in the quoted spread, with no separate “exchange” charge.
KYC levels and limits
- Intermediate: standard verification (ID, address) — access to fiat deposits/withdrawals, staking, spot; comfortable limits for individuals.
- Pro: expanded data — maximum limits, priority service, options for businesses and institutions.
🛡️ Security
Kraken is known as a platform with one of the strongest security profiles on the market: there have been no major compromises of client funds. The approach is comprehensive: PoR, cold storage, multi‑layer account protection, and operational procedures.
Proof‑of‑Reserves and asset storage
- PoR audits: public attestations that reserves match client liabilities (Merkle tree).
- Cold storage: ~95% of assets kept offline; access via multisig and physical controls.
- Insurance and funds: the derivatives insurance fund covers deficits during liquidations.
User account protection
- 2FA (apps and hardware keys), a separate withdrawal password, withdrawal whitelists.
- Global Settings Lock: blocks changes to critical settings for a set period.
- Email/SMS confirmations, suspicious activity monitoring, delay on adding new addresses.
Incidents and practices
- Technical load issues in the early years — resolved by infrastructure upgrades.
- Flash market moves (e.g., ETH in 2021) — accounted for; improved filters and liquidity protection.
- Internal vulnerabilities are fixed promptly; cases have not affected client funds.
🎧 Support and user experience
Support channels: 24/7 live chat, email tickets, an extensive knowledge base, and educational materials. Priority clients may have a phone line and dedicated assistance.
- Speed: typical questions are resolved quickly; complex cases (KYC/AML) may require more time.
- Localization: interfaces and part of the help center are available in Russian; most correspondence is in English.
- UI/UX: conservative, “business‑like” interface; minimal gamification with an emphasis on stability.
🗣️ Reviews and reputation
Kraken is widely perceived as a “reliable and mature” exchange. Expert ratings regularly highlight its security and customer service. On mass review aggregators, the average score is lower (often due to complaints about KYC/withdrawal delays), which is typical for large regulated CEXs: compliance discipline does not always align with users’ expectations for speed.
- Strengths in reviews: security, fiat gateways, support.
- Weaknesses in reviews: KYC/AML bureaucracy, non‑instant checks, not the “flashiest” interface.
🤝 Kraken vs Binance, LBank, and BingX
| Criterion | Kraken | Binance | LBank | BingX |
|---|---|---|---|---|
| Year | 2011 (USA) | 2017 | 2015 | 2018 |
| Regulation | USA·EU·UK; SPDI bank (WY) | Broad coverage; disputes with regulators | Selective licenses; weaker “big‑reg” | AUSTRAC, Lithuania; no USA/UK/China |
| # of Coins | ~400+ (selective) | ~500+ (many alts) | 800+ (aggressive listings) | 750+ (wide coverage) |
| Derivatives | Futures up to 50× | Futures up to 125× | Perpetuals up to 125× | Perpetuals up to 150× (BTC) |
| Spot fees | Maker/Taker; VIP; subscription | ~0.1% (minus token discounts) | 0.1% / 0.1% | 0.1% / 0.1% (VIP discounts) |
| Strengths | Security·fiat·compliance·support | Maximum features and alts | Ultra‑fast listings, meme tokens | Copy trading, MT5, promos |
| Risks/downsides | Strict KYC; not the cheapest for small volumes | Regulatory risks across countries | Reputation/transparency lag peers | Fewer “big” licenses |
✅ Pros and ⚠️ cons of Kraken
Strengths
- One of the most secure CEXs: PoR, 95% cold storage, no major compromises of client funds.
- Regulation and SPDI bank — high legal resilience.
- Excellent fiat gateways and low costs on bank transfers.
- Full product lineup: spot, margin, futures, staking, OTC, API, mobile apps.
- Strong 24/7 support and a focus on long‑term trust.
Limitations
- Strict KYC/AML and possible freezes during reviews.
- For small volumes without discounts, fees are higher than on some exchanges.
- More conservative altcoin selection; not all “hot” tokens are listed quickly.
- Interface is less “gamified” and flashy than Asian competitors.
🛠️ Recommendations: how to use Kraken effectively
For beginners
- Complete Intermediate KYC right away, enable 2FA, and set Global Settings Lock.
- Start with Kraken Pro: limit orders are cheaper and more precise than “quick buy.”
- Check network fees before withdrawing; test a small amount before a large one.
- Don’t rush: use stop orders and plan trades; avoid frequent small operations.
- Keep long‑term assets in a cold wallet.
For experienced traders
- Connect the API, use WebSocket/FIX, consider Kraken Pro Desktop.
- Execute large trades via the OTC desk; hedge with futures up to 50×.
- Optimize fees (VIP tiers, subscription), scale volumes.
- Use staking for part of the portfolio, factoring in taxes and protocol risks.
- Monitor listings and updates: new instruments appear regularly.
🏁 Conclusion
Kraken is “heavy artillery” among centralized exchanges: strong security, a solid legal position, resilient fiat channels, and service for different client categories — from beginners to institutions. The exchange strategically chooses reliability and compliance over hype — and investors who value predictability and capital preservation appreciate that.
Yes, you “pay” for regulation — with strict KYC and not‑the‑lowest fees for small volumes. But for Kraken’s core audience this is a reasonable trade‑off. If your priorities are security, legality, fiat rails, and quality support, Kraken stands out as one of the best options on the market.