What Is Kraken Crypto Exchange and How to Use It?
Tech Deep Dives

What Is Kraken Crypto Exchange and How to Use It?

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10 months ago

CoinMarketCap takes a deep dive into Kraken, one of the most popular crypto exchanges that makes it easier for crypto beginners to start investing and trading through its simple and smooth user interface.

What Is Kraken Crypto Exchange and How to Use It?

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Founded by Jesse Powell in 2011, just two years after Bitcoin’s launch, Kraken is one of the oldest crypto exchanges. Despite the completion of its development phase in 2011,, the Kraken platform went fully live in September 2013, after two years of testing and improvements. 

Today, this United States-based crypto exchange has carved out a reputation for being one of the platforms with top-notch security, advanced trading tools, and a good mix of coins to choose from.

Here is a detailed guide on how to use Kraken crypto exchange and the features offered by it. 

How to Create an Account on Kraken?

Thanks to an simplistic and easy-to-use interface, creating a Kraken account is quite straightforward.

  1. First, it is important to confirm that you are visiting Kraken’s official website. Here is the link: https://www.kraken.com/ 
  1. Next, click on the “Create Account” button and put your email and username and select a password. Once you agree to Kraken’s “Terms of Service and Privacy Policy,” click the “sign up” button.
  1. Check your email inbox (which you used to register your account) for an activation key. 
  1. Complete the account activation process and confirm your password to start using your new Kraken account. 

How Do I Fund My Kraken Account?

As a Kraken crypto exchange user, you can either fund your account with a debit or credit card, cash payments through wire transfer services, or with crypto deposits

Paying With a Card

  1. To pay with your debit or credit card, start by clicking the Buy Crypto button on the top right section of the dashboard. 
  1. Now select the “Add debit and credit” option in the drop-down menu. This will automatically update the amount field to your local fiat currency payment method. 
  1. Then enter the details of the card you want to use and click “Add New Card.” Your card will be approved once the billing address is confirmed. This will take a few minutes.
  1. With your card linked to the Kraken Crypto Exchange, you can now go back to the “Buy” button and select the crypto asset you want to buy in the drop-down menu. 
  1. Once your purchase order is confirmed, you will receive a pop-up showing the digital asset you bought, the fees, and the amount. Click the “Buy Now” button to complete your purchase.

Paying With Cash 

Kraken allows its users to fund their accounts through cash deposits made via a wire transfer from a bank account to Kraken’s MVB Bank. Keep in mind that all cash deposits on Kraken will result in a temporary 72-hour withdrawal hold. At the moment, Kraken only allows its US customers to fund their accounts from Bank of America. 

To make a cash deposit on Kraken, follow the following steps.

  1.  First, check that your account fulfills all the requirements, such as exact matching names on your Kraken account as the ones registered with your bank. 
  1. Click the funding tab at the top of the dashboard and select your preferred currency in your ‘account balances’.
  1. Enter the amount you wish to deposit and select the funding methods available. If only one option is available, then you may move to the next step. 
  1. Review all the instructions and copy the bank account information provided by Kraken. Paste it into the recipient section of the account from which you are trying to transfer the funds. Fulfill your bank requirements and hit the send button!

How to Deposit Cryptocurrency on Kraken?

You must first verify your account before making any crypto deposits. Once verified, you will be able to deposit any of the supported digital assets on Kraken from other exchanges or your hot or cold wallet. 

The process of depositing cryptocurrency is quite easy on Kraken. Just loop up the currency you want to deposit on the dashboard and generate a new deposit address for that cryptocurrency. 

Image Source: https://support.kraken.com/hc/en-us/articles/360000672643

Confirm the deposit requirements and copy the deposit address. Do not type the address manually as it increases the risk of errors. 

Image Source: https://support.kraken.com/hc/en-us/articles/360000672643

Use the copied address on the other exchange from which you are making the crypto deposit. Kraken supports over 60 cryptocurrencies including the following.

Is Kraken Safe?

In its 10 years of operations, Kraken has not had any incident of a major hack as is the case with most crypto exchanges. The platform also ranks as the topmost crypto exchange in terms of cybersecurity score and proof of funds according to CER’s score. CER (Crypto Exchange Rating) is a platform that offers a sophisticated ratting service for crypto exchanges. Some of Kraken's top security features include a 95% cold and offline storage of all its deposits. Kraken claims that its cold storage wallets are also geographically distributed for improved safety. The platform also supports 2FA (two-factor authentication) via Yubikey and Google Authenticator.

What Is Kraken Pro?

Kraken Pro is the name of the Kraken crypto exchange mobile app available on both iOS and Android smartphones. It comes with all the features available on the desktop application such as staking portfolio balances, margin trading, and trading with limit and stop-loss orders.

Kraken Fee Structure

Like most crypto exchanges, Kraken incentivized market makers who provide liquidity with a lower fee rate. Other factors with an influence on the fees paid include a 30-day volume metric that rewards those who trade more over the past 30 days with lower fees. Below is its fee structure for Kraken Pro. 

You may check out a detailed Kraken’s fee structure here

How to Get Verified on Kraken?

  1. Click on your profile icon and then on the “Get Verified” button. 
  1. Kraken offers several levels of account verification options, including Express, Intermediate, and Pro. Both intermediate and pro-level require you to submit either your passport, driver’s license, or national identity card. 
  1. Higher levels of verification require users to submit documents such as social security numbers and occupational information and complete a KYC questionnaire.

How Long Does Kraken Take to Verify an Account?

Lower levels of verification take less than 2 minutes while higher levels may take a few days as they include manual processes of account verification.

In a Nutshell

Kraken is a reputable crypto exchange that takes security seriously. The platform has a history of conducting ongoing penetration tests to increase the level of protection on its system both via internal and external teams. Although its user interface is slightly advanced for the novice crypto enthusiast, it offers one of the best services for experienced crypto traders looking for a secure and reliable crypto exchange.

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