In this Kraken USA crypto exchange review 2022, we evaluate Kraken in terms of its deposit methods and trading fees, staking rewards, regulation, verification requirements, parachain auctions, security.
We end the article with a summary of Kraken pros and cons.
Stay tuned as we take you through one of the best bitcoin exchange reviews and evaluate the company on how they service their clients.
Kraken USA Crypto Exchange Review Intro
Kraken is an US regulated cryptocurrency exchange and bitcoin trading platform. Its services are available for traders from all around the world.
The company is the top exchange when it comes to EUR transactions while USD trade grows as well. The company offers a wide variety of trade tools and cryptocurrencies in its platform.
Apart from web marketplace, the company offers iOS app and Android app as well, downloadable free from Apple Store and Google Play Store.
Kraken Features Summary
Kraken is offering the following services.
- Kraken Exchange
- Kraken Earn with Staking and Parachain Auctions
- Kraken Security Features
- Margin Trading
- Futures Trading
- Kraken OTC Desk
Kraken USA Crypto Exchange Review 2022
We will start by reviewing the the Kraken USA exchange feature with regards to
- Deposit methods and fees
- Trading/Exchange fees
- Liquidity and Trading Volume
- Trading Pairs
- Security
- History
Kraken Exchange Deposit Methods and Fees Review
Kraken is offering deposit methods for the following fiat currencies.
USD (US Dollar)
EUR (Euro)
CAD (Canadian Dollar)
AUD (Australian Dollar)
GBP (Pound Sterling)
CHF (Swiss Franc)
JPY (Japanese Yen)
Kraken might update the above list and you can see this link for all the Kraken cash deposit options, fees and minimum amounts.
Kraken is offering all the common deposit methods such as credit card, debit card, wire transfer and SEPA transfer. Kraken has a relative low credit card deposit fee.
Kraken USA Exchange Trading Fees Review
Kraken allows orders to shape the exchange rate of coins it offers for trade while fees are organized through taker and maker transactions. The taker fees can range between 0.1% and 0.26% while makers range between completely free and 0.16%. The costs depend on the monthly trade volumes, with larger number decreasing the costs.
Do take into account that there is a fee for margin order opening/rolling and it stands between 0.01% and 0.02% every 4 hours, depending on the currency trade pair.
Kraken Exchange Liquidity and Trading Volume
According to Coinranking, Kraken is the 14th largest crypto exchange in terms of total trading volume.
The more trading volume an exchange has, the more liquidity there is in the markets. If there are large trading volumes and high liquidity, there are also often tight spreads which is preferable for the trader.
Kraken Exchange Cryptocurrency Trading Pairs
According to Coinranking, Kraken has 385 trading pairs (markets) which give them a 7th place on the markets listing.
Kraken Crypto Exchange History Review
The company started its operations in 2011, opened by the owner Payward Inc. Based in San Francisco, a platform focused its services towards EUR markets, specifically in Europe. It was one of the first exchanges that had price and volume of coins displayed in Bloomberg Terminal.
The trade itself started in 2013 and reached the top spot in EUR trade in 2014. In the same year, the company released iOS platform and added USD trade as well. In 2015, it introduced BitGo security function and launched Ethereum trading.
Kraken Earn Review 2022
Kraken is offering the Kraken Earn feature with staking and Polkadot parachain auctions.
Kraken Crypto Staking Rates
Kraken is offering the Kraken Earn feature with staking and Polkadot parachain auctions.
Here, we focus on the staking part.
Both Kraken and Coinbase are offering crypto staking service for their customers. Here, you have the chance to earn crypto passive income on your crypto holdings.
Both are US regulated large crypto exchanges. Many US citizens are going to either Kraken or Coinbase as their first crypto exchange.
However, is Coinbase or Kraken the better crypto exchange for crypto staking?
We created a dedicated article for this and we called it Kraken VS Coinbase Staking.
Crypto
APY
- 12%
- 4-6%
- 5-7%
- 6.5%
- 5.5%
- 7%
Kraken Polkadot Parachain Auctions
Kraken is offering their customers to stake and contribute to Polkadot parachain auctions on their site.
Every project that wants to connect to the Polkadot network needs to win a parachain slot. To do this, they have to ask the community for help since you need a lot of DOT to secure a parachain.
The community sign a loan agreement where you lock your DOT for a certain period (around 2 years). In exchange, you will receive a certain amount of tokens from the project you help to secure a parachain slot.
However, for this service Kraken is charging a fee.
Kraken parachain auction is a very convenient way to get exposure and contribute to the Polkadot DOT ecosystem. At the same time, you will be get rewarded. Read our full article about how to stake Polkadot parachain auction on Kraken.
Kraken Crypto Exchange Security Review
Kraken USA crypto exchange must be considered as one of the safest and most transparent crypto company.
They have a long operational history with no hack incident and always have been opened to be audited by a 3th party.
In this section we will cover
- Kraken US regulation and licenses
- Kraken insurance policy
- Kraken Proof-of-reserves
- Kraken account and login security
- Kraken hack history
Kraken US Regulations and Licenses
Kraken is regulated by FinCEN. Kraken client funds are held directly by clients in their own bank accounts at our partner banks, which are heavily regulated. Kraken Bank is regulated by the Wyoming division of banking.
Kraken is registered as a Money Services Business (MSB) with:
- FinCEN in USA — registration number 31000176593851.
- FINTRAC in Canada — registration number M19343731.
Kraken Insurance Policy
Kraken Proof-of-Reserves
A Proof of Reserves (PoR) is an independent audit conducted by a third party which seeks to ensure that a custodian holds the assets it claims to on behalf of its clients.
Kraken Account and Login Security
Kraken has everything you can ask for when it comes to account and login security features. They support
- Sign-in two-factor authentication (2FA)
- Funding two-factor authentication
- Trading two-factor authentication
- The Global Settings Lock prevents any changes to your account settings and hides sensitive information.
Kraken Hack History
Kraken has never been hacked.
Kraken Registration and Verification Review
Kraken Registration Step-by-step
Registration and verification is a very straight forward process at Kraken.
Just follow this bullet list and you will be fine
- Go to Kraken and click “Create account” in the upper right corner
- Enter your email address and a username
- Read Kraken Terms of Service and Privacy Policy
- Now, you should receive an email with the activation key.
- Enter your activation key on the account activation form or alternatively complete activation by clicking the link in the email.
- Congratulations. You should now have an account with one of the largest Crypto exchanges
Kraken Verification Step-by-step
Here, we will describe the Kraken verification procedure, step-by-step.
You’ll have to verify your account with Kraken to be able to buy and sell cryptocurrencies.
To verify your Kraken crypto exchange account, click “Verify account“.
You can prepare the following before
- Mobile phone number
- First and last name, as written on your ID document
- Date of birth (must be at least 18 years of age)
- Address
- Occupation
You will then need to photograph yourself(selfie) and submit identity documents, proof of residence documents.
1: An identity document, which could be:
National ID (front and back)
Passport (information page)
Driver’s license (front and back)
2: A proof of residence document, which could be:
Utility bill
Bank statement
Credit card statement
Proof of residency certificate
3: Residents of the US and South Africa will also be asked to provide a face photo.
Kraken explain each step in detail as you do the verification procedure.
Once your verification procedure is complete, Kraken will review all documents and update your verification status.
How to Deposit Fiat EUR or USD to Kraken?
Step-by-step guide on how to deposit fiat EUR or USD to your Kraken account
- Login to your Kraken account
- Click on “Funding” in the top menu
- Click on the arrow pointing down for a deposit in EUR or USD. See the screenshot below
Next screen you will see to appear is like the screenshot below
4. Here you can change the currency to deposit. We still want to deposit EUR
5. Chose between deposit or withdraw
6. Enter the amount you are about to deposit
7. Select SEPA, Wire, or SWIFT transfer. For EUR deposits SEPA is preferable.
8. Now, check all the bank details and go to your traditional bank to make a SEPA transfer. Make sure to include the Kraken reference marked as “REQUIRED”.
Kraken Crypto Exchange Pros and Cons
Pros
- Regulated US exchange
- Many trading pairs (for a reg. exchange)
- Low trading fees (Compared to Coinbase)
- Kusama and Polkadot parachain auctions
- Staking rewards
Cons
- Complex interface
- Limited features (Compared to Binance)
Kraken USA Crypto Exchange Review Summary
If you are looking for an exchange that facilitates a number of fiat and cryptocurrencies, then Kraken is a place to go. With low fees and deep liquidity, the exchange has established itself as a trustworthy partner.
Kraken is a great crypto exchange if you are looking for a regulated crypto exchange and especially if you live in the US.
However, if you are ready to sign an unregulated exchange in favor for many more features and even lower fees you might want to check out our Binance exchange review.
