Kraken Experience & Test 2021: Our Evaluation
10 Stars
The operators see Kraken as one of the largest Bitcoin exchanges, when trading in euros, Canadian dollars, American dollars, British pounds and Japanese yen.
We share our Kraken experience in this review and determine in more detail whether investing in Bitcoin with Kraken is worth it.
Furthermore, we take a look at the fees and the deposit and withdrawal options.
We also look at the currencies offered and the provider's security standards. There are also important warnings about the available app for mobile devices.
Can Kraken really be recommended without reservation or is there perhaps a better alternative to the English-language platform?
Our recommendation: Buy cryptos with eToro
Incl. wallet
Buy and sell cryptocurrencies directly in the wallet
Paypal, credit card and instant bank transfer
Regulated provider
Real cryptos or CFD trades
Kraken: Advantages and disadvantages at a glance
One advantage of this site is its security. The website has been named the safest exchange in the world several times and the operators seem to want to improve it even more.
You can make deposits with cryptocurrencies and fiat currencies.
The number of cryptocurrencies is rather mediocre compared to other exchanges.
Currently, Kraken has 40 tradable cryptocurrencies on offer!
The operators also charge no fees for some deposit types and only very low withdrawal fees. The platform also has a large number of trading pairs.
Furthermore, the website is very well designed and offers simple step-by-step instructions on every topic for every investor.
However, the transaction fees of some currency pairs are higher than other sites and should be factored in beforehand for any buying and selling.
The site also only offers trading in cryptocurrencies in the Kraken experience and has no stocks or commodities.
The operators also do not have their own wallet but now have an app for Android and iOS called Kraken Pro.
What is Kraken?
The bitcoin exchange Kraken emphasises three values in particular:
intuitive, professional and focus.
The operators see Kraken as one of the largest bitcoin exchanges, when trading euros, Canadian dollars, American dollars, British pounds and Japanese yen.
But what exactly is behind the company, which was founded in 2011 and has its headquarters in San Francisco?
Kraken's founder, Jessie Powell, describes his company's goal as follows:
"Our mission is to provide an exceptional bitcoin exchange experience".
Mission Statement Kraken
The licensed broker is also reviewed by BaFin and Tokyo's judicial administrator.
But what exactly does Kraken offer its customers? The website operators say that support should be available at all times, every day of the year, and that it is the most secure platform on the market.
They also claim to have very low Kraken fees and advanced transaction types.
Kraken Review - The offer
The founder, Jesse Powell, is considered a very influential person in blockchain development.
He has been working in the field of digital currencies for over 15 years and is an expert in cryptocurrencies and international payments online.
Kraken's offerings include:
Trading options
Market and limit
Stop loss
Take profit
Settle option
Combined order types
Settings
Conditional close orders
Order start time
Order expiration
P/L & Fee Currency
A detailed explanation of all trading options and possibilities can be found on the website under "Trading Guide" and under "Order Options".
Our recommendation: Buy cryptos with eToro
Incl. wallet
Buy and sell cryptocurrencies directly in the wallet
Paypal, credit card and instant bank transfer
Regulated provider
Real cryptos or CFD trades
Kraken Exchange: The functions
- Kraken offers users many different functions and everything is explained in simple step-by-step instructions.
- The website is currently available in English, Japanese, Chinese, Spanish, Portuguese, French and Turkish!
- You should therefore look up the most important technical terms beforehand and research them carefully.
- The platform offers something for new investors as well as for experienced traders.
- The trading options are very diverse and there are a large number of cryptocurrencies and some permitted fiat currencies.
- It would definitely be wise to consider the respective risks before choosing a certain type of trading.
The website also offers Cryptowatch
This is a trading platform with real-time data on cryptocurrencies, trading charts and various trading services. The data is sent directly from the cryptocurrency exchanges to Cryptowatch through their APIs.
The programme allows for visual representation of price changes and market trends. In addition, every user has the possibility to use popular charting tools and indicators.
One can connect Cryptowatch directly to the exchange used and make new transactions directly through this trading platform. Of course, the platform also offers signals via text message to mobile devices.
The Kraken cryptocurrencies
Trading pairs of digital currencies are only possible with Bitcoin or Ethereum at Kraken.
Of course, there is also a detailed list of all possible exchange pairs on the website and these can be found on the website under the tab "Trading Guide".
The following fiat currencies are offered on Kraken:
American Dollar
Euro
Canadian Dollar
Japanese Yen
British Pound
In addition, there are currently 20 cryptocurrencies on offer:
Augur | Dash | Gnosis | Ripple |
|---|
Open an account with Kraken
The first step for any new investor is to create an account.
The account creation process is also extremely simple and should not present beginners or experienced traders with any major challenges.
Of course, you can easily buy coins of different digital currencies through Kraken and also exchange them with each other.
Selling works in the same way as all purchases. However, if someone would like to buy the coin of the most popular cryptocurrency via PayPal, they will find the appropriate instructions under this link.
Step 1: Registration
To register, all they need is a valid email address, a desired username and a password.
The latter must be at least 8 characters long and contain a number, a letter and a special character. In addition, the country and time zone can be set.
You then agree to the terms and conditions and click on register.
After a short time, you should receive a confirmation e-mail and verify your e-mail account via the link sent to you.
Apparently, no Kraken fees are charged for the account opening and for the provision, but this point may be changed in the future.
You can only choose between English and Japanese in the menu. Security is very important on the website, which is why one has to perform a 2FA authentication before every login.
This is a common security measure that can be found at almost all exchanges.
Of course, technical updates can always lead to external changes in the trading platform, which is why you should always follow the step-by-step instructions provided.
Step 2: Select an amount and decide on a currency
First of all, you should choose the currency pair you want. Here you have the option of choosing fiat currencies or cryptocurrencies. You can find a detailed list on the Kraken website.
Of course, you also have to specify the desired volume and Kraken automatically displays the Kraken fees.
Of course, you can also have your purchased coins paid out into a private wallet. An overview of the best wallets can be found here.
There is only one thing to note here, that coins not accepted by the crypto wallet cannot be returned to Kraken. This means that they are lost forever.
The reason for this is that the withdrawal wallet at Kraken is different from the deposit wallet.
So you should definitely check beforehand whether your personal wallet also supports the traded coins and open a new digital wallet if necessary.
Step 3: Checking the data and completing the purchase
After connecting your electronic wallet to Kraken's account, you can deposit and withdraw your cryptocurrencies at will.
Of course, each transaction takes a certain amount of time to complete and in case of any problems, one should contact the customer service of Kraken or the respective wallet.
Our recommendation: Buy cryptos with eToro
Incl. wallet
Buy and sell cryptocurrencies directly in the wallet
Paypal, credit card and instant bank transfer
Regulated provider
Real cryptos or CFD trades
Kraken payment methods
Deposits can be made by bank transfer. The method of transfer depends on the country of origin and the desired currency.
You cannot deposit British pounds and Japanese yen, but you can make transactions with the money.
Most bank transfers take between one and five days. Of course, the website has deposit limits:
For euros via European transfers, you have to deposit at least €1 and you don't have Kraken fees.
However, as soon as you have the same currency credited to your Kraken account via international transfer, you have to deposit at least €50 and have Kraken fees of €5.
It works the same way with American dollars, but the limits are different here. However, the fees are always five American dollars.
Kraken deposits and withdrawals
As soon as you want to transfer the credit from your account back into your bank account, you have to pay a minimum withdrawal amount and certain fees.
In order to be able to calculate how high the Kraken fees will be beforehand, you should look them up in the FAQs according to our Kraken experience.
On average, a withdrawal takes between one and five working days. It should be noted, however, that withdrawals to another institution are not authorised.
This includes, for example, Neteller, PayPal, The Currency Cloud, Earthport, Revolt, Transferwise, etc.
You can only make a withdrawal to the same bank account from which the deposit was made. This system is designed to prevent money from being laundered on a large scale.
Since the withdrawal and deposit regulations can be very specific, one should be clear about the formalities from the outset.
If you are unclear, you should simply contact customer service and wait for their response before opening an account.
The website does not seem to support deposits of cryptocurrencies, but every user can withdraw their purchased coins into a private wallet.
Kraken Fees & Costs
providers | Octopuses |
|---|---|
Deposit | free of charge with SEPA transfer |
Crypto trading fees | Transaction dependent from 0.26% to 0.10% |
Payout (domestic) | 0.09 EUR |
Payout (international | 60 EUR |
Another important point is the fees charged by the platform operators. The website has a very detailed overview of all Kraken fees.
Fees are charged per transaction and depend on the assets used, the currency pair, the trading volume of the last 30 days and purchases or sales.
As a buyer, you usually have to pay a lower fee than the sellers.
If one also chooses the trading type "margin trading" on this platform, opening fees and rollover interest will apply. These types of fees are not discussed in detail here and can be viewed in more detail in the overview. The following example will explain the Kraken fees in more detail:
If someone would like to buy two BTCs at a price of $5,000, the trading volume of the last 30 days is $125,000 and one would like to calculate the purchase fees, Kraken fees of $22 will be incurred.
However, if you have a trading volume of one million US dollars, the Kraken fees are only $16.
So the higher the invested assets, the lower the costs to be paid.
The following table illustrates the maker and taker Kraken fees depending on the trading volume:
30-day trading 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% |
Of course, all monies incurred are listed before coins are bought or sold so that every user can factor them in.
The website works with very low Kraken fees, but these are significantly higher compared to other websites.
Our recommendation: Buy cryptos with eToro
Incl. wallet
Buy and sell cryptocurrencies directly in the wallet
Paypal, credit card and instant bank transfer
Regulated provider
Real cryptos or CFD trades
Security at Kraken
An important point when investing money is security.
The Kraken platform has been praised and awarded several times for its security measures. The website is also considered one of the most secure exchanges in the world. But what exactly do the operators of the platform do against attacks from outside?
First of all, the website offers a standard two-factor authentication.
For this, the user must connect his mobile device to the account. As soon as you want to log into your account, a random code is generated on your mobile phone, which you have to enter into the system on your laptop. Only then will you be able to access the trading platform.
Furthermore, if you forget your password, no contact details will be sent to the previously entered e-mail address. Every e-mail sent is also protected with PGP/GPG encryption. This is to prevent unauthorised persons from intercepting the message and reading the content.
Provided data is sent exclusively encrypted as far as possible and all systems are isolated from each other.
In the event of a possible attack on the platform, it is therefore more difficult for hackers to get hold of all the data they need. In addition, all data is duplicated and cached several times a day.
Last but not least, the clients' assets are kept in a separate safe deposit box/account and are separated from the company's money.
Of course, despite all the measures, it is advisable for any new investor to first see the platform for themselves.
The technology is changing so quickly that another website may be much more secure in a few months. At the moment, Kraken is considered to be the platform with the most modern security measures.
Kraken customer service our experiences
As soon as a user has a problem, he or she usually turns to the customer service offered.
Of course, Kraken also has a support centre. However, the first step should be to go to the FAQs.
Most of the time, the most important and most frequent questions are answered here and you will quickly find a solution to any difficulties.
However, if you do not find what you are looking for, you can also search online.
Often, other investors have had the same problem and have received help online from Kraken users.
But if all your efforts are in vain, you have the option of contacting the platform operators directly.
Either by live chat or by sending a request. In some Kraken reviews, however, there are reports of apparently poor support.
Of course, you should not take every Kraken experience at face value and perhaps just send a request to the customer service yourself.
The website offers very detailed step-by-step instructions for almost all problems and information is also provided on the different trading types, currencies, security, login and fees.
It should be noted here, however, that the support seems to be available in English only.
When I tried to contact them.
The Kraken App
In 2014, an iOS app for trading on the move was introduced. However, it was taken offline again in the meantime and was only available for download again in 2016.
If you search for Kraken App in the AppStore or on Google, you won't find it, only the Kraken Pro App exists, whereby the Pro is confusing here.
In our Kraken test, we could not discover any "pro" features within the app and the difference between a normal Kraken user and a Pro user is not obvious to us.
However, one can also access the website since August 2018 via mobile or tablet using the normal link and perform all transactions from there.
All other apps apart from Kraken Pro are not official from the platform and should be treated with caution. You should never enter your API key, username or password into the apps.
Therefore, if you make transactions through any app with the name Kraken, the customer service will not be able to help you and you should steer clear of any apps.
The story behind the Kraken Exchange
The company was founded on 28 July 2011 and released the Kraken beta on 3 May 2013.
The official trading platform was launched on 10 September 2013 and was named the number 1 Euro Exchanges, in terms of volume, on 16 February 2014.
In the months that followed, the website and the programmes behind it won several awards, including being honoured as one of the most promising start-ups in blockchain technology.
On 15 September 2014, the iOS application was released. American dollars and British pounds were added on 28 October 2014. The company manages to double Kraken's volume for the fourth time in three years.
Of course, in the 6 years since its inception, new currencies and technologies have continued to be added to present the widest possible range. On 1 March 2017, Kraken acquired Cryptowatch and launched a new trading platform.
year | occurrence |
|---|---|
28 July 2011 | founding |
May 3, 2013 | Kraken beta version |
September 10, 2013 | Official launch |
February 16, 2014 | Number 1 in the Euro Exchanges |
15th September 2014 | iOS application launch |
October 28, 2014 | Inclusion of American dollars and British pounds |
March 1, 2017 | Acquisition of Cryptowatch |
Is Kraken a scam?
Kraken is by no means a scam.
The platform is a licensed broker and is supervised. This is the Federal Financial Supervisory Authority (BaFin) and it is a federal agency with legal capacity with its headquarters in Frankfurt am Main and Bonn.
The Federal Ministry of Finance is also the supervising authority for them. You should be able to buy and sell coins of different currencies without any problems.
However, the website and trading platform is considered one of the safest on the market and has been mentioned several times in well-known magazines. These include the New York Times, the Wall Street Journal and many more.
Moreover, the founder is a real person who is very well known in the crypto world. the site also offers SSL encryption and two-factor authentication.
Kraken - The Conclusion
If you take a closer look at what the platform has to offer, you will quickly realise that it is rather midfield compared to other exchanges.
An average number of cryptocurrencies are offered and 5 different fiat currencies are supported.
However, you can't deposit with the Japanese yen or the British pound.
The withdrawal and deposit fees here are very low and significantly better than other sites. However, the operators charge higher fees for transactions.
The website offers countless step-by-step instructions to make it easier for new and experienced investors to get started. Furthermore, a lot of different types of actions are offered so that more users sign up on this website.
Unfortunately, the site is offered in almost no other language than English and the customer service is also only available in English. In the end, however, it can be said that Kraken is a reputable platform.
However, if you are looking for an alternative with better ratings, you should stick to our test winner eToro. With this broker, you can also follow successful traders and copy their purchases and sales.
Our recommendation: Buy cryptos with eToro
Incl. wallet
Buy and sell cryptocurrencies directly in the wallet
Paypal, credit card and instant bank transfer
Regulated provider
Real cryptos or CFD trades
FAQ
The provider is a crypto exchange where cryptocurrencies can be bought and sold.
Kraken was convincing in our test. The diverse trading possibilities and the excellent customer support attract many customers, most of whom are very satisfied with the provider.
The amount you invest should depend on your own liquidity, the cryptocurrency you choose and your own risk tolerance. In general, you should never invest money that you actually need elsewhere, as profits can never be guaranteed.
Here, too, the platform is convincing. Withdrawals are processed very quickly and are in your account within a few minutes to 2 business days, depending on the selected withdrawal method.
You should always know what you are investing in. Cryptocurrencies are highly volatile, so you should first get to know the chosen coin in detail. If you have the necessary know-how, as well as the occasional bit of luck, then nothing stands in the way of early profits.
