Kraken Review – Best Crypto Exchange for the US?

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Kraken Exchange Review is in! We are not kidding when we say this could be one of the best crypto exchanges for US residents. I would say this is one of the longest-running exchanges and only has improved through the years. Coinbase started in 2012 but Kraken Exchange started way back in 2011!

It was founded by Jesse Powell. He started it out of concern for the old MT. GOX, which at the time controlled most of the cryptocurrency trading throughout the world. His concerns were spot on! He always has been a straightforward, low-key individual in the crypto space, basically no BS…

What Makes the Kraken Crypto Exchange Stand Out?

The Kraken Exchange Review might be the focus but the star of the show is really Jesse Powell. He has been the prime reason for Kraken’s success and continued patronage in our view. He is a talented forward-thinking cryptocurrency geek of the top echelons of our crypto space.

The Kraken Exchange alone is, at best, middle of the road. This is because it offers trading of popular cryptocurrencies like Bitcoin, Ethereum, Solana, and others while effectively managing funding fees, a good balance of ease of use, education, and security. However, the fees are a bit too complex and confusing. This exchange seems to now be primarily courting corporate customers.

Kraken Exchange Review: Jesse Powell

In the Kraken Exchange Review, we want to focus on Jesse Powell, as he is the main reason for our enthusiasm for this cryptocurrency exchange. In the early days of crypto trading, he was a key supporter of not only cryptocurrency but the trading of it. I remember back in 2011 trying to understand the value proposition of Bitcoin with little success.

The Kraken exchange was easy to use and follow the prices of bitcoin, and later it became my first intro to buying/selling cryptocurrencies. Prices back then were all over the place, with low liquidity, and extreme price swings. It could make a sailor or rough seas seasick watching the price moves.

I never felt comfortable with overseas exchanges like Mt.GOX or any of the Asian exchanges as I thought of them. Through the years, I was proven right with all the hacks and outright thefts, which were inside jobs anybody paying attention could see. Greedy people. “Karma will get them, as a man without honor is not really a man.”

Jesse Powel Steps Down as Kraken Chief

Jesse Powel and the way he has changed the crypto industry remain to be one of the most important reasons we consider Kraken to be a high-quality exchange. However, we knew he couldn’t always be at the helm of the exchange. He stepped down in September 2022, opening the way for COO Dave Ripley to take over as Kraken’s CEO.

This Kraken Exchange review is about context, remember. Jesse Powell created a secure crypto exchange with a desire to support and grow the crypto community. Pure and simple, it can be seen in all Jesse Powell has done. In an uncelebrated, low-key way in which he operated. We are yet to see how the exchange operates under the new leadership.

Jesse Powell MT.Gox History Lesson

If you want to see a great broadcast of Jesse Powell talking about Kraken and the history of Bitcoin/Cryptocurrency. Please check out this podcast of “What Bitcoin Did“. An amazing talk about the nuance of crypto and how corrupt some parts of our own government are. Showing how NYDIG is a pure political joke where crony capitalism rules. At some point that will have to be dealt with in the future and overcome.

Jesse Powell may be understated, but he is a hero in the cryptocurrency world. This Kraken Exchange Review would not exist if it was not for his good work in the space. He deserves credit.

We will go on in more detail from here about Kraken in our exchange review, but know that Jesse Powell built a white hat secure, easy-to-use crypto exchange for all of us. He did it against the will of political goofballs and the crony capitalists that still corrupt our space trying to hold back the blockchain world.

Kraken Crypto Review: Transparency & Proof of Reserves

The collapse of FTX sent shockwaves across the crypto industry in 2022, shaking investor confidence. Many exchanges have since reiterated that they are unaffected by the FTX crisis, but those are just claims. The sudden downfall of one of the largest crypto exchanges has left traders questioning the safety of their funds, leading other platforms to scramble and prove they aren’t on the same path as FTX.

Kraken stands out in this environment by demonstrating a high level of transparency and due diligence. The exchange conducts regular Proof of Reserves (PoR) audits, ensuring it holds the assets it claims on behalf of its users. These audits, conducted by Armanino LLP—a top 25 accounting firm—provide verifiable proof that all customer funds are fully backed, giving clients peace of mind that their assets are always available. This level of transparency is particularly important for reducing counterparty risks, which have plagued other exchanges.

Additionally, Kraken’s advanced platform offers a range of advanced features tailored for experienced traders. These features, combined with a broad range of cryptocurrencies, make Kraken appealing to users seeking diverse trading options. Beyond just crypto assets, Kraken has started offering crypto asset securities as the market matures, ensuring it keeps up with evolving crypto markets.

Kraken has also been recognized as one of the few crypto platforms to register as a clearing agency, adding a layer of legitimacy and operational rigor to its services. Despite these strengths, it’s important to note the inherent risk of loss when trading digital assets. Kraken provides various educational resources to help traders mitigate risks, but as with all investments in volatile markets, losses can occur.

While Kraken generally enjoys a solid reputation for its security measures and transparency, it hasn’t been without negative reviews. Some users have expressed concerns regarding the platform’s usability on mobile devices and, in rare cases, issues related to withdrawals for security reasons. However, these criticisms are often outweighed by Kraken’s robust security framework, which prioritizes user protection over convenience.

Kraken’s regular Proof of Reserves audits, coupled with its advanced features for experienced traders and commitment to transparency, set it apart in a volatile industry. With a focus on minimizing counterparty risks and ensuring the safety of crypto assets, Kraken continues to build trust within the community, distinguishing itself as a secure and reliable platform amidst growing concerns in the industry.

Kraken Exchange Fee Structure

Kraken’s fee structure, while robust, is generally more favorable to capital-rich crypto investors and experienced traders than to those just starting out. It’s not as steep as the current Coinbase Pro fees for smaller crypto investors, but it’s also not as competitive as Binance for those with limited capital. Kraken’s tiered system of fees, including maker fees and taker fees, can feel overly complex and would benefit from a more straightforward approach.

For larger, advanced traders, Kraken’s fees can be quite attractive. High-volume traders can benefit from reduced transaction fees as their trading volume increases. For example, those trading in large amounts using spot trading or limit orders can reduce their fees significantly, with the maker fee potentially dropping to 0% for those who meet certain volume thresholds. So, if you have millions to trade, Kraken can provide a highly competitive environment with minimal maker fees and reasonable taker fees.

While Kraken is often perceived as a European-focused platform due to its strong support for Euro transactions and wide range of currency pairs, it is actually a U.S.-based major exchange headquartered in San Francisco.

Margin Rates

Kraken’s complex fee structure, especially for margin trading fees, seems to align better with high-net-worth individuals, particularly in Europe, where margin trading is allowed. However, in the U.S., Kraken does not offer margin trading, sparing American users from the associated fees, which some might find prohibitive.

When it comes to Kraken’s margin trading fees, they are less appealing. Their 4-hour margin funding rates can add up quickly, making margin trading costly, particularly for those in regions like Europe where this feature is available. Kraken’s fees for margin trading don’t offer much nuance or flexibility, which is a significant drawback for those looking to engage in margin trades across different crypto assets.

In summary, Kraken’s fee structure is geared more toward high-volume and advanced traders, offering competitive spot trading and transaction fees for those trading significant amounts, but the exchange’s complexity and higher fees may deter smaller or newer crypto investors. A simpler, more accessible fee schedule would likely broaden Kraken’s appeal, especially among retail investors.

Kraken Flash Crash & Trading Leverage

Now, this is a disappointment to me as a crypto trader. I have seen many instances of manipulation from all sorts of crypto trading exchanges, some of those crypto exchanges worse than others. Jesse Powell lost a lot of respect from the past of being a Crypto Hero of the space after everything that went down with MT.GOX. The way he handled the flash crash that happened in 2021 was not ok.

First, he said basically, “Too Bad, that is not our fault.” He was quick to defend the Flash crash, trying to say it was supply/demand dynamics, which equals pure bullsh*t to anybody with common sense and a decent amount of trading knowledge. He could have canceled all the trades, end of the story. For him not to = a profit motive from his side. Now if you don’t know the Kraken Exchange has only up to 5x in leverage, far behind many of the others with their 100x and some even higher.

Well, the only way for his exchange to profit off a flash crash is if it was extreme in nature! Is that not funny? This flash crash on Kraken was very extreme in nature! Honestly, his exchange should be investigated to see exactly who benefited from this. He did offer refunds of 5% to 50%, citing customer retention. I would like to see an investigation here, get a clear view of just how much was made or maybe lost by Kraken on this flash crash. This just reeks of exchange manipulation of the old Bitmex days.

Greed is the way of the dark side…

Firstly, you only have 5x leverage. Give us a _ucking break! Secondly, your trading volumes have great liquidity. So I don’t buy this, and any financial regulators should not buy it either. I hope Jesse Powell is not going to the dark side, as this is not cool. You don’t want to become like all of those you complain about, Jesse…

Margin and Futures Trading on Your Kraken Account

Kraken allows regulated futures trading and margin trading with up to 5x leverage. Kraken’s futures trading includes top cryptocurrencies like Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ripple.

Kraken’s futures trading option lets you trade these tokens with up to 50x leverage. You also get seamless transfers between Kraken’s Spot and Kraken Futures trading markets.

When it comes to margin trading, the Kraken trade engine lets you leverage up to 5x. It also offers advanced API access if you want an auto-trading bot to take over margin trading for you. Kraken has low rollover fees and high-margin trading limits, too!

All in all, this trading platform is efficient for both futures and margin trading, with a range of unique features that set it apart from the competition.

Kraken Pro: Focus on Institutional Investors

If you are an institutional investor, maybe out of America or Europe? Well, you will have an easy time with Kraken. Kraken Institutional is a premier platform for institutional investors, offering a wide range of services through Kraken Pro. Designed for trading firms, investment funds, and asset managers, Kraken provides advanced trading features like real-time market data, advanced order types, and API integration. Institutional investors can benefit from deep liquidity, crypto deposits, and multiple funding options across spot and futures markets.

Kraken also prioritizes security with robust custody solutions and a personal account representative to assist with negotiations. The platform offers full suite of institutional-grade Kraken products like staking, OTC, Spot trading, Futures, CF Benchmarks, and digital asset custody solutions, ensuring investors can execute complex strategies seamlessly.

This makes sense in several ways. Customer service wise they have a very good team, that is responsive and well respected in the crypto trading space. They are no-frills, efficient, and extremely responsive. From what I have heard as well, is they are deal makers. So if you are a big company and want to see what you can negotiate, well these are your guys!

Kraken Customer Support

In this Kraken Exchange Review, we highlight Kraken’s customer service performance, which continues to be a major strength. Based on recent experiences, Kraken’s customer service representatives have been prompt and helpful. The advanced trading platform, with multilingual customer service, integrates smoothly with customer support features, making it easier for users to get assistance while managing their accounts.

One key feature is the Live Chat system, where response times remain impressive. In several tests, it typically took 1-5 minutes to connect to a personal customer support representative. Kraken’s AI assistant, Kai, efficiently handles common queries, but for more complex issues, typing “LIVE PERSON” quickly routes the user to a human agent. This setup benefits both beginners and advanced users, providing timely support no matter the query

They don’t seem to want to really take any phone calls, which is something I like about Coinbase, they are always very easy to get on the phone. Still considering all the ways you can contact them and the fairly quick response they get higher marks here. Kraken compensates with robust digital support channels through its advanced desktop trading platform and mobile apps. These platforms are designed for advanced users, offering a seamless user experience when navigating both the trading interface and customer support.

The routing system used in Kraken’s customer service is highly intuitive. The AI chatbot first attempts to solve basic inquiries, and when escalation is required, the transition to a live agent is smooth. This well-designed system reduces wait times and ensures that users receive the help they need quickly. You use their site and it won’t be hard at all to get questions you want to be answered promptly.

Kraken also recommends accessing customer service through its mobile app for a smoother support experience. The advanced trading platform combined with professional and fast customer service representatives makes Kraken an excellent choice for both beginner and advanced users.

Kraken Exchange Review: Security

In our Kraken Exchange Review, security remains one of the platform’s standout features, comparable to major exchanges like Coinbase. Kraken has not experienced any major breaches, a testament to its robust security protocols. Unlike some overseas exchanges, Kraken is led by a team that is deeply committed to keeping the platform secure. Kraken Security has implemented multiple layers of protection to ensure that users’ assets and accounts remain safe.

Jesse Powell, Kraken’s founder, comes from a highly technical business and technology background, which has informed his approach to creating a secure platform. Powell was particularly driven by the lessons learned from earlier exchange failures, such as the notorious MT.GOX incident and has ensured that Kraken’s infrastructure is designed to avoid similar pitfalls. He has emphasized the importance of cold wallets, which store the majority of users’ assets offline, away from potential hackers. Kraken Security has also integrated two-factor authentication (2FA) and additional security measures, helping users maintain control over their accounts and crypto wallets.

Kraken also implements a highly secure advanced interface that caters to experienced users, providing them with confidence in handling large transactions and a variety of cryptocurrencies. Whether you are dealing with complex types of transactions or just buying and selling, Kraken Security ensures that every account is well protected.

For U.S. residents, Kraken remains one of the top choices, particularly as it complies with stringent regulations. While some have raised concerns about Kraken potentially operating as an unregistered securities exchange due to the wide variety of cryptocurrencies offered, Kraken has consistently maintained its focus on regulatory compliance and protecting its users’ funds.

Ultimately, security is only one piece of the puzzle. In today’s crypto landscape, ease of use, an advanced interface, and security features are all essential prerequisites. Kraken excels in these areas, offering cold wallets, two-factor authentication, and a dedicated focus on keeping accounts secure. The platform’s additional security protocols make it one of the best choices for both beginner and experienced traders.

Kraken Trading Interface

Here we do not have much to write about. The interface of the Kraken Exchange in our review is straightforward and dead simple. I would say it is fairly fast as well. When entering orders for execution it will be appreciated. They spent a good amount of time not trying to make it over-complicated.

They went for the speed and quick order execution. You can even if you look see small nuances of elements missing visually. This again from what I can see is an attempt to speed up the trading process. I like that as a user. No need for complications or fancy designs of trading interfaces.

The demo feature. Another great thing about Kraken is the ability to try out the Kraken Exchanges demo account feature. Of course the speed here is faster then actually routed orders. Still it shows the reducation in frills of this crypto trading interface being solid. You should notice speeds in actual orders vs other brokers like Binance which, well their speeds are pretty bad.

Also, note no reduction in order types or any other missing features to gain this speed. This is just good solid programming chops here.

Kraken Exchange Review: Supported Currencies & Payment Methods

Kraken is a secure platform for buying and selling a wide range of cryptocurrencies like Bitcoin, Ethereum, and many others. It’s a good choice for both beginners and experienced traders. They support various fiat currencies such as USD, EUR, GBP, CAD, and AUD, allowing users to deposit and withdraw money easily. The platform accepts debit card, credit card, bank transfer, and Wire Transfer payments. You can also use Apple Pay or Google Pay in some regions. Funding your account through a bank account is simple and available in most areas.

Payment and Withdrawal Policies

Kraken has a withdrawal hold policy to protect customer funds. If you use a credit card or debit card for your first purchase, you won’t be able to withdraw an amount equal to your purchase for 72 hours. This applies to both fiat currency and cryptocurrency, and it includes any additional purchases made during the first 72 hours.

Minimum Deposit and Funding Fees

Kraken has a minimum deposit requirement, which depends on the currency and the payment options you choose. The exchange also charges funding fees for deposits and withdrawals, which can vary based on whether you use a bank account, Wire Transfer, credit card, or other methods. If you are a frequent trader, you may get lower fees by using Kraken Pro, the advanced trading platform.

Advanced Trading Options for Frequent Traders

For users looking for more advanced trading options, Kraken offers Kraken Pro, which includes margin trading, futures, and staking. Frequent traders benefit from lower fees, detailed charts, and more trading tools to improve their experience and help them trade better.

Kraken Exchange Review: Education

In our Kraken Exchange Review, we noticed something new from Kraken of the past. First, they have an all-new education series. Second, they are now actively engaging through Telegram. There are many great crypto signals groups that use Telegram. You can check our complete post about the “best crypto signals on Telegram” as well.

The last time I checked their education/interactions in the space, it was minimal at best. So this is a nice new and engaged Kraken Exchange, which we welcome!

Telegram crypto signals are one of the most trafficked areas on many sites. People find it an easy way to communicate with each other about crypto trading education or crypto trading signals.

Another nice feature, if you are a Brazilian or Portuguese trader, is that they have some educational resources in Portuguese. Currently, the website offers versions in 10 languages in addition to the original English version.

A few words on geographic restrictions with Kraken

The reason we state that Kraken might be the best exchange for U.S. Residents is that it is available to trade in most U.S. states, has great security, and over 40 trading pairs. Alas, there are some issues though. Firstly, the ones with the United States. Secondly, with the rest of the world.

In the United States, Kraken has had to run a fine line. I really don’t know why this is the case, did they piss off someone in NYC? Hence, they do not have any onboarding in the Big Apple for possible clients. very sad, indeed. Also, if you live in Washington state, you can’t trade using Kraken!

From Kraken’s website: