America has a mixed reputation as a cryptocurrency destination. However, it hosts some of the largest and most prominent crypto exchanges, one of which is Kraken. It is one of the most recognized crypto exchanges worldwide.
So if you’re in the US (or anywhere in the world!) and looking for a crypto exchange to use, Kraken is one to consider.
What is the Kraken?
Kraken is a household name in the crypto space. It is one of the world’s best crypto exchanges and one of the oldest. The exchange was established in 2011 and currently serves over nine million users from more than 190 countries.
Kraken is a fully regulated exchange that complies with the laws of the United States and is one of the few exchanges that US residents can use. You can buy, sell and trade different cryptocurrencies on this exchange at relatively low fees.
The exchange’s primary mission is to accelerate the adoption of cryptocurrencies to bring financial freedom to the many unbanked in the world, which explains why its services are available to hundreds of countries globally.
Kraken is a crypto trading platform
Kraken is primarily known as a crypto trading platform where you can buy, sell or trade cryptocurrencies such as Bitcoin, Ethereum and others. It offers these services in various ways, including over-the-counter sales, spot sales and more.
OTC
OTC means over-the-counter, a type of crypto trading where you can easily buy cryptocurrencies without going through the complexities of the crypto exchange if you don’t have to.
Kraken offers deep liquidity, private and personal services to institutions and high net worth individuals who need to fill large orders that may be too disruptive if placed in open markets on exchanges.
You can access this service 24/7 if you live in the Americas, Europe or Asia Pacific, except for major holidays.
Spot
Using Kraken’s Spot trading, you can buy cryptocurrencies instantly at the current price and get your assets on the spot. It is another way to easily buy cryptocurrencies without too much complexity.
Futures
Kraken offers seamless, flexible futures trading. There is also a high-performance API for programmed trading. In addition, with the Kraken Futures Multi-collateral benefit, you have a variety of collateral that you can use to open new positions or maintain existing ones.
This is facilitated by the Multi-Collateral Futures Wallet, which allows you to use different types of collateral to manage all your positions without having to move funds around.
Crypto Staking on Kraken
Crypto staking is a popular way to earn passive income with digital assets. You can earn rewards on your crypto holdings with Kraken, with some offering up to 23% annual returns. You can receive reward payments twice a week and cancel at any time.
There are currently 15 cryptocurrencies available for staking, including Bitcoin, Tezos, Solana, Cardano, Polkadot, Tron and many more. Most of the listed cryptocurrencies are among the best cryptocurrencies for betting. All you have to do is register with a few clicks and select your desired cryptocurrency to start betting.
What are Kraken’s fees?
Kraken’s fee schedule mainly discourages the conversion of cryptocurrencies to stablecoins, as it charges much more for such transactions, depending on your trading volume in the last 30 days.
Stablecoin fees
| 30-day volume (USD) | Maker | Taking |
|---|---|---|
| $0 – $50,000 | 0.20% | 0.20% |
| $50,001 – $100,000 | 0.16% | 0.16% |
| USD 100,001 – USD 250,000 | 0.12% | 0.12% |
| USD 250,001 – USD 500,000 | 0.08% | 0.08% |
| USD 500,001 – USD 1,000,000 | 0.04% | 0.04% |
| $1,000,000+ | 0.00% | 0.00% |
For Kraken Pro, the receiver and producer fees are quite small, depending on your trading volume in the last 30 days.
Kraken Pro Fees
| 30-day volume (USD) | Maker | Taking |
|---|---|---|
| $0 – $50,000 | 0.16% | 0.26% |
| $50,001 – $100,000 | 0.14% | 0.24% |
| USD 100,001 – USD 250,000 | 0.12% | 0.22% |
| USD 250,001 – USD 500,000 | 0.10% | 0.20% |
| USD 500,001 – USD 1,000,000 | 0.08% | 0.18% |
| USD 1,000,001 – USD 2,500,000 | 0.06% | 0.16% |
| USD 2,500,001 – USD 5,000,000 | 0.04% | 0.14% |
| USD 5,000,001 – USD 10,000,000 | 0.02% | 0.12% |
| $10,000,000+ | 0.00% | 0.10% |
Fees are quite high for buying crypto using payment cards and digital wallets, at 3.75% each. However, online banking and ACH processing is a good option that only charges 0.5% for instant purchases.
Fees for instant purchase
| Kraken fee | Processing fee for payment cards | Processing fee for Digital Wallet payments | Online Banking/ACH Processing Fee |
|---|---|---|---|
| 0.9% fee for all stablecoins 1.5% fee for other crypto or currency pairs | 3.75% + 0.25c | 3.75% + 0.25c | 0.5% |
Support for institutional investors
Kraken is also known for its support of institutional investors. Remember their OTC, which is mainly designed for institutional investors? Through this feature, institutions can enjoy fiat and crypto funding options with high monthly limits, including fiat funding in 7 global currencies, via multiple international partners.
They can also have 24/7 access to Kraken’s dedicated institutional relations and account management team via email, phone or a preferred encrypted messaging service. Kraken staff looking after institutional clients are deliberately selected to suit their needs to get the best support when needed.
Is Kraken safe?
If there’s any bragging rights the Kraken has, it’s the fact that it has never been breached in its 11 years of operation. This means that the stock exchange’s security is top notch and has set a standard for other exchanges in the space through its extensive checks.
These controls, like 2FA, were put in place to ensure that there is no theft of financial assets or information.
Developer grant
Since its main mission is to promote the adoption of cryptocurrencies, Kraken offers a development grant to support developers in the crypto space. Developers can apply for quarterly open source developer grants awarded by Kraken to help them fund their dream development projects.
For grant purposes, priority is given to Bitcoin (BTC), Ethereum (ETH), Lightning (LN), Monero (XMR), Other public cryptocurrencies and Rust developers.
Affiliate program
To reward those who help bring new crypto users to the platform, Kraken has an affiliate program that pays its customers 20% of the trading fees paid by people they refer to the platform for the period they use Kraken. The fee calculation includes spot trading fees, margin opening fees and margin transfer fees.
Affiliate rewards are paid directly to your bank account by wire transfer instead of in crypto. You will receive the payment in your standard bank currency.
To participate, you must have a finance or crypto-related social media account with at least 5,000 followers (a Facebook group with this number of followers will also serve). You can also use a financial or crypto related website or mobile app with any amount of traffic.
Should you use Kraken?
If you’re in the US or want to enjoy some of the features on the list, Kraken is a good choice. The fees are modest compared to Coinbase, the largest US crypto exchange, and the security is second to none.
