Kraken is a reputable cryptocurrency exchange that has been around for almost a decade. It is a solid option with a lot of advantages.
Founded in 2011 and launched in 2013, Kraken is one of the largest and oldest exchanges in the world. And he had his eyes on safety from day one. The fact that it hasn’t been hacked for eight years speaks for itself.
The US-based exchange has always led the industry when it comes to security. It enjoys both physical security and financial stability. In addition, it pushes users to adopt healthy security habits.
Range of cryptocurrencies
Kraken has nearly 60 coins and processes seven fiat currencies. It’s not the largest selection of digital currencies you’ll find, but it compares to some of the best cryptocurrency exchanges. And that’s a step up from many brokers who only offer a handful of well-known coins. Kraken also benefits from high liquidity, which means it’s easier to buy and sell at a fair price.
Kraken works by using currency pairs and not all of its currencies are exchangeable for each other. What is a currency pair? Imagine that you are going on vacation to Germany and you have to exchange your dollars for euros. It is a currency pair. If you are using dollars to buy Bitcoin or Bitcoin to buy Ethereum, you are always exchanging one currency for another.
Advanced trading features
Kraken is one of the few exchanges that offers crypto margin, stop orders, and short sales. He also has something called a dark pool where high volume investors can trade anonymously. Kraken allows you to leverage a currency pair up to 5 times and allows qualifying business clients to access a margin of up to $ 500,000. Before you get too excited, margin trading can be risky. You basically borrow money to invest.
Let’s say you invest $ 100 in Ethereum. You decide to use this 5x margin. If Ethereum goes up in value, you multiply your gains by 5. But if Ethereum goes down in value, your losses will also be multiplied. Cryptocurrencies are already a risky investment and the use of margin exponentially increases this risk.
Kraken’s fees are comparable to those of many exchanges. It’s not the cheapest on the market, but its maker-taker fees are lower, for example, than Coinbase. Trading fees differ from exchange to exchange and often depend on how much you trade each month. See how much it will cost you to deposit and withdraw money as well as what you will pay for each transaction.