What is Kraken? Detailed review of Kraken information

Last updated: January 8th, 2025

Kraken is a legendary name, having become a “super monster” in the cryptocurrency world. With a long history, Kraken has witnessed the explosion and development of the cryptocurrency market. By providing a professional, secure and diverse trading platform for cryptocurrencies, Kraken has attracted millions of investors globally. Let’s explore with Crypto568 why Kraken is known as the “giant octopus” of the cryptocurrency market.

What is Kraken?

Launched in 2011, Kraken is the brainchild of Jesse Powell and has quickly grown to become one of the guiding lighthouses for the global cryptocurrency community. With more than 6 million followers spread across 190 countries, Kraken has become a bustling cryptocurrency empire, where hundreds of cryptocurrencies are traded, from pioneers like Bitcoin and Ethereum to emerging coins.

The event of Kraken officially joining the Bloomberg Terminal system in March 2021 marked an important milestone, bringing the name of this exchange to a higher position. The fact that Kraken’s data is displayed on Bloomberg Terminal (the world’s most reputable financial instrument), not only confirms Kraken’s leading position but also opens a new chapter for the cryptocurrency market, bringing it closer than with traditional financial institutions.

Financial instruments on Kraken

Along with industry giants such as Coinbase and Binance, Kraken has affirmed its position with a diverse and professional service ecosystem. From a friendly interface and dedicated customer support to top-notch security features, convenient e-wallets and smart mobile apps, Kraken gives investors a complete trading experience. With a portfolio of more than 200 cryptocurrencies and 600 trading pairs, Kraken offers a vibrant, diverse market.

Kraken is a comprehensive financial ecosystem with countless diverse transaction options, meeting the needs of all investors:

Spot Trading: As a solid platform, Kraken provides a vibrant spot trading market with a wide range of popular cryptocurrency pairs, allowing investors to buy and sell instantly quickly and conveniently.
Leverage trading: With the leveraged trading feature, Kraken offers the opportunity to significantly increase profits for brave investors who are willing to accept higher risks to achieve their financial goals.
Futures Trading: To meet long-term investment needs, Kraken provides a futures market, allowing investors to predict and trade on future price movements of cryptocurrencies .
OTC transactions: For large and complex transactions, Kraken provides OTC services that provide maximum privacy and flexibility for institutional investors and individuals with large assets.
Staking: Kraken is an attractive staking platform that allows investors to both hold assets and earn passive rewards in a sustainable way.
NFT Marketplace: With the birth of the NFT marketplace, Kraken has ushered in a new era where unique digital works of art and collectibles are traded and exchanged in a transparent, secure manner .
API application programming interface: Thanks to its powerful API, Kraken is an open platform, allowing developers to build and integrate innovative trading applications, expand connectivity, and interact with the community electronic money.
Indices: Based on solid and reliable data, Kraken’s indices provide an accurate, comprehensive picture of the cryptocurrency market. With price data updated every second from CF Benchmarks, you always capture the smallest fluctuations in the market, ensuring investment decisions are made quickly and accurately.
Account management: Kraken gives investors absolute control over their accounts. With advanced account management tools, you can easily monitor, analyze and adjust your investment strategy flexibly to meet all market situations.
Cryptowatch: Cryptowatch offers a comprehensive trading platform that meets every trader’s needs, from beginners to experts. With Cryptowatch, you can access a treasure trove of market information, in-depth analysis tools and advanced trading features, helping you make informed investment decisions.

Kraken verification levels

Kraken, with its vision of building a secure and trustworthy trading platform, has established a sophisticated multi-level verification system. Each level, corresponding to a different level of authentication, opens up new trading limits, giving users a diverse and flexible investment experience.

Level 0: At this level, users can only get acquainted with the interface and basic features of the exchange. This is the ideal start to learning about the world of cryptocurrency.

Level 1: When upgrading to level 1, users are ready to participate in the cryptocurrency market. With basic personal information, you can make internal transactions with cryptocurrencies available on the exchange.

Level 2: Level 2 gives users more options when trading. Depending on each country’s regulations, you can deposit and withdraw funds in both cryptocurrency or fiat currency.

Level 3: For investors with large transaction needs, level 3 requires users to provide more stringent identity verification information. This helps ensure security as well as transparency for transactions.

Level 4: This highest level is reserved for large organizations and investors. With unlimited transaction limits and specialized support services, Kraken has become a trusted partner of many businesses in the cryptocurrency sector.

Fees at Kraken

The fee structure on Kraken is designed to be flexible and transparent, customized according to each transaction and user activity. Fees range from 0 to 0.26%, depending on the cryptocurrency and trading volume. When you decide to “withdraw” from Kraken, you will have to pay the corresponding withdrawal fee, ranging from 0.001 BTC to 5 USD. This can be considered a small “exit” fee in exchange for the safety and security of assets.

Especially for investors who like challenges with margin trading, Kraken brings a pleasant surprise. Instead of applying direct fees, they will apply a flexible interest rate mechanism. Imagine you are borrowing money to strengthen your trading, the interest you pay will change according to market movements. This is what makes margin trading on Kraken attractive and competitive.

Kraken exclusive tools

Kraken is a technology universe with powerful tools, ready to serve sophisticated investors. Kraken’s two most prominent tools, API and Kraken Dark Pool, open new doors for cryptocurrency trading.

API

API or application programming interface is the universal key that helps you access Kraken’s huge data treasure. With Public API, you can freely explore market information such as price, trading volume, volatility, etc. And with Private API, you can completely automate the trading process, from placing orders, managing portfolios to implementing complex strategies.

Kraken Dark Pool

For professional investors who own large amounts of cryptocurrency and want to make transactions discreetly, Kraken Dark Pool is the ideal place. Here, you can trade popular currencies such as Bitcoin, Ethereum, Ripple without fear of being affected by price fluctuations on the main market. All transactions take place in a safe and secure environment, ensuring absolute privacy for information.

Advantages and disadvantages of Kraken

Launched in 2011, Kraken has gone through many ups and downs and has always stood firm in the market thanks to many outstanding advantages:

Top security: With a solidly built security system, Kraken gives users peace of mind when trading. Multi-layered security measures such as two-factor authentication and cold wallets help prevent any risk of intrusion.
Rich cryptocurrency treasure: Kraken supports trading in a variety of cryptocurrencies, meeting the investment needs of many investors.
Professional trading tools: Friendly interface along with a modern set of analysis and order placement tools help investors make accurate trading decisions.
Friendly, easy-to-use interface: Kraken is designed with an intuitive, friendly interface, so even beginner investors can easily get used to it and perform transactions quickly and accurately. body.
Abundant liquidity, competitive trading fees: With deep liquidity and low costs, Kraken brings you the best trading opportunities, helping you maximize profits.
Diverse, flexible trading: Kraken offers a wide range of trading pairs, including both popular cryptocurrencies and new trading pairs, to meet the diverse needs of investors. The Margin deposit feature with leverage up to x5 helps you make the most of market opportunities.
Global scope of operations: Kraken is present in many countries around the world, providing services to millions of users. With the convenient mobile app, you can trade anytime, anywhere.

However, besides its outstanding advantages, Kraken also has some limitations:

High transaction costs: Kraken’s costs can make some investors feel shy, especially those who frequently trade large amounts.
Withdrawal limits: Kraken’s daily and weekly withdrawal limits are quite modest compared to some other exchanges.
Limited products: Compared to competitors, Kraken does not provide diverse investment products.
Rigorous verification process: To ensure safety, Kraken requires users to provide a lot of personal information during the registration process.
Mobile application is limited: Although the Kraken mobile application has been launched, it is still not really complete and diverse in features.
About margin trading: The margin leverage ratio on Kraken is quite modest, limiting profit maximization and risk management ability for experienced traders.

Instructions for using Kraken

With high security, easy-to-use interface and support for many cryptocurrencies, Kraken attracts many users. To start trading on Kraken, you need to take some basic steps including registering an account, setting up security, and depositing funds to the exchange. Below is a detailed guide on the steps necessary for you to start trading on Kraken:

Sign up for Kraken

To start your investment journey on the Kraken platform, you need to follow these steps to create an account:

Step 1: Visit Kraken’s homepage at https://www.Kraken.com/vi-vn/ and click the “Register” button.
Step 2: Fill in all personal information in the registration form, choose a password strong enough to protect your account.
Step 3: Review the entered information and agree to Kraken’s terms of service. Then, click “Register” to submit the request.
Step 4: Check your inbox and find the activation email from Kraken. Click the link in the email Kraken sent to complete the registration process.

Two-factor authentication

To ensure absolute security of your account, you should enable two-factor authentication (2FA). This feature acts as a second layer of security, helping to prevent unauthorized access to your account.

Step 1: On your personal page, you will find the “Security” section. Click on it and select “Two-factor authentication”.
Step 2: You can use popular authentication applications such as Google Authenticator or Yubikey to generate authentication codes.
Step 3: Enter the authentication code generated by the application into the corresponding box on Kraken to complete the setup process.

How to deposit money into Kraken exchange

To start your investment journey on the Kraken exchange, you need to deposit money into your account:

Step 1: Log in to your Kraken account and go to the “Deposit” section.
Step 2: From the list of supported cryptocurrencies, select the currency you want to deposit.
Step 3: If this is your first deposit of that currency, create a new wallet address by clicking “Create deposit address”.
Step 4: Carefully copy the exact wallet address and related information displayed on the screen. Each cryptocurrency may require different information.
Step 5: Paste the copied wallet address into the platform or e-wallet you are using to deposit. Please carefully check the information before sending to avoid losing money.
Step 6: Wait a few minutes for the transaction to be confirmed on the blockchain. After the transaction is completed, your funds will be updated to your Kraken account.

Kraken deposit and withdrawal options

Kraken is famous for its flexible deposit and withdrawal system, meeting all investors’ needs. With a diverse portfolio of currencies including popular fiat currencies and a range of leading cryptocurrencies, Kraken offers a seamless, secure trading experience.

Kraken supports a wide range of deposit and withdrawal methods, from traditional bank transfers to modern e-wallets. Users can freely choose the method that suits their needs and preferences:

Cryptocurrencies: Direct deposit and withdrawal of popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Ripple,….
Bank transfer: Deposit money directly from your bank account, suitable for beginners.
Credit/debit card: Instant deposit, however fees may apply.
E-wallet: Use popular e-wallets such as PayPal, Skrill to enhance transaction security.

Kraken constantly updates and improves payment methods to meet changing market needs. Regularly checking the latest information on the platform will help you stay informed of incentives and fee changes.

Some worrying issues about Kraken floor

Kraken is facing serious legal challenges due to its failure to fully comply with state regulations. This not only affects the reputation of the exchange but also raises questions about the sustainability of the current business model and can lead to many serious legal consequences.

In New York state

In August 2015, Kraken decided to withdraw from the New York market to protest the state’s overly restrictive BitLicense regulation. The BitLicense, with its strict transparency and compliance requirements, is designed to closely monitor the operations of cryptocurrency businesses. However, Kraken believes that this regulation is too restrictive and hinders the development of the industry.

In 2018, the New York consulate general prosecutor’s office published a report severely criticizing cryptocurrency exchanges, including Kraken, for shortcomings in customer identity verification and anti-money laundering. . In response to these allegations, Kraken refused to cooperate with the investigation, and publicly expressed disagreement with NYAG’s approach. Executive Director Jesse Powell criticized NYAG for making subjective and unsubstantiated assessments.

At the OFAC office

In November 2022, the Office of Foreign Assets Control (OFAC) reported that Kraken, one of the leading cryptocurrency exchanges, had seriously violated US sanctions on Iran. . Specifically, OFAC discovered that Kraken had conducted more than 826 transactions, equivalent to about 1.68 million USD, for individuals with links to Iran, in clear violation of anti-money laundering (AML) regulations and sanctions. America.

Despite denying all allegations, Kraken decided to settle the case with OFAC by paying a fine of $362,158.70. At the same time, the company also committed to invest an additional 100,000 USD to improve the sanctions compliance control system, to ensure that similar violations do not occur in the future.

At the SEC

The US Securities and Exchange Commission (SEC) has repeatedly taken Kraken to court. In February 2023, the SEC accused Kraken of violating securities laws by offering staking services without registration. This regulatory agency affirmed that the operating model of the staking program at Kraken is essentially a form of unregistered securities offering. Despite completely denying the allegations, Kraken decided to settle the lawsuit with the SEC to avoid lengthy legal troubles.

Following the previous lawsuit, the SEC once again sued Kraken, accusing the exchange of operating a variety of financial services without the necessary licenses, including an unregistered securities exchange. According to the SEC, Kraken’s marketplace trading platform has enabled people to invest in assets considered securities. Therefore, Kraken must comply with stock exchange regulations.

Faced with the new accusations, Kraken once again affirmed that the exchange’s operations are completely legal and has decided to take the case to court to protect the company’s rights. However, in February 2024, the exchange filed to settle the lawsuit, signaling a change in Kraken’s legal strategy.

Frequently asked questions about Kraken

What coins can be traded on Kraken?

Kraken is proud to offer a variety of the world’s leading cryptocurrencies, including familiar names such as Bitcoin (XBT), Ethereum (ETH), Litecoin (LTC),… With a diverse investment portfolio This, Kraken meets the investment needs of every investor.

How much are Kraken transaction fees?

Kraken applies an extremely competitive trading fee structure, with only 0.26% for buyers and 0.16% for sellers for USD, JPY, EUR, GBP cryptocurrency pairs. This preferential fee helps investors optimize profits on each transaction. In particular, with a volume of 10 million or more, Kraken also generously waives transaction fees completely, creating favorable conditions for large investors.

Who is Kraken suitable for?

With tons of advanced features like margin and short selling, Kraken is ideal for investors looking to explore more complex trading strategies. Although the interface can be a bit complicated at first, once you master the platform, you will have powerful and flexible trading tools at your fingertips, making the most of the opportunities in the cryptocurrency market.

Does Kraken operate in the US?

Kraken, as a leading cryptocurrency exchange, has expanded its operations to many countries. However, due to differences in legal frameworks, especially in the US market, some features and services may be limited to ensure compliance with current regulations. This may affect the trading experience of users in the US compared to other regions.

Conclusion

With outstanding advantages in security, liquidity and product diversity, Kraken has affirmed its leading position. However, like all investment tools, Kraken also has its own limitations. Choosing the right trading platform depends on each individual’s needs and investment goals. Please learn carefully about the Kraken platform to prepare useful information to help you make wise decisions.