What Is Kraken?
Considered one of the largest Bitcoin exchanges based on the euro volume and the trading of the US dollars, Japanese yen, British pounds, and Canadian dollars. San Francisco based Kranken opened its doors in 2013 after two years of testing and is one of the oldest US-based centralized exchanges. Kraken offers more than 20 cryptocurrencies and 76 crypto-crypto/fiat pairs. They offer customers a more advanced trading platform that includes spot and margin trading so it may not be beginner-friendly if you are just starting out buying Bitcoin and other cryptocurrencies.
Kraken brags that they have the tightest security offered for an exchange and have never been hacked. After registering your new account and before logging in, you will be asked to set up and enter your 2FA that can be set up through an authenticator app or Yubikey device. You may also be prompted to enter the 2FA code when making deposits and withdrawals.
How Do I Buy Cryptocurrencies On Kraken?
Kraken has 3 levels of verification. You must be verified at one of these levels before you can deposit funds and buy cryptocurrencies.
- Starter lets you deposit, withdraw, buy/sell/trade, and trade with margin using digital assets only. All that is required is your full name, email, primary address, and phone number.
- Intermediate verification allows you to deposit, withdraw, and trade with fiat along with digital assets. This level gives you higher funding limits along with crypto futures trading. Requirements include your occupation, Social Security number, government-issued Id, proof of residence, and face verification.
- Pro-level accounts offer everything intermediate does plus personal funding, higher-margin limits, higher API limits, and over-the-counter trading. Requirements are the same as intermediate except for AML verification and selected financial statements are required.
The higher your verification level is, the higher the limits are. Once verified, simply follow these steps.
- First, sign in to your Kraken account
- From your dashboard, click the “Funding” option then choose the currency you wish to deposit and select a depositing method.
- If you qualify, you can transfer funds directly from your bank account. Lower level verified accounts can only deposit funds from one of their existing wallet addresses.
- Return to the main menu and choose “Trade” to select one of the available markets and trading pairs that you wish to trade.
- Kraken offers three options for trading. “Simple, Intermediate, and “Advanced”
- Now enter the amount that you want to trade for Bitcoin or other assets in the “Total” field.
- Select the “Submit Order”. Once your order is executed, your funds will be converted.
Pros And Cons Of Kraken
- Kraken offers low transfer fees. This makes them very appealing when wanting to save money.
- Margin Trading is allowed with up to 5X leverage.
- Dark Pool trading that only offered to those with high tier verification that lets you trade privately.
- Kraken offers several fiat currencies to trade with.
- They offer high financial security.
- Limited deposit options.
- Kraken does not offer a personal wallet. Your funds are held in their corporate wallet.
- Kraken doesn’t offer much in the way of educational resources for traders.
- Kraken failed to apply for a license in New York and was delisted.
If you are an advanced trader, you will probably feel comfortable using Kraken. Beginners may have a tough time understanding all the things Kraken has to offer and use them properly. It will be no surprise to see Kraken continue to grow as new wealthy traders steadily move over to the cryptocurrency world.