Overview
Kraken is one of the oldest and most established cryptocurrency exchanges in the world. Founded in 2011 by Jesse Powell, the San Francisco-based platform launched publicly in 2013 and has grown into one of the largest exchanges by trading volume. Powell started working on Kraken after visiting the offices of Mt. Gox following its 2011 security breach, motivated by the need for a more reliable and secure trading platform.
Over the years, Kraken has built a reputation for strong security practices, regulatory compliance, and a wide selection of trading pairs. The exchange serves individual retail traders, institutional investors, and businesses across more than 190 countries. It is one of the few major exchanges that has never suffered a significant security breach.
Kraken offers several trading interfaces to match different experience levels. The main Kraken app and website provide a straightforward buying experience for beginners. Kraken Pro, available on both web and mobile, caters to more experienced traders with advanced charting, order types, and lower fees. The platform also offers futures trading, margin trading, and staking services for users who want to go beyond simple spot purchases.
The exchange supports a broad range of cryptocurrencies, including Bitcoin, Ethereum, and many other established and emerging digital assets. It also supports multiple fiat currencies, including USD, EUR, GBP, CAD, AUD, and JPY, making it accessible to users across North America, Europe, and parts of Asia.
Kraken operates under regulatory oversight in multiple jurisdictions. It holds a state-chartered banking license in Wyoming through Kraken Financial (now known as Kraken Bank), making it one of the first crypto-native companies to receive such a designation in the United States. It is also registered with FinCEN and regulated by various international authorities where it operates.
Getting Started
Buying Bitcoin on Kraken is a straightforward process, though you will need to complete identity verification before you can fund your account and trade.
- Step 1: Create an account on kraken.com or through the Kraken mobile app. You will need to provide an email address and create a strong password.
- Step 2: Complete identity verification (KYC). Kraken uses tiered verification levels. Basic verification, which requires your name, date of birth, address, and phone number, allows you to deposit and withdraw fiat currency and trade. Uploading a government-issued photo ID and providing proof of address unlocks higher deposit and withdrawal limits.
- Step 3: Deposit funds into your account. Kraken supports bank transfers (ACH for US customers, SEPA for European customers), wire transfers, and card payments. Bank transfers are typically the lowest-cost option, while card purchases are faster but carry higher fees.
- Step 4: Buy Bitcoin. Navigate to the Buy section, select Bitcoin, enter the amount you want to purchase, and confirm the order. For a simple market purchase, the main Kraken interface works well. If you prefer to set a specific price, use Kraken Pro to place a limit order.
- Step 5: Secure your Bitcoin. You can leave your Bitcoin on Kraken if you plan to trade actively, but for long-term storage, consider withdrawing to a personal hardware wallet. Kraken makes withdrawals straightforward from the Funding section of your account.
Fees & Limits
Kraken uses a maker-taker fee model for its Pro trading platform, where fees depend on your 30-day trading volume. As your trading volume increases, your fee rates decrease. Makers (those who place limit orders that add liquidity to the order book) pay lower fees than takers (those who place market orders that remove liquidity). This structure rewards active, high-volume traders with progressively better rates.
Purchases made through the main Kraken app or website (the “instant buy” feature) carry higher fees than trades placed on Kraken Pro. This is common among exchanges that offer both a simplified interface and an advanced trading platform. If keeping costs low is a priority, using Kraken Pro for your trades is the better option.
Deposit fees vary by funding method. Bank transfers (ACH and SEPA) are generally free or very low cost. Wire transfers and card payments typically carry higher fees. Cryptocurrency deposits are free, though standard network transaction fees apply.
Withdrawal fees depend on the asset and withdrawal method. Fiat withdrawal fees vary by currency and method. Cryptocurrency withdrawal fees cover the network transaction cost and vary by asset.
Deposit and withdrawal limits depend on your verification level. Higher verification tiers unlock larger limits. Institutional and high-volume accounts can request custom limits through Kraken’s support team.
Security
Security has been a defining feature of Kraken since its founding. The exchange was built with security as a core priority, and its track record reflects that commitment. Kraken has never experienced a major hack or loss of customer funds, a distinction that very few exchanges of its age and size can claim.
Kraken stores the vast majority of customer funds in air-gapped cold storage, meaning the private keys are kept on devices that are never connected to the internet. Only a small portion of funds are kept in hot wallets to facilitate day-to-day withdrawals and trading.
For account security, Kraken supports two-factor authentication (2FA) via authenticator apps. The platform also offers a Master Key feature, which acts as an additional layer of protection for account recovery and changes to security settings. Users can set up a Global Settings Lock, which prevents any changes to account settings for a specified period, protecting against social engineering attacks.
Kraken employs a dedicated internal security team that conducts regular penetration testing and security audits. The company has also participated in proof-of-reserves audits to demonstrate that it holds sufficient assets to cover customer balances. These audits use cryptographic verification methods, allowing users to independently confirm that their funds are accounted for.
On the regulatory side, Kraken complies with anti-money laundering (AML) and know-your-customer (KYC) requirements across the jurisdictions where it operates. This compliance, while requiring identity verification from users, adds a layer of legitimacy and accountability that some less-regulated platforms lack.
Pros & Cons
- Pro: Long track record with no major security breaches since its 2013 launch.
- Pro: Strong regulatory standing, including a Wyoming banking charter.
- Pro: Wide selection of supported cryptocurrencies and fiat currencies.
- Pro: Advanced trading features through Kraken Pro, including futures and margin trading.
- Pro: Proof-of-reserves audits provide transparency about asset holdings.
- Pro: Available in most US states and over 190 countries worldwide.
- Con: The instant buy feature on the main app charges higher fees than Kraken Pro.
- Con: Customer support response times can be slow during periods of high market activity.
- Con: The interface can feel complex for complete beginners, despite improvements to the main app.
- Con: Staking is not available to US customers due to regulatory restrictions.
- Con: ACH deposits can take several business days to clear.