Kraken

Kraken is a United States–based cryptocurrency exchange, founded in 2011. It was one of the first bitcoin exchanges to be listed on Bloomberg Terminal and was valued at US$3 billion in January 2024.

Advantages

Security: Kraken prioritizes security and has a strong track record with no major reported hacks.
Wide selection of cryptos: Over 200 cryptocurrencies are available for trading, including popular coins and lesser-known altcoins.
Competitive fees (with conditions): Kraken Pro, the platform for advanced traders, offers some of the lowest trading fees around, with rates decreasing for higher trading volumes.
Staking: You can earn rewards by staking your holdings of certain cryptocurrencies on Kraken.
Margin trading (limited): Available for experienced users with large account balances, allowing for leveraged trading (not recommended for beginners due to high risks).
Copy Trading (Kraken Copy Trade): Kraken offers a service for automatically copying trades of professional traders, which allows you to earn money without having to analyze the market yourself.
Customer support options: Offers live chat and phone support alongside a knowledge base.
Educational resources: Provides educational material to help users learn about cryptocurrencies.

Disadvantages

Limited fiat currencies: Kraken only accepts a handful of fiat currencies, so you might incur conversion fees depending on your location.
Not available in all US states: Currently not available to residents of New York or Washington.
No insurance for assets: Unlike some exchanges, Kraken doesn't offer insurance for user funds held on the platform.
Less user-friendly interface: The beginner-friendly Kraken platform might seem less intuitive compared to some competitors.

Registration on Kraken Exchange

To create an account on Kraken, follow these steps:

Go to the official Kraken website.
Click "Sign Up" (Registration).
Enter your email, username, and password.
Select your country of residence.
Accept the terms of service and click "Create Account".
Confirm your email by entering the code from the verification email.

Verification

Verification (KYC) is mandatory for most features on Kraken. Without it, users can only browse the platform but cannot trade, deposit, or withdraw funds.

Kraken offers three verification levels:

Starter – The minimum level, but it does not support fiat deposits or withdrawals.
Intermediate – Required for fiat deposits/withdrawals and margin trading.
Pro – Provides the highest limits and access to futures trading.

Verification Process:

Go to the "Verify" section in your account settings.
Select the verification level (Intermediate or Pro).
Upload the required documents: Passport, driver’s license, or ID card. Selfie with the document.
Proof of address (utility bill or bank statement).
Wait for the verification process to complete (takes from a few minutes to 24 hours).

Once verification is successful, you will gain access to deposits, withdrawals, and all trading features.

Staking

Kraken supports both on-chain and off-chain staking, allowing users to earn passive income on various cryptocurrencies.

Off-chain staking is available to users in certain regions and offers fixed or variable interest rates.
On-chain staking allows users to receive rewards for participating in Proof-of-Stake (PoS) blockchains.

Kraken distributes staking rewards twice a week, and the yield depends on the specific asset.

Estimated Annual Percentage Yields (APY) for Popular Assets:
Ethereum (ETH): 3-5%
Polkadot (DOT): 8-12%
Solana (SOL): 6-8%
Cardano (ADA): 4-6%

Kraken Earn (Rewards Program)

This program includes rewards for holding specific assets. Some programs require funds to be locked for a certain period.

Fees

Spot Trading

Maker fees start at 0.25% for standard trading pairs, 0.20% for stablecoin and FX pairs, and can go as low as 0.00% depending on your 30-day trading volume.
Taker fees start at 0.40% for standard trading pairs, 0.20% for stablecoin and FX pairs, and can be reduced to 0.10% for standard pairs or 0.001% for stablecoin and FX pairs.

Futures Trading

Maker fees start at 0.02% and taker fees at 0.05%. With high trading volumes (over $10,000,000,000), fees can go as low as -0.0060% for makers and 0.01% for takers.