Kraken Review

Written By Matthew Thompson
Last updated April 18, 2022

Note: We receive a commission for purchases made through the links on this site. Our sponsors, however, do not influence our editorial content in any way.

April 18, 2022

Simple. Thrifty. Living.

Online investment sites have become popular ways for people to trade various assets, including stocks and exchange-traded funds (ETFs). More recently, cryptocurrency trading platforms have gained attention from investors looking to explore new options. Kraken stands out as one of the most prominent platforms for crypto investors.

Does Kraken have the features and fees to help you meet your investment goals? Read this Kraken review to learn more about the website’s pros and cons.

Kraken is a platform that lets investors buy and sell more than 95 types of cryptocurrencies. Popular coins traded on the platform include:

  • Bitcoin
  • Litecoin
  • Dogecoin
  • Monero
  • Ethereum
  • Ripple

Kraken opened its cryptocurrency platform in 2011, making it one of the first companies to address buying and selling crypto. At the time, bitcoin was barely 2.5 years old. Few investors realized that it and other cryptocurrencies would multiply over the next decade.

Straightforward Approach

Many users choose Kraken because it gives them a straightforward way to purchase stable coins and altcoins. In addition, it has a user-friendly interface that works well for beginners and advanced traders. Kraken also has a mobile app that lets members buy and sell from their smartphones.

Not all investors in the United States have access to Kraken. Currently, New York and Washington states do not let residents use the platform.

Kraken does more than let people buy and sell crypto. Instead, the website and app treat cryptocurrencies as investments. Because of that, it gives you multiple ways to make money from crypto potentially.

Margin Trading

Margin trading lets you invest in cryptocurrencies even when your account doesn’t have enough money to cover the purchase. Advanced investors could leverage up to five times the money they have in their accounts.

Anyone interested in margin trading needs to understand advanced strategies. Kraken has some educational material on its website to help. Still, you might want to read guides from several sources before you start investing.

Cryptocurrency Indices

Kraken gives you alternatives to investing directly in a specific cryptocurrency. Cryptocurrency indices include a broad range of coins. This approach helps offset the risk of volatility. Even if one cryptocurrency falls, others might increase.

Instead of making or losing money according to how one currency moves, you can invest in various currencies. As long as the overall index moves up, you make money.

Bitcoin Futures Trading

Bitcoin futures trading acknowledges the volatile nature of cryptocurrencies. Instead of buying or selling Bitcoin right now, futures trading lets you enter a contract for future prices. For example, you might agree to accept X amount of Bitcoin if the price reaches Y. Similarly, you can decide to sell Bitcoin when the price comes to a specific number.

This is a strategy typically reserved for advanced investors.

Kraken OTC Desk

The OTC Desk handles exchanges between institutions and high net-worth individuals. These traders get one-on-one service from professionals. They might also benefit from lower fees that help them get more from their investments.

OTC desk is typically reserved for people trading large blocks of fiat currency or crypto. It’s an option for you if you want to trade 2,000 BTC, $100,000, or €10,000,000. Any trade under $100,000 will probably need to take place on the standard Kraken platform.

Cryptocurrencies have limited uses in the real world. For example, only a small number of businesses accept crypto as payment. Therefore, it makes sense that so many crypto enthusiasts see coins as investments.

If you want a reasonably straightforward way to buy Kraken without dealing directly with individual sellers, you might like Kraken.

Kraken Fee’s

Kraken reviews whether Kraken charges fair fees often depend on how users fund their investments. Kraken charges 0.9% to 1.5% depending on the coin you buy.

How you buy, however, can increase the fees significantly. Using a credit card adds 3.75% plus $0.25 to the cost. In addition, Kraken charges a 0.5% processing fee for online banking and ACH payments. Even using a digital wallet adds a 3.75% plus $0.25 fee.

While these fees might sound high, they’re lower than many trading platforms charge. Cryptocurrency investors will almost always pay high prices for trading services. That probably will not change unless crypto becomes more mainstream than it is today.

Kraken’s reviews of actual users indicate that the company has inconsistent customer service. Some Kraken reviews praise the website for its online solid customer service. However, others complain that they tried to contact Kraken for weeks before they got responses.

Customer Service

Regardless of whether Kraken has helpful customer service reps, it does give users a lot of information. The website’s guides will introduce beginners to essential concepts. In addition, the blog covers diverse topics, such as paying taxes on crypto, following reliable security measures, and trends in the crypto market.

If you want to invest in cryptocurrencies, Kraken is a good option for you to consider. But is it the best platform for you? That likely depends on your investment goals.

Pros of choosing Kraken include:

  • Access to an extensive list of cryptocurrencies.
  • Average processing fees (for the industry).
  • Plenty of guides to help you understand your options.
  • Diverse investment opportunities you won’t find on most platforms.

Cons of choosing Kraken include:

  • Potentially long wait times while the company verifies your identity and account.
  • Market volatility could lead to sudden financial loss (although this applies to all crypto trading platforms).
  • Even when you pay from a digital wallet, processing fees for all funding options.
  • Some members complain that customer service works slowly (or they never get responses).

Kraken has a good reputation as a platform for buying and selling cryptocurrencies. The crypto industry experiences substantial swings, though. So regardless of which platform you choose, keep in mind that the volatility puts your money at some risk.

About the Author

Matthew Thompson

With more than two decades of writing and optimization experience, I know how to keep readers engaged, mimic brand voices, and get first-page rankings on search engine results. I have written for companies in diverse industries, including emerging technologies, wellness, consumer apps, enterprise software, UI/UX, outsourcing, and education.

  • No comments yet. Be the first to get the conversation started. Here's some food for thought:

    Do you have any thoughts?

Submit a Comment

Your email address will not be published. Required fields are marked *