Kraken was founded in 2011 by Jesse Powell. It’s based in San Francisco, United States, and it’s one of the largest, most well-established trading platforms in the world.
Kraken is a full-featured cryptocurrency exchange with low transaction fees and a diverse selection of cryptocurrencies and fiat deposit support for AUD, USD, GBP, EUR, and JPY through a variety of payment methods including credit or debit cards deposits and wire transfers (bank transfers), as well as a dark pool, OTC trading, margin trading, and futures trading that are not generally found on other exchanges. Many of these functions could be overwhelming for beginners, though they are commonly used by expert traders.
Kraken claims to be the world’s largest Bitcoin exchange by EUR volume, and it is regularly rated as one of the best and safest Bitcoin trading platforms, ranking first with a perfect score on crypto exchange security review site CER. In addition, Kraken has never had a hacking incident in its 10 years of presence, something that even Binance or Coinbase, both global market leaders, cannot claim.
But we’re here to talk about its security features. Given its extensive range of safety precautions, self-regulated approach, and security assessments, it’s also one of the most secure exchanges available.
So, Is Kraken Safe?
Yes, it is. For starters, Kraken has never been hacked. Yes, you read that correctly. As opposed to other cryptocurrency exchanges that have been hacked in the past, resulting in the loss of thousands of dollars worth of coins, Kraken still maintains its reputation as a safe cryptocurrency exchange. Kraken’s dedication to security is unrivaled by any other exchange.
Kraken was designed with safety in mind. After all, it was Mt.Gox’s security flaws that prompted the establishment of Kraken. Powell understood that in order for an exchange to be competitive, it must gain the trust of its clients first. Kraken is among the first exchanges to employ a proof-of-reserves audit to ensure the safety of its client’s funds.
What Kind of Security Measures Does It Feature?
Most assets are safeguarded in the event of hacks or server outages because of Kraken’s security procedures, which include cold storage of 95% of the digital assets, meaning they’re kept offline. Kraken servers are kept in cages with 24-hour video surveillance and armed guards. Plus, access to the server is strictly restricted and monitored.
All Kraken accounts, personal contacts, and other sensitive information are securely encrypted at both system and data levels, ensuring information safety. There is no option to restore your account through phone or SMS, and withdrawals are verified via email. Two-factor authentication is compulsory, and it may be done with Google Authenticator.
However, security isn’t the sole consideration. Trading practices must also be trustworthy in order for the exchange to be rendered safe. Clients must trust the company with their funds, accounts, private details, and other sensitive information. Let’s take a look at how Kraken’s trade regulations also make it a safe exchange.
Is Kraken Regulated?
Kraken exchange complies with all legal and regulatory requirements in the regions that have access to the platform. Client deposits kept by Kraken are managed directly by the clients themselves through their strictly regulated bank accounts with their partner banks. The Wyoming Department of Banking regulates Kraken Bank. The Kraken platform itself is regulated with FinCEN in the United States and FINTRAC in Canada, offering financial stability with full reserves, healthy banking relationships, and the highest standards of legal compliance.
Is Kraken Legal in My Country?
Customers from all over the world can use Kraken, although there are some restrictions owing to local and international regulations for cryptocurrencies and financial services.
The user’s account may be subject to specific restrictions based on the verification of residency. More information about the eligibility conditions can be found on the Kraken website terms of service. Clients can email their customer support or contact them via chat if they have any questions or concerns about this topic.
Examining the Security Fortress of Kraken
Within Kraken, there is an international team of the best security specialists who use a risk-based strategy to ensure that client assets are protected to the highest degree while maintaining excellent performance and unbeatable customer service.
Kraken’s staff has decades of experience analyzing the most serious data breaches affecting customers, in addition to developing security policies for some of the world’s most famous corporations. Basically, they continue to develop security solutions that are employed by a wide spectrum of businesses.
Top-rated security professionals are on board at Kraken. They meticulously assess risks and ensure that clients’ assets or coins are protected at all times.
Safe Coin Storage Security
The majority of deposits are kept in Kraken’s cold storage, which is air-gapped and geographically distributed. Kraken keeps its reserves at full capacity to ensure that users can withdraw funds whenever they choose.
Armed security guards and video monitors keep an eye on Kraken’s servers 24 hours, seven days a week. Physical access and code deployment are both closely regulated. Before something goes on the market, it is carefully examined.
At the system and data level, the platform encrypts your private information relating to the exchange, including your personal details, exchange data, and coins traded. Kraken conducts frequent vulnerability testing of its system to ensure that the security of its service is secure in order to protect the confidentiality of your personal information.
Security Penetration Testing
Kraken has a highly experienced team dedicated to putting their systems through extensive testing against all possible attack mechanisms. This adds an additional layer of defense.
Kraken also conducts a bug reward program in addition to penetration testing. The purpose of the initiative is to contact specialists in the industry as well as security experts in order to detect any flaws in the platform.
What Sets Kraken Apart From the Crowd?
Kraken is a robust and feature-rich trading platform for cryptocurrency enthusiasts and major trading firms. The platform provides a variety of account options to suit the needs of all sorts of investors and traders. With its advanced order system and trading tools, you may trade a wide range of cryptocurrencies, including stop-loss and profit-taking orders, leverage and margin-based trading, and automated method trading.
Once you’ve set up your Kraken Pro account, you can buy the most popular cryptocurrencies such as Bitcoin (BTC), Litecoin (LTC), Cosmos (ATOM), Augur (REP), Ripple (XRP), Cardano (ADA), Ethereum (ETH), KAVA, Tether (USDT), DASH, Zcash (ZEC), Monero (XMR), Tezos (XTZ), EOS, and Bitcoin Cash (BCH).
Users can transfer fiat currency, cryptocurrency, or stablecoins like USDT to Kraken swiftly and conveniently. The funds are kept safe in Kraken’s wallets, which may be used to trade cryptocurrencies. The amount of network confirmations on the blockchain determines the speed with which cryptocurrency payments reach the exchange.
Another significant advantage is that Kraken’s fees are among the lowest in the business, with no deposit fees and extremely competitive withdrawal fees and trades. Furthermore, you may trade on the go with its web platform or with mobile apps both on iOS and Android.
Advantages and Disadvantages of Kraken
It’s difficult to determine how safe a trading exchange is. The majority of the time, cryptocurrency exchanges do not meet the standards for deposit insurance policies. As a result, you must be extremely cautious when selecting a provider. It is typically seen as a sign of high quality if the exchange has a sizable clientele with a healthy trading volume and is a well-established company or it is publicly traded (listed on the stock exchange).
Despite the fact that the Kraken exchange isn’t the most popular, it is one of the longest-running cryptocurrency exchanges, which really adds to its credibility.
- High-security measures, extremely safe to use with 2FA upon login;
- A diverse selection of cryptocurrencies and fiat currencies;
- Advanced trading platform;
- High liquidity and trading fees;
- Low fees for deposits and withdrawals;
- Sleek design with multiple customizations.
- Has a learning curve for beginners.
- Limited starter account;
- Customer service and live chat isn’t available 24/7;
- There are no credit card or debit card deposits.
Is Kraken Good for New Traders?
Kraken is a fantastic platform, however, it’s best suited to seasoned traders. If you’re new to crypto trading, you could have some trouble navigating the platform. The platform offers a lot of features, so it may seem complicated to newbies. While it’s true that the platform has a somewhat steep learning curve, after a beginner’s gotten used to the system, they’ll find it user-friendly enough to operate.
Kraken offers an outstanding customer support service that is available 24/7. This is an area where many major crypto exchanges fall short because they’re too huge to cater to individual user requests. Therefore, problems are sent through an automated bot that responds with prepared responses and links to online pages. Kraken, on the other hand, offers live chat 24/7 and is highly attentive.
A Few Words Before You Go…
Kraken is, in short, risk-free. When money is involved, the primary aim is to safeguard the funds and prevent them from being stolen online or offline.
Additionally, when you invest in a cryptocurrency exchange, you want the exchange to keep your assets secure. The most essential thing you don’t want is for your assets to be at risk due to the crypto exchange’s lack of security.
Although selling and buying crypto on Kraken is safe, it is suggested that you keep your cryptocurrency in a secure offline wallet. Despite their excellent security, cryptocurrency exchanges are vulnerable to hackers; as a result, you should not store your crypto on custodial exchange wallets.