What is Kraken and How to Start Trading on It? (A Full Review & Tutorial)

What Is Kraken?

1. Kraken is a U.S.-based cryptocurrency exchange founded in 2011, making it one of the oldest and most established platforms in the digital asset space.

2. It operates under strict regulatory oversight, holding licenses including a BitLicense from the New York State Department of Financial Services.

3. The platform supports over 200 digital assets, ranging from Bitcoin and Ethereum to niche tokens and stablecoins like USDT and USDC.

4. Kraken distinguishes itself through institutional-grade security infrastructure, including air-gapped cold storage for 95% of user funds.

5. It offers multiple trading interfaces — from a simplified “Kraken Express” for beginners to advanced charting tools and API access for algorithmic traders.

Account Setup & Verification Process

1. Users begin by visiting kraken.com and clicking “Create account”, then entering an email address and strong password.

2. Email verification follows immediately via a confirmation link sent to the registered inbox.

3. Identity verification requires uploading government-issued photo ID, proof of residence, and a selfie holding the ID — all processed manually or via automated checks.

4. Tiered verification levels exist: Tier 1 allows limited deposits and withdrawals; Tier 2 unlocks full fiat on-ramps and higher limits; Tier 3 is required for margin and futures trading.

5. Verification times vary — basic accounts may be approved in minutes, while higher tiers can take up to 72 hours depending on document clarity and regional compliance requirements.

Funding Your Account

1. Bank transfers via ACH (U.S.) or SEPA (Europe) are supported, with processing times ranging from same-day to three business days.

2. Wire deposits are available for larger amounts but incur fees and require pre-approval for certain jurisdictions.

3. Cryptocurrency deposits are instant upon network confirmation, with Kraken generating unique wallet addresses for each asset.

4. Users must ensure correct network selection — sending ERC-20 tokens to a BEP-20 deposit address results in permanent loss.

5. Minimum deposit thresholds apply: $10 for ACH, €1 for SEPA, and no minimum for crypto deposits, though network fees still apply.

Placing Orders & Executing Trades

1. Kraken offers four primary order types: market, limit, stop-loss, and trailing stop — all accessible via the “Trade” tab.

2. Market orders execute immediately at the best available price but carry slippage risk during high volatility.

3. Limit orders allow precise price control and appear on the order book until matched, supporting both post-only and reduce-only flags.

4. Advanced users can set conditional triggers using Kraken’s “Stop Market” or “Stop Limit” functions tied to real-time price movement.

5. Order history is fully auditable, with timestamps, fee breakdowns, and trade IDs logged in the “History” section for tax reporting purposes.

Security & Risk Management Features

1. Two-factor authentication is mandatory for login, withdrawal, and sensitive settings changes — enforced via TOTP or hardware keys like YubiKey.

2. Withdrawal whitelisting restricts fund movement only to pre-approved addresses, requiring additional email or 2FA confirmation for new destinations.

3. Kraken does not offer interest-bearing accounts for USD or EUR balances, avoiding exposure to counterparty risk associated with lending protocols.

4. All API keys are customizable with granular permissions — disabling “withdraw” or “trade” rights prevents full compromise if credentials leak.

5. The platform maintains a bug bounty program managed by HackerOne, with rewards exceeding $25,000 for critical vulnerabilities affecting custody systems.

Frequently Asked Questions

Q: Does Kraken support staking for Proof-of-Stake tokens?Yes. Kraken offers native staking for assets including ETH, ADA, SOL, ATOM, and DOT, with rewards distributed weekly and no lock-up periods on most offerings.

Q: Can I trade futures contracts on Kraken?Yes. Kraken Futures provides perpetual and quarterly contracts on BTC, ETH, XRP, and other major assets, with leverage up to 50x and isolated or cross-margin modes.

Q: Are there fees for converting between stablecoins?Yes. Stablecoin conversions (e.g., USDC to USDT) are treated as trades and subject to standard maker/taker fee schedules based on 30-day trading volume.

Q: Does Kraken offer mobile trading capabilities?Yes. The official Kraken app is available on iOS and Android, supporting full order placement, portfolio tracking, staking management, and push notifications for price alerts.