The concept of blockchain has been around for quite a few times now, and so are cryptocurrencies. The popularity of cryptocurrencies is increasing each day, and people have started investing in them quite a lot. These currencies are traded across the globe for different purposes each day.
Hence, the demand and thus the launch of new trading platforms are also on the increase. One such popular platform is Kraken.
What Is Kraken?
Kraken is an online cryptocurrency exchange that provides a wide range of investment opportunities for individuals and organizations in nearly 200 countries worldwide. You can exchange one cryptocurrency for another, for example, by converting bitcoins to Litecoin or buying cryptocurrencies using a regular currency such as the US dollar.
Founded in 2011 and launched in 2013, Kraken is one of the largest and oldest exchanges in the world. Kraken has been leading the Bitcoin revolution since 2011. It is one of the largest bitcoin exchanges in the world. Kraken is not only one of the first cryptocurrency exchange platforms but has a lot to offer investors of all levels.
It is a United States-based cryptocurrency exchange platform and bank that provides trading options between cryptocurrency and fiat currency.
It has gained popularity because of its enticing features. Moreover, the users can quickly transfer their money to and from this platform to their linked bank accounts.
Moreover, you can convert the cryptocurrency back to USD or another currency in exchange to keep it as cash in your account. This feature comes in handy when you want to exchange it back to cryptocurrency later.
Kraken works with currency pairs, and not all of its currencies can be exchanged for each other. Kraken allows you to exchange fiat currencies such as US, Canadian, euro, and pound sterling for cryptocurrency.
Kraken currently offers more than 80 crypto assets, including Bitcoin and Ethereum. Kraken is one of the few exchanges that offer margin, stop-loss orders, and short-selling of cryptocurrencies.
What Makes Kraken Different?
Kraken has gained popularity majorly because it has been around for years and is one of the first exchanges to provide margined spot trading, regulated derivatives, and index services. It has made a reputable place in the market over the years and continues to excel.
The flexibility that Kraken offers due to the availability of a large number of cryptocurrencies is yet another reason for its popularity. As mentioned before, Kraken makes transferring funds very easy for its users, which ultimately satisfies the user.
This exchange provides multiple options for trading. Hence both individuals and the big trading firms can leverage Kraken and get desirable results.
In short, Kraken is a versatile exchange platform that successfully caters to all the needs of its users, and that’s what makes it different.
What Is Kraken’s Margin Trading?
In addition to coins that everyone can use, Kraken also provides margin trading for high-net-worth investors in the United States. It is a form of venture capital that allows you to use existing investments (such as guarantees) to borrow money to fund purchases.
Using Krakens’ margin trading option, you can use or borrow five times your account balance to make more transactions (the exchange currently allows investors to borrow up to $500,000) up to 16 different assets.
The Kraken App
Kraken recently made its app available for its users in the US, making it easier for users to access and transfer their funds from anywhere.
The new Kraken app was created with retail investors in mind. It provides quick authentication, an accessible bank transfer purchase process, and the opportunity to learn about cryptocurrency.
Here is a list of things that you can do using the Kraken app-
- Making a new account and validation.
- Set up two-factor authentication (two-factor authentication).
- Make cryptocurrency deposits and withdrawals.
- Purchases can be made with a credit or debit card.
- Pay with ACH (Automated Clearing House) online banking.
- Find out more about the deposit.
- Cryptocurrencies can be bought, sold, and converted.
- Begin cash withdrawals.
- Manage the devices that have been approved.
Is the Transaction Fee of Kraken Lower Than Coinbase?
Kraken calculates the transaction fee based on the transaction volume for 30 consecutive days. The updated Coinbase Pro account saves transaction costs, but Krakens’ fee is still much lower.
For example, a $1,000 transaction using Coinbase Pro will cost $5 (0.50%), using Coinbase will cost $40 (4%), and using Kraken will cost $1.60 (0.16%). The huge gap between Kraken and Coinbase is obvious in the transaction fee structure.
Pros and Cons of Kraken
If you plan to use Kraken for trading, it would be better to see both sides of the coin. You will be able to make a better judgment after knowing both the merits and demerits of this platform.
- It has never been hacked and has excellent security.
- It provides rewards for staking.
- For confident investors, a wide choice of cryptocurrencies is available, as well as margin and futures trading.
- It has limited customer service.
- There is no financial assistance from the government.
- For newcomers using the Instant Buy platform, there is a high fee.
If you intend to buy, sell or exchange your cryptocurrencies, the exchange you choose must have sufficient trading volume for your assets to be relatively liquid. It means you can sell them whenever you want, and Kraken exchange provides precisely that. You have a lot of options and hence opportunities to increase your gains.
It is also one of the cheapest exchanges to buy cryptocurrencies. It has one of the most extensive lists of supported currencies (including the popular meme currency Dogecoin) you’ll find today. Moreover, it offers rewards when you bet on coins and even allows margin and futures trading.
You must log in to post a comment.