Is Kraken Safe? Is it Legit or Scam?
This article will examine the particulars that make up this Kraken crypto exchange and assess whether it's a safe platform for cryptocurrency trading. We'll closely examine the security measures of Kraken that are in place to safeguard it from hackers and to ensure its security.
Moreover, you'll find the essential features of the company, including reliability, customer support, a regulatory license, and a security report.
Kraken safety does not raise questions. This exchange has never been hacked. Yes, you heard it right.
Kraken ReviewIs Kraken Safe?
Kraken is a crypto exchange platform based in the US established by Jesse Powell on the 28th of July, 2011.
Kraken is among the longest-running and reliable exchanges for cryptocurrency globally and is accessible to citizens from 48 US states and 176 other countries. On Kraken, you can trade between 72 different cryptocurrencies as well as fiat currencies. So Kraken is pretty much legit and secure.
Additionally, Kraken provides all of the tools needed to purchase and sell cryptos and creates a simple Bitcoin exchange that is suitable for beginners and professionals. Users can effortlessly make withdrawals and deposits, assess their portfolios, and track their cryptocurrency accounts in one place.
But is Kraken safe?
Yes, it is.
Kraken has never been hacked. Yes, you heard it right.
In contrast to other exchanges for cryptocurrency that have been compromised before and resulted in thousands of dollars worth of loss of coins, Kraken can maintain its reputation as a secure cryptocurrency exchange.
Kraken's dedication to security is superior to other exchanges.
Is Kraken Regulated?
Kraken conforms to regulations and legal requirements in all the jurisdictions in which they operate. Kraken is controlled by FinCEN. Client funds held by Kraken are managed directly by the clients through their bank accounts with the banks of their partners, which are heavily regulated. Kraken Bank is regulated by the Wyoming Department of banking.
Kraken is officially registered as a Money Services Business (MSB) with:
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FinCEN in the USA
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FINTRAC located in Canada in Canada
Can I Use Kraken in My Country?
Kraken is open to customers from across the globe, with some specific limitations due to local and international regulatory requirements for cryptocurrency and financial services.
Based on the verification of residency, the user could be subject to certain limitations on their account. See the Kraken terms of service for more details on the eligibility requirements. If a customer has concerns regarding this subject, they can open a ticket or contact them through Live Chat.
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Kraken's funders could, at their discretion, decline funding to specific geographic locations.
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Certain countries aren't yet capable of using credit or debit cards. Please refer to Kraken's FAQ on debit cards and credit cards to see the complete list of countries accepted.
Analysis of Kraken’s Security Fortress
Within the Kraken, there exists an internationally-based team of the best security experts who adopt a risk-based strategy to ensure that client's assets are protected to the highest standard while maintaining a high level of performance and unbeatable customer service.
In addition to creating security protocols for some of the most prestigious companies globally, Kraken's team is also equipped with decades of expertise researching the most significant data breaches affecting consumers.
Thus, continuing to create security solutions that are used by a wide range of companies.
Kraken’s Team
Kraken has top-rated security experts on board who carefully evaluate risks and ensure that clients' funds or coins are safe throughout the day. This is all performed with the highest degree of security and maintaining the best user experience at the forefront.
Kraken’s Safe Coin Storage Security
In Kraken, the majority of deposits are stored in an air-gapped and offline geographically dispersed cold storage. Kraken maintains reserves at total capacity to ensure that users can take out funds on demand.
Kraken’s Platform Security
Kraken's servers are placed in secure cages under 24 hour surveillance by security guards with guns and video monitors. Physical access and deployment of code are tightly monitored. Everything is reviewed thoroughly before it goes to the market.
Kraken’s Information Security
Kraken encrypts your sensitive information related to the exchange, like your contact details and trade data, and even coins at the data and system level. To protect the confidentiality of your personal information, Kraken regularly performs vulnerability testing of its system to make sure the security of its service is secure.
Kraken’s Penetration Testing Security
Kraken has a highly skilled team committed to testing their systems against every possible attack mechanism. That ensures the maximum level of security and adds an extra layer of protection.
Kraken’s Bug Bounty
In addition to conducting penetration tests, Kraken runs a bug bounty program. The program's goal is to contact experts in the field and security experts to identify any weaknesses within the platform.
Kraken’s Additional Security Features
Other than the core security measures of Kraken, here is a list of all of Kraken’s security features that make Kraken more safe and legit.
Two-factor authentication (Google Authenticator and Yubikey) to ensure that your account is safe.
No recovery of your account via phone or SMS. Your account is in your control.
Confirmation emails for withdrawals using a self-service account lock.
Timeouts for accounts that can be configured, adding a layer of security.
Customizable, granular API key permissions with range limits.
Time lock in global settings allows for absolute security when you're away.
PGP encrypted and signed email to ensure secure communications.
SSL encryption to secure your information when you browse Kraken.
Constant, real-time monitoring for suspicious activity.
Zero risk of settlement and no chargeback fraud in crypto trading.
Sensitive data is completely encrypted at rest and in transit.
Live chat 24/7 with high priority and email help for immediate problems.
Kraken’s Background
Kraken was founded in 2011 and officially started trading operations in the year 2013.
It is controlled by Payward Inc. and is led by Jesse Powell, the CEO, and co-founder. Jesse Powell. It allows for the simple movement of funds between the bank accounts linked to the participant and the transfer of crypto coins into and out of the participant's digital wallets linked to Kraken's trading accounts.
Since its inception, several things have led to Kraken being a preferred trading spot that has become the preferred choice for a range of market participants in the cryptocurrency space.
When crypto-mania began to take over the globe around 2014, Kraken and the Coinbase exchange were chosen to provide market data for bitcoin trading to the Bloomberg platform.
The association with the most reputable market data provider has helped Kraken increase its popularity in the trader's community. Bloomberg customers were then able to access prices for virtual currencies and charts, news, and social media updates via the relevant Bloomberg terminals and services.
What Made Kraken Stand Out?
Kraken is a rich and feature-packed trading service for individuals interested in cryptocurrency and large trading companies. Kraken offers a range of account types that can meet the requirements of all types of investors and traders.
With its sophisticated order system and trading tools, including options for stop loss and profit-taking types of orders, leverage and margin-based trading, automated strategy trading, and an extensive collection of cryptocurrencies that you can trade with.
Kraken is among the top players of cryptocurrency-based exchanges.
Kraken’s Pros & Cons
It isn't easy to assess how secure a cryptocurrency exchange is. Most of the time, cryptocurrency exchanges don't have the requirements for deposit insurance plans; therefore, you need to be very careful while choosing the right provider. It is generally an indication of good quality if:
The exchange has a large customer base.
It has a thriving quarterly traded volume.
It's an established business (e.g., it's been in existence for several years and has numerous employees),
or the business that runs the exchange is listed on the stock exchange.
Although Kraken isn't precisely the most popular exchange, it has a long history, making it a preferable choice for customers.
👍 Pros
• Supreme security
• The cryptocurrency market is diverse.
• Advanced features for trading
• Fair fees for deposits and withdrawals
• Creative design with multiple customizations
• Popular amongst experienced traders
👎 Cons
• Not suitable for novices.
• Limited starter account
• Slow funding of accounts
• Unsatisfactory customer service
• The site is often slow
• No credit/debit card deposits
Is Kraken Good for Beginners?
Kraken is an excellent platform, but it's better suitable for experienced traders. If you're a beginner in crypto trading, you may encounter some difficulties using the platform.
The platform offers numerous options; it seems like the platform isn't the easiest to use. However, this isn't the situation; once you've become accustomed to the system, you'll find it easy to use.
Summary - Is Kraken Safe or Legit?
In essence, Kraken is safe. If money is in play, the main goal is to protect the funds and not let anyone steal them online or offline.
In the same way, when investing in a cryptocurrency exchange, you're expecting that the exchange will ensure your funds are safe. The most important thing you don't wish for is the crypto exchange's poor security that could put your money at risk.
While trading and buying cryptocurrencies on Kraken is secure, it is recommended to store your crypto in a safe cryptocurrency wallet. The cryptocurrency exchanges are vulnerable to hackers despite their high security; therefore, you shouldn't store your crypto on exchanges.
Kraken is a well-known crypto exchange and an essential player in the crypto market. Kraken is the best choice for an experienced cryptocurrency trader who is looking for more advanced features, such as the ability to leverage and expose to more coins.
FAQs
Is Kraken trustworthy?
Kraken is considered a reputable and trustworthy cryptocurrency exchange that has been operating since 2011. The platform has a strong security track record and has not experienced any major security breaches.
Is Kraken better than Coinbase?
Whether Kraken is better than Coinbase depends on your specific needs and preferences. Kraken offers a wider range of cryptocurrency trading pairs and lower trading fees, while Coinbase is known for its user-friendly interface and wide range of features including a mobile app and easy access to fiat currency.
Is Kraken safer than Binance?
Kraken and Binance are both considered reputable and secure cryptocurrency exchanges. Both platforms have strong security measures in place to protect user funds and have not experienced any major security breaches.
How Safe is Kraken?
Kraken has not experienced any serious security breach and is believed to have one of the strictest security measures among any cryptocurrency exchange. "Cold storage" is utilized to shield funds from attack by hackers, including the deposit of clients and other accounts that hold funds that aren't accessible on the internet. The transparency of the exchange in being subject to and passing independent audits is also admirable.
What Information Required to Open & Trade with Kraken Account?
This basic Tier 1 account requires the account holder to provide their full name, date and time of birth, address, and telephone number. To transfer and deposit fiat currency, an ID issued by the government and evidence of address are required. This is essential to avoid the risk of fraud and ensure that the exchange meets KYC and AML rules for trading in digital currency.
Can You Buy Bitcoin on Kraken?
Yes, you can purchase bitcoin directly from Kraken by using bank wire transfers. To buy bitcoin using Kraken, you must confirm your account first, and then you can transfer funds into your account and then place an order for a bitcoin purchase. Be aware that the XBT symbol displays bitcoin on Kraken.
How Long Do Kraken Withdrawals Take?
The time to withdraw on Kraken will depend on the type of method of payment you've selected. In general, you'll get your cash within five business days. The most efficient choices are Fedwire transfers and SEPA transfers that typically require a minimum of 1-3 days. SWIFT transactions may take up to five business days to be processed.
Glossary for novice traders
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1
Cryptocurrency
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
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2
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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3
Bitcoin
Bitcoin is a decentralized digital cryptocurrency that was created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto. It operates on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers.
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4
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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Leverage
Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.
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Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).