Trying to find a reliable cryptocurrency exchange can be a challenge. It seems exchanges are being hacked every month. And with BTC hitting new highs almost every week, finding an exchange you can trust is critical.
Kraken seems to check all the necessary boxes for a reliable and secure crypto exchange. It is based in the U.S. and has never been hacked. Kraken allows you to trade directly from fiat currency to crypto. There are also 50+ cryptocurrencies available to trade in the U.S. In this article, we’ll provide an overview of what Kraken has to offer.
Kraken is a cryptocurrency exchange. It was founded in July 2011 and is based in San Francisco, CA. It is one of the largest and oldest exchanges. Its founder is Jesse Powell. The company has raised $118 million in seed funding.
Kraken allows you to exchange fiat currencies such as USD, Canadian Dollar, Euro, and GBP into cryptocurrency. You can also exchange from one cryptocurrency into another. There are over 90 cryptocurrencies available on Kraken for buying via fiat currency or exchanging, but 35+ of those tokens aren't currently supported in the U.S.
The Kraken platform just added support for two more cryptocurrencies: Ocean Protocol (OCEAN) and Energy Web Token (EWT). Both currencies can be deposited and traded as of March 3, 2021. However, it should be noted that U.S. and Canadian residents are currently unable to trade EWT.
Kraken has different methods available for funding your account with fiat. It uses companies that provide funds transfer services (similar to Plaid). Each has different minimums, maximums, and fees for funding the account.
You can also buy crypto using a credit card, but it's the most costly method. There is a 3.75% + €0.25 fee. To use fiat currency, you’ll need to complete KYC (know your customer) validation. KYC requires verification of your identity. After your account is opened, you can’t withdraw funds for 72 hours.
Once the account is funded with fiat, you can select a crypto to buy. There are coins that allow you to go from fiat to crypto directly (majors) and there are (alt) coins that you can only access through a major cryptocurrency. For example, if you want to invest in EOS, you can’t buy it using fiat currency. You’d have to buy BTC (Bitcoin) first or some other major crypto and then use that to trade into EOS.
One of the draws of Kraken is staking. This could let you earn rewards on the coins that are available in your wallet. Currently, there are 10 coins that can be staked. Rewards are paid out bi-weekly. The specific reward rate you earn will vary by coin, but currently ranges from 4% to 20%.