The most important advantages
Kraken is a reputable cryptocurrency exchange that has been around for nearly a decade. It’s a solid option with a lot to go with.
Founded in 2011 and launched in 2013, Kraken is one of the largest and oldest exchanges in the world. She had her eyes on security from day one. The fact that it hasn’t been hacked in eight years speaks for itself.
The US-based exchange has consistently led the industry in security. It prides itself on physical security and financial stability. In addition, it pushes users towards healthy security habits.
The Kraken has approximately 60 coins and deals with seven banknotes. This is not the largest group of cryptocurrency you will find, but it can be compared to some of the best cryptocurrency exchanges. It is a step ahead of many brokers who only offer a handful of popular currencies. Kraken also boasts high liquidity, which means that it is easier to buy and sell at a fair price.
Kraken operates using currency pairs and not all of its currencies can be exchanged for others. What is a currency pair? Imagine that you are on vacation in Germany and need to exchange your dollars for euros. This is a currency pair. If you use dollars to buy Bitcoin or Bitcoin to buy Ethereum, you are always exchanging one currency for another.
Advanced Trading Features
Kraken is one of the few exchanges that offer margin, stop orders and short sales of cryptocurrencies. It also has a so-called dark pool where high-volume investors can trade anonymously. Kraken allows you to leverage the currency pair up to 5x and allows qualified professional clients to access up to $500,000 in margin. Before you get too excited, margin trading can be risky. You are essentially borrowing money to invest.
Let’s say you invest $100 in Ethereum. I decided to use this 5x margin. If the value of Ethereum increases, your gains will be multiplied by 5. But if Ethereum loses its value, your losses will also multiply. Cryptocurrencies are indeed a risky investment, and the use of margin greatly increases this risk.
Kraken’s fees are on par with many exchanges. It’s not the cheapest on the market, but its maker charges lower than Coinbase, for example. Trading fees vary from exchange to exchange and often depend on how much you trade each month. Look at how much it will cost to deposit and withdraw money as well as what you will pay for each transaction.