Learn the reasons. Learn why it’s a good idea to avoid it and what exchange you can use instead. Read this Kraken review now and be happy tomorrow.
Plus, this comprehensive review shares with you an affordable cybersecurity device. This device can be used to secure Kraken, Gmail, and many other online accounts. It’s described in Kraken security features section.
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2019 Update Of This Kraken Bitcoin Exchange Review
Kraken had much better service. The system update that happened in January 2018 did improve a few things. Plus, 2019 redesign made it look better. These improvements are the first reason you may want to use it.
However, this reason must be weighed against the history of systematic problems. These systematic problems are the first reason to avoid Kraken. These systematic problems are described in the original review below.
Quick Overview Of Kraken Exchange: Reason #1 Why You Must Avoid It
They’re always doing their best to make their website work. But it rarely works. Perhaps they should stop trying and do something less stressful such as knitting. I’m sure they’ll be great at it. Then their website, freed from their abuse, will start working magically by itself. Until that time, if you try to trade on Kraken exchange, here’s what will happen:
Kraken staff leave much to be desired. Their best efforts equal ‘partially degraded service’. But somehow none of the website works. It’s pretty much how the website is most of the time. It’s so regardless of whether it’s ‘partially degraded’ or abused by them for strange, sadistic reasons.
So Kraken is one of the worst legitimate cryptocurrency exchanges. But Coinbase is even worse. It’s truly godforsaken. God shows no mercy for Coinbase users. They’ve been confined to crypto hell.
However, both Kraken and Coinbase are excellent choices for any masochist. So if you’re a masochist, sign up for them today and you’ll be whipped like a bad boy.
Best Alternatives To Kraken Exchange
Comprehensive Kraken Review: Introduction
|Ease Of Use|
That’s one of the two ways in which Kraken succeeds and the second reason to use it. Kraken fees are among the lowest in bitcoin business. They’re especially low among exchanges that offer fiat trading, though they’re not the lowest. Below I explain them in detail.
Kraken Trading Fees
|$0 - $50,000||0.16%||0.26%|
|$50,001 - $100,000||0.14%||0.24%|
|$100,001 - $250,000||0.12%||0.22%|
|$250,001 - $500,000||0.10%||0.20%|
|$500,001 - $1,000,000||0.08%||0.18%|
|$1,000,001 - $2,500,000||0.06%||0.16%|
|$2,500,001 - $5,000,000||0.04%||0.14%|
|$5,000,001 - $10,000,000||0.02%||0.12%|
This fee changes every 30 days in accordance with the volume of your trades. In short, Kraken trading fees are really low if you intend to trade large volumes.
Kraken Deposit Fees For Cryptocurrencies
They’re likewise reasonable. Deposits of many cryptocurrencies, including bitcoin, bitcoin cash, monero, stellar, ripple, dogecoin, litecoin, and dash are free.
Deposits of ethereum and ethereum classic are not free. They carry small transaction fees. Deposits of gnosis, iconomi, augur, melonport, and EOS are likewise not free. They carry address setup fees.
Also, keep in mind that the cryptocurrency network of your choice will likely charge you a small fee.
Kraken Deposit Fees For Fiat Money
Many types of fiat money deposits are free. These include CAD wire deposits, JPY domestic deposits, and EUR SEPA deposits.
USD wire transfers from US-based banks within USA carry a five dollar fee. USD SWIFT deposits carry a ten dollar fee. So if you live in the USA, you’ll have to pay a deposit fee. If you’re from Canada, Japan, or Europe, you can avoid that fee. But the bank will likely charge you.
In short, Kraken deposit fees are either cheap or free.
Kraken Withdrawal Fees For Fiat Money
They’re reasonable. USD domestic withdrawal by wire transfer, the only method available to US residents, costs five dollars. EUR SEPA withdrawal, available only to Europe’s residents, costs nine euro cents. JPY domestic withdrawal, available in Japan, costs three hundred yen. CAD withdrawal via electronic funds transfer, available in Canada, costs a 0.25% fee.
While Kraken withdrawal fees seem acceptable, I believe they should be zero. There must be nothing to discourage you from taking your money from the exchange.
Kraken fees, even though reasonable, don’t compensate for many other other shortcomings. I discuss these shortcomings after discussing another way in which Kraken succeeds.
Is Kraken Safe?
Some experts say that Kraken is the safest exchange for storing cryptocurrency. So is Kraken safe or did Kraken pay off those experts?
No, Kraken didn’t pay them off. It’s indeed the safest cryptocurrency exchange. Security is the second way in which Kraken succeeds. It’s also the third reason to use it.
Kraken stores most of its users’ cryptocurrency in cold wallets. These wallets are completely isolated from online systems. So even if Kraken was hacked, funds in cold wallets would be safe.
A small amount of cryptocurrency is stored in semi-cold wallets and hot wallets. Though these wallets are encrypted, they can be hacked by determined and well-funded groups.
That’s why I recommend you to store cryptocurrency in a hardware wallet. They’re much more secure than any exchange wallet. Plus, they’re recommended by cryptocurrency experts. So if you don’t have one, please check out the best hardware wallet right now. Please see how affordable it is right now.
Please keep in mind that some third party sellers have been selling pre-configured scam wallets. After a while, they took people’s cryptocurrency out of them. So you should buy only from the manufacturer. So please visit and bookmark this link right now because it’s the official manufacturer website.
Was Kraken Hacked?
Though Kraken itself was never hacked, several Kraken accounts were hacked all at once. Kraken said that they were likely hacked because two-factor authentication wasn’t enabled on them.
Also, it seems that the account holders could’ve avoided that if they had global settings lock enabled. This security feature is explained below.
Kraken Security Features
Kraken has many excellent security features. Two of the best ones are two-factor authentication and global settings lock. Combined together, these two features provide you with outstanding level of security. Another, less useful security feature is master key. Below I explain them all in detail.
You can set up two-factor authentication on Kraken via either Yubikey device or Google Authenticator app. Kraken two-factor authentication via Yubikey device is more secure because it’s not vulnerable to software attacks.
Plus, a Yubikey device is phishing-resistant. In fact, technology of its manufacturer, Yubico, is so good that even Google employees use these devices. Other major corporations use Yubico products too. In short, Yubico manufactures outstanding cybersecurity devices.
You can use these devices on Gmail and other online accounts. Plus, they’re affordable. So you can buy two to avoid problems with 2FA reset. Many people who lost phones with Google Authenticator app had problems with that. So please buy two Yubico devices now to avoid these problems.
Global Settings Lock
Though you can set up global settings lock easily, it can make your account much more secure. This feature hides sensitive information from anyone logged into your account, yourself included. It also prevents anyone logged into your account from changing that information. So no one would be able to change withdrawal addresses quickly when this feature is enabled.
If you or someone else tries to unlock your account locked with global settings lock, Kraken will send you an email. This email would tell you the number of days after which your account becomes unlocked. When setting up this feature, you can specify the number of days or create master key.
it’s a password that allows you to override global settings lock. It also allows you to get a temporary code for bypassing two-factor authentication. So Kraken master key can allow you to log in into your account in case you lost access to your device with two-factor authentication.
While this can be useful, master key can be dangerous. When enabled, it has enormous power over your account. However, Kraken claims that master key makes password reset more secure, because when enabled it’s required to reset password.
In short, unlike two-factor authentication and global settings lock, master key has a significant disadvantage. In some cases, this disadvantage can outweigh its advantages.
I give Kraken two thumbs up for excellent security. But what good is security if you can’t get any of your funds for more than a month? Continue reading this Kraken exchange review to find out what I’m talking about.
Kraken Withdrawal Time: Reason #2 Why You Must Avoid It
For some US-based users, it has been impossible to withdraw fiat money. Most of them eventually got their USD funds. But Kraken withdrawal time is often unacceptable for large amounts. Some people couldn’t withdraw big amounts of US dollars from May 2017 through November 2017.
People who withdrew less than ten thousand dollars didn’t experience this problem so often. Most of them got their money in one month or less. However, this is much longer than 5 days specified on Kraken’s website. To do Kraken justice though, their website does say that government’s know your customer requirements can delay withdrawals.
Though withdrawal problems at this exchange have become less severe, they may resume in the future because Kraken has a history of such problems, and the government isn’t getting any less strict.
Kraken Users Complained On Reddit About Withdrawal Problems
Here is what one guy wrote on Reddit:
I was hoping it wouldn’t come to this point but apparently I have no other recourse but to post here and warn others of doing business with Kraken. I have literally been trying to get money out of Kraken for over a month… they can still at their whim decide that you don’t make enough FROM OTHER INCOME to remove your funds from their exchange.
This guy on Reddit has even provided his tax return. But Kraken’s withdrawal provider decided that the amount he reported in taxes wasn’t enough to allow him to withdraw the funds from Kraken.
The above situation can be explained by government’s know your customer requirements. These requirements may be preventing Kraken from giving big amounts of USD funds to their clients with lower incomes. Uncle Sam is definitely to blame, though Kraken may be to blame as well.
By the way, that guy who posted on Reddit never got his USD funds from Kraken. He ended up converting it into cryptocurrency and transferring it to another exchange.
Some people were even less lucky than that guy. They were unable to withdraw their cryptocurrency. They reported on Reddit that they got an error which told them that this feature isn’t available. Though it’s usually possible to make cryptocurrency withdrawals from Kraken, it’s not always the case.
Withdrawal Problems Have Not Affected Everyone
Fiat money withdrawal problem has not affected European users of Kraken. This problem has affected only US-based users. But it’s best to stay away from this exchange even if you’re in Europe. Continue reading this Kraken exchange review to find out the reason.
Kraken Verification Time: Reason #3 Why You Must Avoid It
There’s a big chance you’re reading this because you’ve Googled ‘Kraken verification taking forever’. This phrase is so common for a reason.
Their website says that tier 3 verification usually takes no more than a few days. No one has reported such fast service. That’s because Kraken doesn’t have enough employees to handle a huge number of new users. Tier 3 verification usually takes one or two months.
But this waiting period may become even longer. In January 2018, Kraken has shifted its priorities. In a blog post, they said that verifying new users has become their least important priority. Apparently, when verification took one month, it was extremely fast.
Because of such long Kraken verification time, I think the following story will happen in the future. A man will die of old age while waiting to be verified on Kraken. On his deathbed, his last words before death would be: ‘Son, fuck that Kraken exchange!’ So the son would sneak into Kraken’s San Francisco headquarters during the night and defecate in CEO’s chair. Happy end.
Kraken Trading Platform: Reason #4 Why You Must Avoid It
it’s one of the worst among bitcoin exchanges because it’s unreliable. You cannot rely on it during peak times. So when cryptocurrency market is either skyrocketing or crashing, Kraken trading platform stops working. This happened numerous times.
November 2017 Debacle: Kraken Exchange Fails All Of Its Users
From November 2017 till January 2018, this exchange worked only occasionally. The team behind it knew about it all along. As a matter of fact, they have been experiencing the same issues for years. Many of these issues have been documented both on social media and cryptocurrency-related websites.
Even though the upgrade performed in January 2018 solved these issues, I would not trust Kraken exchange. The upgrade took two days during which the website was completely inaccessible. Furthermore, these two days were preceded by more than a month of ‘partially degraded service’.
I’m not sure which part wasn’t ‘partially degraded’. Almost none of the website worked. You could only log in and check your balance. But that’s about it. You couldn’t execute any trades. In short, they downplayed the issues in their trading platform and misled the users.
Class Action Lawsuit Against Kraken Bitcoin Exchange
Kraken sometimes handles bitcoin trades badly. But the way it handles margin trading is even worse. One lawsuit alleges that Kraken caused ethereum margin traders huge losses. It argues that the exchange didn’t handle denial-of-service attack properly, causing glitches in the order book.
Complaints About Kraken Trading Platform From Its Former Users
Here are five user complaints that sum up the problems with their trading platform:
1) Honestly, I’ve never used such a completely bugged out system like this before.
2) Falls over when trying to make a trade. Avoid.
3) I’ve tried 20 times to execute a trade, without success.
4) Ive not been able to purchase a thing as each attempt results in 809 error related to the API.
5) Kraken has suspended my withdrawals, not responding for 6 days, my 55K$ is blocked for withdraval.
And here’s an excerpt that sums it all up:
Closing my account. This exchange is a NIGHTMARE from hell!!!
So avoid this exchange unless you suffer from masochism.
Conclusion Of This Kraken Review
By now, it’s obvious that it’s best to avoid this exchange. But if you read this Kraken review, you may be asking yourself: “What exchange should I use instead?”
Get an answer to this question today. Please answer 7 questions on the homepage to get a personalized recommendation right now.
1) CryptoCompare.com: Exchange Review
2) Trustpilot: User Reviews
3) Kraken.com: Fee Schedule
4) Kraken.com: Deposit Fees
5) Kraken.com: Withdrawal Fees
6) ForexBrokerz.com Review
7) Cointelegraph: Enable 2FA: Kraken Accounts Compromised, Funds Stolen
8) Kraken.com: Security Practices
9) Kraken.com: Master Key Guide
10) Kraken.com: Guide On How To Withdraw Fiat Currencies
11) Kraken.com: Guide On How To Withdraw Digital Currency
12) Reddit Complaint Of Kraken User
13) Another Reddit Complaint Of Pissed Off Kraken User
14) Kraken.com: Verification Time
15) CoinMarketCap: Kraken trade volume and market listings
16) Kraken Exchange Issues Ruin Another Weekend for Cryptocurrency Traders
17) Ethereum Traders File Class Action Lawsuit Over Kraken Flash Crash
18) Reddit.com: Discussion Of Alternatives
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