Kraken Exchange Reviewed
Kraken is an exchange and trading platform offering an easy move between fiat and cryptocurrencies. One of the best-respected exchanges, it still requires a steep learning curve.
If you are a European buyer, you may be intrigued by the opportunities of Kraken. It is a way to acquire cryptocurrencies for cash, but it is also a trading option. In contrast with BitPanda, where orders are placed and filled for you, for a fee, in Kraken, you can place orders at the preferred price.
Kraken is an exchange where for the first time, you may feel the power of cryptocurrencies. You may move, trade and invest up to $2,500 in the form of cryptocurrencies in a day. The monthly limit is $20,000. This is just Tier 1 verification, where you provide personal data, but without revealing documents or proof of address.
Compare this to PayPal, where any European user will have to provide a passport and proof of address before moving more than 2,500 Euros per year.
Tier 2 has even greater limits and allows the funding of cash.
As an intermediate trader or buyer, you can stay comfortably at this level for quite a bit of time. And if you present a picture ID or proof of residence, you may enjoy even higher limits.
After you finish providing the information, just wait before exchanging funds. Tier 2 verification takes a few minutes to activate. You may want to log in again to see the changed status.
Deposit Funds to Kraken
While Kraken is one of the few places where you can exchange your Euros for cryptocurrencies, doing so is by no means easy. In fact, in the age of online shopping, it is rather cumbersome for those used to a smoother payment experience.
For European clients, SEPA is the only way, and no debit card path is allowed currently. This makes waiting a bit longer. Also, your funds need to be in actual Euros- otherwise en-route conversions may create delays and generate extra fees.
You can also send cryptocurrencies you already own. Kraken supports the top cryptocurrencies- Bitcoin, Ethereum, Litecoin, and Dash. Dash trading is not very active, though, and you may want to choose another ramp currency.
Figure Out Currency Pairs
To use Kraken, you will need to remember how currency pairs work. If you select BTC/EUR for example, then you will buy Bitcoin and sell Euros when you generate an order and push the "Buy" button.
For the same pair, if you push "Sell", you will sell Bitcoin and buy Euros.
The Monero Attraction
One of the attractions of Kraken is that you can buy Monero for Euros. The trade is very slim, though, compared to Asian exchanges. You may not be able to move a lot of coins if you decide to sell. Monero is a recently spiking cryptocurrency that is enjoying a lot of interest despite the fact that for years it was considered merely a side project.
Trading Vs. Exchanging
Kraken is both an exchange and a trading platform. If you have sufficient funds, you may just buy the currency of your choice.
But if you open a position, this means that for some pairs, you can trade with borrowed funds, without owning enough. This option is reserved for advanced or specialized accounts, and it is also reserved for advanced traders who understand margin trading.
The Most Useful Currencies
Bitcoin, Ethereum and the native Kraken credits, as well as Euros, are the most useful assets to run on Kraken. Litecoin is actively traded, but has fewer pairs.
Recently, Bitcoin Cash (BCH) was added to trading pairs, but again, Bitcoin and Ethereum remain the most versatile.
Sending in funds in cryptocurrencies requires a lot of confirmations, so do not be surprised if it takes a while for your funds to appear.
The Verdict on Kraken
Kraken is not an easy experience for a beginner or intermediate buyers. It may contain extremely valuable options and market access for experienced traders who verify to the higher tier 3 and above accounts. For a beginner user, Kraken is a useful exchange to get on board cryptocurrencies for fiat, although the payment is not the fastest and the easiest.
The site's layout does not resemble wallets, but it allows very low deposits- it works with a transaction of 0.0079 LTC, which is lower than the fee of BitPanda.