Is Kraken Safe? How to Get Prepared Before Using the Crypto Exchange

A quick overview of the platform and how Kraken works

Kraken is a well-known cryptocurrency exchange that allows people to trade a variety of digital assets, from cryptocurrencies and futures, to other derivatives. Margin and futures trading are some of the advanced trading features the platform is designed for beginner and professional traders. 

While Kraken doesn’t have the most leverage options available, it does provide options to trade with margin with various leverages between 1X to 5X. Kraken’s trading fees are competitive: maker-taker fees are between 0% and 0.40% of the total order value. It also has a high level of security with a two factor authentication, secure socket layer (SSL) encryption and a world-class security team. With Kraken’s quarterly trading volume exceeding $207 billion, it is one of the largest and most trusted crypto exchanges in the world.

Creating a Kraken account

Users can sign up to a Kraken account by simply visiting the Kraken website and clicking on the “Sign Up” button. Some basic information like name, email, password etc. will be required from them. Note that users also will have to confirm their email address, where they will receive a link from Kraken. 

After that, users are able to deposit funds into their account via bank transfer, credit card or crypto deposits. Users can also deposit funds through bank transfers and deposits in cryptocurrency. In addition, Kraken stresses the protection of users’ bank accounts and keeps solid security measures to secure users’ funds. In addition to that, Kraken also features a mobile app called the Kraken app that allows users to trade and manage their crypto holdings on the move.

Account verification

However, users will need to verify their account in order to take full advantage of Kraken’s features. It requires the customer to present identification documents like a passport or driver’s license, and proof of address. Kraken has a tiered verification system, where different parts of verification require different types of documents to be provided. It is meant to authenticate that these users are who they say they are and to avoid any fraudulent activities that can be done on the platform. The verification process on Kraken is quick and simple, which means that after submitting all necessary information, most users should have their account verified in a few hours.

Kraken security features

In terms of security, Kraken uses several layers of security technology to maintain the safety of user funds and data. Some of the key measures are as follows: 

🔐Kraken’s top security professionals adopt a risk-based approach to safeguard clients’ holdings, enhancing the overall trustworthiness of the exchange.

🔐Over 95% of all deposits are cold stored, air gapped and geographically distributed. This reduces the risk of online breaches and unauthorized access a lot, and your crypto assets still remain safe if there is a system compromise.

🔐Sensitive account information is always fully encrypted at both the system and data level. Your personal and financial data is kept away from hackers and cannot be read even if intercepted. Kraken has extensive experience building security programs, showcasing their dedicated security team’s proactive approach to safeguarding user assets.

🔐Kraken Security Labs plays a crucial role in enhancing the platform’s security by collaborating with other platforms, testing third-party products, and educating the public on security best practices. Kraken’s extensive experience in developing security technology trusted by millions of businesses further underscores their commitment to security.

🔐Locks global settings: this prevents users from editing information like with addresses and linked emails. The downside to that, however, is that your account will still be protected, even if an attacker is able to access your account, they would not be able to log into your account, and make critical changes unless you approve these changes.

🔐Two factor authentication (2FA): Users are obliged to set up 2FA for key account functions. In this way, it is much more difficult for attackers to access your account, because you have to provide your password as well as a verification code which you can only receive on your mobile device.

🔐Kraken encourages ethical hackers to report vulnerabilities through the Bug bounty program. Kraken incentivises bug discovery and bug reporting, allowing the platform to take a proactive rather than a reactive approach to weaknesses that could be exploited.

It can be used as an extra security option and serves as a final layer that protects unauthorized change. Essentially, it operates as an override lock to guard your account settings and protect your profile from attackers.

Risks and past incidents that affect the security of Kraken

Kraken is reliable, yet still not immune to risk. In this article, you will find some considerations that users should take into account.

🆘Spoofed Kraken sites. Scammers are known to create fake websites in order to trick users into revealing credentials. Furthermore, these malicious sites can look exactly like Kraken’s official platform, in some cases, and unsuspecting users who visit them can compromise their accounts.

🆘User negligence: Many breaches stem from weak passwords or lack of 2FA. User practices are the weakest link even on the most secure platforms which is why personal vigilance is so crucial.

🆘Concerns with regulatory matters: There could be regulatory changes that can affect how Kraken operates in different regions, including issues related to unregistered securities. Users are advised to keep themselves informed about the legal status of the country that backs the cryptocurrency exchange they are using to prevent any privacy risks.

🆘Kraken was accused of selling unregistered securities to the cryptocurrency staking program. On the other hand, the commission also accused Kraken of commingling customer funds with corporate assets, exposing investors to high risks.

For many crypto exchanges like Kraken, the issue of regulatory compliance is one that requires resolution. This matter has broader implications for investors trying to wrap their heads around the cryptocurrency landscape shrouded in regulatory uncertainty. Anyway, safety comes first! So, we’ll equip you with a couple of actionable tips on how you can use Kraken safely. 

Safety when using Kraken

While Kraken is safe, how safe it is depends entirely on the actual users. To better protect your assets consider:

🐙Strong, unique password for your Kraken account. Avoid using the same password you use on other sites and use a password manager to remember long, complicated passwords.

🐙Turn on all security features such as 2FA and Master Key. Multiple barriers against unauthorized access are in these settings, which significantly lowers your chances of being hacked. Enabling these security measures is fundamental to ensuring the safety and integrity of your assets.

🐙You must never share your credentials or recovery phrases with anyone. If the person seems trustworthy, sharing the sensitive information can result in immediate account compromise.

🐙Don’t use your account from public WiFi networks. These networks are hotspots for hackers who will use tools to intercept your data and therefore it is absolutely necessary to use a secure connection any time possible.

Additionally, effective customer support is crucial in ensuring user safety and trust in the platform. Kraken support offers 24/7 assistance through email, live chat, and phone, which significantly enhances customer satisfaction and reinforces the platform’s commitment to user care.

Trading on Kraken

Trading on Kraken is simple and easy to use even for a beginner who wants to trade crypto. The platform has a lot of trading pairs, crypto-to-crypto and fiat-to-crypto, that allow the users to make the transaction through the trading of various cryptocurrencies in favor of other or fiat currencies. The one downside is that the US residents are unable to trade derivatives on Kraken, unlike other trading platforms.

Other derivatives including options and swaps are also available for users to trade futures on. Kraken fees are reasonable and the platform provides a number of advanced trading tools, such as technical analysis charts and real time market data. Users are able to trade with leverage and with the possibility of increasing their profits through margin trading that Kraken also offers. But leveraged margin trading is higher risk and people should be careful not to over-leverage their account.

Managing crypto holdings

Users will find a number of tools and features to help them manage their crypto holdings at Kraken. The Kraken wallet is the platform’s crypto wallet that lets users store and manage crypto assets securely. Managing wallet addresses correctly during a cryptocurrency transaction is crucial to make sure their funds are safe. Security features such as two factor authentication and SSL encryption are also available to protect user’s funds.

Prior to major market disruptions, Kraken exchange pioneered Proof of Reserves to ensure client fund security using third party audits. For this, Merkle Trees are used when verification is required to ensure the integrity of both the exchange as well as the auditing process.

Kraken’s advanced trading tools can be used by users to minimize risk and even raise their profits. Furthermore, Kraken offers a number of educational resources such as crypto education and market analysis to assist users in making informed investment decisions. All in all, Kraken is a safe and secure crypto exchange that provides a variety of tools and features to assist users to maintain their crypto investments and attain their investment objectives.

Fiat currency support

Unlike most other crypto exchanges, Kraken supports robust fiat currencies, giving its users the ease of depositing and withdrawing funds from their local currencies. In addition to all of the above, the exchange supports fiat currencies such as US Dollar (USD), Euro (EUR), British Pound (GBP), and Japanese Yen (JPY), etc. This is a feature that will simplify the trading process as users do not have to convert their funds to a different currency before trading. Depositing fiat money directly into Kraken account provides a greater level of convenience and accessibility to Kraken platform and itself is a reason why many crypto investors choose Kraken rather than other platforms.

Customer support

Kraken offers excellent customer support through email, live chat as well as phone support. Users can reach the exchange’s customer support team 24/7 for any type of questions or assistance with the exchange. Kraken’s customer support is notorious for being very responsive and helpful, with many of the users praising the exchange for its excellent service. On top of that, Kraken has a very detailed knowledge base and FAQ section that helps users learn more about the exchange and solve standard problems. With this dedication to customer support users can feel comfortable trading with the knowledge that help is just a click away if they need it.

Trading fees

Kraken charges competitive trading fees, which go as low as 0% or as high as 0.40% of the total order value. The fee is based on the user’s 30 day trading volume, the currency pair you trade and whether the order is a maker or taker. Kraken’s fee schedule is easily calculated and accessible for users on its website. It is also an attractive platform for professional traders as it offers discounts for high volume traders and those who trade using the Kraken Pro platform. In general, Kraken’s fees for trading are reasonable and competitive, and thus it is one of the best crypto exchanges.

Deposit and withdrawal options

To suit everybody’s needs, Kraken offers a variety of deposit and withdrawal methods. Users can deposit Euros, Dollars and GBP, as well as Bitcoin, Ethereum and Litecoin. The exchange also offers several withdrawal methods such as wire transfers, bank transfers, and cryptocurrency withdrawals. This flexibility provides for easy movement of funds in and out of a user’s Kraken account, so it’s easy to trade. Kraken offers convenient and secure ways to deposit fiat money and digital assets for you to manage your funds.

Kraken mobile app

The Kraken mobile app is a powerful tool for trading cryptocurrencies on the go, it is easily useable. The app is available for both iOS and Android devices and offers all of Kraken’s trading features including spot and futures trading, margin trading, and crypto to crypto trading. Security wise, the app has features like two factor authentication and SSL Encryption to protect user funds.

 Additionally, the Kraken app also provides real-time market data, price alerts, and push notifications to ensure that users stay updated about the developments in the market. The Kraken app is indispensable to crypto investors who trade anytime, anywhere, and offers the convenience of doing that with serious security features.

Why a VPN is not just for crypto traders but everyone

As a result of trading cryptocurrencies, the sensitive data and financial transactions you are exposed to are vulnerable to hacking. A virtual private network (VPN) comes here as an important layer of online security you can rely on to protect your crypto savings.

A VPN encrypts your Internet connection, so no outsiders can see what you’re doing or your data online. As a result, VPN you offers such security advantages as: 

🫣It hides your IP address: Masking your IP protects you and keeps you anonymous online so the cybercriminals can’t pinpoint you or your location.

🪬Protects you on public networks: A VPN stops others from watching your online activity, and from seeing the sites you visit on untrusted WiFi.

🛑Blocks malicious sites and stops phishing attempts: Many VPNs come with threat detection features that will either alert you or stop you from accessing suspicious sites automatically.

But how do you pick the right VPN for a secure crypto trading? Keep on reading to learn! 

How to select a trusted, fast, and secure VPN for crypto trading

Not all VPNs are equal. The following features can help you select one:

😎You can enjoy true privacy: as the service sticks to the strict No Logs policy, your activity is not recorded.

😎Strong encryption protocols: Go with a VPN that offers AES 256-bit encryption to protect the connection using military grade protection.

😎Speed: It needs to be fast and stable for trading. Your VPN should perform without slowing down too much.

😎Global server network: Wide server selection to bypass georestrictions and provide more control over your virtual location.

😎Works on multiple devices: Your VPN should be compatible with your PC, smartphone, and tablet, so that your protection is always on.

VeePN raises the bar for your protection on Kraken

If one of the crypto traders is interested in improving security, then VeePN is a great option. Here’s why: 

🛡️Military grade AES-256 encryption: Your data is encrypted on the most secure standard, guarding your activity from spying and breaches.

🛡️Global coverage and flexibility to access Kraken from virtually anywhere with stable performance: We have 2,500+ servers in 89 locations worldwide.

🛡️DNS leak protection and Kill Switch feature that ensure your identity stays hidden even if your VPN connection drops temporarily.

🛡️Supports up to 10 devices simultaneously: Protect all your devices under one subscription, ideal for multi-platform traders.

🛡️You can use VeePN on all major platforms: Windows, macOS, iOS, Android, and browser extensions — it works intuitively and setting it up is a proverbial piece of cake.

How to use VeePN with Kraken: Step by step guide

1. Go to the VeePN website and get a subscription.
2. Install the VeePN app on your device if you want to download and install it.
3. Enter into a secure server location.
4. Firstly, open Kraken, and log into your account.
5. Indulge in trade with more peace of mind about your secure connection.

Download VeePN now and enjoy a 30-day money-back guarantee! 

Written by VeePN Research Lab VeePN Research Lab is dedicated to provide you latest posts about internet security and privacy.

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