Cryptocurrency trade is continuing to become popular, with many people getting into the trade either on an official capacity or just for fun. As many companies venture into the trading business, it becomes difficult to find a trustworthy company to trade. You have to be careful when choosing a trading platform to avoid falling prey to many scam companies looking to swindle people out of their hard-earned cash. Kraken is one of the oldest trading companies that have had a deal with many negative reviews. 3WTrade decided to look into the company to ascertain whether those claims are valid of just rumors.
Overview of the company
Kraken has been around since 2011 and is now operating in several countries, including Canada and the UK. The platform isn’t just suitable for trading; it is also good for buying and selling of other digital assets. Their headquarters is in San Francisco, and they take pride in being one of the cryptocurrency companies that have never been hacked. They continuously improve their security measures and update their platform.
The first thing we noticed about this website is the structure. It has been laid out in different sections, namely simple, intermediate, and advanced. All the sections have different settings for different comprehension levels. This separation makes the website easy to use and reduces the confusion that most beginners face when they try to use a trading platform.
Opening an account on the platform is simple, depending on whether you want a basic account or an advanced account. The verification processes for these accounts different from the advanced reports having to undergo a more strict verification process. You’ll have to provide your ID for accounts, as well as your address and your phone number. The advanced account will require additional verification details such as 2-Factor Authentication and social security numbers for those who live in the United States.
Kraken has several charges, but they have not placed them in a single place. This made it harder for us to gather all the information about fees. However, we still managed to find that they charge different rates of withdrawal fees depending on the mode of payment used. They have transfer fees, but these may seem a little complicated for beginners. Those interested in trading with the company must, therefore, take time to understand all the fees they’ll have to pay before they start trading on the platform. This is one of the things we didn’t like about the company. In the beginning, they make it seem like their platform is suitable for beginners with the beginner section, but when it comes to fees, they don’t try to make them more understandable.
The company has several flaws that they have implemented through the tier system. Tier one users only have to provide an email address, and they’ll be able to navigate the site. However, they will not be able to deposit or withdraw or even trade.
Tier two users have to give their phone numbers, dates of birth, and country. Withdrawals and deposits are allowed but only in digital form. Trading is also possible in both digital and fiat form. The deposits and withdrawals cannot exceed $2000 a day or $10,000 per month. Those who withdraw cryptocurrencies cannot withdraw more than $5,000 daily or $50,000 monthly.
Tier 3 and tier 4 are also available, with the former having restrictions about funding and the latter requiring KYC documents. Digital currency withdrawals are limited to $50,000 daily and $200,000 monthly, while fiat transactions $25,000 per day and $200,000 per month. Tier 4 is also open for corporations, and as such, they have more stringent measures that must be cleared out by the administration.
Kraken Trading options
High leverage provided by this company, together with the multiple trading options they offer, is some of the reasons why Kraken is loved by many. When combined with the high liquidity, traders on this platform can make a lot of profits through high volumes of trading. Withdrawals are also very fast with verified auditing making the whole process safer.
While Kraken has tried to put suitable security measures in place for their users, they have failed to satisfy the needs of most users. Case in point is the recent blackout t experienced by the company. Due to several outages that the company experienced, they decided to take time off to work on making the platform better. This failed and turned into a two-day blackout that caused panic to their users. Even though they managed to resume operations, the doubt that was planted in the minds of their users was enough to cause some serious damage as the situation fueled rumors about the company being a scam. They have tried to improve their security by keeping user’s funds in different locations and adopting the two-factor verification process. They also have account lock settings and phone recoveries for stolen devices.
The website’s interface is well laid out, but the functionality of the site needs improvement. There have been reports of many functionality errors and bugs that have disrupted the usability of the site. Although they have never been hacked, their functionality problems seem to be inbuilt. They come from the internal structures of the website. Not having an app for mobile device users is also another factor affecting the functionality of the platform. They fail to offer diversity and, as such, lose customers who prefer to use mobile devices or those who cannot access other devices.
Although Kraken has a customer service team, their level of service provision isn’t excellent. They tend to take time before responding to questions by users. It is unclear whether this is because they have much to handle or if it’s laxity.
Kraken has advantages and disadvantages in equal measure, likr alot of others brokers we reviewed. On the one hand, they have improved their security measures and are now one of the most secure platforms. On the other hand, their asset selection isn’t that great. They have also provided a wide variety of trading options, and that’s works in their favor. The customer support and other features like asset selection, aren’t great. While these don’t show that the company is a scam, they also mean you should be careful when signing up on the site. Make sure you understand everything about the website and the risks you’re taking before signing up