In this article, what is Kraken Exchange? We will provide information about the Kraken exchange.
Cryptocurrencies are becoming more and more popular among investors, traders and other market participants around the world. A new digital asset is launched almost every day. The number of exchanges where these digital assets are traded continues to increase.
What is Kraken?
It is a San Francisco-based exchange that facilitates cryptocurrency trading. It is a cryptocurrency exchange where market participants can trade in various cryptocurrencies. The exchange mediates participants to buy or sell cryptocurrencies using a variety of fiat currencies, including the US Dollar, Canadian Dollar, Euro and Japanese Yen.
At the time of writing this article, more than 20 cryptocurrencies were trading on Kraken’s marketplace. These include cryptocurrencies like EOS (EOS) and Monero (XMR), as well as popular ones like Ethereum (ETH) and Bitcoin (BTC).
It was established in 2011 and officially started its trading activities in 2013. It operates under the umbrella of Payward Inc. The CEO and co-founder of the exchange is Jesse Powell. The exchange supports fiat deposits and withdrawals from its customers’ bank accounts. And it enables the transfer of cryptocurrencies between wallets.
How Did Kraken Become Popular?
In the years since its launch, many factors have contributed to Kraken as a preferred trading point for various cryptocurrency market participants.
With cryptocurrencies taking the world by storm in 2014, Kraken and Coinbase were chosen to provide the Bloomberg terminal with market data for Bitcoin trading. The association of Kraken with the leading market data provider has helped the exchange gain popularity among traders. Bloomberg customers have started accessing prices, charts, news and social media posts of cryptocurrencies through Bloomberg services and terminals.
Shortly after the Bloomberg collaboration, Kraken partnered with TradingView, the world leader in charting services provider. Increasing the number of cryptocurrencies in its market over time, Kraken has started to offer financing and trading opportunities in various fiat currencies such as USD, GBP and JPY.
Kraken, which managed to make a stable start after the launch, increased its popularity even more after the Mt Gox disaster, which claimed to be the largest stock exchange in the world for a while and filed for bankruptcy in early 2014 after the disappearance of more than 850 thousand BTC. Because Mt Gox creditors who wanted to get their lost BTC back had to open an account with Kraken. And many continued to use the services of the exchange.
While Kraken was not among the largest exchanges until then, it first started to serve European customers by partnering with Germany-based Fidor Bank, while also offering services in Japan.
Kraken’s prudence in listing and adherence to regulatory compliance ensured its quality was maintained.
It has grown in popularity with the introduction of several new features that have made it popular with both the masses and professional trader communities as the exchange has boosted cryptocurrency trading pairs. These services included collateral trading and dark pool service. Dark pool customers can potentially come forward with better quotes because large orders executed against similar sized orders in the face of price advantage are allowed to be executed discreetly.
What Makes Kraken Stand Out?
Kraken offers a feature-rich trading environment for individual cryptocurrency enthusiasts and large trading firms. It has a variety of account types that meet the needs of all types of traders and investors.
With its advanced order system and trading tools, including various stop-loss and take-profit order types, leverage and margin-based trading, automated strategy trading, and a large pool of cryptocurrencies to trade, Kraken is one of the unique cryptocurrency exchanges.
Problems with Kraken
Continuing on its way with success, Kraken became the victim of DDoS attacks together with Poloniex in May 2017. And as a result of these attacks, market participants suffered huge losses.
After the attacks, some market participants alleging that Kraken abused the DDoS attack, filed a lawsuit against the exchange with compensation claims of over $5 million. This was a major blow to Kraken’s claim to be the safest cryptocurrency trading platform.
While the popularity of cryptocurrencies is increasing day by day, performance problems in crypto exchanges have overshadowed the increasing liquidity and trading activities of the Bitcoin market. During the huge bull run at the end of 2017, 50,000 new accounts were opened on Kraken in just a few days. More than 10 thousand support requests were created. And the stock market failed to respond to this interest.
Comments About the Stock Exchange
Kraken was able to put himself in a good position by coming out stronger and stronger from his previous bad experiences. It has also been a frequent exchange for many, thanks to its price supply to the Bloomberg Terminal. Currently operating in 48 states and 176 countries, Kraken may expand to more countries in the future. However, it is not preferred much due to the limitations in currency support and long processes that may occur in payment systems.
Frequently Asked Questions
What currencies are there?
It allows you to deposit US Dollars, Japanese Yen, Australian Dollars, Canadian Dollars, Euros, British Pounds and Swiss Francs.
What are the withdrawal limits?
Withdrawal limits depend on your verification levels and deposit method.
How long does it take to deposit and withdraw funds?
Deposit and withdrawal processes vary depending on the payment method and currency you deposit. Some transactions are instant, while others may take up to several business days.
Despite the occasional issues, Kraken is among the most popular cryptocurrency exchanges. Kraken has established itself as one of the oldest cryptocurrency exchanges. With its unique features and high liquidity, it is one of the few exchanges that can always respond to buy-sell orders to market participants.
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