Kraken: leading US cryptocurrency exchange
Kraken is the Ripple exchange of choice for US investors who require high-level security, exceptional customer support, a range of innovative features and fast execution on their trades. Consistently rated as the top US exchange on independent crypto broker comparison sites, Kraken permits users to buy and sell not only Ripple but also Bitcoin, Ethereum, Litecoin, Dash, Monero and other digital currencies.
The broker offers an easy-to-use, intuitive trading platform that even beginners can find their way around easily, but it is also large enough to cater to the needs of more advanced and experienced cryptocurrency investors. For investors, part of the appeal of dealing with this exchange is the sheer volume of transactions that pass through it every day, along with its solid reputation.
It is easy to set up an account with Kraken and start trading almost immediately. New customers can open an account by simply filling in a form on the website and completing a quick verification process. Verification is necessary by law and is a sign of a reputable crypto exchange. To open a standard trading account, customers need only answer a few questions. Setting up an advanced account will require supporting documentation such as a government-issued ID, proof of residence and a Social Security Number, just like when you open any other type of bank account.
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Kraken Offers Simple Payment Options At Good Prices
Once your account is set up, you simply need to fund it to start buying and selling Ripple or any other cryptocurrency. There is a range of payment methods available, including:
- USD bank wire deposit
- EUR bank wire deposit
- EUR SEPA deposit
- JPY bank wire deposit
- CAD bank wire deposit
Fees for these payment methods are very low, and sometimes free. There is a fee of just $5 for a USD bank wire deposit from inside the US (the fee is $10 for countries outside the US). The fee for a USD bank wire withdrawal is also only $5. There are higher fees for withdrawals to non-US banks. Deposits from Canada by bank wire are free, as are euro deposits via a SEPA transfer. Remember that your bank may levy extra charges for transfers, depending on the conditions attached to your bank account.
For traders, Kraken is the go-to option as it provides simple access to payment methods where others may require traders to convert their currency (even major ones), before completing their transaction. This conversion levies a fee and will need to be done for both deposits and withdrawals. Kraken also provides mobile access which allows traders to keep an eye on their funds at all times.
How to use Kraken payment methods and purchase Ripple
Once you have your Kraken trading account set up, you can fund it using any of the above methods. You can add funds to your account and withdraw them in US dollars, Canadian dollars, Euros, Japanese yen, Ripple and other digital currencies. Kraken offers corporate and premier accounts for businesses and high-volume traders, so ask about these accounts if this applies to you. The platform takes security seriously and takes all possible steps to make its system secure, but to ensure that your individual account is safe, Kraken suggests that you create two-factor authentication for your account login, protect the email tied to your Kraken account with a strong password and two-factor authentication and create a master key to require authentication for account recovery.
To make a deposit, simply log in to your Kraken account and select the Funding option from the menu tab, which will allow you to choose a deposit method. You will most likely make an initial deposit via a direct bank transfer. There is also the option to set up a cryptocurrency wallet to deposit and withdraw funds.
To make your first trade, you will need to select the Trade tab from the menu and then select New Order. This will let you select the currency that you want to buy, the quantity that you are purchasing and the currency that you want to make payments in. You can now select an order type and confirm your trade.
How it works: buying Ripple on Kraken
Once you have placed an order, the Kraken trading platform will process it. The fees levied by the exchange will depend on the details of the trade. The website clearly displays details of the current fee structure. The platform will charge you fees on a per-trade basis according to volume, with trading volumes calculated based on trades made within a 30-day period. Most trades of less than 50,000 units of currency will incur a maker fee of 0.16% and a taker fee of 0.26%. These fees apply to most trading pairs, whether you trade via fiat currencies or other digital currencies.
For trading volumes greater than 50,000 units, the fees are lower. They initially drop to a 0.14% maker fee with a taker fee of 0.24%. As you would expect, fees become lower as volume becomes higher, and when trading volumes reach 10,000,000 units or higher, fees generally drop to a 0% maker fee and a 0.10% taker fee. There are, of course, conditions and exceptions, so take a close look at the fee structure guide on the Kraken website. These fees compare well with others in the market and won’t leave traders out of pocket.
Limits and accounts: how to trade on Kraken Tiers 1 and 2
Kraken has various trading limits, depending on your level of verification. The broker operates a tiered system from 0 to 4. Tier 0 allows you to access the site and look around but does not allow you to place trades.
A Tier 1 account requires your full name, date of birth, country, and phone number. It allows you to make deposits and withdrawals in digital currencies only (although you can also trade fiat currencies). Moving up through the tiers requires increasing documentation to verify your identity. This process unlocks more features and higher funding and withdrawal limits as well as gives you the ability to fund and withdraw from accounts using fiat currencies. At Tier 1, your limit for withdrawals is $2,500 per day and $20,000 a month. There is no deposit limit.
A Tier 2 account may require you to show proof of address but may also allow for fiat currency funding, depending on your country of residence. Tier 2 users have a withdrawal limit of $5,000 a day and $50,000 a month in digital currencies and a limit of $2,000 a day and $10,000 a month when depositing and withdrawing fiat currencies.
Limits and Accounts: How to Trade on Kraken Tiers 3 and 4
At Tier 3, the verification process includes providing a valid government-issued ID and recent proof of residence. This tier gives you access to margin trading and the amount in fiat currencies that you can deposit or withdraw increases to $25,000 per day and $200,000 per month. Your limit for withdrawals in digital currencies at this level is $50,000 a day and $200,000 a month.
Tier 4 accounts are for high-volume traders and are available both as individual accounts and business accounts. This understandably requires a higher level of verification, including a signed application form and KYC documents for individual accounts. These accounts may have a customized level of funding, and anyone feeling that they need this level should contact customer support to discuss requirements.
These tiers may seem superfluous to those who are not quite used to trading, but they provide a valuable foundation to the trading game. As the tiers increase, so do the levels of security in order to provide some form of governance where trading is concerned. This is not only for the safeguarding of the platform, but to set regulators at ease for the time being, or at least until the legal framework for this kind of trading has been finalized
Why Kraken Is ahead of the curve
Kraken is a trusted and established US-based digital currency exchange. The company offers customer support via email and an extensive FAQ section. Fees are competitive, and the tiered account system offers something for crypto investors at all levels, from complete beginners to advanced traders and businesses. This exchange provides a safe and secure level playing ground for those traders with creative crypto trading strategies. While Ripple buyers may not always agree on exactly which crypto broker is best, Kraken is widely respected and comes off well, both in customer reviews and on independent cryptocurrency broker comparison sites.
With lower fees than its major competitors, a robust and comprehensive trading platform and an excellent choice of digital currencies, Kraken has a reputation for being one of the most reliable, competitive and convenient exchanges around, both with US clients and international traders. While the broker offers a platform that is intuitive and easy for beginner traders to navigate, it also offers great features for intermediate and advanced cryptocurrency investors.
This crypto broker also offers an excellent and precise charting tool via TradingView, has a high liquidity rate, and offers very low fees to US customers using wire transfers to deposit and withdraw funds. Its fee structure is a little complex but clearly laid out in a comprehensive guide accessible from the website, and the fees do tend to work out lower than those of many other exchanges.
Disadvantages of Kraken Ripple exchange
Kraken has some limitations on deposits and withdrawals, both in terms of payment methods and the amount that you can deposit and withdraw. These depend on the type of account that you have. However, traders should expect these limitations, and the tiered verification process at Kraken is arguably a sign that it is following best practices and ensuring legality, confidentiality, and security while trying to limit paperwork for new traders just starting out.
While Kraken is well-respected and widely used by US Ripple traders, it also needs to make sure that it keeps up with its own growth. In the past, periods of sudden growth and unexpected surges in new registrations shone a light on the fact that Kraken’s customer service options had limitations, which led to short site outages and downtime and caused temporary panic among users. To be fair, cryptocurrency exchanges everywhere have had to cope with sudden, unprecedented demand in the last few years, and as one of the best and most popular platforms, Kraken has had to deal with more sudden expansion than most.
The company also compounded this issue early in 2018, when it decided to install a trading engine that caused site downtime and the normal teething problems that are likely to occur with a new operating system. Some customer complaints on the Internet stem from that time, so do make sure to check the date if you come across any negative reviews of the broker.
Special features of Kraken: functionality, liquidity, security and advanced trading options
The functionality of the Kraken Ripple exchange is excellent, with a clear, intuitive and easy-to-navigate interface that is not daunting for beginners. This couples with intermediate and advanced features such as high-level charting tools and the ability to limit orders, short sell and trade on margin. There is also a highly functional and intuitive mobile app to make trading on the go easy.
Kraken also boasts a high level of liquidity, which in turn allows for high trading volumes and fast account funding. It undertakes Proof of Reserves Audits and performs cryptographically verified auditing to provide an extra layer of transparency. The broker is also committed to best practices when it comes to security, incorporating cold storage techniques and using encryption across the site. The platform both offers and encourages users to set up two-factor authentication, a master key and a global setting lock.
Kraken provides a range of trading options, including margin trading and leveraged trading with up to 5X leverage. It offers the opportunity to set up automated trading, stop-loss orders and orders with pre-defined triggers.
Lastly, while many people may consider Kraken to be the best Ripple exchange in the US, it is more than just a Ripple exchange and is available on a much wider scale. Kraken allows for trading in fiat currencies as well as digital currencies, and it offers over 40 currency pairs with seven base currencies, including the US dollar, the Canadian dollar, the British pound, the euro, and the Japanese yen.
Summary of Kraken
Kraken has been in operation in the US since 2011, making it one of the oldest cryptocurrency exchanges around. Given the lack of regulation within the world of cryptocurrency trading, it is understandable that US customers find reassurance in the fact that the company is based out of San Francisco, has a comparatively long history, serves a lot of US customers and has a solid reputation.
The exchange provides a secure platform, a highly functional interface and trading engine, excellent liquidity and lower trading fees than most of its competitors. Kraken appeals to both new and experienced traders and to both businesses and corporations with its user-friendly, multi-tier account structure, maker/taker fee model and high trading volume discounts. Its advanced trading options and charting tools are attractive to advanced crypto investors, while new traders feel comfortable with the simplicity of the basic interface and ease of use of the website and apps.
Apart from arguably being the best Ripple exchange in the US, Kraken also deals in a wide range of other cryptocurrencies, including all the major, commonly traded digital currencies and several of the less common ones, which makes it a convenient and interesting choice for the more adventurous and unconventional crypto trader. In addition to this, it is possible to trade major fiat currencies through this broker, with several base currencies available and over 40 currency pairs to choose from.