Kraken is a US-based cryptocurrency exchange that allows users to buy, sell, and trade digital assets. Think of it as a marketplace that connects buyers and sellers of cryptocurrencies, quite like how a stock exchange works for traditional stocks. Founded in 2011, it’s one of the longest operating crypto exchanges in the world, providing access to crypto markets for individuals and institutions. 

Kraken’s unique selling point is its emphasis on security and regulatory compliance. It offers services such as spot trading, where assets are exchanged at current prices, futures trading for speculating on future prices, and staking, which lets users earn rewards by locking certain cryptocurrencies to support network operations. The platform serves over 9 million clients across 190 countries and lists over 200 cryptocurrencies for trading.

[Note: In June 2024, a vulnerability exploit temporarily compromised $3 million worth of Kraken’s treasury funds, but the issue was reportedly resolved quickly, without any losses of user funds.]

Kraken: Key Points

• Founded in 2011 with a focus on security following early industry breaches like Mt. Gox.
• Serves over 9 million clients in 190+ countries.
• Offers trading with leverage options, including up to 50x on futures. Leverage means borrowing funds to trade a larger position than one’s initial deposit.
• Provides proof of reserves through independent audits for transparency.
• Includes earning features like staking for passive rewards on held assets.

History of Kraken

Kraken was founded on 28 July 2011 by Jesse Powell and Thanh Luu, with the aim of creating a secure cryptocurrency exchange after witnessing the Japanese platform Mt. Gox’s hack on 13 June, 2011, which led to a loss of 25,000 BTC (around $400,000 at that time). It was launched publicly in September 2013, starting with Litecoin (LTC), Bitcoin (BTC), and euro trades, and later adding more cryptocurrencies and margin trading.

Following the Mt. Gox collapsed in 2014, Kraken assisted in liquidating its assets and investigating lost Bitcoins for creditors, which helped grow its user base by 50% in the subsequent months.

In 2024 and 2025, Kraken made several acquisitions, including: 

• NinjaTrader 
• Coin Meester B.V. 
• Small Exchange 
• Breakout, and
• Capitalise.ai 

On 19 November, 2025, the company confidentially filed for an IPO with the SEC.

Over the years, Kraken expanded services to include futures trading and obtained regulatory licenses in various jurisdictions, including the US, UK, Canada, Europe, Australia, and Singapore. 

Kraken: Functions and Services

Kraken offers a range of services for interacting with cryptocurrencies, with availability varying by region and local regulations. Here’s a quick rundown of some of Kraken’s functions and services: 

• Buy, sell, and convert crypto: This feature involves using fiat currency, like US dollars or euros, to purchase/sell digital assets via bank transfers, credit cards, or other local payment methods. You can also convert between different crypto assets like Bitcoin (BTC), Ether (ETH), and more, at current exchange rates. 
• Dollar-cost averaging (DCA): This option allows users to make recurring, automatic crypto purchases at set intervals, helping them average their investment costs over time amid price fluctuations.exchan
• Spot trading: This is a standard way to exchange cryptocurrencies at their current market prices. Kraken lists 200+ assets and multiple trading pairs. Users can place market orders for immediate execution or limit orders to trade at a specific price.
• Margin trading: It allows users to borrow funds to increase their position size, with leverage (borrowed funds) up to 10x on spot trades. This means depositing collateral to access more capital, but it amplifies both potential gains and losses, so it’s intended for those familiar with risk management.
• Futures trading: This feature enables speculation on crypto prices without owning the underlying crypto assets. Contracts settle at a future date, with leverage up to 50x available. As with any leverage trading product, it can magnify both losses and gains equally, and rather quickly if markets move adversely or favorably to your position.
• Staking: This is a feature wherein users can lock up eligible cryptocurrencies like Cardano (ADA), Ether (ETH), Polkadot (DOT), and others to help validate (process) transactions on blockchain networks, and earn rewards in return. This is similar to contributing to a network’s operations and receiving a share of fees, with rewards varying by asset and network conditions.

• Auto-earn: This facility allows users to earn weekly returns on their crypto holdings on the Kraken platform. Turning on this feature generates returns on eligible assets, with no lock-up periods. The available assets and opt-in rewards vary based on geographic location.  
• Over-the-counter (OTC) trading: Meant for advanced traders, this service caters to large-volume trades, conducted privately to minimize market impact, often used by institutions.

Please keep in mind that passive income generation features like staking, auto-earn, and others usually carry risks, with no guarantee of rewards. 

Is Kraken safe to use in 2026?

Kraken implements multiple security layers, such as ISO/IEC 27001:2022 and SOC 2, Type 1 certifications for cybersecurity management. These are internationally recognized standards that assess how well a company manages information security and protects user data. 

The platform uses advanced cold storage for the majority of assets in secure facilities with 24/7 surveillance, encrypts sensitive data, and conducts regular security testing through a bug bounty program. In a bug bounty program, independent researchers are rewarded for finding and reporting potential vulnerabilities. 

Kraken also shares proof-of-reserves reports reviewed by external auditors to show that customer balances are backed by held assets. Additional protections include two-factor authentication, stronger login methods, and systems that monitor accounts for unusual or suspicious activity. 

Kraken has not experienced a major customer-fund security breach to date. In June 2024, a security researcher exploited a zero-day vulnerability in Kraken’s software, leading to a $3 million loss from Kraken’s treasury funds. The issue was reportedly resolved swiftly, with funds returned, and no client assets affected. A zero-day vulnerability in a crypto exchange is a hidden, unknown security flaw in its software or systems that hackers discover before developers do.

Kraken FAQs

What is the difference between the basic Kraken platform and Kraken Pro?

The former is designed for beginners and individual users, offering a simple interface for buying/selling crypto, while the latter caters to advanced and institutional traders with options like margin, derivatives, and forex trading with complex order types like stop-loss, limit, and more.

Does Kraken offer a mobile app?

Yes, Kraken provides mobile apps for both standard investing and advanced trading, allowing users to manage accounts and trades on the go, on their iOS and Android phones.

Is KYC mandatory on Kraken?

Yes, it is mandatory to fulfil Know Your Customer (KYC) requirements to use Kraken’s exchange services. It involves providing some personal details, uploading a valid ID and a selfie.

What are the fees on Kraken?

Kraken uses a tiered fee structure based on 30-day trading volume. Spot trading fees range from 0.25% to 0%, decreasing with higher activity. Futures and margin have separate rates, ranging from 0.02% to 0.006%. Deposits are free, but withdrawals incur variable network or bank fees.