[0:01]It's no secret that there are plenty of crypto exchange options out there. However, there is one that is beloved by crypto OGs the world over, and that exchange is Kraken. And it's one that I've personally used as a Coinbase alternative.
[0:16]So, what is my take on it? Well, today I'm going to give you a comprehensive breakdown of Kraken in my complete beginner's guide. I'll explore the ins and outs, pros and cons, and compare it to some of its best-known competitors.
[0:28]I also have a few tips and tricks when it comes to using the exchange that you don't want to miss. So, be sure to stay tuned for all that good source.
[0:44]Before I dive in, I need to tell you something. Although I may make you wiser, I am no financial advisor. That means nothing in this video is financial advice, and this disclaimer will have to suffice.
[0:57]All clear? If this is your first time here, lend me your ears, come close, come near.
[1:02]My name is Guy, the big cheese at the Coin Bureau. We cover everything in crypto that you need to know.
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[1:25]And finally, behold the timeline below. I've broken it up into different chapters, just so you know.
[1:31]So, if you think I'm going a bit slow, feel free to skip ahead to different bits, although you wouldn't want to miss any of my golden tips.
[1:39]Okay, that's all the small talk that needs to happen, so buckle up, and let's get Kraken.
[1:45]To kick things off, I need to give you a bit of an overview of Kraken.
[1:49]Now, many of you will know that Bitcoin was mysteriously unleashed upon our world in 2009, praise be to Satoshi.
[1:57]In those early days, however, there was barely any crypto infrastructure to speak of.
[2:02]However, Kraken opened its jaws just two years after that. So, Kraken has been around for an eternity in crypto terms, and that's why so many crypto OGs used Kraken as their first ever crypto exchange.
[2:16]So, who is the brains behind Kraken?
[2:19]Well, that would be the legendary Jesse Powell, who used to be a trader at the now defunct Mount Gox Exchange.
[2:27]And it was there where he saw one of the biggest ever Bitcoin hacks unfold, and witnessed traders out on the streets begging an exchange to give them back their BTC.
[2:36]With that sort of carnage engulfing the cryptosphere, you could forgive every Mount Gox user for leaving the crypto world altogether.
[2:43]However, Jesse took one look at that and thought to himself, I could do a better job of running a crypto exchange.
[2:50]And that's essentially how Kraken was founded.
[2:53]Now Kraken is located in Sunny San Francisco and they are not short of funding.
[2:59]They have successfully carried out numerous funding rounds with big VCs and investors.
[3:04]Earlier this year, the exchange was actually in talks for a new funding round which valued Kraken at more than 10 billion dollars.
[3:12]Now on top of that, Jesse Powell, Kraken CEO, also revealed a few months ago that the exchange could be listed on the stock market in just over a year's time.
[3:26]So yes, this is one heck of a serious crypto shop, if you ask me. Now, it's not just the big money VCs that trust Kraken with their money.
[3:30]The exchange is trusted by more than 7 million regular crypto traders and institutions too.
[3:37]So, why are all these users happy to trade at Kraken?
[3:41]Well, I guess it's due to this exchange being regulatory compliant in all jurisdictions it operates in.
[3:47]Kraken is actually registered as a Money Services Business in the USA and Canada. It's also regulated by the FCA over here in the UK and is either licensed or regulated in places like Australia and Japan, too.
[4:01]So, if you want to use an exchange that plays by the rules, then Kraken is probably going to be right there at the top of your list.
[4:09]Now, that briefing about Kraken sounds amazing, I bet. However, the truth is that all that means nothing unless the exchange is safe to use.
[4:17]It's your hard-earned crypto at stake, so you better be sure that security is up to par.
[4:23]Alrighty. So, Kraken proclaims that it has quote industry-leading security that protects your investments.
[4:29]That's a bold claim. So, what is backing that up?
[4:32]Well, 95% of all crypto deposits are kept in offline, air-gapped, cold storage.
[4:40]Another neat thing is that there isn't a single honeypot of crypto that could be compromised, leading to the exchange becoming insolvent.
[4:47]Instead, those air-gapped crypto deposits are geographically distributed, too. Honestly, this is best practice for exchanges in terms of security.
[4:56]Another threat to users is having your sensitive account information stolen.
[5:01]I mean, people could use that to hunt you down and execute a $5 wrench attack.
[5:05]To protect against that eventuality, Kraken makes sure that all sensitive account information is encrypted, and that access is strictly controlled and monitored.
[5:15]When it comes to physical security of the servers, they are popped into secure cages.
[5:21]And not only that, but Kraken went the extra mile by having them monitored by armed security guards.
[5:27]So, anyone wanting to compromise those servers should expect a whole lot of trouble.
[5:32]However, we all know that the best way to prevent a hack is making sure those systems are watertight in the first place.
[5:39]And here the exchange actually pays a dedicated team to test their own systems via every imaginable attack vector.
[5:47]On top of that, there is a bug bounty program where white hat hackers can try and crack Kraken's security for themselves and be rewarded for doing so, provided they disclose how they did it and allow Kraken to seal up that chink in the armor, of course.
[6:01]Put it this way. Bloomberg recently published an article about how Kraken is essentially forcing its employees to act in a similar way to intelligence agents.
[6:11]All that is in the name of top-notch security.
[6:15]So yes, I think we can probably agree that Kraken as a platform is about as secure as it can possibly be.
[6:22]Of course, security of our own accounts is often the most important defense against other methods of hacks, and Kraken has a whole host of tools for that as well.
[6:31]For example, you have two-factor authentication. That's where you download an authentication app like Google Authenticator, scan the QR code displayed on your Kraken account, and it generates a six-digit pin that you need to log into your exchange account.
[6:46]This is much more secure than SMS-based authentication methods, as there's no risk of a SIM swap attack.
[6:53]On top of that, you can level up that account security by requiring that two-factor authentication is needed to perform functions like generating a wallet address, adding a withdrawal address, initiating a withdrawal or transfer, or staking and unstaking funds.
[7:10]However, for those that are paranoid about security, there is one more safeguard.
[7:15]You can actually set up a master key. Now this protects your account from unwanted password actions including resetting your password, bypassing sign-in or using 2FA, or turning off Global Settings lock.
[7:30]Now here's a top tip for that master key. Do not store this key with your other Kraken account details. Keep it in a separate place. That is the whole point.
[7:43]And finally, the top tier of account security at Kraken is activating your Global Settings lock.
[7:48]Now this will hide all sensitive account information, restrict changes to your account in settings, and stop you adding new withdrawal addresses.
[7:58]So, if you turn on all those security settings, then your account will literally become crypto's equivalent of Fort Knox.
[8:06]Now, Kraken's security features probably sound amazing.
[8:09]However, there's not much point in getting started on the exchange if the crypto you want isn't on the shelves, or you cannot create an account.
[8:18]So, when it comes to asset support, Kraken has over 80 different cryptos available to trade.
[8:25]That includes pretty much every major crypto, alongside a host of more exotic plays such as energy web token and injective protocol.
[8:33]I've linked a full list of all the cryptos available on Kraken in the description below, so be sure to check that out.
[8:39]Another thing to know is that if you're living in Washington State or New York, then you straight up won't be allowed to use Kraken.
[8:46]All other states in America are more than welcome though.
[9:03]That being said, I imagine that poor souls based in the likes of Afghanistan and North Korea have more pressing matters to take care of than crypto trading.
[9:11]So, that's asset and country support, but what are the verification requirements at the exchange?
[9:18]Okay, first things first, guys, it's worth pointing out that Kraken requires KYC for all customer accounts. So, if you're not comfortable with that, then this exchange is not for you.
[9:29]Of course, there does not appear to be many other alternatives, especially when you want to trade on a fully regulated exchange.
[9:36]Anyways, if you have no problem handing over these details, then there are four different verification levels at Kraken.
[9:43]The first is called starter. And to hit it, you'll need to activate 2FA for sign-in, hand over your email address, give your full name, date of birth, phone number, and your address.
[9:54]Do that, and you'll be able to deposit an unlimited amount of crypto on Kraken, and have low crypto withdrawal limits.
[10:02]The level up is called Express level. This is for US residents only, and you'll need to supply everything mentioned earlier, give your occupational information, and your social security number.
[10:13]This level allows you to deposit and withdraw up to $9,000 in fiat currency.
[10:19]However, US citizens won't be able to deposit or withdraw crypto from the exchange with this level of KYC.
[10:27]The third tier of KYC is called the intermediate level.
[10:31]To get that, you'll need to provide everything mentioned so far, a copy of your ID, a proof of residence document, and a selfie if you're based in the US or South Africa.
[10:41]If you pass that, then you'll get unlimited crypto deposits on your account and high limits for crypto withdrawals and fiat deposits or withdrawals, too.
[10:50]It also unlocks additional features like margin trading, futures and parachain auctions. However, I would recommend that crypto newcomers stay well clear of those, especially the first two.
[11:03]If those account limits aren't high enough for you, then you could KYC up to the pro level.
[11:08]To reach it, you'll also have to fill out a KYC questionnaire.
[11:13]Now, this unlocks a bunch of features that I doubt many of you will ever use. That's things like dark pool trading, OTC, and access to a business account.
[11:23]But yeah, something to be aware of, nonetheless.
[11:26]Anyhow, that's all you need to know about the riveting topic of KYC on Kraken.
[11:32]Now, I think all of you are going to be more than capable of filling in a form to sign up to the exchange, so there is no need for me to do a guide for that.
[11:40]Just make sure you have that authentication app downloaded on your phone, Authy or Google Authenticator. You will be needing it.
[11:48]Also, I trust you'll create a mega strong password too.
[11:52]Now it's time to swiftly move on and give you that step-by-step guide on how to deposit fiat currency, those pounds, dollars, euros, et cetera.
[12:02]Okay, you should know off the bat that Kraken supports the US, Canadian, and Australian dollar, as well as pounds, euros, Swiss francs and Japanese yen.
[12:11]So, once you've logged into your account and KYC to a level where you can deposit fiat, you'll have the option to either deposit via bank transfer or by using a bank card.
[12:22]Those bank card deposits are done through Kraken's instant buy service.
[12:26]However, I will warn you that depositing and buying crypto via card is tremendously expensive, and I certainly couldn't recommend that to you guys.
[12:35]If you use this method, you'll be charged 3.75% of your entire deposit in processing fees, plus an additional 25 cents.
[12:44]On top of that, you'll be charged a trading fee of 0.9% for stablecoins and 1.5% for buying any other crypto.
[12:54]So yeah, you can easily be paying around 6% of your total deposit in fees if you choose to use a card.
[13:02]That's why I would personally avoid it like the plague.
[13:05]However, if you really want to go ahead and buy crypto with a debit card, then hit that Buy Crypto button at the top right of your account area.
[13:12]This will then show you a drop-down menu.
[13:15]At the bottom, you'll see an option to add a new debit or credit card.
[13:19]Once you fill in those card details, then you can select your card as a payment option from that menu.
[13:24]Next, just select the crypto you want to buy and enter the amount you want to spend.
[13:30]And finally, a confirmation screen will pop up showing you the price you're quoted and the fee breakdown.
[13:36]If you're good with that, then you can bash that buy now button to get your hands on that crypto.
[13:41]But what if you want to avoid those pesky deposit fees?
[13:45]Well, you should know that every currency supported has a free deposit option.
[13:51]For example, you could use a FedWire via Signature Bank if you're based in the US, or if you want to deposit euros, you can use SEPA or SEPA Instant via ClearJunction.
[14:02]I've placed a link to all the deposit methods and fees below for you to browse at your leisure.
[14:07]Now, if you want to take advantage of those significantly cheaper deposits, then all you need to do is hit that Funding button at the top of your Kraken account.
[14:15]Click Deposit and select the fiat currency you want to deposit.
[14:19]Then just key in the amount you want to get on Kraken and select your preferred funding provider.
[14:25]Now, my top tip would be to check out that link to Kraken deposit methods and fees in the description of this video to ensure you're picking a free option here.
[14:35]Finally, you'll be given a set of instructions to send your funds to Kraken. These vary from country to country.
[14:42]However, make sure you follow them correctly, or that deposit won't go smoothly, and we wouldn't be wanting that, eh?
[14:49]Oh yes, I should mention that deposits using the latter method can take up to five business days to hit your Kraken account.
[14:56]So, you shouldn't expect to be able to jump into those crypto markets at the speed of light.
[15:02]Also, any first-time deposits will result in withdrawals from Kraken being blocked for 72 hours. This is for security purposes and is something you should definitely bear in mind.
[15:13]So, now that you know how to deposit that fiat on Kraken, I want to quickly go through how you deposit crypto over there.
[15:20]From your account area, you want to smack that Funding button and hit that Deposit option.
[15:25]Then just search for the cryptocurrency you want to deposit and click it.
[15:30]I've used Kusama in this example.
[15:33]If it's the first time you've deposited that asset on Kraken, you'll be asked to generate a new deposit address.
[15:39]Click that blue button. Then you'll see your deposit address for that crypto and a QR code if you want to send that crypto by scanning it.
[15:49]Once you've sent the funds to the address provided, then your deposit should go through in a jiffy.
[15:53]Honestly, that's all there is to depositing crypto.
[15:57]So, that's all for depositing funds on Kraken. I now want to move on and tell you about those trading fees. That way, there won't be any nasty surprises.
[16:06]Alrighty, so you guys should now know that using Kraken's Buy Crypto feature is damn expensive.
[16:13]I mean, if you're not trading stablecoins, you are literally paying 1.5% in fees. That is nuts.
[16:20]So, the cheaper way of doing those trades is by using Kraken Pro. Here Kraken has a tiered trading fee structure like almost every other exchange under the sun.
[16:30]The most you'll pay trade here would be 0.16% in maker fees and 0.26% in taker fees.
[16:38]Now, even a chat like me knows that significantly lower than a 1.5% fee level.
[16:43]Yes, if you're a bit of a baller and do a lot of trading volume in a 30-day period, then you can enjoy even lower trading fees.
[16:51]Now, you can see those discounted trading fees right here. So, yes, if you're going to use Kraken for your crypto dabbling, then I would honestly recommend you use Kraken Pro for all that trading.
[17:02]Trust me, those fees really do add up over time.
[17:07]Oh, and if you have no idea what maker and taker fees are, here is a quick TLDR.
[17:12]Taker fees are paid when you place an order at the current market price. You are taking liquidity from the order book.
[17:19]However, maker fees are what you'll pay to provide liquidity, i.e., making it.
[17:25]You might do that by placing a limit order, which I'll get into a little more later on.
[17:31]As you might guess, most people out there usually opt to pay those taker fees and get their crypto as fast as possible.
[17:37]Okay, so those are the trading fees over at Kraken. If I must be honest though, there are cheaper alternatives out there.
[17:44]One such exchange is FTX, which has both a global and US version.
[17:50]Just for comparison's sake, while the lowest fee you'll pay on Kraken Pro stands at 0.26%, the lowest fee level at FTX is a mere 0.07%, nearly four times cheaper.
[18:03]There are also other options on FTX for you to bag even lower fees through discounts, et cetera.
[18:08]So, if fees are a sticking point for you, then you're definitely going to want to check out FTX.
[18:14]I've actually already done a beginner's guide to the exchange, and you can check that bad boy out right here.
[18:22]Anyways, if you're not too bothered by the fees, then you are definitely going to want to give Kraken Pro a go. So, let me show you how to do that.
[18:30]Okay, so once you're logged into your Kraken account, you'll want to hit that Trade button at the top of your screen.
[18:36]That will take you to a bunch of different order forms. Ignore all those, and you'll see a little chart icon in the top right corner.
[18:43]Click that little guy and you'll be taken to Kraken Pro.
[18:47]A trading screen like this will then pop up.
[18:50]Now, if this interface looks overwhelming to you at first glance, don't worry, it's not as tricky as it might first appear.
[18:58]Okay, so on the left side of the screen, you can see a price chart where you can do technical analysis, if that's your stick.
[19:05]Below that, you can see indicators such as the MACD and trade volume for different time intervals.
[19:11]Now beginners out there are going to want to completely ignore that.
[19:15]To the right of the main chart, you'll see the market depth. This is just a visual representation of the crypto in the order books that is available to buy or sell.
[19:25]To the right of the market depth chart is the order book. All the red numbers here are the different price levels for orders to sell the cryptocurrency and the green ones are the price levels for orders to buy it.
[19:37]The central column shows the amount of crypto available to buy or sell at each price point.
[19:43]And the right column is a cumulative tally of how much crypto is available in the order book at the current and subsequent price levels.
[19:52]Below the order books is a list of the most recent trades executed.
[19:56]Now, you might use that to help give you a feel of what other traders are doing.
[20:00]On the right-hand side of the trading panel, you'll see the all-important order form. This is where the magic happens.
[20:08]First up, you want to make sure you've selected the correct side of the market. Here, I want to buy Bitcoin with GBP, so I've selected Buy.
[20:18]Below that, you have the order type. Now, here you will see seven different options.
[20:24]Now, I'm going to be straight with you. If you are a beginner, there are only really two order options that you should be focusing on.
[20:30]Those would be market orders, which is just buying or selling crypto at the current market price.
[20:37]Or something known as limit orders, which I alluded to earlier.
[20:41]Let's focus on executing a market order first.
[20:44]I've selected market for my market order. Below that is something called leverage. Now, I certainly do not support the use of leverage at all.
[20:53]It is really dangerous, guys. So, I would strongly recommend that you select none for this.
[20:59]Then just enter the amount of crypto you want to buy and hit that review and buy button to get that crypto.
[21:07]Honestly, it's that straightforward. So, what are limit orders? Well, the simplest way of explaining is by using an example. So, let's say that you don't like the current price of Bitcoin, but you're a happy buyer at 20,000 pounds.
[21:21]Well, you can place that order using Kraken Pro by typing in 20,000 in the price field and entering the amount of Bitcoin you want to buy at that price point.
[21:31]If you then click that review and buy button, then your order will be added to the order book.
[21:36]If you make this a lifetime order, then it will remain on those books until a point when it's either executed and you buy the Bitcoin, or it's canceled.
[21:45]Oh, and don't forget that because those are limit orders, you'll be paying those cheaper maker fees, too.
[21:52]Now, with that trading overview of Kraken out of the way, I want to move on and tell you about what else is on offer at this exchange.
[21:59]Yes, Kraken offers margin and futures trading. However, as I've mentioned many times on this channel, you'll want to avoid leverage.
[22:07]I recently did a video on the risks of leverage trading, which is linked to in the top right corner.
[22:13]So, onto something that I think you guys could make use of, and that is staking your coins to earn crypto interest.
[22:20]It's honestly much better than just leaving your funds sitting there and doing nothing, if you ask me.
[22:26]Kraken offers staking for all the cryptocurrencies listed here.
[22:31]So, yes, if you hold some Polkadot, then you can get 12% APR.
[22:36]You can earn that passive income on a relatively decent range of cryptos.
[22:40]I imagine that many of you could be pretty interested in that for the likes of Ethereum, Cardano, and Solana.
[22:47]Next, some of you might be interested in getting exposure to early stage projects.
[22:52]If you've KYCed up to the intermediate tier, then you can take part in parachain auctions.
[22:58]These auctions are the way that projects on Polkadot and Kusama raise funding and give you the opportunity to secure yourself some tokens when the project is still in its infancy.
[23:07]So, yes, if that tickles your pickle, then you might want to keep an eye out for those.
[23:12]Now, as many of you know, I'm all about crypto education, and I have to say that Kraken has done a very good job with its crypto learning hub.
[23:20]Over there, you'll find a load of guides about different cryptocurrencies, 101 crypto guides, articles about crypto security, webinars, podcasts, and much more.
[23:30]So, if you want to level up your crypto knowledge even more, I can certainly recommend checking that out.
[23:37]Now, this has been a pretty long video, but that's about it for my beginner's guide to Kraken.
[23:43]Yes, there was a lot more that I could have covered about this exchange. However, I'm aware that a two-hour long video would have sent most sane human beings off to sleep.
[23:52]So, if you are interested in giving Kraken a go, then don't forget to sign up using the link in the description below.
[24:00]And now it's time to hear your thoughts. What do you think of Kraken? Are there any better exchanges out there?
[24:07]Let me know what you think in those comments. And finally, if you think this crypto chap has done a good job, then it would be much appreciated if you would consider tapping that like button.
[24:17]If you'd like to make me your very own crypto guide, then you can do that by smashing that subscribe button and flicking that bell.
[24:25]Take it easy for now, folks. I'll see you all very soon.
