Kraken

How it works

Kraken is one of the oldest US centralized exchanges, known for a security reputation and for the practice of publishing proof-of-reserves. But there is no best exchange in general — it all depends on your task and your country. Below is not a score, but a breakdown of how the service works and what to look at yourself.

• Type — a centralized exchange (CEX). The company matches buyers and sellers and holds the funds itself.
• Control of funds — custodial. While the coins are on the exchange, Kraken controls the keys, not you (see what is a private key). For holding larger amounts it is better to withdraw to your own wallet (see how to store crypto).
• KYC — yes: identity verification is required; its extent and limits depend on country and account level. Registration is required.
• Launch and headquarters. Operating since 2011; San Francisco, USA.
• Assets and networks. Supports many coins and networks; the exact list changes.
• Fiat rails. Deposits by bank transfer and card — availability depends on the country.

Who it suits, who it doesn’t

• Suits: someone who values a long service history and the publishing of reserves — understanding that funds are under the exchange’s control.
• Suits less: if full control of the keys matters (then — self-custody), or if the service is restricted or unavailable in your country.