The best part about using cryptocurrency is that you have total control of your online assets because it lies outside the confines of centralized institutions like banks. But these decentralized exchanges and platforms have a chink in the armor.
Although it is super easy to buy and sell cryptocurrency online, you have to know how to stay safe during online transactions. Kraken is a popular platform, but many people wonder if it’s safe to use. This blog will guide you through Kraken’s security measures, explain the pros and cons, and explore why it’s a popular choice for many users.
What is Kraken and How Does It Work?
Kraken is an online platform where people can buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, and many others. Think of it like a marketplace, but instead of trading items, people are trading digital money. Here’s how it works:
1- You create an account on Kraken and go through a verification process, where you may need to show your ID so they know it’s you.
2- Once you’re verified, you add money to your account. You can use regular money (like dollars or euros) or even transfer some cryptocurrency from another wallet.
3- With money in your account, you can start trading. You can buy or sell different types of cryptocurrency, or even swap one crypto for another.
4- Kraken has options for advanced traders. You can:
-Borrow Funds to trade bigger amounts with something called margin trading.
-Predict Future Prices by trading futures (basically, you’re betting on what the prices will be later).
5- Kraken lets you stake some of your cryptocurrencies, which is like putting them in a savings account to earn extra rewards over time.
6- Kraken uses strong security features like:
–Cold Storage: Most of the money is kept offline to protect it from hackers.
–2-Step Verification: You add an extra step to log in so only you can access your account.
7- You’ll pay small fees for trades and some other services. High-volume traders often get discounts.
So, Kraken is a safe, user-friendly platform for both beginners and experts to buy, sell, and manage their cryptocurrencies easily and securely.
Is Kraken Trustworthy?
Kraken is generally seen as a trustworthy cryptocurrency exchange. It’s known for its strong security features, which help keep your account and funds safe.
Security Features:
-This adds an extra layer of protection, so even if someone gets your password, they can’t access your account without the second verification.
-Most of Kraken’s funds are stored offline, making them harder for hackers to steal.
-Kraken regularly checks its security systems with outside experts to make sure they’re safe.
-Your personal information and transactions are protected by encryption, so they can’t be easily accessed by hackers.
-Kraken uses special tools to track and stop suspicious activities.
Trustpilot and G2 Reviews
Trustpilot:
Kraken gets mixed reviews, with some users happy about its security and others complaining about slow customer support and problems with account verification.
G2:
Reviews on G2 are more positive, especially for its security and trading tools, but beginners might find it a bit complex. Overall, Kraken is considered secure, but it’s always a good idea to follow extra safety steps.
What are the Pros and Cons of Using Kraken?
Here are some pros and cons of Kraken:
Pros:
-Kraken is highly secure, storing most funds offline, using two-factor authentication, and offering user-controlled security features, making it a popular choice for secure investments.
-Kraken offers over 200 cryptocurrencies, from major coins like Bitcoin to emerging tokens, providing users with diverse investment options.
-Kraken’s fees are straightforward and go down if you trade more. They range from 0% to 0.26% for regular trades, so you always know what you’re paying and can plan for any costs.
-It offers 24/7 customer support through live chat and email, ensuring users can get assistance anytime, ideal for those in different time zones or needing prompt help.
Cons:
-Kraken’s platform can be hard for beginners to navigate because it’s packed with advanced tools. New users might find it takes some time to get comfortable with all the features.
-While Kraken has 24/7 support, response times can sometimes be slow during busy periods. This can be frustrating if you need quick help.
-Kraken’s fees are lower for big traders but can be a bit higher for those trading small amounts. This might make it less ideal for casual users who want the lowest possible fees.
-Kraken isn’t available in certain areas, like New York, so some users may not be able to access it and might need to look for other options.
Does Kraken Pose any Security Risks?
Kraken, a major cryptocurrency exchange, has faced some significant security incidents that pose risks to both its operations and users. Here is a notable incident:
$3 Million Bug Exploit (June 2024)
Kraken’s funding system had a critical bug allowing malicious actors to inflate funds without deposits. Discovered via its Bug Bounty program, the flaw was exploited by a researcher, resulting in a $3 million theft.
Kraken traced the involved accounts, but the perpetrators refused to return the funds, leading to a criminal investigation. This incident shows that, like many platforms in the cryptocurrency space, Kraken must continually update and reinforce its security measures to protect both user funds and data.
Is Kraken Wallet Safe?
Kraken’s wallet is generally safe to use for storing and trading cryptocurrencies, as it has security features like two-factor authentication (2FA) and stores most of its funds offline.
However, because it’s an exchange wallet connected to the internet, it’s still somewhat at risk. If you want extra safety for larger amounts, a hardware wallet (like a USB drive for crypto) that stays offline can be a better option.
What are the Common Scams and Cyber Threats Targeting Kraken Accounts?
Here are some common crypto scams and threats that could put your Kraken account at risk:
1- Phishing Attacks
This is pretty common and still happens a lot. You might receive fake emails or messages that look like they’re from Kraken to trick you into sharing your password or account information. Always check that the website or email is legit before logging in.
2- SIM Swapping
It happens when a scammer impersonates your identity and convinces your phone company to switch your phone number to their device. After that, these scammers can use your personal phone number to bypass SMS security and log in to your Kraken account.
3- Fake Customer Support
Another type of scam is a cybercriminal might pretend to be a support rep from Kraken and ask for your password or other information to make changes to your official account. Always remember that actual support reps won’t ask for such sensitive details, so be careful with anyone claiming they’re from Kraken.
4- Malware and Keyloggers
Hackers can use viruses or programs that secretly record your keystrokes to steal your login details. Avoid downloading unknown files and keep antivirus software updated.
5- Public WiFi Risks
If you log into Kraken on public WiFi, hackers might be able to intercept your data. It’s best to use secure WiFi connections or a VPN network when you are buying or selling cryptocurrency on Kraken.
6- Exchange Hacks
Although Kraken is secure, there’s always a small chance an exchange could get hacked. If this happens, your funds could be at risk.
7- Social Engineering Scams
Sometimes, scammers try to trick you by telling fake stories and you might end up sharing your account details or sending them money.
How to Secure Your Kraken Account
Here are some simple ways to secure your Kraken account:
Password and Account Security
-Create a long password with a mix of letters, numbers, and symbols. Don’t use easy-to-guess info like your name or birthdate.
-This adds an extra security step. You’ll need to enter a code sent to your phone, along with your password, to log in.
-For better security, use an app like Google Authenticator or Authy for 2FA instead of getting codes by text.
Email Security
-Make sure your email account (linked to Kraken) has a strong password and 2FA turned on to keep it safe.
-Don’t share your account details or personal info online. Be careful about what you post or share with others.
Account Security
-Regularly look at your Kraken account to spot any unusual transactions. If something seems wrong, take action right away.
-Lock your phone with a PIN, fingerprint, or facial recognition. Keep it safe from malware by using antivirus software.
-Get notified whenever someone logs into your account, so you can quickly spot any unauthorized access.
Avoid Weak Internet Connections
-Don’t log into Kraken on public WiFi. If you have to, use a VPN for extra security.
-Be careful with emails or messages asking for your account details. Always check that they’re from the real Kraken and don’t click on suspicious links.
Following these steps will help keep your Kraken account safe.
What to do If Your Kraken Account is Hacked?
If your Kraken account is hacked, follow these steps right away:
Immediate Action
-Quickly change your password to something strong. If you can’t log in, use the Forgot Password option to reset it.
-If you haven’t already, set up 2FA for extra security. If it’s already on, reset it.
-Reach out to Kraken’s support team immediately and let them know about the hack. They will guide you on what to do next.
Account Security and Monitoring
-Look at your account for any unauthorized transactions or changes. If something looks wrong, report it to Kraken support.
-Since your email is linked to Kraken, change your email password and turn on 2FA there too.
Device Security
-Run an antivirus scan on your devices to make sure they’re not infected with malware.
-If you’ve connected any apps to your Kraken account, disconnect them right away.
-If money has been taken from your Kraken account, contact your bank or payment provider.
-Watch your Kraken account and other linked accounts for any unusual activity in the next few days.
-Taking these actions quickly can help prevent further damage and protect your funds.
How to Trade on Kraken Using PureVPN
Follow these steps to setup PureVPN for Kraken.
1- Subscribe to PureVPN.
2- Log in and connect to a server of your choice.
3- Conduct crypto transactions privately and securely on Kraken!
Frequently Asked Questions
Kraken serves over 190 countries, though some regions, like New York, have restrictions due to local regulations.
Kraken has limited insurance coverage for certain security incidents. Check their policy for full details.
Yes, Kraken has mobile apps for iOS and Android with strong security features.
Kraken requires an identity verification process for account recovery, with help available from their support team.
In Summary
Kraken is a trusted and secure platform for buying, selling, and trading cryptocurrency. While no exchange is entirely risk-free, Kraken’s strong security features help protect your assets. By taking additional safety steps and being aware of common scams, you can feel confident using Kraken for your cryptocurrency needs.
PureVPN
February 12, 2025
3 months ago