The crypto market is very competitive. There are many new exchanges popping up every day. However, some of them are better than others. One of the most popular crypto exchanges right now is Kraken. They have been around for a decade and they have been doing a pretty good job. However, there are concerns about security with Kraken, and this has led to some negative feedback. So, what do people think about Kraken? Is it safe? Let’s find out.
Is Kraken Safe for Crypto?
In short, yes, Kraken is safe for crypto.
Kraken is a much more obscure crypto exchange. It’s not exactly in the spotlight. This means that people maybe a little less aware of the exchange and so may be less likely to trust it. People seem to be less confident in Kraken than in other crypto exchanges like Coinbase.
That being said, Kraken is still one of the best crypto exchanges available. Kraken uses cold storage for 95% of its deposits. This means that, in theory, they will never need to worry about losing funds. The only way Kraken can lose your money is if someone hacks into their server. And then again, that’s an unlikely scenario because it would require physical access to the servers. Kraken's servers are stored in cages, under 24/7 surveillance by armed guards and video monitors. They're tightly controlled, and access to servers is tightly regulated. So, Kraken is actually one of the safest crypto exchanges out there.
Is Kraken as Safe as Coinbase?
By comparison, Coinbase has been around since 2012 and they have built a pretty solid reputation. They have also taken a lot of precautions to keep their customers safe, which has been reflected in a clean record when it comes to security issues. In fact, to date, there has not been a successful direct attack on the platform.
In contrast, Kraken, established in 2011, is a little older than Coinbase. They’ve been around for over a decade and they have had their fair share of problems. In 2016, for example, they were hacked and a few hundred dollars worth of Bitcoin was stolen. This, of course, is a very small amount of money in the grand scheme of things. However, it does show that they aren’t as well-prepared as Coinbase. Since then, Kraken has done a really good job of keeping things secure.
While Kraken may seem like a less secure option compared to Coinbase, there is no harm in having both on your radar. Summing up, Coinbase and Kraken are both reliable and dependable alternatives to the major crypto exchanges.
For more articles like this, take a look at our Crypto page.