Best Wallet for Kraken

Introduction

Crypto exchanges are platforms where you can buy and sell cryptoassets. Among the most popular centralized exchanges (CEXs) is the Kraken Exchange. Kraken has carved out a niche for itself as a professional and trusted exchange. Yet, despite Kraken’s good reputation, it is still the case that you should not hold your tokens on the Kraken Exchange. All crypto experts will tell you that it is important to hold your tokens in a secure crypto wallet, preferably in a non-custodial wallet where you control your private keys (the access point to your crypto).
Founding and Overview: Kraken was founded in 2011 (public trading launched in 2013), quickly becoming recognized as one of the pillars of the nascent crypto sector. It is headquartered in San Francisco, and it holds trading licenses in the US, Canada, EU, UK, and many other countries.
Reputation: Kraken is widely viewed as one of the most trusted crypto exchanges. This is partly due to the fact it has been around longer than any other mainstream exchange, yet it is also due to its transparency. Kraken regularly published third-party audits for Proof of Reserves. The Kraken exchange has never been hacked.
Main Features: Kraken is a strong option for security-focused crypto traders. It has an additional tier, Kraken Pro, which allows traders to avail of lower fees and advanced trading tools. It is arguably a little less beginner-friendly than Coinbase or Binance.
What Makes It Unique: Kraken’s longevity is a key attraction for users. It is almost as old as the crypto sector itself. In that time, Kraken has gained a reputation for security and regulatory compliance, attracting institutional traders and those who deal with high-value cryptoassets.

Features to Look for in a Wallet for Kraken

Security

Private key control: Choose a non-custodial wallet so that you (not Kraken or any third party) retain control over your private keys (the keys to accessing your crypto on the blockchain)

Multi-signature support: Some users look for wallets that support multi-sig functionality, especially if you manage large balances or share wallet access with a team.

Backup and recovery: Ensure your wallet offers a secure seed phrase backup or recovery mechanism like cloud backups in case your device is lost or damaged.

Hardware compatibility: Consider wallets like Ledger or Trezor for offline cold storage or hot wallets with hardware integrations.

Integration with Kraken

Smooth withdrawal compatibility: Your wallet should support the major blockchains used on Kraken, such as Bitcoin (BTC), Ethereum (ERC-20) and Solana.

QR code or copy/paste support: Makes withdrawing from Kraken to your wallet fast and accurate.

Fiat gateway awareness: Some wallets offer helpful features like exchange rate tracking or fiat value display, making it easier to bridge your Kraken trades with your personal holdings.

No proprietary ecosystem lock-in: Unlike Binance, Kraken doesn’t have a native token or blockchain, so wallet flexibility is key.

Multi-Currency Support

Support for top crypto assets: Make sure the wallet supports BTC, ETH, USDC, ADA, DOT, LTC, and SOL—some of the most traded assets on Kraken.

Token standard compatibility: You may want your wallet to handle ERC-20, SOL (Solana), DOT (Polkadot), and other relevant formats depending on your portfolio.

Stablecoin support: USDC, USDT, and other stablecoins are frequently used on Kraken, so wallet support for these is desirable.

Transaction Efficiency

Low-fee chain support: Consider wallets that support Layer 2s (like Arbitrum or Optimism), Lightning Network (for BTC), or Polygon (an Ethereum L2), which help reduce fees.

Speed and accuracy: Your wallet should process transactions quickly and show confirmations in real-time.

Fee customization: Advanced wallets let you manually adjust gas or network fees, which can be helpful for Kraken users withdrawing at different congestion levels.

User Experience

Simple interface: Whether you’re new to self-custody or an experienced trader, a wallet with a clean and intuitive layout helps reduce errors.

Cross-platform availability: Look for wallets that work on both mobile and desktop or offer browser extensions for Web3 functionality.

Security extras: Biometric login (Face ID/Fingerprint), PIN protection, and hardware integration enhance usability without compromising safety.

Staking & DeFi Features

On-chain staking: While Kraken offers staking on-platform, some wallets allow direct on-chain staking of assets.

DeFi access: Wallets with WalletConnect or in-app browsers can connect to decentralized platforms for lending, yield farming, or NFTs.

Cross-chain capability: Support for assets across the Ethereum, Polkadot, Cosmos, and Solana ecosystems allows for greater earning and utility options beyond Kraken.

Portfolio tracking: Some top hot wallets include trading and asset analytics, performance tracking, or passive income summaries.

Best Wallets for Kraken Exchange

Best Hot Wallets for Kraken

Kraken Wallet: A logical choice, given it’s a hot wallet built to be compatible with the Kraken exchange. Kraken Wallet is a self-custody wallet (you manage your private keys; this is not the case on the exchange platform). It has a security focus, support for the majority of Kraken exchange tokens, DeFi integrations, and NFT support.

Trust Wallet: One of the world’s most popular hot wallets, Trust Wallet is owned by Binance (a rival exchange to Kraken), but it remains fully compatible with Kraken. It supports tokens from a larger number of blockchains than the Kraken Wallet, and it has more web3 tools and features.

MetaMask: An Ethereum-focused wallet that has a range of web3 and DeFi features and trusted security. MetaMask is not suitable if you plan to hold Kraken tokens like Bitcoin or Solana, but it’s a popular option for those wishing to engage in Ethereum’s massive ecosystem and offers relatively safe storage for Kraken traders exploring Ethereum DeFi products.

Best Cold Wallets for Kraken

Ledger Stax: A great choice for security-conscious Kraken exchange users, the Ledger Stax is considered a high-end cold storage solution. It has top-tier Security, coming equipped with a CC EAL6+ certified Secure Element chip and Ledger’s proprietary BOLOS operating system.

Trezor Model T: Open-source firmware and a color touchscreen make the Model T a popular choice among secure hardware wallets for Kraken exchange users. It supports thousands of cryptocurrencies, including the vast majority of those traded on the Kraken exchange.

SafePal S1: One of the best budget crypto hardware wallets, the SafePal S1 packs a lot into an affordable device, including QR code signing for additional security. A top option among secure wallets for Kraken at a budget price.

Kraken Exchange General Overview

Security and Regulation: Kraken has numerous security features to protect users, including 2FA logins, a global settings lock and PGP email encryption. Around 95% of assets are in cold storage. It is licensed and regulated in the US, EU, Canada, and various other countries. Some services, like staking, will vary by country to comply with local regulations.
Trading Fees: Trading fees vary on the platform. Buying and selling fees are approximately 1.5%. Users can use Kraken Pro for lower trading fees (0.16% maker; 0.26% taker). There is a 1.5% charge for bank transfers of fiat deposits. Debit/credit card fees can be up to 3.5%.
Available Assets: Kraken hosts over 200 assets. These include majors like Bitcoin, Ethereum, Solana, and Doge. It is a little more conservative in adding new assets compared to others like Binance. It supports several fiat currencies, including USD and EUR.
Liquidly & Volume: One of the world’s top exchanges by spot volume. Kraken has deep liquidity for major pairs like BTC/USD. Some of the less well-known coins may have lower volume than Coinbase or Binance exchanges. Slippage is low on Kraken Pro, and you can also use its OTC (over-the-counter) Desk for direct purchases.
User Experience: Kraken is now splintered into two distinct platforms. Kraken (retail users) and Kraken Pro (advanced traders, institutional users). The former is relatively easy to use for beginners. The latter opens up advanced options for experts. Both Kraken and Kraken Pro have standalone mobile apps.
Features: Kraken has multiple staking options for assets like ETH, ADA, DOT, KSM, SOL, and ATOM. Traders can access spot, margin (up to 5x), and futures trading (BTC, ETH, LTC, etc.). There is no integrated NFT marketplace.
Customer Support: Kraken offers live chat and 24/7 email support. Phone support is provided in some regions. The platform has a comprehensive help center.

FAQs