Investments in cryptocurrency have become more popular lately, with more and more people trying to get a piece of the profits that this new form of investment offers. However, the process of understanding the different types of cryptocurrencies can be quite complex and can be quite overwhelming for a new investor. This is where Kraken, one of the biggest cryptocurrency exchanges, comes in. In this comprehensive guide, you will learn how Kraken can help you gain control of your cryptocurrency investments and gain some insights into the platform’s features and benefits.
This article will first give a brief introduction of what Kraken is.
Table of Contents
Introduction to Kraken: A Quick Introduction
Kraken is a San Francisco-based cryptocurrency exchange that was launched in 2011. It is one of the most reputable and reliable platforms for purchasing and selling or trading cryptocurrencies. Kraken has a very intuitive design and strong security, which makes it easy for both new and experienced users to navigate the platform.
Kraken offers many features that make it one of the best exchanges in the market today.
A number of Cryptocurrencies:
Kraken offers a vast collection of cryptocurrencies, from Bitcoin, Ethereum, Ripple, and many others, thus giving the investor a wide range of options to choose from.
Advanced Trading Tools:
For the active trader, Kraken offers an extensive set of trading features, including margin trading and futures trading, that help you increase your trades and implement complicated strategies.
High Liquidity:
In the cryptocurrency market, which is known for its rapid price fluctuations, liquidity is crucial, and Kraken provides high levels of liquidity for most of the cryptocurrencies that it supports.
Top-notch Security:
Kraken has put in place very strong security measures to ensure that the funds of its users are secure and include 2-factor authentication and storage of the cryptocurrencies in cold storage, making the investors more comfortable with the transactions.
Regulatory Compliance:
Kraken is a regulated platform, and thus a reliable one for investors, and it is also a registered Money Services Business (MSB) with FinCEN in the United States.
How to Start with Kraken: A Step by Step Guide
So, now that you are aware of the major features of Kraken, here is how to start using the platform.
Creating an Account
To join the world of cryptocurrency investment with Kraken, you first have to create an account. Creating an account is easy and requires you to fill in some basic information such as your name, email address, and password. Immediately after that, you will have to identify yourself as part of the KYC procedure.
Deposit Funds
Once you have created your account, the next step is to transfer funds into your Kraken wallet. Kraken offers a variety of ways through which you can fund your account, including bank transfers and cryptocurrency deposits. You can select the method that is most appropriate for you based on your preferences and location.
Exploring the Trading Interface
After funding your account, you will be able to go to the trading platform and start trading. Kraken’s platform is quite simple and easy to use, even for new users. You can get real-time market prices, place buy or sell orders, and keep track of your portfolio values.
How to Use Kraken to Your Benefit for Cryptocurrency Investment
Now that you have a general idea of how to use Kraken, let’s look at how to make the most of your investments.
Dividing Your Investment Portfolio
It is important to note that diversification is a tenet of investing and it applies to cryptocurrencies as well. Kraken has a vast selection of options, which means you can reduce risk and take advantage of the growth opportunities available with different assets.
Stay Updated with Market Analysis
To be successful in the cryptocurrency investment, it is important to stay current with market activities. Kraken has a rich set of tools for market analysis including price charts, order books, and trading volumes that can help you analyze the market and make a trading decision based on technical analysis.
Adopt Risk Management Strategies
As with all forms of cryptocurrency investment, it is crucial to have risk management techniques in place to protect the funds that you invest. Kraken offers features like stop loss and take profit orders, which are tools that enable you to set price targets for entering and exiting a trade, respectively, as you seek to reduce your losses and take profits even if you are not watching the market.
Case Study: How John Succeeded with Kraken: A Real Life Example
Let’s now take an example of a real life subscriber who has actually found success in the cryptocurrency world with the help of Kraken.
John, a new investor, decided to try his hand at investing in cryptocurrencies and chose Kraken as his broker. He started with the basic – buying Bitcoin, Ethereum and Litecoin. John was also active in taking an analysis of the market in Kraken and identified potential demand with stop loss to avoid risk.
John’s portfolio witnessed a strong rise in the value over the years due to the positive trends in the cryptocurrency market. He also took advantage of the more sophisticated features of Kraken such as margin trading to increase his returns. John was able to use Kraken without any issues due to its simplicity of use and strong security which made him confident in his decisions and decided to expand his cryptocurrency portfolio.
Conclusion
Kraken is a great tool that can help you achieve your cryptocurrency investment goals. It is a complete solution for all class of investors with a wide range of cryptocurrencies, sophisticated trading features, high level of liquidity, and strong security. If you want to get the most out of this market and reduce your risks, then diversify your portfolio, track the trends and analysis, and use risk-reduction strategies. Whether you are new to the investment world or a professional trader, Kraken’s features can help you enhance your cryptocurrency trading strategy.
