Choosing a reliable and secure cryptocurrency exchange is crucial for any investor interested in the digital asset market. If you are looking for a alternatives to Kraken, in this article we compare it with Bit2Me. The reality is that Kraken has various weaknesses that can affect the experience and security of its users.
In Cointelegraph Research's New Crypto Standard report, 9 global exchanges, including Kraken, are analyzed and many of the exchange's weaknesses are revealed. These weaknesses span regulatory issues, transparency, security and user support, raising the question: Are there superior alternatives?
In this article we analyze Kraken with Bit2Me, the Spanish exchange where you can open an account in less than 5 minutes and receive €15 from here.
Analyzing an alternative to Kraken
The Kraken cryptocurrency exchange, although recognized for its strengths, has significant weaknesses in terms of security, regulation, services and customer support, which can affect the user experience. These weaknesses will be analyzed in detail below, supported by concrete examples.
Regulation and compliance
Kraken is an exchange registered in the United States, under the name Payward Ventures, Inc, and has been established since 2011. This means that Kraken is in a territory that is not considered a tax haven, which additionally has a strong financial regulatory set. (KYC, AML/CTF), but lacks specific regulatory clarity for the cryptocurrency market.
This is because the United States currently lacks specific regulation for this type of financial products. Because of this, Kraken operates in a legal gray space, something that can lead to legal problems, as has already happened on a couple of occasions. For example, Kraken has had to withdraw its staking services in the United States due to these legal/regulatory issues, and has also been sued on several occasions due to this lack of regulatory clarity.
This will give you a clear idea that operating on Kraken entails regulatory and compliance risks, in addition to placing your operations under the regulation of the United States, laws that are very different from those in Europe and that can place you at a disadvantage in terms of customer protection. /user. This is a point that you must take into account if what you are looking for is to operate legally, safely and have legal protection.
Security of funds
Another point examined in the Cointelegraph Research report is the security of funds. At this point, Kraken is known for being one of the exchange platforms with a solid fund security policy, which Kraken implements various security measures to protect its users' funds.
Firstly, Kraken uses a cold storage approach to cryptocurrencies, meaning that the vast majority of digital assets are kept offline in secure wallets without an internet connection. This significantly reduces the risk of hacking and theft.
Additionally, Kraken has a two-factor authentication (2FA) system that adds an extra layer of security by requiring a one-time code generated by an authenticator app or sent via SMS to access the account.
Regarding fiat funds, Kraken maintains a relationship with regulated banks to ensure deposits and withdrawals in fiat currencies. Additionally, fiat currency funds are held in segregated accounts, meaning they are separate from Kraken's own funds. Thus, in case of any security issue, Kraken also has a dedicated support team that works 24 hours a day to help users and resolve any issues that may arise.
Kraken Cybersecurity
Kraken takes cybersecurity very seriously and uses a comprehensive approach to ensure the protection of cryptocurrency investments and the security of the identity of its users. To this end, security measures have been implemented such as the use of two-factor authentication (2FA) to access the account and the recommendation to create long, unique passwords.
Additionally, Kraken has obtained recognized security certifications, such as ISO/IEC 27001:2013 and SOC 2, Type 1, demonstrating its commitment to cybersecurity and information management. These certifications support the implementation of security systems and controls to protect user assets and data.
However, Kraken does not currently have ISO 22301, so with the arrival of MiCA this exchange You could have problems when operating in Europe since MiCA requires exchanges to have this certification to operate in Europe.
Services provided
In this case, Kraken accepts a wide variety of cryptocurrencies, including Bitcoin, Ethereum, Ripple, Litecoin, Bitcoin Cash, Cardano (ADA), Polkadot (DOT), among others. Kraken also allows the buying and selling of cryptocurrencies using fiat currencies such as the US dollar (USD), euro (EUR), British pound (GBP), Japanese yen (JPY) and other currencies.
In addition to cryptocurrency exchange, Kraken offer additional services such as futures and perpetual trading (only in certain jurisdictions where it is not expressly prohibited such as Europe), staking (earnings from owning and holding certain cryptocurrencies, which is not available in all jurisdictions and is limited to 16 currencies), lacks a launchpad and debit/credit cards.
Here we can see that Kraken's service offering is limited. The fact that certain products cannot be offered in Europe and other jurisdictions is another clear example of the regulatory problems that this exchange faces.
Thus, we can conclude that although Kraken offers a strong set of solutions, there are points where it falters, such as:
- Security: Although Kraken has never been hacked, its lack of official regulation in Europe raises questions about its reliability and regulatory compliance.
- Regulatory: The absence of regulation by entities such as CySEC and the FCA generates uncertainty about the protection of users.
- Services: Delays in withdrawals and abrupt account closures have generated dissatisfaction among users.
- Customer Support: mostly negative comments about customer service reflect the frustration of users.
In conclusion, despite its strengths, Kraken has significant weaknesses in terms of security, regulation, services, and customer support. These weaknesses can affect user trust and their experience on the platform.
A better alternative to Kraken: Bit2Me
All this leads us to the next question: What better option exists compared to Kraken? Well, that alternative is Bit2Me. In fact, in the New Crypto Standard report from Cointelegraph Research, Kraken is rated as the second best exchange of the 9 examined, leaving first place to the Bit2Me proposal. And all this for a clear reason: to be a superior proposal to Kraken, as we will see below.
Reasons to choose Bit2Me
Among the reasons to choose Bit2Me over Kraken, points such as:
Services adapted to needs
Bit2Me is a Spanish platform that offers cryptocurrency buying, selling and storage services. It accepts a wide range of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoin Cash (BCH) and over 240 other coins available.
But in addition, Bit2Me also allows the purchase and sale of cryptocurrencies using fiat currencies such as the euro (EUR). Additionally, it also offers other functions such as Bit2Me Earn (staking with more than 30 coins available), Bit2Me Loan (cryptocurrency loans), Bit2Me Launchpad (for launching new projects), Bit2Me Card (a Mastercard so you can use your cryptocurrencies directly), Bit2Me Pro (for professional trading with cryptocurrencies having more than 100 pairs available). In short, a whole suite of products and services designed to meet the needs of its users.
robust security
In more than 9 years, Bit2Me has never been hacked, prioritizing the security of its users' funds with advanced protection measures. Additionally, Bit2Me has also implemented a number of security measures, including:
- Highly secure cold storage for cryptocurrencies and use of HSM (Hardware Security Module) technology to protect cryptocurrency wallets.
- Using multi-signature wallets to prevent a single administrator from having control over exchange funds.
- Two-factor authentication (2FA) and role-based security management.
- Use of SSL certificates to encrypt connections between users, the exchange and services.
- Recognized security certifications, such as ISO/IEC 27001, ISO 22301, PCI DSS, KYC/AML, CSA STAR and DORA.
- Robust testing policy, penetration testing, and frequent security audits.
Transparency and regulation
Bit2Me is a cryptocurrency exchange established in 2014 and based in Spain, therefore it adheres to Spanish and European regulations, thus ensuring legal and transparent transactions. This means that Bit2Me complies with the General Data Protection Regulation (GDPR) and applies KYC and AML/CTF standards to prevent money laundering, and is also not located in a tax haven.
Another crucial aspect of Bit2Me's regulatory compliance is its effort to comply with MiCA. Bit2Me is currently in the process of satisfying all MiCA regulatory requirements, which could make it the first cryptocurrency exchange to do so. In addition, Bit2Me provides legal protection to the consumer, since it has the necessary registrations and licenses for the management of electronic money, granted by the Bank of Spain and its partner Pecunia. This ensures compliance with banking regulations and protection of user funds.
Customer service and usability
With a strong emphasis on offering exceptional customer service, Bit2Me ensures that users receive the necessary support in a timely and effective manner, available in 8 languages (Spanish, French, Portuguese, German, Italian, Romanian, Polish and Bulgarian).
In addition, it offers good user support both by email and within its application, helping to resolve usage questions or problems that may arise on the platforms themselves.
In terms of usability, Bit2Me offers mobile and Web applications, very well thought out for novice and professional users. The Bit2Me option is well integrated and is very easy to use for both novice and professional users.
This is especially true for example, when a user requires an operations report for their tax filing. In this case, Bit2Me offers this report together with the Bit2Me Tax tool, facilitating said operation worldwide, while Kraken only offers these operations through a third party and only applies to the United States.
In summary, considering Kraken's specific weaknesses in terms of security, transparency, fees, and customer service, Bit2Me presents itself as the best alternative to Kraken, providing users with a reliable, transparent and customer-centric platform to carry out cryptocurrency operations safely and profitably.
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