January 03, 2022 - 6 min read
The crypto exchange Kraken does not have its own wallet service. Unlike Coinbase, Binance and some other exchanges which have chosen to create their own branded wallet, Kraken has decided to focus its efforts on the exchange itself rather than ancillary products. Like other centralized, custodial exchanges, Kraken holds a user’s funds in their own wallet(s).
While Kraken may not offer a standard wallet for users, there are a variety of easy-to-use wallets that pair well with Kraken if you want to take your crypto on and off of your Kraken custodial account.
In this article, we’ll review some of the top wallets to use with Kraken, including their pros, cons, and features. We’ll also discuss other non-wallet options for transferring funds to and from Kraken, as well as Kraken’s specialized futures trading wallet.
For help creating a custodial account on Kraken, click here.
For help withdrawing your funds from Kraken to a separate wallet or a bank account, click here.
Despite not having a traditional wallet, traders who wish to trade cryptocurrencies on Kraken will need to use a special section of their account referred to as a “Futures Trading Wallet.” This is not really a separate wallet in the traditional sense, but rather a unique section of a user’s account specifically designed for their future trades. Unlike Kraken’s custodial exchange, you will need a minimum trading amount to transfer funds to and from Kraken’s futures trading wallet.
To learn how to transfer funds to and from your futures trading wallet to your regular Kraken account, click here.
In many cases, you may not need a wallet to transfer crypto from Kraken to other exchanges. For example, if you want to transfer assets from Kraken to Coinbase, Coinbase will provide you with a wallet address for your custodial account. Coinbase automatically creates a new address for each transaction. You do not need to have your own wallet to do this.
As with nearly all types of crypto transfers, you will need to pay a small gas fee to transfer your funds from Kraken to other exchanges.
Many people don’t want to keep their crypto on an exchange’s custodial wallet, which is why they choose to utilize a non-custodial wallet. When using a non-custodial wallet, it’s essential to keep your private key (or your pneumonic backup phrases) written down in multiple secure places. Otherwise, you could permanently lose access to your crypto.
Some of the best non-custodial wallets to use with Kraken include:
Coinbase Wallet is one of the most popular wallets on the market today. It’s created and updated by the exchange Coinbase, though you don’t need a Coinbase account to download and use it. The Coinbase Wallet currently supports over 4,000 currencies and tokens, including Bitcoin, Ethereum, Bitcoin Cash, XRP, Dogecoin, and countless others. It’s also a great place to store ERC20 tokens like UDST, as well as a good place to store your NFTs.
The wallet is available for use as a browser extension as well as a mobile app. Like many other wallets, the Coinbase Wallet allows you to create a password and to backup that password using a 12-word pneumonic backup consisting of random words.
Like the Coinbase Wallet, the Exodus Wallet is available for both mobile and desktop and supports a wide variety of cryptocurrencies. Exodus has a built-in exchange that allows for swaps between approximately 150 crypto assets.
Exodus allows users to set predetermined gas fees to reduce transaction costs, though it also allows users to set an auto fee that makes sure the transaction is completed as quickly as possible. Unlike some wallets, the Exodus wallet has optional support for cold storage and has a hardware wallet option.
ZenGo, unlike other wallet options, replaces the use of a private key and seed phrase via the use of facial recognition technology. The platform currently offers more than 70 cryptocurrencies, including Bitcoin, Ethereum, Binance Coin, Luna, Tether, and USD Coin, and has an easy-to-use trading feature. The ZenGo wallet is also recognized for its excellent UX/UI and investment tracking feature. In some ways, the wallet mixes the features of a traditional crypto wallet and a crypto exchange.
Like most other wallets mentioned here, ZenGo is available both as a mobile and a desktop wallet. ZenGo also offers a Bitcoin staking service, which allows users to obtain 5% APY on their crypto. Unlike many other wallets, ZenGo offers 24/7 customer support for users.
Mycelium is considered one of the most secure mobile-only wallets in the industry. This is partially because Mycelium’s code is public, which allows developers to identify potential security issues before hacks occur.
Despite its high level of security, the Mycelium Wallet is somewhat limited in its scope, as it only allows for storage of Bitcoin, Ethereum, and ERC-20 tokens. Therefore, if you’re looking to store non-ERC-20 altcoins, this may not be the best solution for you.
Like ZenGo and Exodus, Mycelium offers an in-wallet exchange. Unlike many other wallets, Mycelium allows users to access advanced block transaction history information, which may be ideal for more advanced users. Mycelium’s main drawback is its lack of any functional customer service, which may be off-putting for crypto beginners.
We would be remiss if we didn’t mention at least one offline hardware crypto wallet. Keeping your crypto offline is considered to be significantly more secure than keeping it in an online “hot wallet.”
The Ledger Nano X is considered to be one of the best hardware wallets in the industry due to its high-security guarantees. The wallet has both Bluetooth functionality and a built-in battery. The Nano X is also extremely versatile, as it currently supports more than 1,800 crypto assets.
The Ledger Nano X’s main drawback is its price, which is currently set at $119. Budget-conscious individuals may want to opt for the Ledger Nano S, Ledger’s less-expensive option, which is currently priced at $59.
Get news, insights, and more.
Sign up for the SupraOracles newsletter for company news, industry insights, and more. You’ll also be the first to know when we come out of stealth mode.
©2023 SupraOracles. All Rights Reserved.