The world of cryptocurrency can feel overwhelming, especially if you are new to the space. With so many digital assets to choose from and platforms that offer a range of trading options, it’s easy to get confused. One of the most popular cryptocurrency exchanges is Kraken, which has earned a reputation for security, liquidity, and a wide selection of coins. If you are a new investor looking to explore what Kraken has to offer, this article will guide you through the various cryptocurrencies available on the platform.
Kraken was founded in 2011 and has since become one of the largest and most trusted cryptocurrency exchanges in the world. It offers a variety of features and services tailored to both beginners and experienced traders. However, before diving into the specifics, it’s essential to understand the basics of cryptocurrency and why Kraken is a great choice for your investment journey.
What is Cryptocurrency?
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Unlike traditional currencies like the U.S. dollar or the Euro, cryptocurrencies operate on decentralized networks based on blockchain technology. This means that no central authority, like a bank or government, controls them. Instead, transactions are verified and recorded on a distributed ledger, making the system transparent, secure, and free from censorship.
Bitcoin was the first cryptocurrency, launched in 2009 by an anonymous person or group of people under the pseudonym Satoshi Nakamoto. Since then, thousands of cryptocurrencies have been created, each with different use cases and technological features. Kraken offers access to a wide range of these digital assets, making it an excellent platform for diversifying your portfolio.
Why Choose Kraken?
Kraken is one of the most established and well-respected cryptocurrency exchanges. It has several features that make it appealing to new investors:
Security: Kraken is known for its robust security measures. The platform uses cold storage for most of its assets, meaning the majority of funds are stored offline, away from hackers. It also offers two-factor authentication (2FA) to protect user accounts.
Liquidity: Liquidity is essential when trading assets. Kraken’s large user base and wide range of supported cryptocurrencies ensure there is enough volume for efficient trading. This means you can buy and sell assets quickly without causing significant price changes.
User-Friendly Interface: Kraken has a clean and straightforward interface that is easy for newcomers to navigate. It offers a variety of trading tools but also provides simpler options for those just starting.
Wide Selection of Cryptocurrencies: One of Kraken’s most significant advantages is the variety of cryptocurrencies available for trading. Whether you’re looking to invest in well-known coins like Bitcoin or explore altcoins with smaller market caps, Kraken has you covered.
Cryptocurrencies Available on Kraken
Now, let’s dive into the main topic: the wide range of cryptocurrencies that are available for trading on Kraken. Below is a comprehensive list of the most popular digital assets you can find on Kraken.
Bitcoin (BTC)
Bitcoin is the first and most well-known cryptocurrency. It is often referred to as “digital gold” due to its scarcity (only 21 million Bitcoins will ever be mined) and its role as a store of value. Bitcoin is the most liquid cryptocurrency on Kraken and is an essential part of any cryptocurrency portfolio.
Ethereum (ETH)
Ethereum is the second-largest cryptocurrency by market capitalization. It is more than just a digital currency; it is a platform for decentralized applications (dApps) and smart contracts. Ethereum has become the backbone of the decentralized finance (DeFi) movement and has a massive developer community.
Kraken offers both spot and futures trading for Ethereum, making it a versatile platform for those who want to invest in or trade this cryptocurrency.
Ripple (XRP)
XRP is a digital currency that is used in the Ripple payment protocol. Ripple aims to provide fast, low-cost international payments, making it a favorite among financial institutions. XRP is unique because it does not operate on a traditional blockchain. Instead, it uses a consensus ledger.
Although XRP has faced some legal challenges, it remains a popular asset on Kraken for those looking to diversify their portfolios with an established altcoin.
Litecoin (LTC)
Litecoin is one of the oldest cryptocurrencies and was created as a “lighter” version of Bitcoin. It offers faster transaction times and lower fees compared to Bitcoin. Many investors see Litecoin as a more practical option for everyday transactions while still benefiting from Bitcoin-like properties such as security and decentralization.
Kraken offers trading pairs for Litecoin, making it easy to invest or trade this well-known cryptocurrency.
Chainlink (LINK)
Chainlink is a decentralized oracle network that provides real-world data to smart contracts on the blockchain. LINK, the native cryptocurrency of the Chainlink network, has grown rapidly in popularity due to its role in powering decentralized finance (DeFi) applications.
Kraken supports LINK trading, offering an excellent opportunity for investors looking to tap into the growing DeFi market.
Polkadot (DOT)
Polkadot is a relatively new cryptocurrency that has gained a lot of attention for its innovative approach to interoperability between different blockchains. Polkadot aims to create a network where different blockchains can transfer data and value seamlessly.
DOT, the native token of Polkadot, is available on Kraken for both spot and futures trading.
Cardano (ADA)
Cardano is a blockchain platform that aims to provide a more secure and scalable infrastructure for decentralized applications and smart contracts. It was created by one of the co-founders of Ethereum and is based on scientific research and peer-reviewed academic papers.
ADA, the native cryptocurrency of the Cardano network, has gained significant attention for its potential to revolutionize the world of decentralized finance. Kraken offers trading pairs for ADA, making it easy to invest in this promising project.
Solana (SOL)
Solana is a high-performance blockchain that focuses on speed and scalability. It has become one of the most popular platforms for decentralized applications, thanks to its ability to process thousands of transactions per second.
SOL, the native cryptocurrency of the Solana network, is available on Kraken for trading. If you’re looking for a blockchain with a strong focus on speed and low fees, Solana could be an excellent addition to your portfolio.
Stellar (XLM)
Stellar is a blockchain-based platform that aims to facilitate cross-border payments, similar to Ripple. However, Stellar focuses more on individuals rather than large financial institutions. XLM, the native token of Stellar, is used to pay for transaction fees and facilitate transfers on the network.
XLM is available for trading on Kraken and is a popular choice for investors looking to explore the world of blockchain-based payment solutions.
Tezos (XTZ)
Tezos is a blockchain platform that aims to improve upon some of the shortcomings of earlier blockchains like Bitcoin and Ethereum. It uses a proof-of-stake consensus mechanism, which is more energy-efficient than Bitcoin’s proof-of-work system.
XTZ, the native cryptocurrency of the Tezos network, is available on Kraken for both spot trading and staking. Staking allows you to earn rewards by helping secure the network, making it a popular option for investors who want to earn passive income on their holdings.
Aave (AAVE)
Aave is a decentralized finance (DeFi) protocol that allows users to lend and borrow cryptocurrencies. The AAVE token is used for governance and fee reductions within the platform.
Kraken offers AAVE trading, giving investors a chance to participate in the growing DeFi sector.
Uniswap (UNI)
Uniswap is a decentralized exchange (DEX) that runs on the Ethereum blockchain. The UNI token is used for governance within the Uniswap protocol. As decentralized exchanges continue to grow in popularity, UNI has become one of the most widely traded tokens on Kraken.
Dogecoin (DOGE)
Dogecoin started as a joke but has grown into a widely traded cryptocurrency. Its popularity surged due to social media hype and endorsements from high-profile figures like Elon Musk. Although it was initially created as a meme coin, Dogecoin has developed a passionate community and is used for tipping, donations, and even payments in some cases.
Kraken offers Dogecoin trading pairs, giving you the option to invest in this unique cryptocurrency.
Polygon (MATIC)
Polygon, previously known as Matic Network, is a Layer 2 scaling solution for Ethereum. It aims to solve the high gas fees and slow transaction times on the Ethereum network by creating a more efficient and scalable system.
MATIC, the native token of the Polygon network, is available on Kraken for trading. If you’re interested in Ethereum but concerned about its scalability issues, Polygon could be a great alternative to consider.
Cosmos (ATOM)
Cosmos is a blockchain network designed to solve the problem of interoperability between different blockchains. ATOM, the native cryptocurrency of the Cosmos network, is used for staking and securing the network.
Kraken supports ATOM trading, making it easy for you to invest in this innovative project.
VeChain (VET)
VeChain is a blockchain platform designed to enhance supply chain management. By using blockchain technology, VeChain aims to provide greater transparency and efficiency in global supply chains.
VET, the native token of the VeChain network, is available for trading on Kraken. If you’re interested in blockchain’s potential to revolutionize industries beyond finance, VeChain is worth considering.
Filecoin (FIL)
Filecoin is a decentralized storage network that allows users to rent out unused storage space or purchase storage from others. FIL, the native cryptocurrency of the Filecoin network, is used to pay for storage services and incentivize network participants.
See Also: Is Kraken Good for Day Trading?
Filecoin is available for trading on Kraken, providing an opportunity to invest in the growing field of decentralized storage.
How to Buy Crypto on Kraken
Now that you’re familiar with some of the cryptocurrencies available on Kraken, let’s walk through how you can buy them. Follow these simple steps to start investing:
Create an Account: Go to Kraken’s website and sign up for an account. You will need to provide some basic information and verify your identity, depending on the level of trading you want to engage in.
Deposit Funds: Kraken allows you to deposit funds using various methods, including bank transfers and cryptocurrencies. Choose the method that works best for you.
Choose a Cryptocurrency: Once your account is funded, navigate to the “Trade” section and choose the cryptocurrency you want to buy. Kraken offers a variety of trading pairs, allowing you to buy crypto using different fiat currencies like USD, EUR, or GBP.
Place an Order: You can choose between different types of orders, such as market orders (buying at the current price) or limit orders (setting a specific price at which to buy). Once you’ve placed your order, it will be executed, and the cryptocurrency will appear in your account.
Secure Your Investment: After purchasing cryptocurrency, it’s essential to secure your assets. You can store them on Kraken’s platform, but for added security, consider moving them to a personal wallet, preferably a hardware wallet, where you control the private keys.
Conclusion
Kraken offers an impressive selection of cryptocurrencies, making it a great choice for both beginners and experienced traders. Whether you’re interested in well-established coins like Bitcoin and Ethereum or looking to explore promising altcoins like Polkadot and Chainlink, Kraken provides a secure and user-friendly platform for your investments.
Understanding the cryptocurrencies available and how they work is the first step toward becoming a successful investor. By using Kraken’s robust tools and resources, you can make informed decisions and grow your portfolio in the exciting world of cryptocurrency.
Remember, investing in cryptocurrency comes with risks, and it’s essential to do thorough research before making any investment decisions. Kraken offers a wide variety of educational resources to help you learn more about each asset, enabling you to trade confidently in this fast-evolving market. Happy investing!
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