Is Kraken Trustworthy? Given its wide range of safety measures, self-regulated approach, and security assessments, it's also among the safest exchanges today. Let's explore more in this article.
Is Kraken a Trustworthy Crypto Exchange: Kraken Security
Kraken takes security very seriously and has never had a wallet hacked. Since its launch in 2011, its platform has only been down once, in January 2018, and even then, it was to carry out essential system improvements. It also applies a variety of security measures, such as the following, to reduce the possibility of coins being stolen through its system:
- Transferring new deposits directly to offline 'cold' wallets, which are physically isolated from any online system.
- Storing the vast bulk of coins in cold wallets, with only the coins required to maintain Kraken's liquidity being kept in online 'hot' wallets.
- Storing a small number of coins in semi-cold wallets, which are kept on defended machines with locked drives.
- Encrypting all wallets and data in data centers.
These measures prevent hackers from accessing Kraken's platform, but the exchange also has the following features in place to safeguard individual accounts:
- Universal 2nd Factor (U2F) authentication, which is unquestionably the safest method of securing your account when using hardware authentication devices like the YubiKey or its alternatives.
- Two-factor authentication, which is relevant to logins, trades, funding, and API-based actions on Kraken.
- Master account lock.
- Info-leakage protection: (opportunistic) login and password recovery attempts will not reveal any account information or even the existence of an account.
- Email encryption using PGP/GPG.
- Documents for user verification are uploaded to a separate, highly secure system.
- All sensitive user data is encrypted and can be decrypted only by accessing multiple security systems at once.
- Global settings lock, which can be activated to prevent changing of user account info (eg withdrawal address) by a third party who's hacked into an account.
As if the above weren't sufficient, Kraken also employs a variety of methods to ensure its adherence to the law, system security, and financial security. These include the maintenance of complete cash reserves with cryptographically verifiable proof-of-reserves audits and Regular data backups, all of which work together to greatly reduce the possibility of users losing money.
In addition to the network's security, Kraken regularly assesses the security of new cryptocurrencies and crypto security tools like hardware wallets when they are added to the platform.
All in all, Kraken's security is solid as a rock, as its practices are the best in the industry. You should feel secure leaving your money on the exchange, even though it is not advised.
Hopefully, reading this article, "Is Kraken a Trustworthy Crypto Exchange: Kraken Security" can help you to understand it better.
