Kraken Wallet Review – Pros, Cons, Safety Revealed

Kraken has entered the crypto wallet arena with its own multichain wallet, supporting Bitcoin, Dogecoin, Solana, Ethereum, and several Layer 2 chains. In this Kraken Wallet review, we will explore the wallet’s features and discuss its pros and cons.

Connecting to Kraken is easy if you have a Kraken exchange account, but you don’t need to have a Kraken account to download and use the wallet. You don’t even need an email address.

Let’s start with our overall assessment before diving deeper into the Kraken Wallet app.

Our Verdict on Kraken Wallet

The Kraken Wallet app offers a solid choice for anyone looking for a secure way to store, send, and receive cryptocurrencies. Basic features include an account overview, NFT gallery, and a built-in selection of decentralized applications.

Kraken’s mobile wallet app provides an easy way to connect to the Kraken exchange, making it well-suited to people who use the crypto exchange frequently. A strong focus on security includes features such as biometric logins and the ability to set additional passwords for specific actions.

Overall, the Kraken Wallet offers a reliable way to manage cryptocurrencies. However, advanced users may be disappointed with its limited feature set and smaller selection of supported cryptocurrencies.

What is Kraken Wallet?

The Kraken Wallet is a multichain crypto wallet developed by Kraken, a well-established cryptocurrency exchange. Available for iOS and Android, the app focuses on mobile users. No desktop support is available yet.

With support for popular cryptocurrencies, including Bitcoin, Dogecoin, Solana, and Ethereum, Kraken Wallet addresses the most commonly used chains. However, it also supports several Ethereum Virtual Machine (EVM) compatible networks, such as Avalanche or Polygon, and Ethereum Layer 2 chains like Base and Arbitrum.

This means that Kraken users can store, send, and receive multiple types of cryptocurrencies within a single wallet. The wallet also supports connections to the Kraken exchange, although a Kraken account isn’t required (we have a separate Kraken exchange review). As a non-custodial wallet, the Kraken Wallet gives users full control over their cryptocurrency assets. More on this (and why it matters) in a bit.

In keeping with Kraken’s commitment to transparency, Kraken’s wallet uses open-source code, allowing anyone to audit the wallet.

What Type of Wallet is Kraken Wallet?

The Kraken Wallet is a non-custodial wallet, meaning that users have full control over their private keys and crypto assets on the blockchain. Through its exchange, Kraken also offers a custodial wallet, in which Kraken controls the private keys. This distinction is important to understand.

With a non-custodial wallet, also called a self-custody wallet, the user is responsible for managing the wallet’s private keys. In this case, the Kraken wallet uses a seed phrase, a string of words that generates the wallet’s private keys through encryption. Anyone who has access to the private keys (ideally, only yourself) can also control the assets on the blockchain. Many investors in the crypto world prefer a self-custody wallet over a custodial wallet.

By contrast, Kraken’s exchange wallet is secured by your login (if you have a Kraken account). The good news is that you don’t need a Kraken account to use the Kraken app. That also means that Kraken Wallet does not require Know Your Customer (KYC) identity verification. Anyone can download and use the wallet without revealing their identity. If you choose to connect your wallet to a Kraken account, the exchange requires KYC.

This non-custodial structure provides better protection because the exchange cannot prevent access or freeze funds. However, users become responsible for safeguarding their seed phrase and private keys.

Supported Chains & Cryptocurrencies

The Kraken app supports many popular cryptocurrencies across a dozen blockchain networks. For example, if you hold Bitcoin and Ethereum, you don’t need to maintain two wallets. However, Kraken Wallet’s multichain support still falls short of some competing wallets. Best Wallet, for instance, supports 60+ chains.

Below, we list the chains you can access with Kraken Wallet.

Major Chains

• Bitcoin
• Ethereum
• Solana
• Dogecoin

EVM-Compatible Chains

• Avalanche
• Polygon
• Base
• Arbitrum
• Optimism
• Blast
• Linea
• Ink

EVM chains share wallet addresses with Ethereum, although the assets are separate on each chain. Kraken covers the most popular Layer 2 chains, including Arbitrum and Base, allowing users to trade crypto and interact with decentralized applications (dApps) faster and with lower transaction costs.

It’s possible that Kraken will provide support for additional chains in the future. The current blockchain selection puts it on par with similar exchange-sponsored self-custody wallets, such as Coinbase Wallet.

Kraken Wallet Features & Tools

The Kraken mobile app provides a basic set of features and tools to help users manage their cryptocurrency assets and interact with the blockchain. While the app’s feature set is not as extensive as some other wallets, it provides a solid foundation for users to store, send, and receive cryptocurrencies.

Notably absent, however, is the ability to buy cryptocurrencies through third-party providers. Topping up your wallet requires connecting to the Kraken exchange or sending tokens from another wallet. Experienced crypto investors can find workarounds, including dApps that support third-party providers.

As another caveat, the wallet doesn’t currently support cross-chain swaps for BTC to ETH or DOGE to BTC. However, if you need to swap assets between EVM-compatible networks, Kraken Wallet makes this relatively simple.

Portfolio Management

Upon opening the app, you are greeted with your Kraken account overview, which opens to the most recently used wallet address. The app aggregates balances across all chains that share the same address.

Additional features like swaps, cross-chain swaps, and hiding or unhiding tokens are just a click or two away. However, not all assets are supported, and we received a message indicating one of our tokens could not be swapped using Kraken’s built-in tool. As a workaround, the app supports connections to external dApps, allowing swaps or staking of lesser-known assets.

Market Insights

The app provides basic market data, such as current prices and market capitalization, to help users stay informed about the cryptocurrency market. The in-app browser included with the dApp browser provides quick access to additional tools, including CoinGecko, DefiLlama (which is misspelled in the Kraken Wallet app), and GMGN.AI, a wallet-tracking app.

dApp Browser

Kraken Wallet’s design centers on simplicity. One of the three main navigation buttons opens the dApp browser. Although Kraken Wallet supports WalletConnect, which allows users to connect to external applications, the dApp browser simplifies the process.

Featured apps are sorted by type or category, with yield opportunities taking center stage. We were able to lend USDC on Base through the Compound protocol in just a few clicks.

This section also highlights the Ink chain, an Ethereum Layer 2 chain based on Optimism. Kraken’s Layer 2 strategy parallels Coinbase’s moves with its Base chain. Kraken offers an easy way to bridge assets to the new Ink chain.

While the dApp browser gives you easy access to many of the most popular decentralized applications, many others are missing. Expect to search for some of your favorite dApps in a separate browser and connect via WalletConnect.

Next in our Kraken Wallet review, let’s explore the app’s security features.

Security – Is Kraken Wallet Safe & Legit?

In keeping with the Kraken exchange’s reputation for security, the Kraken Wallet makes security a top priority. One of the key security features of the wallet is its use of biometric authentication (fingerprint scanning) to secure access to the app.

In addition to biometric authentication, the wallet also offers password protection. Users can set a separate password for specific actions, such as sending funds. This adds an extra layer of security and helps to prevent unauthorized transactions.

The wallet also uses end-to-end encryption to protect user data, including private keys and transaction information. This ensures that user data remains secure and protected from unauthorized access.

Kraken Wallet stores private keys securely using a combination of hardware- and software-based security measures, including Keychain (on iOS) and Keystore (on Android). This helps to prevent unauthorized access when your device is left unattended.

As an open-source app, code-savvy users can audit the code to ensure its security. Kraken also tasked Trail of Bits with a thorough audit of the app’s security. The audit revealed a well-structured app with no high-severity issues.

 

While the app itself does not require licensing by financial regulators, the Kraken exchange is regulated in many countries around the world.

United States:

• Money Services Business (MSB) with FinCEN
  State-level money transmitter licenses

United Kingdom:

• Registered with the Financial Conduct Authority (FCA)

Canada:

• Registered with the Ontario Securities Commission
• Registered Money Services Business with FINTRAC

Kraken’s commitment to security is evident in its approach to the wallet app. Next, let’s look at how fees work for the wallet.

Kraken Wallet Fees

As we previously discussed, the Kraken Wallet incurs network fees when sending or receiving cryptocurrencies. These fees are not charged by the wallet itself, but rather by each specific blockchain network. These network fees vary based on network congestion, market prices for fuel tokens, and the type of transaction.

Kraken does not provide access to third-party providers through its wallet app. As a result, the easiest way to add funds is to purchase them directly through Kraken itself. Unfortunately, while users can buy quickly, withdrawals to the Kraken app may take some time.

Let’s compare buying fees and waiting periods based on our $100 test transactions.

Kraken Instant Buy

For advanced traders, Kraken Pro offers a maker-taker fee schedule with volume incentives based on your crypto trading activity in the past 30 days. Maker fees apply to limit orders (fixed price orders), whereas taker fees apply to market orders (buying at market price).

Debit card deposits are not supported for advanced features such as margin trading, so please expect a waiting period of up to seven days before you can withdraw funds to your self-custody wallet. Kraken does not charge a withdrawal fee; however, blockchain network fees may apply.

The Kraken+ subscription service offers no-fee transactions. However, payment fees and spreads still apply. Overall, Kraken Pro trading fees are competitive, and most bank transfers are free. If you need to fund your Kraken mobile app in a hurry, though, you may need to find another solution to deposit funds quickly.

Kraken Wallet App User Experience

If you’re accustomed to crypto wallets, you’ll find Kraken Wallet easy to use. However, we felt the onboarding experience could be more challenging for new Kraken users. We would have liked to see more guidance for newbies.

Upon opening the app, you can set up a new wallet or import an existing wallet. We chose the latter to see which chains were supported. Once set up, you can switch between wallets easily and view updated balances.

However, the updates seemed lengthy, and we did find some inconsistencies in wallet balances, particularly regarding DeFi balances. For example, the image below shows a liquidity pool, but the position is in a staking contract.

Kraken does a reasonably good job of detecting tokens, albeit with a few misses. Unfortunately, we were unable to add tokens where the app’s token feed had gaps. Competing wallets, like MetaMask, offer a way to add a token’s contract address.

Additionally, the wallet balances measured in dollars appeared to exclude some balances from DeFi deployments. For example, one wallet had $430 staked and another $437 in a liquidity pool, yet the total wallet balance read $449.

Wallet balance issues aside, Kraken Wallet offers an easy-to-use platform for basic tasks like trading crypto and connecting to dApps.

A relatively simple interface features three main buttons, the last of which is a QR scanner that allows funds to be sent to another wallet address without concerns over typos.

 

To its credit, Kraken Wallet’s NFT browser picked up some NFTs missed by other wallets. NFTs are sortable by collection and chain, with the option to send NFTs to another wallet address with a few clicks.

Suspected spam NFTs are automatically archived, although some still slip through. We didn’t find an option to hide these.

While Kraken’s wallet feels like a work in progress, its security and ease of use for simple transactions make it worth considering.

How to Set Up a Kraken Wallet Account

Kraken makes the setup a straightforward process that can be completed in a few minutes.

Here’s a step-by-step guide to help you get started:

Step 1: Download the Kraken Wallet App

To start, download the Kraken Wallet app from the App Store (iOS) or Google Play Store (Android). The safest way to ensure you get the official app is to visit Kraken’s download page for the direct links.

Step 2: Create a New Wallet

Open the app and click “Create a New Wallet.” Optionally, you can import an existing wallet. When you create a new wallet, the app automatically generates a seed phrase and private keys for your wallet.

Step 3: Back Up Your Seed Phrase

Your seed phrase is a list of words that can be used to restore your wallet if you lose access to your device. Be sure to back up your seed phrase safely offline.

Step 4: Verify Your Seed Phrase

To ensure you backed up your seed phrase correctly, verify it by entering the individual words in the correct order.

Step 5: Set Up Your Wallet PIN (Optional)

To protect your wallet when it’s unattended, you can set up a PIN code. Choose a code you’ll remember. Kraken can’t recover this code for you.

Step 6: Set Up Biometric Authentication (Optional)

If your device supports biometric authentication, such as fingerprint authentication, you can enable this feature instead of a PIN.

Step 7: Set Up Your Wallet Password

Optionally, create a strong password for your wallet. This password secures specific types of transactions, such as sending funds. You can find this option in settings.

Step 8: Start Using Your Kraken Wallet

Once you’ve completed the setup, start using your Kraken Wallet to send, receive, and store cryptocurrencies. You can send funds from another wallet address or connect one of your wallet addresses to Kraken’s exchange to fund your wallet.

Is Kraken the Best Crypto Wallet?

The Kraken wallet offers a basic solution for sending, receiving, and interacting with dApps. However, it may not be the best choice for all users. Best Wallet offers a comprehensive alternative, supporting over 60 blockchains.

Like Kraken Wallet, the Best Wallet app supports iOS and Android, with a browser extension planned for an upcoming release. Best Wallet provides an easy-to-use app that’s powerful under the hood.

You can fund your wallet without needing to connect to a crypto exchange. Best Wallet allows you to compare rates from a wide range of third-party providers to instantly fund your wallet.

Best Wallet Features

• Support for more than 60 blockchains
• Built-in DEX aggregator that finds the best value on swaps
• Cross-chain swaps (swap BTC for ETH, etc.)
• Multi-chain NFT gallery
• MPC technology that splits private keys into encrypted shards
• New token launchpad for early access to new tokens
• Scam token detection
• Yield aggregator (compare yields for DeFi)
• No KYC identification verification

Get Best Wallet

Customer Support

Kraken Wallet shares its support with the Kraken exchange. If you have questions, check the settings and scroll down to the Kraken Support section. Here, you’ll find a link to the online help pages, including several how-to pages and . You can also contact Kraken through their ticket system, which requires an email address.

We did not find a live chat option, so expect a delay if you need personal assistance. User reviews on Truspilot include Kraken Wallet reviews and feedback for the crypto exchange itself, scoring 1.4 out of 5 stars. While this rating is low, many leading exchanges have similarly low ratings. However, Kraken is active on Trustpilot and responds to most negative Kraken Wallet reviews with options to resolve the issue.

By contrast, largely positive Kraken Wallet reviews on the App Store and Google Play indicate that users are generally satisfied with the app overall.

The Verdict

For our Kraken Wallet review, our verdict is it offers a solid option for basic crypto management, although with some caveats. DeFi support exhibited some inconsistencies, resulting in incorrect balance overviews. Additionally, the wallet’s ties to the Kraken exchange make it less convenient if you need to quickly top up balances.

For many users, an alternative like Best Wallet may offer a better option. Best Wallet addresses many of the shortcomings encountered in other wallet apps while offering a range of additional features. Best Wallet supports more than 60 blockchains and appeals to a wide audience by making powerful features easy to use.

Get Best Wallet

References:

• Ink the future (inkonchain.com)
• krakenfx/wallet (github.com)
• trailofbits/publications (github.com)
• Kraken Wallet: Simple, secure, powerful (kraken.com)
• Kraken Wallet (support.kraken.com)
• Kraken (trustpilot.com)