Whether you have just delved into the cryptocurrency speculation scene or if you have been camping around it for quite a bit, there are high chances that you must have heard the name of Kraken.
We are of course not referring to the legendary sea creature, but the popular crypto asset exchange that has been in operation since 2011. You probably know that Kraken is a very popular cryptocurrency exchange. Further, it has carved a niche for itself that makes it stand apart from many of its newer counterparts.
With support for nearly 30 cryptocurrencies, 5 fiat currencies, as well as related deposit and withdrawal methods, Kraken offers the kind of flexibility that isn’t often found with other exchanges. That’s what makes it a great fit for new and old speculators with their trading mechanisms, including bots.
Those who are interested in more sophisticated mechanisms of automated cryptocurrency trading often want to use Kraken as the base of their operations. To see if the cryptocurrency exchange can be a good fit for you, here’s everything you need to know about its support and related functions with automated bots.
Are You Allowed to Use Trading Bots on Kraken?
Kraken has been running its operations since the dawn of cryptocurrency trading. During this time, the digital asset exchange has introduced many tried and true mechanisms within the crypto space.
Keeping this in mind, it’s no surprise to see that Kraken offers full support for speculating bots through its API. This makes it easier for traders and programmers to develop their own algorithms for sophisticated and improved robot assisted trading on the platform.
This aspect also opens doors of opportunity for those developers who would love to design automated scripts with the intent of selling these tools as part of a speculating software. If they keep the exchange’s API documentation in mind and follow the programming instructions to the letter, there’s no reason why their trading bots wouldn’t function properly on Kraken.
In simpler terms, Kraken supports almost all speculating bots that are developed in line with its API, and lets them make use of its trading engine for real time market trades. This means that if you find a reputable bot program, you can use it while being rest assured that it’s supported by the facilitator.
Do You Need to Download Special Software?
Much like the exchanging bots that are compatible with other online asset exchanges, the automated options that work with Kraken are also available in different variations.
You can find tools that need to be installed on your computer before they can start working, or you can choose solutions that are entirely based on the cloud and run through their own websites. The variation depends on the developer and the way they choose to create their bots.
Installing special software for your automated trading means that you are only able to access your bot from the computer it’s installed on. This gives you more security while limiting access. Now, conversely, using a cloud or web-based tool blesses you with more accessibility, but its security is more dependent on the provider than on you.
Either way, Kraken will support both kinds of bots for you, as long as they come from a developer who respects its API documentation.
Are Kraken Bots Safe?
One rule of thumb, you must approach any crypto bots with a sense of vigilance, as well as extreme caution. Trading tools that work with Kraken are no different.
No matter the type of tool you end up choosing, pay attention and optimize for the fact that it offers ample safety mechanisms to keep your funds safe. You should stay away from options that do not fulfill this criteria and put your funds at risk.
For instance, any trading process that asks for withdrawal access from your exchange account poses a high risk and is quite certainly after your funds. It’s because all that a bot requires is the permission to perform trades on your given cryptocurrency exchange.
It never needs to withdraw funds from your account and into a third party platform. This is why, you should check for this crucial factor while selecting a bot to use on Kraken, and stay away from providers that ask for withdrawal access.
You should also check for additional security mechanisms such as two-factor authentication (2FA), in addition to, use of a secure server (HTTPS) for cloud or web-based platforms. With it, remember to also dive into the speculating tool provider’s history as well as reputation in the crypto community.
When accounting for these factors, you can have ease of use with Kraken while ensuring that you are keeping all safety mechanisms in mind.
Are There Any Free Kraken Bots?
Seek and obtain a plethora of trading bots for Kraken that are free. One word of caution: the expression “there is no free lunch” is highly applicable here.
It’s because free services are not always safe to use. They often carry hidden illicit tools that either steal your information, your computing resources, or your funds.
Install open-source investing tools that come without any costs. But given that you have a very limited pool of open-source bots to choose from, finding one for Kraken will be difficult. This is especially true if you want to operate a trading automaton that comes with an array of features.
This is why, it is often a stupendous notion to use trial plans to start for free with reputable bot solutions. Since these platforms operate commercially, they often have competitive features to stay in line with market trends.
So comb through your options, test them out, and know which features matter to you the most. Then you can go ahead with signing up with the best tool for a higher duration on Kraken.
How Much Money Do I Need to Start?
To start trading on Kraken, you will not only need to put aside your preferred amount for purchasing and divesting cryptocurrencies, but you will also have to be aware of the transaction fees and related costs to the mighty Kraken itself.
Usually, it charges up to 0.26 percent of your transaction as trading fee. This fee depends upon a few factors such as your 30-day trading volume on the platform and the pairs of trade you are transacting in. Since Kraken operates on a maker-taker model, the fee is also subject to whether you are a market maker or a market taker in the transaction.
The amount of money you need to start will depend on these factors. Keeping this in mind, make sure that you have additional funds to support these expenses.
Are There Any Unique Pairs to Trade With the Bot on Kraken?
Kraken offers a number of cryptocurrency as well as crypto-fiat hybrid pairs that are not often found on other crypto exchanges.
But more than those pairs, it is the exchange’s ability to support margin trading and derivative assets through Kraken Futures that set it apart from many other digital asset exchanges. You just need to find a bot that supports these features to make use of them.
Remember, while trading with Kraken through a bot is easy, your experience is highly dependent on the kind of service you choose. Keeping this in mind, make sure that you are doing your due diligence before selecting an automated tool. This will help you steer clear of issues and will ensure that you are making the most out of what Kraken has to offer.