What is Kraken Pro? A Guide to Advanced Trading Features on Kraken

What is Kraken Pro? A Guide to Advanced Trading Features on Kraken

Kraken Pro is a sophisticated version of the Kraken exchange, designed for experienced traders who need advanced trading tools and features. It offers a high degree of customization, a wide range of order types, and in-depth charting capabilities, catering to those who are looking to take full control over their cryptocurrency trading experience. Unlike Kraken’s more user-friendly interface, Kraken Pro is tailored for professionals, featuring an enhanced set of functionalities that allow users to trade at a higher level. This guide will walk you through Kraken Pro’s main features, how it differs from the standard Kraken platform, and how traders can leverage its tools for advanced trading strategies.

What Are the Key Features of Kraken Pro?

Kraken Pro offers a variety of advanced trading features that make it stand out in the world of cryptocurrency exchanges. Some of the key features include:

• Advanced Charting Tools: Kraken Pro comes equipped with powerful charting tools from TradingView. These tools allow traders to analyze market trends and price movements in real time, using a wide range of indicators, drawing tools, and chart types.
• Multiple Order Types: Kraken Pro supports various advanced order types, including limit orders, stop orders, market orders, and even more complex conditional orders like iceberg orders and fill or kill orders.
• Customizable Interface: The platform’s interface is fully customizable, allowing traders to set up their workspace according to their preferences. Users can adjust the layout, add widgets, and configure different aspects of the interface to suit their trading style.
• Margin Trading: Kraken Pro supports margin trading, allowing users to borrow funds to amplify their positions. This feature can significantly increase potential profits but also comes with higher risks.
• Spot and Derivatives Trading: Kraken Pro offers access to both spot and derivatives markets, giving traders the flexibility to trade physical assets as well as futures and margin products.
• Security and Reliability: Kraken Pro maintains a high level of security, with features like two-factor authentication (2FA), cold storage for assets, and frequent security audits. It is also known for its reliability, with minimal downtime compared to many other exchanges.

These features make Kraken Pro an ideal choice for professional traders who want more than just a basic trading platform. Whether you’re engaging in spot trading, margin trading, or derivatives trading, Kraken Pro offers the tools necessary for sophisticated strategies and more control over your investments.

How Does Kraken Pro Differ from the Regular Kraken Platform?

While Kraken’s main platform is designed for beginners and casual users, Kraken Pro provides a more complex and feature-rich experience. Here are some of the most important differences:

• User Interface: The regular Kraken platform is designed for simplicity and ease of use, while Kraken Pro has a more detailed, data-heavy interface with advanced charts and multiple trading options. Kraken Pro’s layout can be customized, whereas the regular Kraken platform has a more standardized, user-friendly design.
• Order Types: Kraken Pro supports more advanced order types that are not available on the regular platform. For example, Kraken Pro allows traders to use conditional orders, such as the ‘Iceberg Order’, which can split a large order into smaller, less noticeable parts.
• Fees: While both platforms share Kraken’s fee structure, Kraken Pro users may benefit from lower fees, especially when trading larger volumes. The Pro platform is designed to cater to high-frequency traders who need lower transaction costs to maximize their profitability.
• Advanced Trading Features: Kraken Pro offers features such as margin trading, futures trading, and more complex charting tools, which are not available on the regular Kraken platform. These advanced tools are designed for traders with a higher level of expertise.
• Access to Derivatives: Kraken Pro allows users to trade not only spot markets but also derivatives, including futures contracts and margin products. This opens up additional avenues for profit generation, including leveraged trading, which is not available on the regular Kraken platform.

In summary, Kraken Pro is better suited for experienced traders who want to access advanced features, while the regular Kraken platform is ideal for those who are just starting their cryptocurrency journey and prefer a more simplified experience.

How to Use Kraken Pro for Advanced Trading

Using Kraken Pro can be intimidating at first, but the platform’s advanced features are designed to give traders the flexibility and control they need. Here’s a quick guide on how to use Kraken Pro effectively:

• Create an Account: The first step is to create a Kraken account. After verifying your identity, you can access both the regular Kraken platform and Kraken Pro by simply logging in to your account.
• Fund Your Account: To begin trading, you’ll need to deposit funds into your Kraken account. Kraken Pro supports a wide range of cryptocurrencies as well as fiat currencies, so you can deposit either depending on your preference.
• Set Up Your Workspace: Customize your workspace to suit your trading style. You can rearrange the chart view, add different market pairs, and set up your order books. The platform allows you to save your layout so you can return to it each time you log in.
• Choose Your Trading Pair: Kraken Pro offers a wide range of trading pairs, from popular assets like Bitcoin and Ethereum to lesser-known altcoins. Select the pair you wish to trade from the list of available markets.
• Place an Order: When placing an order, Kraken Pro allows you to choose between different order types. For example, you can use limit orders to buy or sell at a specific price, or market orders for an immediate transaction. For more advanced users, Kraken Pro offers conditional orders like stop loss or take profit orders.
• Use Advanced Charting Tools: Kraken Pro’s charting interface, powered by TradingView, allows you to apply various indicators, chart types, and drawing tools. Use these features to perform technical analysis and determine the best times to buy or sell.
• Margin and Leverage Trading: If you’re comfortable with increased risk, Kraken Pro allows you to trade on margin, meaning you can borrow funds to increase your exposure. Be sure to monitor your positions carefully, as leveraged trades can lead to significant profits or losses.
• Track Your Portfolio: Kraken Pro provides comprehensive portfolio tracking features. You can monitor your open orders, recent trades, and available balance to ensure you’re on track with your strategy.

With these steps, you can begin taking advantage of Kraken Pro’s advanced features, unlocking a world of possibilities for your cryptocurrency trading journey.

Common Strategies for Advanced Traders on Kraken Pro

Advanced traders often use a variety of strategies to maximize their profitability on Kraken Pro. Here are a few strategies that can be particularly effective:

• Technical Analysis: This is perhaps the most common strategy employed by advanced traders. By studying price charts and using technical indicators such as moving averages, RSI, and MACD, traders can predict future price movements and time their trades accordingly. Kraken Pro’s integration with TradingView makes this process much easier.
• Scalping: Scalping involves making rapid, small trades to capitalize on minor price movements. This strategy is most effective with Kraken Pro’s low fees, as traders can make numerous small trades without losing much to transaction costs.
• Swing Trading: Swing traders aim to capitalize on short- to medium-term price movements. Using Kraken Pro’s advanced charting tools, traders can identify support and resistance levels, entering positions when the market is poised for a short-term swing.
• Arbitrage: Arbitrage trading involves buying an asset on one exchange where the price is lower and selling it on another exchange where the price is higher. Kraken Pro’s liquidity and range of assets make it an ideal platform for this type of strategy.
• Margin Trading and Leveraged Positions: By using margin, traders can take larger positions with less capital. However, this strategy also comes with significant risk, so it’s crucial to monitor leveraged positions closely to avoid liquidation.

These strategies require in-depth knowledge of the market and experience with trading tools, so they may not be suitable for all users. However, Kraken Pro’s advanced features make it an excellent platform for experienced traders looking to implement complex strategies.

Frequently Asked Questions About Kraken Pro

1. Is Kraken Pro free to use?

Yes, Kraken Pro is free to use, though there are fees associated with trading. These fees depend on the trading volume and the specific type of trade being executed. Kraken Pro generally offers lower fees for high-volume traders compared to the regular Kraken platform.

2. Can I use Kraken Pro on mobile?

Yes, Kraken Pro offers a mobile version of its platform, allowing traders to access advanced features and manage trades from their smartphones. The mobile app offers most of the features available on the desktop version, including advanced charting and order types.

3. Is Kraken Pro suitable for beginners?

While Kraken Pro is designed for experienced traders, beginners can still use it to familiarize themselves with advanced features. However, it may take some time to learn how to use the platform effectively, and those new to crypto trading might be better off starting with the standard Kraken platform.

4. Does Kraken Pro offer demo accounts?

Currently, Kraken Pro does not offer a demo account. However, new users can start with small trades to practice and get a feel for the platform’s features before committing significant capital.

5. How do I secure my Kraken Pro account?

Kraken Pro offers several security features to protect your account, including two-factor authentication (2FA), email confirmations for withdrawals, and the option to store assets in cold wallets for added protection. Always use strong, unique passwords and enable 2FA for extra security.

6. Can I trade NFTs on Kraken Pro?

No, Kraken Pro is focused on trading cryptocurrencies and derivatives. While Kraken’s main platform supports NFT purchases and sales, Kraken Pro does not offer this functionality at the moment.

Conclusion

Kraken Pro is a robust and comprehensive trading platform that offers advanced tools for cryptocurrency traders. Its powerful charting features, customizable interface, and range of order types make it ideal for experienced traders looking to maximize their profitability. Whether you’re interested in margin trading, derivatives, or advanced technical analysis, Kraken Pro provides the tools needed to implement sophisticated strategies. With its security features and low fees, Kraken Pro is a platform worth considering for serious crypto traders who want to take their trading to the next level.