Overview: Kraken exchange security

So because Kraken has "taken over" this sub. I figure, maybe it's time to do a deep dive on the security on Kraken.

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An important thing with exchanges is a 2FA. My favorite type is a security key but they also have the ability for you to use an app.

https://preview.redd.it/qzhf01vmtqgb1.png?1317&format=png&auto=webp&s=ad975ae5c9119e433bbd223de45cec082ee7cc9d

For those of you who doesn't know, a security key like a hardware wallet requires the physical device in hand and should be able to be copied. Meaning if you don't have the security key in hand, you can't get in. And this making remote attacks virtually impossible through the login system itself.

Where with the authenticator app, like setting up a hot wallet. Because your phone, 1password, etc is setup on a device that touches the internet. In theory during the setup process it is possible for a bad device to leak out the 2FA stuff. Plus in many cases, you can reveal the stuff or transfer to another device. So it basically runs into the same problems as a hot wallet.

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The problem, Kraken only allows you to use 1 security key. The other problem is it's a 1 or the other thing. Like most people who pick a security key likely will just stick with that. But for some, they might opt into both. Even more in some situations, devices, etc a security key won't work. For example, if your security key can't connect to your mobile device.

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What this means is, there is a massive limiting factor when it comes to Kraken security if you want to use a security key. And this forces many who have them to not use them.

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Now other things in security to note is you can turn on 2FA for trading, funding, and it is required for logging in.

Also another plus is you can see active sessions and connected devices.

https://preview.redd.it/byfg4a5cvqgb1.png?1345&format=png&auto=webp&s=3f62b55deff6ef56905ab28b074e56321930c2c0

So while Kraken IMO is a trustworthy platform. It has room to improve when it comes to the security.