When you transfer crypto the traditional way, you copy a receiving address from one platform and paste it into the other. You can connect your Ledger device directly to Kraken, so you don’t need to copy and paste wallet addresses.
For deposits, you select an account in your Ledger wallet and approve the transaction on your device. The crypto is then sent on-chain to your Kraken deposit address.
For withdrawals, you select a receiving address from your Ledger device and complete the withdrawal in Kraken. You may also be asked to approve a message on your device to verify that you control the address.
Your private keys stay completely on your Ledger device. Kraken never sees your recovery phrase or device PIN.