A cryptocurrency Network is the blockchain which an asset is on. For example, Dogecoin (DOGE) can be deposited or withdrawn on the Dogecoin network. Some cryptocurrency supported on Kraken, such as ETH, USDC and USDT are offered on multiple networks you can choose from.
Bitcoin (BTC) deposits
USD Coin (USDC) deposits
What is the difference between a Network and a Method?
A cryptocurrency Network is the blockchain which an asset is on. Whereas, a deposit or withdrawal Method is a different way to execute a transaction on the same blockchain (network).
Depositing ETH on the Ethereum network allows you to select another deposit Method.
Most assets supported on Kraken can only be deposited on one network and only via one method. In some cases (for example DAI, USDT and USDC) you can deposit the same asset from your wallets on different networks. In the case of XLM and ETH you can deposit on the same network via different methods.
A deposit or withdrawal Method is a different way to execute a transaction on the same blockchain (network).
For some assets, such as USDC, an alternative method may be available if the asset is also wrapped or pegged on a network.
What is the difference between a Smart contract and Unified deposit methods?
In the case of Ethereum (ETH) where you can select multiple methods, there are slight differences between the two methods shown on Kraken:
- you will see a slightly higher gas fee in the wallet you send from
- the overall cost of depositing from a wallet is lower in comparison to the unified method
- some third party stakeholders (ex. exchanges) do not support withdrawing directly to a smart contract address
- this method is slightly faster than the unified one
- you will see a slightly lower fee in the wallet you send from
- the overall cost of depositing is higher than the smart contract method because we subtract a small fee from the amount you sent
- this address is supported by all exchanges
The best option for you will be based on your preference around deposit and withdrawal minimums, fees and processing times.
Some of the assets we support on Kraken exist on multiple networks. One clear example is Ethereum (ETH) which can exist and be deposited or withdrawn on the Ethereum network as well other Ethereum ecosystem networks (Arbitrum One, Arbitrum Nova, Optimism Polygon network and zkSync Era).
Another example is USD Coin (USDC), a stablecoin supported on networks such as Arbitrum, Ethereum, Solana, Tron and Polygon. When selecting an asset with multiple networks, such as USDC, you will need to select which network you are depositing this asset from.
What is a Layer 2 network?
In relation to Ethereum, a Layer 2 (L2) network is a type of scaling solution that aims to increase the amount of transactions on the Ethereum network, and reduce gas fees.
The Ethereum Layer 1 (L1) network is the Ethereum blockchain itself. This means that it operates directly on the Ethereum blockchain. As the number of users on the network continues to grow, this can lead to slower processing times and higher fees. L2 networks have been designed as a solution to reduce the load on the Ethereum network. This works by offloading some of the transactions to a separate network that is still connected to the Ethereum network, like a side street to reduce the number of cars on a single road.
An example of a L2 scaling solution, supported on Kraken, is the Arbitrum One network.We support various cryptocurrencies on this network such as, Arbitrum (ARB), Dai (DAI), Ethereum (ETH), GMX (GMX), Tether (USDT) and USD Coin (USDC).
The Lightning network is a special case of the Multi Network and Single method scenario. Lightning is considered to be an off-chain, Layer 2, solution, meaning that transfers are done via a new network of payment channels anchored in Bitcoin’s blockchain. Find out more about Bitcoin's Lightning Network on our Learn center.
For a guide on deposit BTC to your Kraken account via the Lightning network visit: How do I send bitcoin on the Lightning Network?
How do fees differ?
Withdrawal fees will vary depending on the network that you choose. You will see the fee calculation for the network you select on the withdrawal page.
You may also review this article for a list of all assets and the associated fees.
What if I deposited using the wrong network?
Unfortunately, if you use the wrong deposit network your funds will not be credited.
To check this:
To check this:
1. Check the status of your deposit by navigating to the Transactions section.