Last updated on 17 September 2026
6 Steps to Follow to Add an API Key to Kraken
To add an API key to Kraken, you need to log in to your Kraken account, go to the API settings, and generate a new API key with the right permissions. This key can then be used to connect Kraken to other platforms like accounting software, trading bots, or portfolio trackers.
No matter if you use crypto for yourself, for your business, or with a trading bot, knowing how API keys work helps you manage your crypto safely and easily.
What Is an API Key?
An API key is a secure code that allows a third-party application (like a tax tool or a trading bot) to access your Kraken account in a limited way. It stands for Application Programming Interface key.
Think of it like giving someone a spare key to your house that only opens the front door, but not the safe or the garage. API keys give permission to access certain parts of your Kraken account, but only the parts you choose.
For example:
- You can allow a portfolio tracking app to read your balance, but not make trades.
- You can let your accountant’s software view your crypto transactions to help with tax reports, but it can’t withdraw any funds.
Why Would You Use an API Key?
Many people in the crypto world use API keys for different reasons:
- Tax and accounting tools: These tools need access to your transactions to calculate capital gains or income tax.
- Trading bots: Automated software that trades based on algorithms.
- Portfolio trackers: These apps show all your assets across different exchanges in one place.
- Security and automation: API keys allow automation without giving full access to your account.
Without an API key, you’d have to export CSV files manually from Kraken and upload them to other apps. That’s time-consuming and messy. API keys save time and improve accuracy.
How to Add API Key to Kraken?
Let’s now go through the exact steps to create and add your API key on Kraken.
Step 1: Log in to Kraken
Visit Kraken’s website and log in to your account. Use Two-Factor Authentication (2FA) for added security. Kraken strongly recommends this.
Step 2: Go to the API Settings
Once logged in, click on your profile icon at the top-right corner. Choose “Security” from the dropdown menu. Then click on “API” from the left-hand menu.
Step 3: Generate New API Key
Click on “Add Key” to create a new API key. You will see a form with various permissions. This is where you choose what access to give.
Here’s a simple breakdown:
- Query Funds: Allows the connected app to see your balances.
- Query Open Orders & Trades: Lets the app view your trading activity.
- Export Data: Useful for tax tools.
- Withdraw Funds: Never enable this unless you absolutely trust the app. For most use cases (like tax or tracking), this should stay unchecked.
Tip: If you are connecting to a tax tool like Koinly or CoinTracking, only enable permissions related to reading your data. Do not allow trading or withdrawals.
Step 4: Set Key Expiry (Optional)
You can choose if the API key should expire after a set period. This adds a layer of safety in case the key gets exposed.
Step 5: Confirm and Save
Once permissions are selected, click “Generate Key”. Kraken will show you two things:
- API Key
- Private Key (also called API Secret)
Copy both and store them in a safe place. You won’t see the private key again.
Generating the key is the easy part; classifying everything it pulls back is not. If you would rather someone else handled the reconciliation and the return, you can book a review at our Blackfriars office or do the whole thing by video call.
Step 6: Use Your Key
Paste the API key and secret into the app or software you’re connecting Kraken with. Each platform will have its own method of connecting via API, but most will have a section for adding your Kraken API key.
Let’s say you use a tax software like CoinTracker or Recap. To calculate your crypto gains and losses accurately, the tool needs access to your transaction history. By creating an API key on Kraken and connecting it to the tax tool, it automatically pulls in your trades, deposits, and withdrawals.
This saves you the trouble of manually exporting CSV files or worrying about missing data.
Things to Keep in Mind
According to Kraken, API keys are encrypted and stored securely, but users are responsible for managing their permissions.
- Never share your API keys publicly. If someone has your key and secret, they can access your account depending on permissions.
- Do not enable withdrawal permission unless absolutely necessary.
- Store your keys securely using a password manager or encrypted document.
- Use different API keys for different apps. That way, if one key is compromised, the others are safe.
Most crypto accounting software, including UK-based tools, require read-only API keys to remain compliant with HMRC regulations.
Connecting an API key gets your data into a tax tool, but tools still struggle with DeFi, staking and transfers between your own wallets. You can have an accountant file it for you instead.
Final Thoughts
Adding an API key to Kraken is a simple but powerful way to connect your exchange account with tools that make your crypto life easier, whether that’s for tax, trading, or tracking. But it must be done carefully. Give only the necessary permissions. Store your keys safely. And delete them when they’re no longer needed.
Need Help with Crypto Tax or API Setup?
At Crypto Accountants, we help crypto users, investors, and businesses stay compliant, save time, and make smart decisions. If you need help connecting your Kraken account, setting up API keys safely, or preparing your tax reports, we’re here for you.
Book a free consultation today. Let the experts handle the boring stuff, while you focus on growing your assets.
Frequently Asked Questions (FAQs)
Is it safe to create an API key on Kraken?
Yes, as long as you don’t enable unnecessary permissions like withdrawals, and you store your key securely, it is safe.
Can I delete an API key on Kraken?
Yes, you can delete any API key from the API settings page. This will stop any connected app from accessing your account.
What happens if I lose my API secret?
You will need to delete the key and create a new one. Kraken does not show the API secret again after it is created.
Do I need an API key for tax reporting?
Yes, if you want to automate your crypto tax reports using software, you’ll need to connect via API for accurate and up-to-date data.
Can I use the same API key for multiple platforms?
It’s not recommended. Use different keys for each platform to limit risk and manage access easily.
