In this post we take a look at How To Use Kraken Crypto Exchange To Buy And Sell Bitcoins!
Kraken Digital Asset Exchange was founded in the year 2011, by Jesse Powell is regarded as one of the best Digital Asset Exchange’s in the world. Built on the trust and complete transparency, this exchange is one of the world’s largest and oldest bitcoin exchanges in the world. With its headquarters in San Francisco and offices around the world, Kraken has the widest selection of digital assets and national currencies.
The exchange offers 47 market pairs with seven base currencies ranging from the US dollar to the British Pound. Kraken is also one of the few cryptocurrency exchanges to offer both margin lending with up to 5x leverage on trades and futures trading to US-based customer. Now, let’s understand the fundamentals of Kraken in a step-by-step process.
On the top right corner of the Kraken landing page, you will find the “Create Account” tab. Click the tab and enter some general information including your email address and a desired password. The password must be at least 8 characters in length and contain letters, numbers, and special characters. Enter your details and await for the confirmation link to be sent to you.
Kraken offers both basic and advanced accounts, to open a basic account users are required to give their full name, date of birth, address and phone number. Advanced account users must go through an even strict verification process, in order to complete their registration. For an advanced account it’s necessary to:
- Upload your ID. In order to verify your account you are required to upload government issued forms of identification and a proof of residence. For US residents, a Social Security Number is also required; whilst in countries such as Germany or Japan require additional ID confirmation.
- Documentation can be uploaded under the ‘Get Verified’ tab of your Kraken account and the verification time depends on the number of applications being processed and can take from a few days to over a week.
- Be sure to set up 2-Factor Authentication (2FA) which provides a secondary layer of security to your account.
- Once this is complete you can move onto funding your account.
- Add the bank account that you will make transfers to and from; bank transfers and wires are the only accepted methods for depositing funds.
Upon successful login, you should be taken to an overview of your account, with information relating to your trade balance, position size and more. In the top left corner along the navigation bar, you will see 3 options including Overview (see below), Prices and Support, ensure you are on the Overview tab. Kraken’s platform is fairly intuitive and easy to navigate, providing you with a variety of tools to get you started on your crypto journey, but first, you need to ensure your hard earned funds are secured.
On the security page, you will notice a ‘two-factor authentication’ (2-FA) on/off switch, slide it on and click on “authenticator app”, go through the process and save your progress when you’re done.
[Note: You can find Google’s fully supported authenticator app here, that will allow you to scan the barcode using the application on your smartphone.]
Next, you need to enable the master key so that if you ever lose your password or 2-FA you can still access your account through your master key. Navigate to where it says master key and slide it on, complete the same process as what you did with your 2-FA by scanning the barcode, it should save on your app as ‘Kraken master’.
Finally, you have to enable something known as a ‘Global Settings Lock’ (GSL). It is an additional security feature that helps protect against phishing attacks. Once you finish setting up the GSL, slide it off as you will need to increase the level of access on your account. This requires changes to be made to your verification with GSL turned off. Use the master key that you set up by entering the code from ‘Kraken Master’ in Google’s authenticator.
Once you turn off the GSL, head over to ‘get verified’ located along the same line as the settings tab. Kraken also features a tiered list that provides traders with greater freedoms the higher up the tiers they ascend. However, you will require more official documentation the higher you go. At the bottom of the page, you will be asked to enter some additional information including your full name, date of birth and mobile number. The entire process should be instantaneous, with the added benefit of being able to trade right away.
After your account is created, verifying your account will allow you to deposit funds required for the transactions.
To become verified:
- Login to your account.
- Go to the “Get Verified” page.
- Press the purple “Get Verified” button of the account type you want.
Funding Your Kraken Account
Now that you’ve secured and verified your account, it’s time to fund it! Select the Funding tab and you’ll automatically be on the Deposit tab. The page will look like this:
You have the option of depositing fiat currency and/or digital assets/cryptocurrencies.
Kraken supports funding in the following fiat currencies: USD, EUR, and CAD. However, the availability of fiat deposit (and withdrawal) methods will depend on your residency and verification level.
If you’re funding your account with cryptocurrencies, select the one you’d like to deposit and generate an address for it. Afterwards, you can either scan the QR code or copy the address using the select button and input it wherever the source of the funds are located.
Trading – Buying & Selling Crypto on Kraken
1. Select currency pair
First you’ll need to know what assets you would like to exchange, for example buying Bitcoin with your USD, or selling Ether (ETH) for euros. After you know which pairs you’ll be trading, you can select them from the drop down menu near the top left corner while viewing the “Trade” tab. The first currency in a pair represents the base currency, while the second in a pair represents the quote currency.
In a Buy order: you pay the quote currency, and receive the base currency.
In a Sell order: you sell the base currency, and receive quote currency.
2. Fill out order form
After selecting your trading pair, go to the “New Order” page and select the “Simple” form.
Here you will be able to conduct a trade buying at spot price or setting a limit order. Spot or market orders simply refer to a quick and easy process by attempting to purchase the asset at its best price and fulfilling the order as soon as its executed. A limit order refers to a triggered event that only buys or sells the asset when it reaches certain conditions such as your target price. Limit orders are great for those wishing to target a particular entry or exit position.
For the sake of simplicity, we entered 0.00025 BTC (the amount of bitcoin we desired), selected ‘market’ and then clicked ‘buy’. Next on the order confirmation page, click on “Submit Order”.
A market order is meant for immediate execution, as it will match with limit orders that are already available on our order books. Market orders will always incur a slightly higher fee known as a taker fee. With market orders you can only input the volume you would like to buy or sell and not the price.
Limit orders will execute at the price you’ve set or better, once the market reaches your limit price. They can be subject to maker or taker fees depending on when it executes. If a matching order already exists and it’s executed immediately, then taker fees will occur.
3. Wait for order execution
If a market order is selected, the trade will happen instantly and your balance will change. Funds can be withdrawn or used to trade again right away. You can view successfully executed (closed) market orders on the “Orders” tab. Limit orders may not be filled right away but you can view their status in the “Orders” tab. In the below example, the XBT/EUR price would have to fall to 25 for the limit buy order to be executed.
Overall, Kraken provides a valuable level of service for traders across the globe. This platform also remains as one the most viable options for anyone seeking a trusted and reliable exchange. Hope you have learnt How To Use Kraken Crypto Exchange To Buy And Sell Bitcoins. Do post your views and queries in the comments section below and we’ll get back to you at the earliest.