San Francisco-based digital asset exchange Kraken has managed to establish itself as one of the most reputable crypto trading platforms since its launch in 2013. Today, Kraken enables traders and investors across the globe to buy and sell cryptocurrencies such as bitcoin (BTC), ether (ETH), litecoin (LTC), and EOS (EOS).
In this step-by-step guide, you will learn how to buy bitcoin on Kraken using fiat currency.
How to Use Kraken to Buy Crypto
Below, you will find a step-by-step guide (with screenshots) on how to buy bitcoin using US dollars via wire transfer.
1. Sign up for an Account
First, you need to go to www.kraken.com, click on “Create Account” and register by providing a user name, email address and a password.
Click on the verification email that is sent to you as part of the registration process, and you are ready to sign onto the trading platform.
2. Get Verified
Once you have signed up, you will need to undergo account verification to adhere to the platform’s KYC requirements. To receive “Starter Level” verification status, which suffices to buy several thousand dollars worth of cryptocurrency, you need to provide your name, email address, physical address, and phone number.
The “Starter” verification process is automated and usually takes less than one hour.
Once you are verified to trade, you can access the overview section of your trading dashboard to click on “Buy” to make your first cryptocurrency purchase. However, before you can buy any digital asset, you will need to fund your account.
3. Deposit US Dollars via Etana Custody
Currently, Kraken enables traders and investors to fund their accounts using 29 cryptocurrencies and five fiat currencies, including USD, CAD, EUR, GBP, and JPY.
For the purpose of this guide, we will purchase bitcoin (BTC) with US dollars via wire transfer to the exchange’s fiat currency funding partner, Etana Custody.
To be able to send funds in fiat currency to your Kraken trading account, you will first need to set up a “venture” (i.e., an account) with Etana Custody. This will enable you to transfer funds between Etana and Kraken instantaneously.
To register for Etana, you need to click on “Deposit” on the US dollar row in the funding section on Kraken, and then click “Take Me There” on the Etana Custody page on your dashboard. That will take you to the Etana registration page, where you can sign up for an account and go through the platform’s mandatory KYC process.
Once you have set up an Etana “Venture” and have deposited US dollars in it, you can transfer it to your Kraken trading account. Then, you will be ready to make your first trade on Kraken.
4. Buy Bitcoin
Now, all you need to do is return to the trading dashboard and click the “Buy” button under the “Buy Cryptocurrency” section.
Then, it will ask you the amount of BTC you want to buy using the fiat currency of your choice. We will choose U.S. dollars at which point you will be shown the following order input window.
For our example, we will choose to buy 0.1 BTC at market (which means at the best possible market price), which will cost us $873.39 USD at the time of the trade. Now, we click “Buy XBT (bitcoin) with USD” and then confirm the trade by clicking “Submit Order” on the next page.
With a market order for 0.1 XBT (bitcoin/BTC), it will only take a matter of seconds for it to get filled. The 0.1 XBT (bitcoin/BTC) that you have just purchased will now be credited to your BTC wallet in your Kraken trading account. And voila, you have purchased bitcoin using U.S. dollars on Kraken.
If you prefer to self-custody (holding your own private keys) your crytoassets versus having Kraken hold them for you, you can transfer your newly purchased bitcoin to a personal crypto wallet, such as a Trezor, or Ledger Nano hardware wallet. Click here to learn more about safely securing your crypto.
The information in this article is for informational and educational purposes only and should not be considered financial or investment advice. Investing in ICOs, IEO’s, cryptocurrencies, or tokens is highly speculative, and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.