Kraken is the third-largest cryptocurrency exchange in the world and it is not difficult to see why. It has the third-highest 24-hr trading volume, according to CoinMarketCap.
The cryptocurrency exchange offers a wide variety of cryptocurrencies to trade from. Plus, its charges are one of the lowest amongst other crypto exchanges. Other highlights include advanced trading options, extensive fiat cash support, OTC service, and anonymous trading among others.
Keep reading as this post discusses everything – how do you buy bitcoin using Kraken, Pros and Cons of Kraken exchange, its services, and much more.
Kraken was founded by Jesse Powell in 2011. However, Jesse launched the platform in 2013. The Tokyo District Court found Kraken a trustworthy platform and selected it to handle the customer processing claims of Mt. Gox exchange after its bankruptcy.
Since Kraken was launched, it has raised over $126 million in venture capital. Plus, it has acquired crypto startups like CryptoWatch, Coinsetter, Bit Trade, and InterChange among others.
Kraken At A Glance
Headquartered in San Francisco, Kraken is a self-regulated cryptocurrency exchange and complies with regulations in all supported regions.
Kraken lists 62 different cryptocurrencies. Its service is available in several countries including the U.S. (except Washington State and New York), Afghanistan, Congo, Cuba, and Iraq to name a few.
Kraken’s interface has several options. However, it isn’t beginner-friendly. The cryptocurrency exchange offers an advanced trading platform with options such as spot and margin trading. The best part is that Kraken is lighter on your pocket. Their fees are amongst the lowest of all crypto exchanges, as itdepends on your last 30 days’ trading volume. In general, the fees are calculated on a maker-taker basis, the trading fees range from 0-0.26%.
Supported Cryptocurrencies, Fiat Currencies, And Payment Methods
As discussed, Kraken supports around 62 cryptocurrencies. Major cryptocurrencies include –
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Litecoin (LTC)
- Dash (DASH)
- Ripple (XRP)
- Monero (XMR)
- Tether (USDT)
- USD Coin (USDC)
- Polkadot (DOT)
Fiat Currencies –
- United States Dollar (USD)
- Euro (EUR)
- Pound Sterling (GBP)
- Canadian Dollar (CAD)
- Japanese Yen (JPY)
- Swiss Franc (CHF)
- Australian Dollar (AUD)
Payment Methods –
- Silvergate Exchange Network
- Candian domestic wire transfer
- In-person cash/debit via Canada Post
● Kraken Exchange
Here you can buy bitcoin and several other listed cryptocurrencies at a very low fee. Plus, you also have the options of spot and margin trading with up to 5x leverage.
● Over The Counter (OTC) Services
If you are someone who trades high volume (over $100k) of cryptocurrencies, Kraken’s
OTC service is for you. This is a one-on-one platform where you can also get a dedicated account manager to help you in trading.
● Dark Pool
Kraken also allows you to trade anonymously using their dark pool. When trading using the dark pool, your orders are not visible to the market. This means you can place large buy or sell orders anonymously.
You can earn up to 17% yearly staking rewards by locking your crypto assets on Kraken. You can earn rewards by staking BTC, ETH2, DOT, and ATOM among others.
How Do You Buy Bitcoin Using Kraken?
- Create your Kraken account and get verified
- Deposit fiat cash or cryptocurrencies to fund your purchase by clicking the ‘Funding’ tab on the top navigation bar
- Now go to the navigation bar and hit ‘Trade’
- In the dropdown menu located at the top-left corner select the trading pair. Let’s assume you deposited ETH to buy Bitcoin (XBT) (XBT is just another ticker symbol for bitcoin).
- In our case, select ETH/XBT pair
- Select ‘New Order’ and place select ‘Sell’ (we are selling ETH for XBT)
- Now select the ‘Market’ button (here we are buying XBT at the current market price)
- Fill in the ‘Amount’ of ETH you want to sell
- Confirm the purchase and hit ‘Sell ETH for XBT’
- High Liquidity
- Low fees
- Large cryptocurrency collection
- Fiat currency supported
- Robust security
- Dedicated mobile app for Android and iOS
- Not so private as it requires ID verification
- The user interface can be come off as complicatedfor beginners
Kraken stands true to its rank and reputation. It provides a large selection of cryptocurrencies, advanced trading options, and most importantly it charges low fees. The only dark spot is its interface meant only for seasoned traders.