Kraken has been around since 2011 and is among the oldest and largest exchanges. The exchange was the first to list and trade Ether. The exchange supports various fiat currencies. Here’s a guide on how to use Kraken exchange.
1. Open An Account
You can only use Kraken exchange if you are registered. However, you can choose to open a basic or advanced account. You need to provide your email and password, and agree to the terms and conditions. Go to your email and confirm. You will then be required to fill your official name, DOB, address, and phone number. For those opening advanced accounts, it is important to upload their IDs, create 2-Factor Authentication (2FA), and provide a bank account.
2. Fund Your Account
Kraken accepts deposits in fiat currency or Cryptocurrencies such as Bitcoin, Ether, Tether, Bitcoin Cash, Litecoin, and Ripple. Deposits in fiat currency can only be done through wires and bank transfers. To top up your account, go to the Menu tab and select ‘Funding” to choose your favorite deposit method. You can select bank transfer or Cryptocurrency wallet for Crypto deposits.
3. How To Trade On Kraken
Now that your account is loaded, you can go on and trade. To buy or sell Cryptocurrencies, go to “New Order” tab. What you buy or sell depends on the currency pair you choose.
• When you select currency pair a/b and click “buy”, currency a will be bought and b sold.
• When you select currency pair b/a and click “sell”, currency a will be sold and b bought.
When you want to trade, it’s advisable to look for the best price to get maximum profits. Kraken provides users with a platform that they can use to decide when to buy or sell their digital assets. You can know how the other people are trading by going to the order book. The bid is the place for buyers while ask is the place for sellers. Highest bid and lowest ask are the orders that are executed the fastest.
At Kraken, trading volumes below 50,000 of any currency incur a taker fee of 0.026 percent and a marker fee of 0.16 percent. This fee is the one paid by a majority of traders on this exchange. For trading volumes above this 50,000, the taker fee drops to 0.24 percent and maker fee to 0.14 percent. Fees on this exchange drop with an increase in volume. For instance, any activity over a volume of 10,000,000 attracts a taker fee of 0.10 percent and a marker fee of zero.
Tiers determine the trading limits at Kraken exchange. Tier 0 is the most basic and Tier 4 is the most advanced. Tier 1 users can withdraw no more than $2,500 per day or $20,000 per month. Tier 2 users can deposit in fiat currency a maximum of $2,000 per day or $10,000 per month and withdraw up to $5,000 per day or $50,000 per month.
The maximum limits for fiat deposit and withdrawal are $25,000 daily or $200,000 monthly. Cryptocurrency withdrawals are capped at $50,000 per day and $200,000 per month. Tier 4 users enjoy the highest funding limits on this exchange. The can either individuals or corporations.