Did you know if you had invested $100 in Bitcoin when it first came out, it’d be worth over $60 million?
Well, it's never too late to invest in Bitcoin, and today, I am going to take you through a step-by-step process on how to buy Bitcoin on Kraken - one of the largest crypto exchanges in the world!
Let's get started!
So... What Is the Kraken Exchange?
There are plenty of places to buy Bitcoin and Kraken is one of the many exchanges I recommend.
It’s a US-based cryptocurrency exchange where users can buy and sell Bitcoin.
Kraken has been in operation since 2011 and is considered one of the biggest and most reliable cryptocurrency exchanges in the world.
Imagine a digital market where crypto is the only thing that changes hands… well that’s exactly what Kraken is!
So, how do we get started?
How To Buy Bitcoin On Kraken
The first thing you need to buy Bitcoin is a Kraken account.
To get one, head over to their official website.
On the top right corner, you will see a “Sign Up” button. Go ahead and click on it...
You will then have the option to choose between a “Personal” or a “Business” account.
I would recommend a personal account if you just want to buy Bitcoin for yourself.
Go ahead and enter your email address, username, password, and country of residence as shown here...
Once your details are in, Kraken will send you an email with instructions on how to activate your account.
How to Choose Your Profile
Once the activation is done, it's time to continue the set up, including personal details.
Kraken wants to know what kind of experience you have in crypto so that they can better tailor their service to you.
You can identify yourself as a complete beginner, all the way up to an experienced pro.
Now, I am assuming that you are new to crypto, so select that.
Once this is specified, you will now be required to choose a trading platform.
Kraken offers two options: either “Kraken” or “Kraken Pro”.
For someone who is new to Bitcoin, I would recommend “Kraken” to start.
Alright! With those preferences in place, it’s time to prove who you are…
How do you Verify Your Account?
Remember, you can only buy Bitcoin on Kraken if your account is verified.
The first thing you need to do is log in.
On the home page, you will see the “Verify Identity” button.
Go ahead and click it...
On the next form that appears, you will be required to enter your legal name, address, country of residence, date of birth, and phone number as well.
Following this, Kraken will ask you to declare your income and wealth sources—essentially where you will be getting the money from to buy Bitcoin.
As soon as these details are in, the next crucial step is to upload your identity documents.
You can upload a government-issued national identity card, a passport, or a driver’s license.
Just choose whichever works best for you and upload a clear picture of both sides of that document...
Once the identity documents are uploaded, you will need to upload a photo of yourself.
The goal here is for Kraken to compare the photo on the ID and the photo you have uploaded.
This stage is called Face Verification and is performed by all centralized exchanges, like Kraken. It is fully automated and should only take a minute or so to complete.
Once the verification is successful, you will receive an email notification telling you that your account is now active and categorized as “Intermediate”.
How To Buy Bitcoin On Kraken
First, go ahead and log into your account if you aren’t there already.
On the home page, you will see a big “Buy Bitcoin” button. Go ahead and click it...
On the next page, you will be required to set how much in USD you want to spend, so enter in whatever amount you want.
Once this is complete, it is time to add a payment method.
Just scroll down and hit “Add Payment Method."...
Now, typically, you will have two payment options available to add: either a credit card or linking a bank account to deposit funds directly.
If you intend to buy and sell crypto more regularly, I would recommend adding a card, as it is almost instant.
A bank account can still work fine; it just takes longer to process.
Regardless of which one you choose, once a payment method is added, click “Continue”. Confirm your order, and… finalize your purchase!
And that’s it!
You will now be the proud owner of some Bitcoin!
Now, you should remember that Kraken is a major exchange with thousands of other crypto assets, too.
So, if you wish to buy a different type of crypto, just follow the same process with a new coin, and you can do it easily!
Of course, everything comes at a price, though…
Taking A Quick Look At Kraken Fees
Every transaction you do on Kraken or any other crypto exchange will be subject to certain fees.
These fees are not standard and can vary greatly, depending on the type of crypto asset you are buying and the exchange.
As for Kraken, there are no fixed fees.
How much you pay depends on the volume of transactions.
For volumes ranging from $0 to $50,000, fees range between 0.16% and 0.26%.
However, if you decide to buy Bitcoin worth more than $50,000, the fees will be significantly lower.
In fact, they can go as low as 0.04% of the transaction, depending on the volume.
Please note that these are the current fees at Kraken, and the exchange reserves the right to change fee structures as it sees fit.
As such, I advise you to stay updated with any changes in fees and how this may affect your account!
And don’t forget... with any great reward, there has to be risk, doesn’t there?
Potential Issues with Buying Bitcoin on Kraken
First, just like any other crypto asset, Bitcoin is prone to massive volatility, meaning the price can fluctuate significantly over a short period of time.
As such, it’s important to make sure you can handle these rapid price swings before you buy.
While it isn’t technically an issue with Kraken, it is something to bear in mind as you go forward.
Another important risk to consider is that once you buy some Bitcoin, it will be stored in the exchange on your behalf.
While exchanges like Kraken do have a pretty good record of security, there is always a risk they can be attacked and penetrated by malicious actors.
As such, please be aware that your crypto may not necessarily be 100% safe while left on the exchange.
The safest place you can store crypto is in cold wallets which are not connected to the internet.
Conclusion
Before I go, let me recap some of the things you have learned in this article today.
You saw that Kraken is a leading, US-based crypto exchange that has been in business since 2011, making it a reliable platform for your first purchase.
I showed you a step-by-step guide on how to open your Kraken account, how to upload verification documents, and how to get verified.
Next, the article taught you how to buy Bitcoin on Kraken, including a straightforward process on how to add a payment method.
There are risks in any investment - and crypto is no different. That’s why you should understand the potential problems when buying Bitcoin, including volatility and security threats when your crypto is stored in exchanges.
Finally, I showed you that the safest place to store crypto is in a cold wallet - not connected to the internet, and far away from the hackers that lurk there.
Well, I hope you learned something useful!
I’ll talk to you soon!
