Trading in the crypto market does come with its merits as traders can go on and make a massive amount of profits holding assets. Although trading looks easy, traders need to pick out the right coin to invest in and adopt their strategy. However, all those are never enough as it all boils down to the services provided by the crypto exchange a trader uses. Choosing a crypto exchange to carry out trades should be the first step in a list of actions to trade crypto. The two most pivotal steps of crypto trading must involve choosing the right coin and the suitable crypto exchange to carry out trades. In this article, we will be focusing on Kraken and how to purchase Ethereum on the platform.
What is Kraken?
Kraken is one of the biggest and prestigious crypto exchanges across the world. Created in 2011, Kraken was created by Jesse Powell after the Mt. Gox hack occurred. However, the crypto exchange launch came in 2013, after Powell was done with the development. During the launch, the developer mentioned that Kraken would be better than other exchanges in terms of security and organization.
Kraken gained more popularity for its security after Mt. Gox suffered another breach which saw the exchange lose $460 million. Set out to gather users’ trust, the crypto exchange moved swiftly to ally with banks in Germany and Japan. Kraken became the first crypto exchange listed on the Bloomberg Terminal. This was after the crypto exchange passed the cryptographic audit of Proof-of-Reserves. Notably, the Bloomberg Terminal is used by bankers across the globe to access financial markets worldwide.
Presently, Kraken has a base of operation in 48 states across the United States. It also has a branch in 176 countries, allowing traders access to more than 50 digital assets on its platform. According to a recent report by CoinMarketCap, Kraken is has cemented its place as the fourth largest exchange in the world. This is due to the $2.1 billion daily trading volume carried out on the platform.
How to buy Ethereum on Kraken?
Purchasing digital assets on centralized exchanges follow almost the same steps but with a bit of difference. While some exchanges offer limited options for traders to purchase assets, others open up a wide variety. Buying assets should be something that will be seamless across exchanges as it will encourage market participants to invest more. Kraken provides all this and more, so we will be focusing more on the platform. Below is a short guide on how to purchase digital assets on Kraken.
Sign Up On Kraken
Like most centralized crypto exchanges, Kraken requires users to sign up on its platform to access its wide range of services. To sign up on Kraken, a trader must provide specific details like email, username, and password. You can also use your phone number to register your Kraken account.
Users who intend to sign up on Kraken should be 18 or above at the time of registration and must make sure they live in an area that the exchange supports. Kraken advises its users to set up a strong password and keep it on them at all times. This is one of the safest methods to eliminate the chances of a breach in their wallets by losing their passwords.
Verify Your Account
Signing up on Kraken is not enough to buy Ethereum on the platform. This is because the platform makes sure that its users are verified, and this is achieved by taking essential details. To verify your account and start trading, you will need to submit details like Your full government name, date of birth, and phone number used in registering your account.
Verifying your account with the details above means that you can purchase Ethereum with other digital assets. However, if you intend to buy Ethereum with fiat currencies, you must submit additional documents to support the ones above. This is because the platform uses verification levels to grade its users.
For a starter account, you need just the details above, while for an express account, you need to add your social security number and occupation information. The intermediate and pro accounts will require you to add a valid identity card and proof of where you live to the other documents. However, users in South Africa and the United States will need to submit a photograph of their face to pass verification.
In terms of verification time, starter and express accounts take one to two minutes and are automated. Intermediate is automated and takes four to five days for completion. Pro account takes up to five days to be verified, and it is done manually.
Make Your Deposit
Once your account is verified, you can now go ahead and fund your account with fiat or digital assets of your choice. Kraken allows deposits of fiats such as US Dollar, Euro, Canadian Dollar, Australian Dollar, Pound sterling, Swiss Franc, and Japanese Yen.
When a deposit is made, Kraken holds the assets for 72 days due to its security policy. Traders should ensure that they deposit funds to the account matching the fiat currency they intend to top up. However, traders should note that the platform charges small fees for deposits that are not added to the balance on the platform. Also, traders should note that deposit methods will depend on their location.
Purchase Your Ethereum
After making your deposits and receiving the fiat equivalent in your account, you can then buy the number of Ethereum you want. Buying Ethereum comes with so many perks as traders can use the charting tools and the 24/7 support on the platform. Also, you will need somewhere to store your assets if you decide not to trade with them. In this case, it is advisable to get a wallet where you can keep them. To store your assets in the long term, you can use a hardware wallet. Kraken warns that it does not allow traders to hold assets on the platform as it only provides exchange services.
To put it in words, Kraken is one of the biggest crypto exchanges across the world. However, the platform needs to do more in terms of accessibility for newbies. But at the same time, traders with resolve can quickly familiarize themselves with the platform in a short while. Kraken provides novices in the crypto market with different products. Asides from its varieties of accounts, the crypto exchange allows other trading options and market views. It also has an easily accessible mobile app and provides trading futures and staking. Finally, the exchange does put a lot of work into its security, judging by its track record over the years. However, traders should bear in mind that things switch up very fast in the crypto market. This means that they should not hesitate to conduct deep research to ascertain their comfort level with the exchange.
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