Are you looking to start crypto trading on Kraken? One of the first things you are going to have to do is add money to your account.
Adding money to Kraken is the same as depositing funds to Kraken (both terms mean the same thing), and it can be done in several ways.
As a cryptocurrency exchange, Kraken is one of the best crypto exchanges for beginners. It’s well-known for its user-friendly UI, tight security measures, and helpful customer support.
So, if you are new to crypto trading, you made a good decision by choosing Kraken!
This beginner’s guide will walk you through the steps to adding money to Kraken so that you can begin buying and selling crypto.
Just bear in mind that Kraken does involve fees (gas fees) for depositing and withdrawing, and this is normal for crypto exchanges. If you have a Kraken Pro account, these fees will be reduced.
But, with that said, let’s get started on how to use Kraken.
Create Kraken Account
To be able to deposit, withdraw, and trade on Kraken, you are going to need to create an account. Once you have done this, you will need to verify your account.
If you are worried about providing any details, rest assured that Kraken is one of the oldest and most reliable cryptocurrency exchanges around.
By verifying your account, you will also get an increase in the limits you can deposit and withdraw.
Creating a Kraken account gives you a Kraken digital wallet for storing any cryptocurrency you buy.
This is where you will see your overall balance for fiat funds (traditional currency) and cryptocurrency funds.
How To Add Money To Kraken
Thankfully, adding money to your Kraken account is not that difficult and it can be done with fiat money or cryptocurrency.
Once you have created and verified your account, simply head to the “Funding” tab at the top of the website.
To deposit (add money) from your bank account, find your local currency from the list of “Fiat Currencies” and click on “Deposit” beside it.
You will see a list of deposit methods, the main method being bank wire.
Using the details provided, complete a bank wire transfer via your online banking platform to deposit the amount you want to Kraken.
Quick note: Bank wire is the main method for depositing fiat money to Kraken. As of yet, Kraken does not support ACH deposits.
You can also add funds to Kraken using any cryptocurrency you currently own. To do this, click on the cryptocurrency you own from the list of “Crypto Assets” and click on “Deposit beside it.
Using the depositing address provided, complete the amount you want to transfer from the third-party crypto exchange or crypto wallet where your crypto is stored.
How To Withdraw On Kraken
Withdrawing funds on Kraken follows a similar process to adding funds.
You can withdraw fiat currencies and cryptocurrencies from Kraken to your bank account, or transfer crypto from Kraken to a third-party crypto wallet.
To do this, head to the “Funding” tab at the top of the page. Again, you will see a list of Fiat Currencies and Crypto Assets.
Choose the one you want to withdraw and click on “Withdraw”. This is next to “Deposit”.
Once you have clicked on “Withdraw”, fill in your bank details and the amount of fiat currency or cryptocurrency you wish to withdraw.
As with any withdrawal, allow a few hours for your balance to be updated with the withdrawal amount.
How To Buy Crypto On Kraken
Now that you know how to deposit and withdraw, here’s how to buy cryptocurrency on Kraken.
Kraken supports over 100 cryptocurrencies, so you won’t have trouble finding the crypto you want to buy. To do this, click on the “Trade” tab at the top of the page.
Under “New Order”, simply select the cryptocurrency and type in the amount you want to buy.
You can also buy and convert crypto via the “Buy Crypto” tab.
This is a quick and simplified method for buying crypto on Kraken at market price, as well as converting your crypto into another type of crypto.
How To Sell Crypto On Kraken
After you have bought some crypto, here’s how to sell crypto on Kraken. This is fairly straightforward, following the same process as buying crypto (explained above).
To sell your crypto assets, click on the “Trade” tab at the top of the page. Next to “Buy”, select “Sell”. Select the cryptocurrency you own and want to sell, then enter the amount you want to sell.
You will see the value (in fiat currency) that you will get in return.
The other method is to use the “Buy Crypto” tab. Similar to buying through this method, this tab allows you to sell your crypto as well as convert your crypto in another cryptocurrency.
Simply fill in the cryptocurrencies and the amount you want to sell or receive.
Should I Keep My Crypto On Kraken?
Last but not least, after you bought crypto, should you keep it on Kraken?
This is a popular question that is worth addressing here. Kraken is widely considered to be one of the most secure crypto exchanges around.
But, like any crypto exchange, its main function is trading and not storage.
Kraken features a digital wallet for storing all cryptocurrency you buy.
However, the best practice is to store (transfer) your crypto in a crypto wallet that you have set up elsewhere on a platform dedicated to crypto storage.
For active trading, keeping crypto on Kraken (on any cryptocurrency exchange) is necessary.
But if you are not using any cryptocurrency for trading, it is safer to withdraw it and store it in a dedicated crypto wallet.
To provide examples, some of the most popular and best crypto wallets for crypto storage include Ledger Nano X, Coinbase Wallet, Trezor Model T, Exodus Wallet, and Mycelium.
Crypto wallets, in general, provide more benefits than exchange wallets and better overall security.
Conclusion
Adding money to Kraken by depositing fiat money or cryptocurrency is one of the first steps to take before trading crypto.
Thankfully, it’s a simple process that involves a bank wire transfer or crypto deposit from any crypto exchange or crypto wallet you have any existing crypto stored on.
Once you have deposited funds to Kraken, you can start buying crypto, selling crypto, or converting crypto into another cryptocurrency of your choice.
You can also withdraw fiat and crypto funds directly to your bank account using Kraken.
