Hi there, in this article, I’m going to show you step by step, how to buy Bitcoin, Ethereum, or any other cryptocurrency on the Kraken Exchange. Now, there are multiple ways of buying cryptocurrency on the Kraken Exchange, and each way comes with different types of fees that you’ll have to pay for your transactions. So in this article, we’re also going to look at the different types of fees that come with different ways of buying cryptocurrency on the Kraken Exchange. KrakeKrakeKrakeKrakeKraken also going to show you the way that I use any other cryptocurrency and save as many fees as possible.
I’m going to walk you through everything on my computer so you can easily follow along with this article. And if you don’t already have a Kroken account, I’ll leave a tutorial down below in the article description that will show you step-by-step how to set everything up from complete scratch. With that being said, let’s head over to my computer and get started right away. Now that we have funded our account with some Fiat currency like US dollars, euros,, or so on, or even cryptocurrency, we can start buying some Bitcoin, Ethereum,, or so on.
Now, on Kroken, there are multiple ways of actually buying or trading cryptocurrency, and each of the ways has different fees. And I’m going to show you exactly what, in my opinion, is the best way to buy cryptocurrency with the lowest fees. And I’m also going to show you how what is the easiest way, but you have to pay more fees. So the easiest way to buy cryptocurrency is to just use the Buy Crypto button here on the top, which is a feature that they have introduced to make it as easy as possible for newcomers to the whole cryptocurrency world to buy their first Bitcoin or first Ethereum.
Now, what I want to talk about here real quick are the fees that you have to pay. When we scroll down on this page here and open up this fees overview right here, then we can see that for the instant buy option, this is the buy crypto feature, we have to pay a 1.5 % fee to buy any cryptocurrency. It’s going to be 0.9 % for any stablecoins like Tether and so on. But it’s a 1.5 % fee to buy cryptocurrency. If you use a credit card, it’s even more expensive.
It’s 3.75 % plus 0.25 euros. And then online banking is not available for pretty much anyone yet anyway, so we can just disregard this. But you can see it was quite expensive. And then when you go to Kraken Pro, which would be the trade feature that you see right here, it’s going to be a lot less expensive. It’s going to be for zero to 50,000 US dollars worth of crypto in volume per month. It’s going to be 0.16 % for a market taker and 0.26 % for a market taker, which I’m going to explain to you what this means later on in the article.
But you can see that this is a lot cheaper than if you use the instant buy option right here, which is where you have to pay 1.5 %. Just something to keep in mind that not every feature has the same fees. This is why I don’t personally use the Buy Crypto feature right here, but I still want to cover it in this tutorial to make it as complete as possible. First I’m going to cover this feature and then I’m going to cover the trade feature where you can also buy a cryptocurrency for a lot cheaper.
Now here when you want to use the Buy Crypto feature to buy some cryptocurrency, you’re going to see this screen right here. First, you have to decide on what cryptocurrency you want to buy. First of all, you want to be on the buy screen. If you want to buy, then you’re going to choose here, let’s say you want to buy some Bitcoin and we want to buy Bitcoin worth $100. I’m going to make sure it says US dollars here.
You could also change this to Bitcoin. I’m going to say I’m going to buy Bitcoin worth $100. And then I’m going to decide on how am I paying. If I have funded my account with US dollars, then I’m going to pay using US dollars and it’s going to take that from my account balance. You could also use Swiss Francs if you have some Swiss Francs on your account or euros, whatever you have funded your account with. I’m going to choose USD as a balance. And then I’m going to click on preview buy. It’s not going to buy yet, it’s just going to give me a preview. So here is exactly the overview of the trade.
So the price that I’m buying approximately is this one. It doesn’t mean I’m going to get the exact price that you see right here because it’s just going to buy cryptocurrency as fast as possible. And as the price moves up and down, it might be that I get a better price or a worse price than I see right here. And then I can see the exact amount that I’m getting Bitcoin worth. So I’m getting Bitcoin worth $98.52 because as we’ve seen, you have to pay a almost 1.5 % fee. So 1.5 % of $100 would be $1.50. So it’s almost $1.50 right here.
And I have to pay $100. So if I would click Buy Now, then it would instantly place this trade for me and I would have Bitcoin in my Kraken account. Now, the same thing if you want to sell your cryptocurrency. So let’s say I want to sell some light coins here. I’m going to sell, let’s say, five light coins and I want that to convert into USD. I’m going to choose USD here, and click preview sell. And then again, you’re going to see the screen here where I’m going to see the exact amount of dollars I’m going to get into my account.
As I said, it’s probs not going to be exact because this price can vary based on the volatility of the coin. And this is the fee that I’m going to pay. So again, it’s quite expensive to use this right here. And you could also use it to convert your cryptocurrency. So if I would want to convert some, let’s say, light coin, or let’s say I want to convert some light coin to Bitcoin, then I could say, okay, I want to convert, let’s say, 10 light coin to Bitcoin, the equivalent of Bitcoin. I just choose from bitcoin to Bitcoin on preview Conversion.
And then it will again show me exactly what this will look like, how much Bitcoin I will be getting approximately abe getting I will be spending. And here are going to be the fees in Bitcoin. So this is basically how you can use the simple Buy Crypto feature here. And now let’s look at the trade feature of Kraken, which is another feature you can use to buy cryptocurrency or trade cryptocurrency with a lot fewer fees than the Buyfewefewefewefewefewerpto feature. So go to the top left side here where it says trade, click there, and that will get you to the trade interface right here.
And now when we use this interface, we’ll get a lot cheaper trades because we’re going to get either the maker or the taker fee, which is 0.16 % or 0.26 %. And there are three different screens. So there’s the simple one, the intermediate one, and the advanced one. I’m going to go through each of them individually. The first thing we have to do is to decide on what currency pair we want to trade. That’s something many people get confused about because they only see XBT here and they want to buy Ethereum, or they only see US dollars and they want to buy with euros.
So what you have to do is you have to choose the correct market. And you do that by clicking here and then you can decide on the currency pair. So let’s say I want to buy some Ethereum using euros. Then I would have to click on euros right here and I would have to look for the Euro Ethereum pair. So here I see Ethereum euros. So now I can click on trade and that will change the market to the Ethereum Euro pair. I can change the amount of Ethereum here that I want to trade.
When I want to trade another pair, I have to go back here. Maybe I want to now go to the Pounds and Lightcoin pair. I’m going to choose this one and now I can trade in this pair. The first thing you have to do is decide on what currency pair you want to trade. Now, let’s say we want to buy some Bitcoin using US dollars. Then what we do is we go to market, we go to US dollars right here and we’re going to choose the XBT USD.
Xbt is the ticker for Bitcoin here on Kraken. So I’m going to click on trade right here and now we are trading in the XBT USD currency pair. And then I have to decide if I want to buy or sell Bitcoin. So let’s say I want to buy some Bitcoin using my Fiat currency. So I’m going to type in either how many Bitcoin I want to buy. So let’s say I want to buy 0.001 Bitcoin or I could also do it maybe I have just transferred $100 and I want to just buy Bitcoin worth $100. So I could just change this to US dollars right here and type in I want to buy Bitcoin worth $100 US dollars.
And the next thing is the price. So here is where you have to understand what is a market order and what is a limit order. So let’s say we want to buy our Bitcoin as quickly as possible at the current price that the market is trading at. So we could choose the market right here.
And what this would mean is that if you go back down here and click on the order book, we can see all the different orders that are currently inside of the order book. What that means is that here are all the people that want to buy Bitcoin for a specific price. And here on the right side are the people who want to sell Bitcoin at a specific price. So the best price right now that people want to buy is $55,088.80. The best price that people are selling right now is $55,088.90.