Crypto for Beginners – Buying Your First Cryptocurrency Using Kraken
Finally ready to take the plunge and invest into cryptocurrency? This guide will take you throught the steps for buying your first cryptocurrency.
Within a few seconds, you should receive an email that will request that you confirm your account by clicking on a link in that email. This will take you back to the Kraken website where you need to enter your chosen username and password again, and click Activate.
You will receive a verification email, and now have a Tier 0 account. However, you can’t buy any cryptocurrency yet. To do this, you need a Tier 1 account. Furthermore, if you wish to use your bank account to buy cryptocurrency, you will need a Tier 2 account. From here I will describe how to get your account into a higher tier.
To graduate to a Tier 1 account, you must enter your name, date of birth, country, and phone number. To complete this information, scroll downward. After submitting the information to become a Tier 1 account, you will be given the option to continue to Tier 2 verification. Tier 2 requires that you input your address, and, once verified, enables you to trade up to $2,000.
The next step is waiting for Kraken to process your information. After a few days, you will receive an email confirming that the account has been approved for Tier 1. If you have cryptocurrency stored somewhere else, you are now able to transfer that to Kraken. If you need to use money from your bank account, you will have to wait until they confirm your Tier 2 status.
After a few more days, you should receive an email that your account has been verified for Tier 2. Now you can transfer money from your bank account to Kraken. To start, go to Funding -> Deposit ->Euro where you will find the information to do a bank transfer. You must follow the instructions carefully. Use the exact reference code, do not go over the limit (or your account will be frozen), do not forget to add “Kraken.com” to the reference, and you must send at least 1 Euro.
After you have transferred money into your Kraken account, you are ready to trade. First go to Trade -> Overview. You can see next to the red arrow that you can choose which cryptocurrency to buy. There will be options to trade one form of currency for another, such as Euros for Bitcoin, Bitcoin for Litecoin, etc. After making your choice, click on “New Order” to proceed.
You then buy single options like Bitcoins with euros or dollars. But you can also buy Bitcoins with Ethers of Litecoins. You can buy Dash with Bitcoins, euros, dollars, … Once you’ve made the right choice, press ‘New Order’ to enter your purchase order.
The simplest is to change the name of the cryptocoin to EUR at ‘Amount of XXX to buy’ (green). (Red) Then you add “Buy at a fixes price per XXX the amount you want to pay max per unit of the cryptocoin (orange). If you want to see the order as soon as possible, you put it slightly above the market price. That market price is at the top of your screen. After that, he automatically calculates how many crypto points you can buy with your amount. And then you see this…
Kraken offers a lot of possibilities, so be careful that all parameters are correct. Sometimes it takes a while before you find the right combination.
If you want to send Crypto to another exchange like cryptopia to buy, for example, PIRL, choose the withdrawal menu, withdraw to your cryptopia account and purchase PIRL there.
Congratulations! If everything went well, you have your first coins now