Purchasing Ethereum (ETH) has become increasingly accessible thanks to user-friendly cryptocurrency exchanges like Kraken. As one of the longest-standing and most trusted platforms in the digital asset space, Kraken offers a secure environment for both beginners and experienced traders to buy, sell, and trade cryptocurrencies. This guide walks you through the complete process of buying Ethereum on Kraken—from account creation to placing your first trade—with clear, step-by-step instructions.
Whether you're investing for the long term or actively trading, understanding how to navigate Kraken efficiently is essential. We’ll also share expert tips and best practices to ensure your transactions are fast, cost-effective, and secure.
Step 1: Create a Kraken Account
Kraken, based in San Francisco, has been operating since 2011 and is known for its strong security protocols, wide range of supported cryptocurrencies, and multi-currency fiat support. It currently lists over 15 major cryptocurrencies and accepts deposits in five fiat currencies: USD, EUR, JPY, GBP, and CAD.
To get started:
- Visit the official Kraken website.
- Click on Create Account.
- Provide your email address, create a strong password, and complete the CAPTCHA verification.
After registration, you must complete the Know Your Customer (KYC) verification process before depositing or withdrawing funds. Kraken offers tiered verification levels—Starter, Intermediate, Pro, and Full—each with increasing deposit and withdrawal limits.
To begin verification:
- Navigate to your account dropdown at the top right.
- Select Get Verified.
- Choose the appropriate tier (at least Starter is required for funding).
- Submit the necessary personal information, including ID documents and proof of address.
Verification can take anywhere from a few minutes to several days, depending on your region and document quality.
Step 2: Deposit Fiat Currency
Once verified, you can fund your account using one of five supported fiat currencies. Here’s how:
- Click Funding in the top navigation bar.
- Under the Fiat tab, select your preferred currency (e.g., EUR, USD).
- Click Deposit, then choose your preferred method—options include SEPA (for EUR), SWIFT (wire transfer), ACH (USD only), or Interac e-Transfer (CAD).
For European users, SEPA transfers are recommended due to lower fees and faster processing times (typically 1–3 business days). Always double-check the reference number provided by Kraken to ensure your deposit is correctly attributed to your account.
Pro Tip: For your first deposit, start with a small amount to confirm everything works smoothly before sending larger sums.
Note: Fiat deposits may take up to several business days to clear. Avoid placing trades until the funds appear in your balance.
Step 3: Deposit Cryptocurrency (Optional)
If you already own crypto such as Bitcoin (BTC) or Ethereum (ETH), you can transfer it directly to your Kraken wallet. This method is often faster than fiat deposits.
Here’s how:
- Go to Funding > Deposit.
- Check Show all assets to see all supported cryptocurrencies.
- Select the coin you wish to deposit (e.g., BTC or ETH).
- Click Generate New Address to create a unique deposit address.
- Copy the address carefully and send funds from your external wallet.
Kraken uses XBT as the ticker symbol for Bitcoin—don’t be alarmed if you don’t see BTC listed.
Important Tips:
- Depositing ETH is typically faster than BTC due to shorter confirmation times.
- Always test with a small amount first.
- Avoid sending funds from another exchange; direct wallet transfers reduce the risk of loss due to tag requirements or restrictions.
Transactions may take up to 30 minutes to confirm, depending on network congestion.
Step 4: Check Your Account Balance
Before trading, verify that your deposit has been processed:
- Go to Funding.
- Under Account Balances, you’ll see your available funds.
- For multiple assets, check Total Balance for an overview.
If your balance doesn’t update within expected timeframes, review the transaction hash on a blockchain explorer or contact Kraken support.
Step 5: Buy Ethereum (ETH)
Now that your account is funded, you’re ready to purchase ETH. You can use either fiat or cryptocurrency as your trading pair.
Option A: Buy ETH with Bitcoin (BTC/XBT)
- Click Trade in the top menu.
- In the trading pair selector (top left), search for ETH/XBT.
- Select New Order.
Choose between:
- Limit Order: Set a specific price at which you want to buy ETH. This gives you control but may take time to execute.
- Market Order: Buy ETH instantly at the current market price.
Enter the amount of ETH you'd like to purchase, review fees, and confirm the trade.
Smart Strategy: Instead of buying all your ETH at once, consider dollar-cost averaging (DCA)—purchasing smaller amounts at regular intervals to reduce volatility risk.
Option B: Buy ETH with Fiat (e.g., EUR/USD)
- Navigate to Trade.
- Select the ETH/fiat pair (e.g., ETH/EUR).
- Place a market or limit order as described above.
Market orders execute immediately, while limit orders wait for price conditions to be met.
Understanding Kraken Trading Fees
Kraken uses a maker-taker fee model:
- Maker Fee: Applies when you place a limit order that adds liquidity (not immediately matched).
- Taker Fee: Applies when you place an order that removes liquidity (immediately filled).
Fees vary based on your 30-day trading volume and can range from 0.16% (taker) down to 0% for high-volume traders. Lower-tier accounts typically pay around 0.26% taker fee.
Advanced Trading Features
Kraken offers an Advanced Trade interface for experienced users:
- Set stop-loss orders to minimize losses if prices drop.
- Use take-profit orders to automatically sell at target prices.
- Place leverage trades (available on Kraken Pro) with up to 5x margin.
- Schedule time-limited orders (e.g., good-till-canceled or fill-or-kill).
Switch to Advanced mode by clicking the Advanced button on the trading page.
Frequently Asked Questions (FAQ)
Q: Is Kraken safe for buying Ethereum?
A: Yes. Kraken has never suffered a major security breach and stores over 95% of user funds in cold storage with robust encryption and two-factor authentication (2FA).
Q: How long does it take to buy ETH on Kraken?
A: After verification, fiat deposits take 1–5 business days. Crypto deposits take minutes to hours. Trades execute instantly with market orders.
Q: Are there fees for buying Ethereum?
A: Yes. Trading fees apply per transaction (maker/taker model). Deposit fees vary—SEPA is free, while wire transfers incur charges.
Q: Can I buy ETH with a credit card on Kraken?
A: Not directly on the main platform. However, Kraken’s mobile app supports credit/debit card purchases in select regions via third-party providers.
Q: What should I do after buying ETH?
A: For long-term holding, transfer your ETH to a private wallet (e.g., hardware wallet). Leaving large amounts on any exchange carries counterparty risk.
Q: Why does Kraken use XBT instead of BTC?
A: XBT is an ISO 4217 standard alternative for Bitcoin. It’s functionally identical—just a different ticker symbol used by Kraken.
By following these steps, you can confidently buy Ethereum on Kraken and begin building your crypto portfolio. Always prioritize security by enabling 2FA, using strong passwords, and storing large holdings offline.
Whether you're new to crypto or expanding your trading toolkit, mastering platforms like Kraken is a valuable step toward financial independence in the digital economy.