Buy Bitcoins Here
This is a detailed how-to page to set up an account with Kraken in order to buy cryptocurrencies.
If you are familiar with the process to buy bitcoins, simply click here to register your Kraken account. If you need step-by-step instructions, please continue reading. It’s recommended that you read through this entire instruction page before starting. Important notes are italicized to help you understand the process. All illustrations are courtesy of kraken.com.
You will learn the five steps needed to buy cryptocurrencies on Kraken. They are:
I. Create an account with Kraken.
II. Initiate two factor authentication.
III. Verify an account.
IV. Deposit dollars into your account.
V. Buy Bitcoin.
I. Create an Account With Kraken
First, be certain you are on the Kraken website. Here is the correct address: https://www.kraken.com. Click on that web address to go to the Kraken website.
After you click the website address, this is the first screen you will see:
In the upper right corner, click on the button that states: Create Account. You will be taken to the “Create your account” screen below.
Fill in the following boxes:
4. Check the box that you agree to Kraken’s Terms of Service.
5. Click Create Account.
Note: Kraken offers detailed recommendations on creating a username and password. For example, Kraken does not allow you to use an email address as a user name. Plus your password must be at least eight characters and contain a number and a special character. Here is an example of a recommended passsword from Kraken: “figurativ should3#3 Hula-sing”. Click here for detailed password instructions from Kraken.
After you click “Create account,” Kraken will send an activation code to your email address.
Either click on the link in the email or enter the activation code into the account activation form. Here is what the “Account Activation” page looks like:
Enter the activation code (key) into the Account Activation form.
Click the “Activate Account” button.
You’re done. You now have an account with Kraken.
Note: You cannot buy cryptocurrencies with US dollars at this level. That’s true for any cryptocurrency exchange operating in the United States. You need a verified account to trade cryptocurrencies or deposit US dollars at Kraken to buy bitcoins. Depositing US dollars will be covered in section IV.
II. Initiate Two Factor Authentication (2FA)
In a word, two factor authentication (2FA) is about security. And it’s required at Kraken to buy and sell cryptocurrencies. Why? Kraken has never been hacked, and Kraken wants to maintain that well-earned reputation. There are numerous methods and apps to engage 2FA in your kraken account. 2FA may look scary and complex, but 90% of the process is done for you by Kraken and whatever app you choose. Let’s start.
1. Log-in to your Kraken account.
2. Click on your profile in the upper-right corner of the page.
3. You will see this drop-down screen. Click on “Security.”
Note: You can load a 2FA app onto your desktop computer, your phone or generate 2FA numbers on a Yubikey. Kraken has extensive documentation on implementing 2FA for your Kraken account. In this example, the app Authy, loaded onto a desktop computer, will be illustrated because it’s simple to use. The Authy app can be downloaded here.
A compete explanation of 2FA can be found in this support document on the kraken website. Click here.
YubiKey is similar to a thumb drive and is used to generate 2FA codes. You can learn about YubiKey here.
After you click on “security,” you will be presented with this page:
You are creating authentication for logging into Kraken. On this screen, you will click the off/on button under log-in. Ignore the two-factor authentication buttons under Deposits & Withdrawals, Trading and Master key for now. After you click the off/on button under log-in, this screen will pop up:
Click the Set It Up button on the Authenticator app. This screen will pop up next:
Click the “Next” button.
This screen will appear:
1. Open your authenticator app.
2. Scan the QR code or copy and paste the code into your authenticator app.
3. Before leaving, copy the Authenticator Secret Code and store it in your Kraken records.
4. Enter the code generated by your authenticator app.
5. Hit the save button.
This screen will appear:
See the grey lock? It affirms that your Kraken account is now secured with 2FA.
Here is a screenshot of the Authy app generating a six-digit 2FA code that is entered into a Kraken page, such as when logging into your account at Kraken. The authentication code changes every 30 seconds.
III. Verify an Account
If you want to use fiat (US dollars) to buy cryptocurrencies, you must verify your account. That means submitting a drivers license and other verification material to Kraken. Why? Because that’s the law. The law is outlined in the Know Your Customer (KYC) federal rules to prevent money laundering and other nefarious stuff. This is a necessary step for every cryptocurrency exchange in the United States. Let’s start.
- 1. Log in to your Kraken account.
2. Click on your profile in the upper-right corner of the screen.
3. Click on “Get Verified” from the drop-down menu.
4. Click the purple “Get Verified” button on the starter account
This is the screen that will appear:
After you click “Get Verified” in the starter, do the following:
1. Type in your full name.
2. Type in your email address.
3. Type in your physical address.
4. Type in your phone number.
It will take only a minute or so for Kraken to automatically verify your starter application. After your starter account is verified, This screen will appear:
Note: After your starter information is verified, you can deposit cryptocurrencies at Kraken in order to buy, sell and trade at Kraken. To buy bitcoins at Kraken with US dollars, you must verify an intermediate account. Continue reading for instructions to verify an intermediate account.
After your Starter application is verified, you will need to fill in information to verify your intermediate application. Sign into your Kraken account and click get verified. This screen will pop up:
Click on ” Verified.” This screen will pop up:
You will fill in the following information:
2. Social security number.
Click continue. This screen will pop up:
Here are the steps:
1. You will need to submit a scan or photo of your drivers license. Both the front and back of the license.
2. You must submit a photo of your beautiful or handsome face.
3. You must download a copy of a credit card statement, utility bill or phone bill. A scan of one of these documents will suffice.
Note: The requirements to submit a photo of yourself and verification documents are exacting and specific. If you don’t do it correctly, you will be required to do it again. These requirements are part of the federal government’s Know Your Customer (KYC) rules. In that photo, for example, you must hold your drivers license and a one-quarter size piece of paper where you write the following:
2. Your signature.
3. The date.
Here is the document from Kraken that explains the identification process. Click here. Read it because the requirements are quite specific.
a. Images cannot be in black and white.
b. The image cannot be cropped.
c. Too much space around the ID scan.
d. The background color is wrong.
Here are Kraken’s instructions for taking your photo. Click here. Your photo should look like this:
After you’re done submitting your photo and documents, this screen will pop up:
If you’ve done everything correctly, Kraken should verify your Intermediate account in one to five hours. Look for affirmation in your email account.
IV. Deposit Dollars Into Your Account
Note: You can fund your account with US dollars one of two ways. The first is through Etana Custody. The second is through MVB Bank. Which one you choose is up to you. For simplicity, this lesson on Deposit Dollars Into Your Account is divided into two parts. Part I will cover depositing dollars into Etana Custody. Part II will give instructions on depositing dollars into MVB Bank. It’s recommended you read through this section before making a choice between Etana Custody and MVB Bank.
Depositing US dollars into your Kraken account requires that you open an account with a custody service. The process is similar to opening a stock trading account with a broker. The name of this custody service is called Etana Custody. Kraken explains this custody service here.
You will need to:
1. Open an account at Etana through your Intermediate Kraken account.
2. Connect your Kraken and Etana accounts.
3. Register your bank account with Etana.
4. Move money from your Etana account to your Kraken account.
Steps to open an account with Etana Custody:
1. Sign into your Kraken Intermediate account.
2. Go to “Funding” in the navigation bar and click it. This screen will pop up:
Go to US Dollar (USD) and click “deposit.”
This screen will pop up:
Go to deposit method and choose Etana Custody from the drop-down menu. Then click the Take Me There button.
You will be taken to Etana Custody. This screen appears:
If you are an individual, choose user.
1. Enter your email.
2. Enter a password.
3. Click “Register.”
You will be sent a registration code to your email. Enter the registration code. Now you are a registered user on Etana Custody.
Next, you will be required to submit a ton of information. Remember, the federal government requires this to meet its Know Your Customer law. It’s beyond the scope of this article to give users a step-by-step guide to validate an account with Etana. The instructions are outlined at the Etana website .
Depositing US dollars into your Kraken account requires that you open an account with MVB Bank. This is the second of two options.
Begin by signing into your Kraken account.
This screen will pop up.
Click the “Fund” button.
This screen will pop up
1. Click US Dollar (USD)
2. Click the “Deposit” button next to US dollar
This screen pops up.
In the deposit method drop-down menu, select “MVB Bank.
This screen will pop up
Note: You will need to give this information on the following screen to your bank in order to make a deposit from your bank to MVB Bank. So, take a screenshot and print it out or write down the information.
You will be given an MVB account number and reference code. They are blanked out in this screenshot.
Next, you will need to go to your bank for instructions to wire a deposit to MVB Bank. You’ll need all the information on this screenshot to deposit dollars into MVB Bank. The reference code ties the deposit to your account. Note that the name on the bank account you are depositing from must be the same name you used for verification on your Kraken account.
After you wire money from your bank to MVB Bank, you will need to wait 72 hours for your money to migrate to your Kraken account.
V. Buy Bitcoin
After your funds clear, you can now Bitcoin.
- Sign into your Kraken account.
Click the “Trade” button at the top of the screen.
This screen pops up:
- Click the “Buy” button.
Go the the amount-XBT box.
Click the little triangle to the right of the XBT symbol.
The drop-down menu will show Bitcoin (XBT) and US Dollar (USD).
Click US Dollar (USD).
This screen appears:
The screen now has changed from “Amount of XBT to buy” to “Amount of USD to spend.” It appears under the “Amount USD” box.
Enter the amount of US Dollars you wish to spend to buy Bitcoin. In this example, we will buy $100 US dollars of Bitcoin.
This screen will appear:
In this example we are buying $100 US dollars of Bitcoin.
The price at this time is $10,543 US Dollars to buy one Bitcoin.
That $100 US dollars will buy 0.00948 percent of one Bitcoin.
Click the green button “Buy XBT with USD.”
Your order will go out and be filled.
Ready to start? Click on the picture below. It will take you directly to Kraken.