Kraken is a fairly popular cryptocurrency exchange and is one of the better choices out there if you are looking to buy Ripple. Why? Well because on this exchange you have a lot of different purchasing options. You are able to purchase Ripple with various fiat currencies unlike other popular crypto-to-crypto exchanges like Bittrex, Binance, COSS, etc. Fiat currencies such as USD, EUR, CAD, and JPY are able to be used… in addition to being able to buy it with Bitcoin. In this guide I’m going to be showing you step-by-step exactly how to do this…how to buy Ripple on Kraken.
The first thing you are going to have to do of course is create an account, which can be done at kraken.com. If you have not done this already you will have to before you can move forward. But assuming that you already have, let’s continue…
The first step to buying Ripple is to deposit funds into your Kraken account.
Step 1: Deposit Funds
There is a long list of different currencies you can deposit but since you are buying Ripple you are not going to want to just deposit anything into your account. Your choices include Bitcoin, USD, CAD, EUR, and JPY. You will see why these are your only options in the next step.
There is a slightly different process for depositing the different currencies. If you are going to deposit Bitcoin then is really easy, all you really do is send your Bitcoin from your wallet to your wallet in your Kraken account. You will have to click on the “funding” tab, click on Bitcoin over in the column on the left, and then click the green button to generate your new Bitcoin address, which is where you will send your bitcoin.
But if you are looking to deposit fiat currencies it’s a bit more tricky.
If you are going to deposit USD you first must have your account verified to prove you are who you say you are. As you can see below, you would have to verify your account down to “tier 2” before you can deposit USD. Both tiers 0 and 1 do not allow for USD deposits…
If you are looking to deposit a currency that requires verification you can verify your account by going to the “get verified” tab and scrolling down to the bottom where you will be able to submit all the information needed.
But don’t do this yet because you don’t have to for all the different funding options. It’s not like this for depositing all fiat currencies. For example if you deposit euros you can do a simple wire transfer without going through all of this verification. So it all just depends.
Don’t Want To Pay The Fees?
I did label this post “the easy and cheap way” so here are a few tips to help you save on fees.
There are different fees that you will have to pay depending on what fiat currency you find your account with. These include…
For the most part the fees are not too bad in my opinion, but they could be better. If you are making a small deposit it might not really be worth it that.
What you can do it as an alternative would be to buy Bitcoin over on the GDAX exchange and then send it to your Kraken account. On GDAX you can make free USD deposits, so they are a good option. GDAX is the exchange that I use pretty much exclusively to purchase cryptocurrency with fiat money (you can buy with EUR, USD and GBP). One thing you definitely don’t want to do is use Coinbase. I have seen “how to guides” for buying different cryptocurrencies on Kraken and they refer people to Coinbase to make their original purchase with fiat money… But what they don’t tell you is that the fees are extremely high on this exchange. GDAX is definitely the better alternative.
But if paying the fee to deposit fiat funds on Kraken doesn’t really matter to you then just use Kraken so that the process is more straightforward and you don’t have to go sign up for another exchange account. The fees are minimal for the most part and something else you would have to consider if you do purchase Bitcoin over on GDAX is that you will have to pay the Bitcoin network fee when you send it over to Kraken. So you have to weigh the cost versus the reward. In many cases is probably best to just stick with doing everything on Kraken.
But anyways, the reason I put this section in this article is because I saw many different articles out there telling people to use Coinbase to first buy Bitcoin and then transfer it over to Kraken, which is the worst advice ever.
Step 2: Make The Exchange for Ripple
Now that you have deposited your fiat currency or your Bitcoin it is time to make the exchange for Ripple. To do this click on the drop-down menu and scroll down to XRP. This will bring up another little menu and you will want to click on XRP/(whatever currency you just deposited). For this example I am clicking on XRP/USD but the process is the same for all of them…
After you click on the correct trading pair be sure that the “Trade” menu is selected and that you click on New Order. Of course you are looking to buy Ripple so make sure that the By button is green. Next up you will want to enter the amount of XRP and the price in the particular currency you are using to buy it with. This will give you the total cost. Alternatively you can enter the total amount you want to spend in the box that it says “total”, enter the price per XRP that you want to pay and it will spit out the amount of XRP that you will be buying.
You are able to set the price per XRP that you want to purchase it at but it’s not like you can just go and enter any number you want. Pretty much the only time you would use this on a buy order is when you think the price is going to drop and you want to set in order at a lower price so that when it does drop your order is executed.
To make things easier you can just click on the “market” button, which I have a green arrow pointed at, and this will automatically set your buy price at the current market price which means your order will pretty much execute instantly.…
Step 3: Move Your Ripple Off The Exchange (Optional)
After you place your trade and it is executed your XRP will automatically end up in your Ripple wallet on the exchange. If you think you will be trading your Ripple in the near future then you may want to leave it on the exchange so that it is more liquid, but if your plan is to hold onto it long term then leaving it here isn’t the best choice.
There are many different types of wallets you can use to store your Ripple, such as mobile apps, desktop wallets, and so on, but if you are trying to keep your Ripple as safe as possible while still having easy access to it, then you are going to probably want a hardware wallet. And when it comes to hardware wallets there are also a lot of them out there on the market… KeepKey, TREZOR, Ledger Nano S, etc., but most of them don’t support the Ripple cryptocurrency.
The Ledger Nano S is one of the few that you are able to store Ripple on and this is a good choice because it is one of the best and most popular hardware wallets on the market today.
Summary of Everything
Okay, so to sum everything up: the first thing you need to do after you create your Kraken account is deposit funds into your account. Because of the different trading pairs available to buy Ripple with on Kraken you will need to either deposit Bitcoin (XBT), USD, EUR, CAD, or JPY. And in some cases you will have to take extra steps to verify your account before being able to deposit these funds. After that you will simply trade what you just deposited for Ripple and will end up with Ripple inside your wallet that is provided to you by Kraken.
I hope this wasn’t too confusing but I can understand if it might be. Sometimes I’m not the best at explaining things so if you do have any questions about any part of the process be sure to leave them below and I’ll get back to you as soon as I can 🙂