TL;DR- Click trade on the top left of the Kraken webpage. Click the black markets box with the magnifying glass. Select the trading pair you’d like to convert on the drop-down menu. If you don’t see the pair, don’t fret- you’ll need to convert first to USD (or other fiat) and then to your desired crypto. Follow the steps in my example below.
If you’re not quite set up yet, follow this tutorial I wrote to get your Kraken account funded.
Why use Kraken?
Kraken is a fully-regulated US crypto exchange headquartered in the San Fransisco bay area of California. Kraken currently offers over 100 different coins, twice as many as Binance.US.
The cryptopocalypse cometh?
Let’s assume a sh*tstorm of government regulation comes to the crypto space in countries like the US, UK, Canada, Australia, and places like the EU. The first exchanges to get weeded out are the ones who aren’t cooperating with the government or playing by the rules.
I absolutely love KuCoin, but KuCoin generally operates around regulations instead of by them. It would be exchanges like KuCoin and Binance that get kicked out/blocked first. This isn’t so with Kraken. Kraken has pulled in hundreds of millions in venture capital funding in America, and actively works with US lawmakers to keep things within the boundaries.
Unlike Gemini Crypto and Voyager Crypto though, Kraken does not have FDIC insurance ($250,000) behind each of its accounts. Still, it’s one of the most secure exchanges out there. If you’re using Kraken please enable two-factor authentication (2FA) or I will hunt you down and make you eat asparugus in huge quantities.
Kraken has a good crypto offering, and it’s good to get set up and funded on as many exchanges as you can. I say this because windows of opportunity in cryptocurrency investing are often short, and you’ve got to be ready. Have accounts on all safe exchanges, and have both your feet planted firmly on the ground and eyes wide open. And be patient.
Are there fees for converting crypto on Kraken?
Yes. Very little in this life comes free- but the good news is that Kraken’s conversion fees are decent and way less than Coinbase’s fees.
Kraken charges around 0.15% and 0.2% for selling (‘maker fees’) and buying (‘taker fees’), respectively. This means if you exchange $1,000 in one cryptocurrency for another, you’ll pay a $1.50-$2.00 fee. Not exactly commission-free like Schwab or Robinhood, but still decent! Note that as your 30-day trading volume increases, the fees Kraken takes will shrink percentage-wise.
Note that these fees might fluctuate a bit depending on your level of KYC (Know your customer/ID registration) level with KuCoin (beginner, intermediate, pro).
Kraken currently supports EURO, GBP, USD, AUD, CAD, CHF, and JPY.
Let’s get to how you can convert your crypto on Kraken.
How to Convert Your Crypto on Kraken
In this example, I’ll convert Dogecoin to Shiba Inu. Both currencies are shit, but I want to demonstrate how to do a conversion.
1. Log in to your Kraken account. On the left of the top menu, click trade.
In the top left next to the search hourglass in black, click on market. Here you’ll need to select the trading pair. Note: Some conversions you’ll be able to do directly if you can find the trading pair. Examples include Bitcoin to Ethereum, or Ethereum to Chainlink. Bitcoin and Ethereum are the currencies with the largest number of trading pairs.
2. After going to trade and selecting the market box, scroll or type in the coin you’re looking to convert to. In this case, I have DOGE but am looking to get to Shiba Inu (SHIB). I type in Shiba.
I can see that SHIB’s trading pairs are with the US dollar and the Euro. So now I know I’ll need to convert my DOGE to the US dollar, and then buy Shiba Inu with my US dollars.
3. In the market box, clear the text and type in the crypto you’d like to convert. In this case, it’s DOGE for me. I select the DOGE/USD trading pair. I do this by selecting the trade button next to the appropriate pair.
4. You’ll arrive at the trading screen. Select the sell box on the left. Here you’ll enter the quantity of crypto you’d like to sell. If you can’t remember how much you have to sell, refer to the top right next to your name- the amount of that asset should be displayed. For me, it’s 500 DOGE. Enter the amount you’d like to sell in the box. If you’d like to sell immediately, select market in the drop down box to the right. If you don’t want to sell lower than a certain price, select limit and enter your lowest acceptable price for sale. Keep in mind the sale might take a while if you do limit.
Select “sell [abc] for USD”. You’re met with the confirm your order pop-up. Select submit order.
Once your order is complete, you’ll see your new cryptocurrency/fiat value in the top right. You can also click the trades tab and you’ll see the most recent trade completed. With limit, this could take a while.
5. Now it’s time to buy the crypto you’re looking to end up with. Once again, open the market button with the magnifying glass and type in the crypto you’re looking to buy. Find the fiat/crypto trading pair you need. For me, it’ll be SHIB-USD. Once the pair pops up, select trade.
6. Select market on the drop down for an instant trade. Enter the amount of crypto you’d like to buy into the box. Pay attention to the right side where it shows how much fiat buying X amount of that crypto will cost. Once filled in, select ‘buy [abc]with USD‘. When the pop up appears, select submit order.
7. You should now see the new balance of your new crypto in the top right next to your name. You can also select the trades tab and view your trade history to make sure the trade went through.
Rinse and repeat this process! You’re a crypto trader now on Kraken. Kraken is one of the lesser-known crypto exchanges but one of the best.
Should I hold on to the Shiba Inu I just bought to make this guide? We’ll see how I’m feeling.
One more thought- not financial advice, but it’s best to buy and hold. Research has shown that day traders lose money almost all the time. Are you ‘trading’, or are you gambling and chasing those dopamine hits? Making money in this space requires patience and stoicism. Keep calm, and stay on the righteous path.