Let’s assume you already have opened an account with Kraken, (if you haven’t done so, read our post on how to open an account) and you’re ready to invest some money in Ether.
The system at Kraken is easy to use and just require a little bit of knowledge on regarding trading currencies, simple knowledge as in what is an order, how to open an order, check how much you will pay in commissions and that sort of stuff.
1st Step: Open a new order
The very first step to be able to buy ether is to open a new order. Click on the New Order button under the Trade tab to access the new order window. From here you can choose your currency and enter all details you need in order to put your order in the system.
Be sure to switch the tab that indicates the currencies being used at the top left corner, for example in our screenshot we have selected ETH/USD as we want to buy ether using USD.
Select the amount of ether you need, the price you’re willing to pay (check the current price at the top bar for a reference) and if you want to put a market or a limit order. If you select market you will buy ether at the market price, no matter which price is set for it. If you set a limit order, you will be able to specific the price you want to pay.
As soon as you click on the Buy Ether with USD button, you will generate an order. At the time of writing this post, all transactions are loaded into the ether chain every 10 minutes.
NOTE: You can check the ether chain in here.
NOTE 2: If you don’t know what is the ether chain, read our post Etherchain explained for the common investor
Your order will stay in the system until is proceeded and matched with some other account trying to sell ether. This process is the same as in the stock market, so you wouldn’t be expecting anything different here.
Once the order is processed it will be closed and it will show under the Orders tab. Here’s an example of a processed order in Canadian dollars:
The Closed status indicates that the order was processed and fulfilled.
After the order is fulfilled, you will see the Ether amount appearing in your Balance. Go to the overview under Trade and you will see something like this:
2nd Step: Enjoy your ether!
Congratulations, you now have ether! Or as the chemical definition states, you now have a pleasant-smelling, colorless, volatile liquid that is highly flammable, which is an excellent definition for a recently created currency that can ascend to the skies or get buried deep below in a matter of minutes.
Now let’s see what you could do with Ether. Read this article on How to buy DAO tokens with ether.