Opening an account with Kraken

Kraken is an exchange system where you can buy, sell and trade bitcoin.  They have been around for a while and are considered the 3rd or so bigger exchange system for bitcoin.

Since recently they opened the doors to Ether, the new cryptocurrency that is being used to fund the DAO project, as of May 2016.

If you’re considering investing in Ether, Kraken is a no brainer solution for you.  It is really easy to open an account with them and you can have everything set in less than 48 hours with them.

One advantage of Kraken is that it will let you fund your account using USD, Euro or Canadian Dollars and you can easily send a transfer from your bank to your Kraken account for around $10 commission each transfer.

Opening the account is the easy part, just select your username, password and you’re ready to roll.  But Kraken will not let you operate until you’re not verified with them.   The verification process is easy but better to be prepared, so let’s see in detail:

Kraken Verification Process

As soon as you register, you will be in Tier 0.  This tier doesn’t allow you to do basically anything, no deposits, no withdrawals, so be sure to fill your name, birth, country and phone number to be able to be moved to Tier 1.

Tier 1

This tier allows you to operate only with cryptocurrency, let’s say you have some bitcoin already and you want to exchange it for Ether, then you would be good to go at this tier.  Normally you would use your dollars or euros, so you’ll need to verify your address to go to Tier 2.

Fill your address information with Kraken and you’ll get move to Tier 2 in a matter of minutes.

Tier 2

At tier 2 you can start funding your account to a max of $10.000 USD, you should be now good to start the funding process.   Kraken will let you select which currency you want to use to put some funds in your account.   There are restrictions at this tier, for example a Canadian wouldn’t be able to do an Interact, so in some cases, you’ll still need to go to Tier 3 and demonstrate your ID by uploading a Government issued document with photo.

Tier 3

This is the last tier for most of the people that invest with Kraken. At this tier you have sent your Government ID, verified your residence and send an ID with photo.

Tier 3 will allow you to deposit any money up to $200.000 per month and withdraw as much as $25.000 per day.  Once you’re at this Tier, you can proceed and use any of the funding methods available in USD, CAD, EUR or any other available currency .

After you open your account, you’re officially able to start trading Ether, Bitcoin and other cryptocurrencies.