To short Ethereum on Kraken, you have to first sign up on the platform. Next, verify your profile with your official documents, as it does not allow you to trade any cryptocurrencies without it.
After getting verified on Kraken, go to the Funding section and add USDT to your wallet.
Next, use those funds in the Trade section and open the Ethereum token along with the currency pair you wish to trade.
Finally, select the quantity and set the leverage as per your need. Currently, Kraken offers 5x leverage to its users. You must take some margin if you are shorting a coin on Kraken. This is because you are selling a coin that you currently don’t own.
Then, click on “Sell ETH” and complete the trade. You will now be able to monitor your trade in the “Positions” column under the “Trade” section.
Steps to Short Ethereum On Kraken
Here is a complete step-by-step guide on how to short Ethereum on Kraken.
1. Sign Up On Kraken
Sign in on Kraken using your credentials or click on Create account if you are a new user.
You can create a username and a password if you are creating a new account.
As you get the access, you will now be able to navigate the various options present on the platform.
Click on “Get Started” to explore everything present on the platform.
Before making any trades, you must verify your identity on Kraken. To get verified, click on the “Verify” tab to begin the verification process.
Select the appropriate document that you can upload on the platform and proceed ahead. After some time, your account will be fully verified and eligible to trade various pairs.
On your Dashboard, you can now check the prices of various cryptocurrencies, monitor your funds, and control everything on your account. Now, you are ready to move on to the next step.
2. Deposit USDT On Kraken
After you get verified, click on the “Funding” tab to add funds. You can directly add crypto to your Kraken wallet or a fiat currency through which you can later buy any crypto.
Click on “Deposit” to add funds to your Kraken wallet.
Search for USDT in the search tab and click on it.
Now, select the network for the transaction and copy the deposit address for USDT or scan the QR Code. You can use any of your wallets to add USDT to your unique Kraken wallet address.
After successfully depositing USDT from your wallet to Kraken, you will be able to see the balance of your USDT in the Funds tab now.
3. Place the Short Order
After adding USDT to your Kraken wallet, you are now ready to short sell Ethereum on the platform. To do so, click on the “Trade” tab.
You can adjust your trade quantity in many different forms in this section.
Search for ETH/ USDT pair or any other pair that you want to trade Ethereum with.
You can adjust the leverage of your trade in this section as well. Kraken allows 5x leverage in the trades taken on the platform. If you are a new user and don’t have much history, you might not be allowed more than 3x leverage.
It is necessary to leverage your trade in this step as you will be shorting a coin. Toggle between “Simple” and “Advanced” tabs as per your convenience. The “Advance” tab lets you adjust many things in your trade than the “Simple” tab.
Here you can choose the Order Type for your trade. Toggle between the various options available on the platform and select your ideal order type.
Select the order type for closing the order. You can set it to a Limit order that lets you close it whenever you want. Apart from it, you can choose the other conditions as well that close your trade automatically when the conditions are fulfilled.
You can also select the date and time of placing your order. Either buy it at the present time or set a customized date and time, and Kraken will process the order for you.
After clicking on the “Sell” tab, you will see a pop-up giving you the summary of the trade. This is just to revise all the details you filled in before placing the order. Click on “Submit Order” when you are ready to short sell Ethereum.
Bingo, you just shorted Ethereum on Kraken.
If you are someone who likes to play with the charts before shorting a coin, the next segment will tell you how to short Ethereum on the price chart.
Shorting Ethereum On The Price Chart
Click on the tab mentioned with the arrow to open the price chart of a specific pair.
Now, you will be able to see the price chart of the ETH/USDT pair. You can monitor many things here. Switch to “Sell” to short the coin on Kraken.
Set the quantity and leverage to adjust your trade. You will be able to see the total amount that you must pay to execute the trade. Click on “Review and Sell” when you have set all the measures.
After clicking on Sell, you can revise all the entries in this tab. From your Leverage to your total price, analyze all the figures and click on “Confirm Sell” when you are ready to execute the order.
You can now monitor your trade in the “Orders” section till it gets fulfilled and later in “Positions.”
To book your profits, scroll to the right side of the screen and look for the x button that says Close this position with a MARKET order.
A confirmation will pop up on the screen.
Click on the Okay button to close the position.
You will now have closed the position, and the surplus USDT will reflect in your wallet section.
After finishing all the above steps, you must have successfully shorted Ethereum on Kraken.
Wrap Up
To wrap up this guide on shorting Ethereum on Kraken, make sure that your account is verified. You cannot place any orders or fund your wallet without that. This feature improves the safety and security of the platform.
Kraken also offers high margin limits of up to $500,000 with a maximum of 5x leverage. As we already discussed, you must use margin to short Ethereum on Kraken as it is used to sell those assets that you don’t own, and it can only be done through margin.
Kraken has a competitive fee when it comes to margin trading. Depending on the coin, you will be charged just 0.02% for opening a position and the same rate (per 4 hours) for rollover fees to keep the trade active.
Kraken offers very low fees and various currency options. The fees for some of the trades are as low as 0% on Kraken, and it ranges to 0.26% per trade. If you use your credit card, the fee per trade on Kraken is 3.75% of the amount and 0.5%+0.9% or 1.5% for purchases done by ACH.
You can easily buy, sell, send, receive, stake, screen cryptos, and even exchange them on Kraken. It accepts a handsome number of fiat currencies which makes it user-friendly in many regions throughout the world.
Remember to read all the terms and conditions carefully before placing any trades on Kraken.