How to trade commodities on Kraken?

Kraken enables trading of commodity-based cryptocurrencies and futures, allowing users to diversify beyond traditional cryptocurrencies with assets like gold, silver, and oil.

Apr 23, 2025 at 05:49 pm

Trading commodities on Kraken, a leading cryptocurrency exchange, allows users to diversify their portfolios beyond traditional cryptocurrencies. Kraken supports trading in various commodity-based cryptocurrencies and futures contracts, providing a platform for users to engage with assets like gold, silver, and oil. This guide will walk you through the process of trading commodities on Kraken, from setting up your account to executing your first trade.

Setting Up Your Kraken Account

Before you can start trading commodities on Kraken, you need to set up an account. Here's how you can do it:

• Visit the Kraken website and click on the "Create Account" button.
• Fill out the registration form with your email address and a strong password.
• Verify your email address by clicking on the confirmation link sent to your email.
• Complete the identity verification process by submitting the required documents, such as a government-issued ID and proof of address. This step is crucial for enabling full trading capabilities on Kraken.

Once your account is set up and verified, you can proceed to fund your account and start trading.

Funding Your Account

To trade commodities on Kraken, you need to deposit funds into your account. Kraken supports a variety of deposit methods, including bank transfers, credit/debit cards, and cryptocurrency deposits. Here's how to fund your account:

• Log in to your Kraken account and navigate to the "Funding" section.
• Select the currency you want to deposit (e.g., USD, EUR, or a cryptocurrency like Bitcoin).
• Choose your preferred deposit method and follow the on-screen instructions to complete the deposit. For bank transfers, you may need to provide additional information, such as your bank account details.
• Wait for the funds to be credited to your Kraken account. The processing time can vary depending on the deposit method you choose.

Navigating to the Commodity Trading Section

Kraken offers trading in commodity-based cryptocurrencies and futures contracts. To access these markets:

• Log in to your Kraken account and go to the "Trade" section.
• Select the "Futures" tab if you want to trade commodity futures, or the "Spot" tab for commodity-based cryptocurrencies.
• Choose the commodity market you are interested in, such as XAU (gold), XAG (silver), or OIL (oil). Kraken lists these markets under their respective ticker symbols.

Placing a Commodity Trade

Once you've selected the commodity market you want to trade, you can place an order. Kraken supports various order types, including market orders, limit orders, and stop orders. Here's how to place a trade:

• Select the order type you want to use. For beginners, a market order is the simplest option, as it executes the trade at the current market price.
• Enter the amount you want to buy or sell. You can input the amount in either the commodity's native unit (e.g., ounces for gold) or the currency you're using (e.g., USD).
• Review your order details carefully, including the total cost and any fees associated with the trade.
• Click the "Submit Order" button to execute the trade. You will receive a confirmation once the order is filled.

Monitoring and Managing Your Trades

After placing a trade, it's important to monitor and manage your positions. Kraken provides various tools to help you do this:

• Use the "Open Orders" section to view and manage any pending orders.
• Check the "Positions" tab to see your current holdings and unrealized profits or losses.
• Set up price alerts to notify you when the commodity price reaches a certain level. This can help you make timely decisions about closing or adjusting your positions.
• Utilize the charting and analysis tools provided by Kraken to track market trends and make informed trading decisions.

Withdrawing Your Funds

When you're ready to withdraw your funds from Kraken, follow these steps:

• Navigate to the "Funding" section and select the currency you want to withdraw.
• Choose your preferred withdrawal method and enter the amount you want to withdraw.
• Provide the necessary withdrawal details, such as your bank account information or cryptocurrency wallet address.
• Review the withdrawal fees and confirm the transaction. Withdrawals can take some time to process, depending on the method you choose.

Frequently Asked Questions

Q: Can I trade physical commodities on Kraken?

A: No, Kraken does not support trading in physical commodities. You can trade commodity-based cryptocurrencies and futures contracts, which are financial instruments that derive their value from underlying commodities.

Q: Are there any specific risks associated with trading commodity futures on Kraken?

A: Yes, trading commodity futures involves significant risks, including leverage risk, market volatility, and the potential for substantial losses. It's important to understand these risks and trade responsibly.

Q: How do I know if my commodity trade was successful on Kraken?

A: After placing a trade, you will receive a confirmation from Kraken indicating whether the order was filled. You can also check the "Trade History" section of your account to view all your executed trades.

Q: Can I trade commodities on Kraken using a mobile app?

A: Yes, Kraken offers a mobile app for both iOS and Android devices, allowing you to trade commodities on the go. The app provides access to all the features available on the desktop version, including trading, funding, and account management.