KuCoin Exchange Analysis: Advantages and Disadvantages, Costs and Security Measures
KuCoin, founded in 2017 by Johnny Lyu and others, is a widely popular cryptocurrency exchange that serves over 20 million customers worldwide. This platform offers both spot and derivatives trading along with various features to cater to various user needs. Let's delve into this KuCoin review, covering essential questions such as What is KuCoin?, features, fees, and its safety.
What is KuCoin?
KuCoin is a user-friendly cryptocurrency exchange, known for listing new and lesser-known coins early, giving users a chance to catch crypto assets while they're hot for substantial returns. Some key details about the platform are:
- Founded in 2017 by Johnny Lyu, Chun Gan, Ke Tang, and Michael Gan
- Currently the seventh-largest crypto exchange by trading volume
- Popularly recognized as the "people's exchange"
- Recently launched KuCoin Pay, a point-of-sale system for easy payment using exchange balances
Exchange
Advantages and Disadvantages of KuCoin
KuCoin
Pros
- Competitive fees
- Strong security measures
- Over 750 supported cryptocurrencies and 1300 trading pairs
- User-friendly interface
- Advanced trading features
- Staking and lending options
Founded
Cons
2017
- Not available for US traders due to regulatory challenges
- Limited liquidity for some altcoins
- May experience congestion during high-traffic periods
Features of KuCoin
Founder
KuCoin offers various features for both beginner and experienced traders, highlighted below:
Johnny Lyu
Spot and Futures Markets
Users have access to advanced trading tools for spot trading, which enables trading crypto against fiat or another crypto. The platform also offers USDT-denominated futures contracts along with up to 100x leverage for increased earnings.
Features
Trading Bots
Spot trading
Copy trading
Asset and wealth management services
Fast trade
Trading bots automate the buying and selling processes based on specific parameters, ensuring trades can happen even without constant monitoring. Users can set long-term trading strategies for increased overall returns.
KuCoin Spotlight
Supported Cryptocurrencies
KuCoin Spotlight lets users buy tokens before they hit the market, which can lead to substantial returns once these projects take off.
Over 750 and 1300 trading pairs.
Crypto Lending and Staking
KuCoin offers lending and borrowing services, enabling users to earn interest on their crypto holdings. Additionally, users can stake their assets to support various blockchains and earn rewards.
User Base
NFT Marketplace
30 million users worldwide.
KuCoin has a platform for buying, selling, minting, and investing in Non-Fungible Tokens (NFTs). Unlike other exchange NFT marketplaces, KuCoin launched a decentralized NFT marketplace, Windvane. This platform offers users early access to exclusive NFT projects.
Fast Trade and KCS Discounts
Security Measures
Fast Trade allows easy and convenient crypto purchase or sale using third-party payment platforms. The KuCoin Token (KCS) offers users a 29% discount on trading fees across all VIP levels.
Multi-factor authentication, proof of reserves, risk control system, cold storage, and advanced encryption.
P2P Trading
KuCoin's P2P marketplace facilitates peer-to-peer trading, allowing users to buy and sell crypto using various fiat currencies and popular payment methods. However, users must complete the Know-Your-Customer (KYC) verification process to use the P2P marketplace.
Customer Support
KuCoin Leveraged Tokens
24/7 customer service is available via email and live chat.
KuCoin offers leveraged tokens to provide users with leveraged exposure to popular cryptocurrencies like Bitcoin and Ethereum, leading to increased profits without facing liquidation risks.
Fees on KuCoin
Trading Fees
KuCoin offers competitive fees, making it an attractive option for many crypto traders. Let's take a closer look at the platform's fees:
0.10% - 0.30%
Withdrawal Fees
Withdrawal fees vary depending on the cryptocurrency and the selected blockchain network. For instance, withdrawing 5 USDT requires a 1 USDT fee on the ERC20 network. Fiat withdrawals incur a 1 EUR fee with a minimum withdrawal of 5 EUR.
Trading Options
Trading Fees
Spot, Futures, Options, Margin
Spot and futures trading fees on KuCoin are 0.10% for both makers and takers. Trading fees go lower with higher VIP levels, reaching as low as 0.06% with the VIP 6 level. Users can also get a 20% discount if they use KCS to pay transaction fees, regardless of the VIP level.
Listing Fee
Payment Methods
The cost of listing a token on KuCoin varies and is not disclosed to the public. Factors influencing the token's listing include the exchange's listing criteria, token popularity, and the support and services required.
Multiple options, including bank transfer, credit cards, crypto, and SEPA bank transfers.
Transfer Fees
KuCoin offers free transfers for most cryptocurrencies, making it easy for users to move assets within their wallets without incurring fees. Fiat currency transfers incur a small fee, depending on the amount and the chosen payment method.
Geographic Restrictions
Deposit Fees
Not available in the United States, UK, Mainland China, Singapore, Iran, and North Korea.
KuCoin does not charge fees for direct crypto deposits. However, fiat currency deposits incur a small fee, with a 1 EUR deposit fee for SEPA transfers.
Is KuCoin Safe and Legit?
Despite experiencing a major hack in 2020, KuCoin has taken steps to improve its security measures:
- Multi-factor authentication: This ensures an additional layer of protection for user accounts, utilizing Google Authenticator, email links, text message verification, and biometric authentication.
- Proof of Reserves: KuCoin's Proof of Reserves (PoR) ensures that user assets are fully backed by real reserves.
- Advanced encryption: The platform employs 256-bit encryption technology to protect user account information.
- Risk control system: The risk control system includes account verification, risk identification, and secure login and withdrawal processes, along with monitoring wallet addresses and sending alerts for suspicious behavior.
How to Use KuCoin
To start trading on KuCoin, follow these steps:
- Register on the platform: Download the app or visit the website and sign up for a new account or sign in.
- Choose a trading pair: Select the trading pair you want to trade using the search bar, such as KCS (KuCoin Shares).
- Place an order: At the bottom of the trading interface, enter the necessary details, such as the price and amount, then click Buy or Sell to execute your trade.
Withdrawing Money from KuCoin
To withdraw cryptocurrency:
- Log in: Access your KuCoin account and go to the Assets tab. Click on Withdraw and choose the cryptocurrency you wish to withdraw.
- Enter details: Fill in the wallet address where you want to send your crypto, select the network (if applicable), and enter the amount.
- Confirm withdrawal: Review your details and complete the security verification process before confirming the transaction.
For fiat currency withdrawals, users must transfer their crypto to another exchange that supports fiat withdrawals.
Supported Countries
KuCoin operates in more than 180 countries, serving over 30 million users globally. Some of the supported countries include France, Brazil, Argentina, Chile, India, Nigeria, Vietnam, South Africa, and more.
Alternatives to KuCoin
In terms of features, user experience, and service offerings, KuCoin has several alternatives available. The top choices include:
- Binance: Known for its extensive variety of cryptocurrencies and advanced trading options, Binance offers spot and futures trading, staking, and decentralized finance (DeFi) solutions.
- Bybit: Renowned for its user-friendly interface and perpetual contracts for Bitcoin and Ethereum trading, Bybit supports over 1000 cryptocurrencies and 300 trading pairs.
- Coinbase: Based in the United States, Coinbase offers deep liquidity and low fees for trading major cryptocurrencies, making it a popular alternative, especially for US traders.
- Crypto.com: Offering deep liquidity and low fees, Crypto.com is available in 49 states and US territories, catering to users who cannot access KuCoin due to regulatory restrictions.
- Founded in 2017 by Johnny Lyu, Chun Gan, Ke Tang, and Michael Gan, KuCoin is a widely popular cryptocurrency exchange.
- Johnny Lyu serves as one of the founders of the seventh-largest crypto exchange by trading volume, KuCoin.
- Users can access over 750 supported cryptocurrencies and 1300 trading pairs on KuCoin.
- The platform offers USDT-denominated futures contracts with up to 100x leverage for increased earnings.
- Trading bots automate buying and selling processes on KuCoin based on specific parameters.
- KuCoin Spotlight lets users buy tokens before they hit the market, potentially leading to substantial returns.
- KuCoin offers lending and borrowing services, enabling users to earn interest on their crypto holdings.
- In addition to accepting crypto and fiat currencies, KuCoin also supports bank transfer and SEPA bank transfers as payment methods.
- Withdrawal fees on KuCoin vary depending on the selected cryptocurrency and blockchain network.
- KuCoin offers free transfers for most cryptocurrencies, excluding only certain coins.
- Fiat currency withdrawals incur a small fee on KuCoin, depending on the selected payment method.
- The KuCoin Token (KCS) offers users a 29% discount on trading fees across all VIP levels.
- Users can set long-term trading strategies using trading bots for increased overall returns on KuCoin.
- KuCoin has launched a decentralized NFT marketplace, Windvane, providing early access to exclusive NFT projects.
- Despite experiencing a major hack in 2020, KuCoin has taken steps to improve its security measures, including multi-factor authentication, proof of reserves, advanced encryption, risk control system, and monitoring for suspicious behavior.
- Users must complete the Know-Your-Customer (KYC) verification process to use the P2P marketplace on KuCoin.
- KuCoin operates in over 180 countries, serving over 30 million users worldwide, with some of the supported countries including France, Brazil, Argentina, Chile, India, Nigeria, Vietnam, South Africa, and more.
