KuCoin General Overview
KuCoin is a digital exchange that emerged in 2017 and improved a lot since then. The exchange was founded by a group of experienced business specialists who had previously worked on projects such as Ant Financial and iBox PAY. In terms of age, KuCoin is one of the youngest exchanges in the industry but it is also one of few that share its profits with token holders.
The objective and long-term vision of KuCoin is to become a top-10 cryptocurrency exchange and compete with the best. It doesn’t have a very long history but in the years that have passed, this exchange has not suffered any cyber attack or breach. Exchange managers certainly keep up to date with recent development and trends in the crypto space. For example, KuCoin is one of few exchanges that support ETH 2.0 staking as of early 2021.
What is KuCoin?
What is KuCoin?
KuCoin is a digital asset exchange that offers users easy and convenient cryptocurrency trading. There are over 250 coins and tokens to choose from along with 500+ trading pairs. Those that want to diversify their portfolio and look into some altcoins with low market capitalization can certainly do so on this platform.
There are many ways to earn on KuCoin as the exchange always looks for new ways to create more passive income for their customers. Staking is one way to earn interest but users can also take advantage of the lending and pooling features.
Overall, KuCoin has established some reputation since 2017 because their services have only gone up in quality. Altho they can’t say the same for trading volume and liquidity, they are still competitive with the big guys in more than one way.
Why Choose KuCoin?
There are many advantages included for those that chose this platform specifically. Since it is very new in the space, KuCoin offers competitive trading fees that are more than enough to make you change your mind. The exchange also has a simplistic approach in terms of design and layout. Beginners will find it easy to settle in and begin trading because most of the tools they will need are readily available on the platform.
If the fees don’t attract you then probably the altcoins will. There aren’t many exchanges that offer over 250 different cryptocurrencies to choose from. Their regulated competitors can barely offer more than 30. This puts KuCoin on the radar of those that are looking for some lesser-known currencies and tokens.
Like almost all cryptocurrency exchanges, KuCoin will sometimes suffer downtime when there is a lot of traffic. These interruptions can interfere with traders, make the platform inaccessible or simply cancel your trades. Not a good thing to expect from an exchange, but it seems to be a recurring theme in the industry.
Having more coins and tokens to offer is awesome but you also must have the liquidity to back them up. Most of the time new coins will be added but it will take time before they reach a reasonable level of liquidity and start following market prices. In some cases, liquidity may be low for a certain trading pair and users may be forced to sell and buy way below/above market prices.
Pros and Cons
- Low deposit, withdrawal, and trading fees
- Easy to use and beginner-friendly
- Over 250 cryptocurrencies to choose from
- High level of security
- Anonymous trading (no verification required)
- Many different ways to earn interest
There have been some ups and downs for Kucoin in the past few years for sure. The team finally decided to revamp the platform and introduced KuCoin 2.0 somewhere in February 2019. This new upgrade came with a lot of new trading options and API changes. Since then, the exchange has maintained its quality of service on a very reasonable level.
Since Kucoin is headquartered in Seychelles they can offer trading for anonymous customers meaning that you can withdraw up to 2 BTC per day without any verification except an email confirmation. Those that don’t like uploading documents to a third-party service will find KuCoin very helpful in that manner.
- Low trading volume
- Sometimes low liquidity
- Occasional downtime and slow loading times
- Unregulated and offshore
- Not available in the U.S.
US-based traders and investors will be missing out on KuCoin because they are not able to provide services inside of the United States. There aren’t any news or updates regarding this subject so it may take a lot more time before KuCoin opens its doors to U.S. customers.
Other issues that come with this exchange are certainly questionable liquidity for some trading pairs but also occasional outages. Interrupted trading isn’t a thing you want to see if you are a dedicated trader so those looking for a reliable service will have to look elsewhere. KuCoin is also not very competitive in terms of trading volume but they are doing a good job of keeping up with the top 20 in that area.
How KuCoin Compares to Other Exchanges?
KuCoin provides a very simple fee structure on their futures platform:
- Maker fee: Floating fee rate of 0.020%
- Taker fee: Floating fee rate of 0.060%
- Settlement fee: 0.025% (Settlement fee will be generated when the contract is settled)
A rather different model applies to day trading. There are different levels of rewards for regular customers. Those that trade below 50 BTC in monthly volume will be charged 0.08% for both maker and taker fees. Users that generate over 80,000 BTC in trading volume will move their maker fee to -0.005% and taker to 0.02%.
Security seems to be at a very reasonable level since there aren’t many complaints that can be found online. Users are encouraged to secure their accounts and sometimes the exchange may reward them for it with many different initiatives.
KuCoin’s interface is pretty clean, easy to use, and beginner friendly. Their trading engine is top of the line and can handle millions of transactions per second. One of the rare features KuCoin offers that we don’t see with many platforms is that they offer both their new and old designs, and you can switch between the three (Yes, they have had two redesigns so far!) on the fly. This is good when it comes to redesignes because sometimes users can get attached and used to the old design and when something new comes along, they might not like it, or feel like they’ve wasted their time in getting used to the platform. Besides that, there are advantages to using both the older two versions and the new interface. We find ourselves switching between them quite often. The newest design one is in line and similar to other platforms, which is a good thing.
The above is the new interface and as you can see, it holds everything a trader could possibly want. Price charts, order placing window, markets window, order book with current buy and sell orders, and recent trades.
The above is their Version 2.0
And here below we have the 1.0 version
As you can see, they have put in the effort to make their platform more and more user and beginner-friendly. While we think that all three have their strengths and weaknesses, we also think that their latest design is the slickest and easiest to use out of the three.
All-in-all, it KuCoin has a powerful trading engine and an interface that is beginner friendly.
KuCoin has a mobile app as well that is similarly slick in design and easy to use.
Of course, one of the main questions that pops up when it comes to third-party exchanges is how reputable and safe they are. The sad reality is that many coins are lost due to hacks and more than 11 billion USD has been stolen by hackers since 2011 and up to 2020. Not all of that money is stolen from these supposedly secure crypto exchanges, however it is still a hefty sum. There’s other data that points to this number being higher even in 2017, claiming up to 15 billion was lost due to hacking attacks. No matter which one of these is right, the fact remains that large amounts of money are stolen through hacks.
Well, for one, KuCoin hasn’t experienced a hack yet. They’re still pretty new so this is not saying much, but it is something worth mentioning. Their platform is protected by an encryption protocol that claims to protect all of their users and customers personal data secure. As with most other exchanges, KuCoin offers you the option to set up 2-factor authentication. It always advisable to do this no matter which exchange it is you’re using.
KuCoin is not regulated by any national or state licencing entity.
Important things to know about KuCoin
Peer-to-Peer trading: KuCoin offers P2P trading on its platform. You can buy and sell currencies like bitcoin, tether, ethereum, and others directly from and to other users. There are certain risks involved here, obviously, but the fact that it doesn’t go through any kind of third-party exchange makes this a great option for people who are looking for more payment options such as paypal, using fiat currencies like USD, or wire transfers. However, you must verify your account through KYC in order to use their P2P desk.
KYC Process – KuCoin has implemented KYC in 2018 in order to keep up with security standards of the industry. Getting KYC verified on KuCoin allows you to have a higher daily withdrawal limit, among other boons such as more payment options and the aforementioned P2P trading.
KuCoin is supported in over 200 countries, including the US, UK and most European nations. A full list can be located on their website.
How to register on KuCoin?
Registering on KuCoin couldn’t be simpler. Firstly, just head to their homepage, click on the ‘Sign Up’ button. Then you’ll be taken to the registration page. From there, you will have the option to sign up with email or phone number. Next just input your information, they will send you a verification code. Finally choose a password, and you’re done!
What additional services are available on KuCoin?
The most prominent additional service that KuCoin offers is P2P (peer-to-peer) trading!
Does KuCoin require KYC?
KuCoin doesn’t require KYC, it is optional. However, there are many boons to getting KYC verified on KuCoin.
Is KuCoin good for beginners?
Yes. KuCoin is very beginner-friendly.
KuCoin is a newbie friendly platform powered by a powerful engine. While not available in the US due to regulations, KuCoin is still one of the best newer exchanges out there. Simplistic design, great trading fees, and a large amount of cryptocurrencies available for trade all contribute to make KuCoin a very attractive platform for newcomers.
On the flipside, KuCoin can be unreliable when it comes to uptime and liquidity. However, the pros outweigh the cons and KuCoin remains as one of the better new exchanges in the space.