Overview: KuCoin is a centralized exchange available in 200+ countries that allows users to buy, sell, trade and earn interest on a wide range of cryptocurrencies. However, the exchange is not licensed to operate in the United States.
A centralized crypto exchange, like KuCoin, allows users outside the United States to easily purchase, sell, and trade a wide range of digital currencies with low fees. Experienced cryptocurrency investors can also take advantage of KuCoin’s advanced trading features.
If you are looking for the best exchange to start buying, selling and trading crypto, keep reading! In this guide, we’ll take a look at one of the most popular exchanges: KuCoin. We’ll go over its features, advantages and shortcomings to help you figure out if the platform suits your needs.
What is KuCoin?
KuCoin is one of the most popular centralized crypto exchanges and it is known as the exchange of, for and by the people. It currently has over 10 million users across the globe, but is not licensed to operate in the United States.
KuCoin launched in 2017 and offers a wide variety of features allowing users to purchase crypto, withdraw coins from the exchange to other platforms and participate in P2P trading, spot trading, margin trading, staking and lending. Users can access the exchange on the web or through their mobile app for iOS and Android.
Everything You Need To Know About KuCoin
KuCoin requires its users to complete a simple identity verification process that is less exhaustive than the one required by other exchanges. However, in some cases KuCoin can request full verification due to suspicious activity.
KuCoin allows you to purchase cryptocurrencies conveniently, using fiat with a bank card. In order to use this payment method though, users must use a Visa or Mastercard card that supports 3DS and complete the exchange’s identity verification process. KuCoin allows you to make purchases for a minimum amount of $5 and maximum of $5,000 (for a single transaction). You can also buy coins using P2P trading or through a third-party like Simplex and Banxa. The platform charges its users a fee for completing purchase transactions.
KuCoin supports a wider selection of cryptocurrencies than other exchanges. It offers over 500 crypto currencies and supports more trading for more than 700 crypto pairs. Some of the notable assets supported on KuCoin include:
- Bitcoin (BTC)
- Litecoin (LTC)
- Ethereum (ETH)
- Tether (USDT)
- Binance Coin (BNB)
- Cardano (ADA)
- USD Coin (USDC)
- Polkadot (DOT)
- Chainlink (LINK)
- Polygon (MATIC)
You can also spot trade different crypto pairs on KuCoin, with varying prices and pair availability depending on the market. Trading is available for stable coins, Bitcoin, Ethereum, Tron and KuCoin Shares (the exchange’s native token). For safety, users must enter a trading password to confirm transactions.
Four different order types are supported:
- Limit orders
- Market orders
- Stop Limit orders
- Stop Market orders
Fees are determined based on your “trading fee level”. The higher your level is, the lower your trading fees. Fees also vary depending on whether you are the maker or taker on a given trade and can be reduced by holding KCS ( KuCoin’s native token).
If you want help with your trades you can take advantage of KuCoin’s trading bots. These tools help you earn more on your investments by automatically executing trades for users based on a set of instructions and rules.
The exchange has a staking platform called “Pool-X” that users can use to stake their assets. When staking, you can earn rewards (at a given interest rate) plus POL credits (the platforms’ native token).
KuCoin allows you to loan out 70 different crypto coins to earn interest. To lend, you’ll fill in the amount they want to loan and the Daily Interest Rate (ranging from 0 to 0.2%). Finally, you choose for how long you want to lend your assets, with 7, 14 and 28 day options.
Advanced: OTC, Margin Trading and Futures Trading
In 2019 KuCoin introduced several advanced trading features, including Margin, Futures and OTC trading:
- Margin trading allows users to leverage positions using borrowed funds to make a large profit.
- Over-The-Counter trades exchange assets directly between two parties to avoid slippage and are used for larger trades.
- Futures trading allows you to speculate on the price of crypto and buy/sell future contracts, that represent an asset’s value, at a predetermined price and time.
While these trading types have higher earning potential, they also have a higher risk.
KuCoin Shares (KCS)
KuCoin Shares (KCS) is the exchange’s native token. Holding KCS allows users to get lower withdrawal and trading fees. Plus, any user that holds 6+ KCS on the exchange can earn interest on it on a daily basis.
Is KuCoin Safe?
Kucoin has different safety measures in place to protect their users:
- Assets are stored partially in cold storage and while another part is stored using hot wallets allowing the exchange to fund withdrawals and trades.
- KuCoin has a bug bounty program that contributes to keep the system running smoothly.
- The exchange has multilayer encryption to protect sensitive data.
- Users use dynamic multi-factor authentication to access their accounts.
KuCoin has been victim to cyber attacks in the past though, with insurance helping recover lost assets in this occasion.
KuCoin: The Pros
- KuCoin has very competitive trading fees which are about 0.1% and can be further lowered if you have a high trading fee level or hold KCS.
- You can earn by staking or lending crypto on the exchange
- The exchange offers features for experienced users including margin and futures trading, OTC trades and a P2P marketplace.
- You can buy cryptocurrencies with any of the 50 supported fiat currencies.
KuCoin: The Cons
- It is not Licensed to operate in the United States.
- Users can’t buy crypto through bank transfers.
- KuCoin is less beginner friendly than other exchanges.
Is KuCoin Right For You?
KuCoin is a well-established exchange that is best suited for experienced traders, outside of the United States, looking for advanced trading features and low fees.