Contents
If you are looking to buy digital currencies like Bitcoin and Ethereum with a debit / credit card or trade cryptocurrency pairs, KuCoin covers both.
This global broker hosts some of the largest trading volumes in the crypto space coupled with a commission structure that should suit most pockets.
In this guide, we will look at the pros and cons of KuCoin. This includes an in-depth look at the platform-supported cryptocurrencies, fiat currency services, taxes and fees, security, customer support, and the trading space.
What KuCoin?
Just launched in 2017, KuCoin is a cryptocurrency exchange that also offers third party brokerage services. Even though the platform has only three years of trading history, it is now one of the largest cryptocurrency exchanges.
One of the main reasons for this is that you will find over 200 cryptocurrencies with around 450 cryptocurrency pairs hosted on the exchange. This includes not only major pairs like BTC / USDT and ETH / USDT, but also many cryptocurrency pairs. Best of all, if you feel like trading a less liquid ERC-20 token, you'll find it on KuCoin.
Home page of Kucoin
KuCoin was initially a cryptocurrency-only platform, which means you couldn't deposit funds with fiat currency. However, the platform has since formed a partnership with Simplex - a European payment provider bridging the gap between cryptocurrencies and everyday money.
When it comes to cryptocurrency trading fees, KuCoin only charges 0,10%. This puts it on par with a platform like Binance. Likewise, KuCoin is also behind its own digital token - KuCoin Shares (KCS). By owning and holding KCS tokens, you will benefit from reduced trading fees, as well as the right to a share of the trading fees that KuCoin collects.
In terms of numbers, KuCoin claims to have facilitated over 650 million individual transactions since its inception in 2017. This translates into accumulated trading volumes of over $ 71 billion.
Finally, and as we will cover in more detail below, KuCoin is not regulated by a national licensing body. While this means that you will be able to trade cryptocurrencies without providing any identification, this will not be the case if you want to buy digital coins with a debit / credit card through Simplex.
What can you trade on KuCoin?
KuCoin offers a wide range of financial instruments that go beyond crypto-crypto pairs. Instead, the platform also offers cryptocurrency indices, margin trading, and even futures contracts.
Let's explore each asset class in more detail.
Crypto-crypto pairs
Every KuCoin trading pair falls under the cryptocurrency umbrella, not least because it doesn't offer fiat currency-denominated instruments. Instead, you will need to trade the cryptocurrency of your choice with USDT if you want to enter the crypto-à-USD space.
If you are an experienced cryptocurrency trader, then you will know first hand that this is the industry standard anyway, so you won't have any problems with trading volumes or liquidity.
Outside of USDT, cryptocurrency pairs can be traded. This is the case, for example, of BTC / ETH, ETH / XRP and BSC / BTC. Ultimately, the listing of each digital trading currency is beyond the scope of this review, although, rest assured that the platform is home to over 450 pairs.
Some markets on Kucoin
Basically, KuCoin is often one of the first exchanges that newly launched cryptocurrency token projects choose. Support for less liquid digital tokens is something the KuCoin team is trying to facilitate.
indices KuCoin
In addition to traditional cryptocurrency pairs, KuCoin also offers a number of indices. The concept here is that KuCoin will take the weighted average of a specific cryptocurrency across several leading exchanges.
This is in order to offer a more accurate price of the coin in question, as it takes into account the variations that are often found between competing platforms.
KuCoin indices are available on:
Bitcoin
Ethereum
Litecoin
Futures of KuCoin
Launched in mid-2019, the KuCoin Mercantile Exchange allows you to trade Bitcoin futures contracts. KuCoin himself notes that he seeks to challenge bitmex in this particular area of the cryptocurrency derivatives space. As a result, you will have access to Bitcoin futures along with a substantial margin position of up to 100x.
In simple terms, this means that an account balance of $ 100 would allow for a maximum trade value of $ 10.000. When it comes to the underlying spot price, KuCoin once again takes the weighted average of various leading exchanges such as Kraken, Coinbase Pro, and Bitstamp.
Futures contracts on Kucoin
At the time of writing, KuCoin only supports BTC and ETH futures, although it hopes to add more digital currencies in the near future. As for taxes, expect to pay 0,060% on the exchange, and 0,020% as a producer.
Trading fees and expenses
First of all, there are no fees associated with cryptocurrency deposits, and withdrawals are charged at the standard draw rate depending on the token you are looking to cash out.
When it comes to trading fees outside the futures space, you pay 0,1%. This means that a $ 10.000 trade will cost you $ 10 in commissions. As we briefly touched upon earlier, this aligns with its Binance counterpart.
KuCoin Shares (KCS)
KuCoin Shares or simply KCS, is a proprietary cryptocurrency token created by the Kucoin exchange. By owning and holding KCS tokens, you will be brought to a number of benefits.
These include:
Reduced trading fees
One of the most notable benefits of holding KuCoin shares is that you get low trading fees. Notably, while a standard 0,1% commission is industry-leading, you have the potential to reduce this amount by an additional 20%. What you need to do is simply activate the KCS Pay Fee button and take advantage of the discount.
Dividends
In addition to reducing your trading fees, holding a KuCoin stock allocation gives you the opportunity to earn dividends. Simply put, KuCoin as a platform will distribute 50% of the trading fees it collects from members every day.
This is then distributed pro rata to all holders of KuCoin shares. For example, let's say you own 1% of the entire KCS supply. If the platform pays $ 250.000 in commissions, you will receive $ 2.500. You must have at least 6 KCS to receive dividends.
Price history and purchase of KuCoin shares
To say that the value of KuCoin's shares has capitulated from its all-time highs of January 2018 would be an understatement. With up to over $ 20 each, you can now get the same tokens for less than $ 1 in mid-2020.
However, if you want to get your hands on KuCoin shares, you can do so by trading them on the platform for an alternative cryptocurrency such as Bitcoin or Ethereum.
Fiat coin on KuCoin
At the end of 2018, KuCoin formed a partnership with the European payment provider Simplex. The partnership ensures that users in over 100 countries can now deposit real funds with a debit or credit card.
This is ideal if you are looking to trade cryptocurrencies or futures on KuCoin, but don't have any digital currencies at your disposal. Instead, you can simply enter your debit or credit card details and get money directly on the platform.
Buying cryptocurrencies with a credit card
That said, it is important to note that the fees associated with this are not cheap. Even if a promotion on the deposit fee is offered every now and then, it will cost you a whopping 2,5 - 3,5% (with a minimum of $ 10).
This means that a $ 1.000 debit or credit card deposit would cost you $ 25 in commission. However this is still cheaper than Coinbase, which charges 3,99% (with various lows in place).
KuCoin is developing an OTC trading desk, on which all users can buy and sell major cryptocurrencies such as BTC, USDT, PAX without any commission. The OTC platform currently supports USD, CAD, CNY, IDR and VND.
Trading platforms
KuCoin offers a trading platform that was built from the ground up. There is no need to download or install any software on your desktop device, as KuCoin's trading space is accessible via your standard web browser. The platform is potentially suitable for both novice investors and experienced traders.
The reason we say this is that while the platform is simple and easy to navigate, there are many advanced tools at your disposal. You can customize the platform according to your needs.
Kucoin trading screen
As far as trading volumes and liquidity are concerned, you shouldn't have any worries when trading the most popular pairs. You may, however, find that volumes are low on less liquid pairs, especially ERC-20 tokens.
Trading on the go
If you tend to buy, sell and trade cryptocurrencies on the go, then you may be interested in the KuCoin mobile trading application.
App available for both iOS and Android devices. You will have access to most of the app's account functions, such as placing orders, checking your wallet value, and depositing and withdrawing funds.
How long do withdrawals take up KuCoin?
In the vast majority of cases, KuCoin will process your withdrawals within 30 minutes of receiving your request. The platform notes that this is an automatic authorization and manual authorization is only required if the size of your deposit is more than 100.000 times the handling fee (mining fee).
Once the funds leave KuCoin, they will be transferred to the crypto wallet address of your choice. Make sure the address is valid, because KuCoin can't do anything if you make a mistake!
Withdrawals from KuCoin
Earn interest with KuCoin
Another feature available on KuCoin is its loan program. In its most basic form, you have the ability to earn interest on your digital currency holdings by lending them. The main concept is that tokens will be used to help fund margin accounts.
For example, let's say a KuCoin trader decides to apply 10x leverage on an order. For each day the position is held open overnight, the trader should pay interest. This is because they are trading with more than they have on their account and therefore it comes at a cost.
Earn interest by lending your cryptocurrency
That said, KuCoin has opened its doors to common investors by giving you the ability to fund margin positions. This is available on several cryptocurrencies including USDT, Bitcoin, Ethereum, Litecoin, EOS, and many more.
As for the specific interest rate, this varies from crypto to crypto. For example, by lending Bitcoin for 28 days, you could earn an annual interest rate of 4,83%.
If this is something you are interested in, KuCoin offers a profit estimation calculator. You simply specify how much you are willing to lend, on which digital currency and for how long and the calculator will show you how much you can earn.
Beware, however, that there are risks. After all, KuCoin is not a regulated cryptocurrency exchange, so you need to take this into account in your risk / reward ratio.
Is KuCoin Safe?
As with all cryptocurrency exchanges, it is imperative that you are able to verify whether KuCoin is safe or not. This includes not only the regulatory status of the platform, but also its internal and external security practices.
Let's look at these measures in more detail.
regulation
Simply put, KuCoin is not regulated by any national licensing body. This is not a big surprise in the cryptocurrency trading arena, as many platforms choose to operate without a license. Whether you feel comfortable trading on an unregulated exchange or not depends on which side of the fence you sit on.
For example, if you are the type of trader who prefers to buy and sell cryptocurrency pairs anonymously, then a platform like KuCoin is likely to suit your needs. On the other end of the spectrum, if you are the type of trader who requires regulatory collateral of some kind, then Kucoin may not be enough.
KYC (Know Your Customer) Control
As mentioned above, KuCoin is not required to ask you for any personal information, nor will it require any sensitive identification documents. For CB deposits only you will be asked to provide proof of identity.
In fact, in order to remain compliant with all relevant anti-money laundering laws, you will need to upload a copy of your government-issued ID (passport or driver's license).
Security practices of KuCoin
As for internal security practices, KuCoin claims to run institutional quality systems that guarantee and prevent crime on the platform. This is fully supported by a commitment to cold storage.
Even though the exact percentage is not specified by KuCoin, it is claimed that the vast majority of client funds are kept offline. The remainder is kept in warm wallets to ensure the platform is able to fulfill its offering of near-instant and automatic withdrawals.
To date, there have been no releases of KuCoin that have encountered a hack of any kind, which is a very good sign. Please understand that there is always an external hacking risk.
It is worth noting that in April 2020, KuCoin entered into a strategic cooperation with Onchain Custodian, the Singapore cryptocurrency platform. Onchain Custodian will offer a custodian service to hold KuCoin cryptocurrencies. The custody funds will be backed by Lockton, the largest private insurance brokerage in the world. This is believed to further improve the security level of the exchange.
2FA security
Even better, KuCoin allows you to set up two-factor authentication (2FA) on your account. This means that a unique code will be sent to your mobile device whenever you want to perform key account functions.
KuCoin customer support
When it comes to customer service, the KuCoin team provides a 24/7 support team. You can email the team, but if you need immediate face-to-face support, it's best to use live chat.
Kucoin customer support
Some users report that the connection time is on the order of a second, others have noted that the wait times are beyond acceptable. It depends on how busy the team is at the time of the request. No telephone support is offered.
How to get started with KuCoin
If you think KuCoin is a good fit for your long-term trading needs then we will now show you what you need to do to get started with a trading account today.
Step 1: Open an account
To get started, go to the KuCoin homepage and click on the “Register” button at the top of the screen. You will then be prompted to enter your email address and to choose a strong password.
You will need to verify your email address before connecting 2FA via your mobile. At this stage of the registration process, you will not be asked for any personal information.
Registration with Kucoin
Step 2: Deposit of funds
Once you have opened your KuCoin account, you will be asked to deposit funds. You have two options. If you already have a digital token, you can deposit it directly in KuCoin.
Just go to the deposits page and search for the respective cryptocurrency. Then, click on the deposit tab to reveal your unique wallet address for that specific cryptocurrency.
Copy the address from your clipboard, go to your private wallet, specify the number of tokens you want to deposit and confirm the transaction.
Depending on the cryptocurrency you deposit, it usually takes around 10-20 minutes for the funds to be credited to your KuCoin account.
Fiat currency deposit
If you don't have access to a digital currency, you will need to deposit funds with your debit or credit card. Hover over the "Buy Crypto" button, then click on "Buy with Credit Card".
Follow the step-by-step instructions presented to you on the screen. Basically, you will be asked to verify your identity before you can use your credit / debit card.
Step 3: Start trading
Once your KuCoin account has been credited, you are ready to trade. The specific trading space you need will depend on the type of financial instrument you are looking to access. This is because KuCoin separates its cryptocurrency exchange from its futures platform.
KuCoin Opinion 2021: The verdict?
In summary, it is clear that KuCoin is now one of the most popular cryptocurrency exchanges. Not only does it give you access to over 450 cryptocurrency pairs, but you can also trade specific indices of cryptocurrencies and Bitcoin futures.
Also, the standard trading fee is only 0,1%, which you can reduce by an additional 20% by paying the fee with KuCoin shares. We also like the fact that it is now possible to deposit funds with a debit or credit card, although, you will need to go through a KYC process first.
The main drawback we encountered with KuCoin is that it is not a regulated entity. While this means that you can trade cryptocurrency pairs anonymously, your funds are never 100% safe.
On the other hand, KuCoin has never been hacked since its inception in 2017, which is a very good sign.
Benefits
Transparent and reasonable rates
Good customer support
Easy to use
Trading in futures and margins
Options to generate interest
Downside
Not regulated
I am now not certain where you're getting your info, however good topic. I must spend some time finding out more or understanding more. Thanks for wonderful info I used to be looking for this info for my mission.