Kucoin Review: Is it Right for You?

Pros

• Staking earns you interest in your cryptocurrency
• Offers a wide variety of coins to trade
• Has advanced trading features
• Low fees

Cons

• Not available in the U.S
• Bad reviews

KuCoin is a cryptocurrency exchange that has been gaining a lot of traction lately. It offers users a wide variety of digital assets to trade and has low fees. In this KuCoin review, we will take an in-depth look at the exchange and see if it is right for you!

What is Kucoin?

KuCoin is an extensive and global cryptocurrency exchange providing a wide array of trading options to crypto enthusiasts. The platform was founded by Michael Gam, Top Lan, Kent Li, Linda Lin, John Lee, Eric Don, and Jack Zhu. However, it was not until September 2017 that KuCoin was officially launched.

The platform is an ideal cryptocurrency exchange platform for experienced traders owing to its extensive features. Although KuCoin’s interface may be difficult to navigate for new crypto traders, it allows them to buy on margin, spot trade, futures trading, and access a peer-to-peer (P2P) marketplace. Furthermore, the exchange service provides over 700+ cryptocurrencies with trading fees as low as 0.1%, which is lower than other crypto exchange services. 

KuCoin is accessible to traders via iOS and Android mobile devices and on desktops.

Where is KuCoin Located?

The global cryptocurrency exchange has an operational headquarter in Seychelles. KuCoin is not licensed to operate in the US. The crypto exchange service is in 207 countries with more than 18 million global traders.

KuCoin Trading Options and Order Types

KuCoin has a diverse range of trade options which gives the exchange service its competitive edge. The trade options allow traders to diversify their income and reduce risk when trading cryptocurrency. Understanding what trade options KuCoin offer and how to leverage them is best. Here’s a detailed view of KuCoin trading options.

Trading Options

• Margin Trading: KuCoin allows traders to increase their purchasing power using leverage. Leverage allows traders to borrow funds for large crypto investments. Also known as “buying on margin”, margin trading compares to taking out a loan to buy an asset and repaying it with interest. 

Buying on margin is an attractive trade feature and also quite profitable. However, it has its limitation if the value of the crypto declines. It magnifies the losses; you can lose your digital assets through forced liquidation.

KuCoin’s exchange platform supports both cross and isolated margin trading. Furthermore, if you opt to use margin trading on KuCoin, it is advisable to consider the risks before committing a hefty amount. Additionally, Kucoin provides interest-free coupons with margin trading that allows you to borrow funds at no interest. 

• Spot Trading: Spot trading in crypto compares to the typical spot trading of stocks. It allows traders to directly buy or sell digital assets at the listed price despite market fluctuations. 

This type of trade is a plus for traders because it provides room for profit. The market price of a crypto token is known as the spot price, hence giving a name to the trade. If you are new to crypto, spot trading is an ideal way to get a feel of the crypto market.

• Futures Trading: Futures is a form of predetermined trading that allows traders to buy and sell crypto at an agreed price in the future. It is a financial contract between the buyer and the seller where both parties are expected to meet their obligations. 

KuCoin allows for futures trading where the buyer agrees to purchase a certain amount of digital assets while the seller commits to provide the assets at the agreed price. This type of trading is independent of crypto market prices. Simply put, futures trading protects you from the possible fluctuation of market prices when trading crypto. For newbie traders, futures trading is an ideal hedge against market risks. 

Order types

Investors use orders as essential trading tools to issue brokers instructions when placing a trade. Generally, KuCoin supports three order types; Market Order, Limit Order and Stop Order.

• Market Order: This type of order is instant and allows traders to buy and sell digital assets at the current market price. It is a fast way to enter and exit a trade position.
• Limit Order: This order directs the purchase and sale of crypto at a specific price. Typically this will involve placing the quantity, commission price and leverage.
• Stop-Limit/Stop-Market: This order allows you to set a fixed trading price for your digital asset and stop the trade once the market reaches the price. 

Currencies and Payment Methods

KuCoin’s exchange platform provides over 700 digital tokens investors can buy, sell, or trade. Some of the prominent tokens you can find on the platform are:

• Bitcoin (BTC)
• Dogecoin (DOGE)
• ApeCoin (APE)
• Litecoin (LTC)
• Polygon (MATIC)
• Fantom (FTM)
• Cosmos (ATOM)
• Ethereum (ETH)
• Polkadot (DOT)
• Shiba Inu (SHIB)
• XRP (XRP)

KuCoin supports nearly 70 payment methods making it easier for investors to purchase digital tokens. Although the platform does not support the purchase of crypto with fiat currency, you can use your credit cards, Google Pay or Apple Pay for a fast purchase. The platform also supports Peer-to-Peer lending, allowing you to borrow funds from other traders directly. 

Notably, once you deposit money in your KuCoin account, it is best to buy a certain amount of currency and use it to purchase more digital tokens.

Fees

KuCoin uses a maker/taker-tiered model in determining fees for future and spot trading. Marker orders are those that provide liquidity, while taker orders receive liquidity. Both models have different fees. On the other hand, KuCoin charges withdrawal fees that vary with market performance and the asset type.

KuCoin Deposit and Withdrawal Fees

The best part about KuCoin is that it does not charge traders when making a deposit. The exchange platform allows you to make a deposit using their website and the KuCoin App. Here is a step-by-step guide on what you need to do.

Deposit Via KuCoin Website

• Step 1: Log in to your KuCoin account and navigate to the Asset section, which is in the upper right corner of the header.

• Step 2: Select Deposit, then select the coin you wish to deposit and the network.

• Step 3: Copy and paste the deposit address to the withdrawal platform. For first deposits, you will need to activate the deposit address.

• Step 4: Deposit the coins to the applicable KuCoin account.

Deposit Via KuCoin App

• Step 1: Download the KuCoin App, available for both iOS and Android devices.
• Step 2: Navigate to the Assets Tab and select deposit.
• Step 3: Select the coin you wish to deposit. Use the search function if you don’t find it on the list.
• Step 4: Select the account you are depositing to, then copy and paste the address to the withdrawal platform. Alternatively, you can scan the QR code to copy the address.

For crypto withdrawal, you can navigate to KuCoin’s website for a step-by-step guide.

KuCoin Trading fees

The exchange platform provides a fixed 0.1% fee for spot trading. Compared to competitors, KuCoin charges the lowest trading fee for every transaction. KuCoin uses a 12-level fee structure that determines its trading fees.

At Level O, traders have zero KuCoin Share (KCS) or a trading volume less than 50BTC. In such instances, traders are charged the regular 0.1% for spot trading. As you go up the levels to 12, the number of KCS and trading volume increases. The highest tier, which is 12, attracts a taker fee of 0.025% and a maker fee of 0.005%.

Notably, various factors will affect your trading fees. If you enable the KCS pay fees function, you can receive up to a 20% trading fees discount. 

Deposit Withdrawal and Trade Limit

KuCoin doesn’t have a limit on any transactions, whether you are making a deposit or a transfer. However, with the rise of cyber scams worldwide, Kucoin provides certain restrictions when it comes to withdrawals.

Security

Is Kucoin safe? Well, KuCoin suffered a massive hack in 2020, leading to the loss of around $250 million worth of cryptocurrency from hot wallets. However, the hack did not tamper with cold wallets. KuCoin eventually managed to trace back the hack to a vulnerability in KuCoin’s API system, allowing hackers to access user accounts and steal their funds. Also, most of the stolen funds were recovered. KuCoin has since beefed up its security measures and promised that such an incident would never happen again.

KuCoin offers a variety of features to protect your assets, including 2-factor authentication, lock down your account with Google Authenticator, and a host of other security measures. KuCoin also employs K.Y.C. for its customers, with withdrawal passwords required to ensure it offers maximum security.

Customer Service

Like with many other crypto trading exchanges, KuCoin you can reach KuCoin customer support through the live chat tool on the website and mobile app. You can also get help on KuCoin’s Customer Support page. Here you will get answers to frequently asked questions, like deposits, withdrawals, and more. You can also opt to join KuCoin’s social media support channels. 

When it comes to customer reviews, KuCoin performs poorly, with many bad reviews across different sites. Most users complain of their assets disappearing once they deposit them to the exchange. Others complain of poor customer service and say the platform is very hard to use. But even with the many bad reviews, some users have positive reviews like the exchange’s low fees, many trading options, and the wide range of assets to trade.

Alternative Exchanges

When it comes to KuCoin alternatives, there are a few options worth considering. Let’s look at how KuCoin compares to some other popular crypto exchange platforms.

Binance vs. KuCoin

Compared to KuCoin, Binance is a more popular worldwide exchange and is also available for U.S. residents. Binance also has a higher trading volume than KuCoin, meaning there is more exchange liquidity. This can be helpful if you’re looking to buy or sell a large amount of coins. However, KuCoin does offer some advantages over Binance. KuCoin has a wider range of cryptocurrencies to choose from than Binance.

Gate.io vs. KuCoin

Both these exchanges offer a wide range of trading features. However, Gate.io provides more security than KuCoin when it comes to trading. On the other hand, KuCoin provides a more user-friendly platform, has lower trading fees, and offers more assets than Gate.io.

Coinbase vs. KuCoin

Coinbase is a US-based exchange with a more limited selection of coins than KuCoin but allows for fiat currency deposits and withdrawals. Coinbase has robust security measures and ease of use. KuCoin has lower trading fees, a wide selection of altcoins, and a user-friendly interface. 

How to Open KuCoin Account

To open a KuCoin account follow the following steps:

• Step 1: First, go to https://www.kucoin.com, navigate to the top right corner of the home page and click “Sign Up.”

• Step 2: Here, you will need to provide your details. You can opt to sign up using your mobile number or email address. Fill in your details, and click “Send Code” to receive your verification code. The code will be sent to the phone number or email address you provide.

• Step 3: Once you receive your verification code, enter it, create a strong password and click on the “Sign Up” button. Now you are ready to start trading on KuCoin.

FAQ

1. How Much Does Kucoin Charge per Trade?

KuCoin has a tiered fee structure. Kucoin charges lower fees than most exchanges and only charges up to 0.1%for each trade. This rate reduces every time you level up. KuCoin also offers a KuCoin Bonus to users who hold pay using K.C.S (KuCoin Share).

2. How Much Does It Cost to Withdraw From Kucoin?

Kucoin doesn’t charge for deposits but does charge for withdrawals. However, the minimum withdrawal fees differ from coin to coin. For example, to withdraw Bitcoin, KuCoin charges 0.0005 BTC, 0.00625 ETH for Ethereum, and 1ADA for Cardano.

3. Can You Withdraw From Kucoin to a Bank Account?

Kucoin only allows withdrawals to a cryptocurrency wallet. You cannot withdraw fiat currency from Kucoin to a bank account. So if you want to withdraw your crypto to a bank, you must first connect to a wallet like Coinbase, transfer your crypto there, and cash out to your bank.

4. How Long Does It Take To Transfer Coins to Kucoin?

Kucoin doesn’t have a deposit time frame. Your coins should show up in your Kucoin account as soon as they are transferred from your wallet to Kucoin.