390

KuCoin Review 2021 | Fees, Pros, Cons | Buy & Sell Bitcoin

KuCoin Review by Finbold
Jordan
Major
Updated: 14 Jul, 2021
23 mins read

Introduction

KuCoin cryptocurrency exchange was launched in 2017 and has evolved to become one of the world’s largest digital asset platforms by offering diverse trading pairs and crypto-related services.

Michael Gan and Eric Don, who created the company, designed the platform to offer a secure and straightforward exchange for the worldwide community to invest and trade digital currency. As of the first half of 2021, KuCoin has more than 8 million registered users in over 100 countries.

The central concept behind the trading platform is that it intends to provide customers with virtual asset transaction and exchange services, integrating premium assets worldwide and a cutting-edge transaction platform.

This guide will give an in-depth review of the global cryptocurrency exchange KuCoin. You will learn about brokerage’s supported coins, fiat currency facilities, fees and commissions, security, customer support, and trading platform itself.

Why users choose KuCoin exchange

KuCoin the people’s exchange. Source: KuCoin.com

KuCoin’s development and overall adoption among one out of every four crypto investors and traders are due to an array of reasons as stated below:

  • The exchange hosts over 300 coins and 450 cryptocurrency pairs, including significant pairings like BTC/USDT and ETH/USDT among a plethora of crypto-cross pairs;
  • Customers looking to trade a less liquid ERC-20 coin are likely to find it on KuCoin. Moreover, users can purchase these digital currencies using a debit/credit card and trade crypto-to-crypto pairings. The exchange aims to promote the free flow of digital value worldwide;
  • Virtual currency usage has increased according to the KuCoin website; it has accumulated over 360 billion in trading volume (USD), surpassed 8 million global users, and amassed more than 795 million trades on its exchange since its inception in 2017;
  • Technology-driven products. KuCoin utilizes cutting-edge technology to provide valuable services for everyone, allowing more people to benefit from the power of blockchain;
  • A community for everyone. KuCoin, as an exchange of, for, and by the people, is building a community to which anyone may approach and voice their ideas while benefiting from the firm’s growth;
  • KCS – the key to unlocking the KuCoin ecosystem. KuCoin is creating an ecosystem centered on the KuCoin Token (KCS) (more on this later), which will serve as your guide into a vibrant decentralized world developed by all KuCoin community members.

KuCoin exchange’s features and products

1. Trading platform

KuCoin’s trading platform is designed from the ground up to assist both novice investors and seasoned traders. There is no need to download or install any software on your desktop device to access the KuCoin trading area, which can be accessed using your standard web browser.

Although the platform has a clean look and easy-to-use interface, it also has a wealth of complicated functions and tools available, allowing traders to personalize their KuCoin set-up completely. The standard KuCoin trading terminal (see the image below) provides all the necessary information for the traders to execute the orders precisely.

KuCoin’s desktop trading screen. Source: KuCoin.com

Moreover, it must be brought to your attention that when trading popular pairs, trade volumes and availability of liquidity should not be a problem. With that being said, more minor liquid combinations, such as ones that use ERC-20 tokens, may, however, have low volumes.

Trading options 

Spot

Every transaction in KuCoin spot trading has a set cost of 0.1 percent, which is lower than the worldwide industry average. The decrease in spot trading fees is determined by users’ 30-day trading volume and Kucoin Shares holdings. Other trading costs are also discounted based on variables. 

Participants in institutional investor programs also get substantial trading fee reductions.

KuCoin Spot Fee. Source: KuCoin.com
Margin

Margin trading is a tool that allows investors and traders to use other users’ funds on Kucoin to acquire a more considerable capital amount enabling them to leverage positions. There are 15 cryptocurrencies available for margin trading on Kucoin, including KCS, ETH, and BTC.

This trading service is suitable for both short and long positions. Remember that by borrowing money, traders may increase their profits. At the same time, they may incur a significant loss in comparison to their initial investment. Kucoin features 35 trading pairings that may be leveraged up to 10X.

Futures

Futures trading involves the purchase and sale of future standardized contracts for financial assets. The buyer uses this service to purchase assets at a specific price and time (delivery date) in the future. On the other hand, the sellers will be required to provide the asset at that specified price and time.

Users can trade contracts with coin margins with up to 100X leverage, for example, trading contracts up to $10,000 with as little as $100 in their account. There are two versions of Kucoin Futures trading: one for novices (light mode) and one for experienced traders (Pro mode).

In layman’s terms, this means that a $100 account balance entitles you to a maximum trade value of $10,000. KuCoin derives the underlying spot price from a weighted average of various notable exchanges, including Kraken, Coinbase Pro, and Bitstamp.

KuCoin Futures screen. Source: KuCoin.com
KuCoin Futures in the app version. Source: KuCoin app

Users can trade USDT-margined Bitcoin and Ethereum contracts using the Lite interface. The Pro interface, on the other hand, allows investors to choose between the following contracts: 

USDT-margined: ETC and BTC perpetual.

BTC-margined: BTC perpetual, BTC Quarterly 0925, and 1225.

Since relative financing rates might be positive or negative, KuCoin Futures features changeable USD/USDT loan rates. Every 8 hours, the Futures funding occurs.

KuCoin Futures Fees. Source: KuCoin.com

Note: Please keep in mind that you should only trade Bitcoin futures with leverage/margin trading if you are completely aware of the risks involved and know what you are doing. With big opportunities come extreme risks.

OTC Trading Desk

OTCD stands for Over-The-Counter Trading Desk. Using this service, investors may execute larger trades at certain prices without causing the price of that cryptocurrency to fluctuate. Users may use CAD, IDR, VND, and CNY to buy USDT, BTC, and other cryptocurrencies directly. You must first complete KYC before you can begin OTC trading.

Trading interface

Beneath the full-featured chart, there is an assets overview that features the main account balance. Traders see an Order book and Market Depth on the right when they open the trade screen; beneath them are the tabs for Spot, Margin 10X, and Futures 100X orders.

There are additional tabs beneath the full chart for Open Orders, Stop Orders, Order History, and Trade History. At the top of the page, there is a convenient information bar at the top and a menu/navigation zone on the top right.

To start trading at the top of the platform, on the left, select BTC/USDT and choose the ‘Markets’ option from the section shown at the top. You may look for the coin you desire in the search bar on the upper left side of the display. Kucoin will show a list of trading pairings for the currency you want to purchase.

KuCoin Markets. Source: KuCoin.com


Select the trading pair that corresponds to the coin deposited. It will take you to the main trading screen, where you will see a purchase box on the right side, underneath the order book. 

All you have to do now is input the number of coins you want to buy, click the best price button, and then click the green buy box to finish trading. That’s all there is to it.

KuCoin fees

Trading fees

One of the primary reasons for KuCoin’s popularity is its lower fees than other cryptocurrency exchanges at 0.1 percent per trade. The Kucoin trading cost is basic and transparent, making it simple for consumers to grasp.

In order to obtain detailed information regarding the fees, check out KuCoin’s fee schedule.

Withdrawal fees

The withdrawal costs for KuCoin are the lowest in the cryptocurrency space. Every time a user withdraws BTC, it costs 0.0004 BTC.

This cost is lower than the industry standard, which is why millions of people choose the exchange. The withdrawal costs are determined by the various cryptos accessible on this site. You can find more information about the fees here.

KuCoin Withdrawal Fees. Source: KuCoin.com
Deposit fees

KuCoin has no deposit fees. It means that it does not charge consumers for deposits or associated transactions.

Note: To know everything about the fees associated with the KuCoin trading platform, be sure to read our in-depth guide on KuCoin fees.

Deposit options

KuCoin now allows you to deposit money directly into your Main/Trading/Margin/Futures/PooL-X account (click here to learn more about each account’s purpose). To access the KuCoin deposit page, click here.

The ‘Main Account’ is for cryptocurrency deposits and withdrawals, credit card-based fiat-to-crypto purchases, and margin lendings.

In contrast, the ‘Trading Account’ is for cryptocurrency transactions, and the ‘Margin Account’ is for margin borrowing and margin trading. The ‘Futures Account’ is used for futures trading, such as XBTUSD perpetual futures, while the ‘Pool-X Account’ is for Staking mining, with yearly yields of up to 20%.

Deposit implies transferring assets from other platforms to KuCoin as the receiving side—the transaction is a deposit to KuCoin, while the sending platform receives a withdrawal. 

Note: Before depositing any currency, please ensure that the appropriate deposit address is activated and that the deposit feature for this token remains active.

KuCoin-supported countries

KuCoin supports nations such as the United States, Canada, the United Kingdom, Australia, Singapore, India, and Japan. The most popular fiat currencies for purchasing coins include USD, EUR, CNY, GBP, CAD, and AUD.

2. Mobile trading

The mobile web version of the exchange allows users to trade on the go. The trader can navigate between Markets, Trading, Futures, Assets with one click, choose an order type, pair, and easily execute the order hassle-free.

With KuCoin mobile trading app you can perform transactions at any time and from any location since you have immediate access to your mobile browser. Also, purchasing coins takes 30 seconds and only four steps to complete.

KuCoin’s mobile app trading screen. Source: KuCoin app.

Tip: You can also add KuCoin trading experience to your smartphone without the need to download the app (via its M Station feature), check this KuCoin’s guide for step-by-step instructions.

If you often purchase, sell, and trade cryptocurrencies while on the go, the KuCoin mobile trading app, free to download for iOS and Android smartphones, could be up your street. The app will provide access to the majority of functions on your account, such as making orders, monitoring the value of your portfolio, and depositing and withdrawing funds.

KuCoin trading app. Source: KuCoin.com

3. KuCoin Shares (KCS) – exchange’s native token

KuCoin Shares, or KCS for short, is a cryptocurrency token developed by the exchange. Having and storing KCS tokens will give clients access to a range of benefits as owning and holding KCS native coin entitles the user to reduced trading fees as well as a portion of KuCoin’s trading commissions.

KCS benefits include:

  • Discounted Trading Fees. The lowered trading expenses are one of the most apparent benefits of holding KuCoin Shares. Notably, while a base fee of 0.1% is industry-leading, you have the option of lowering it by an additional 20% just by simply activating the KCS Pay Fee button to take advantage of the discounts.
  • Dividends. Aside from lowering your trading charges, owning KuCoin Shares gives you the option to earn dividends. For example, KuCoin will distribute 50% of the trading commissions collected from members daily and distribute them proportionately to all KuCoin Shareholders. Consider the scenario in which you possess 1% of the total KCS supply. If the platform pays out $100,000 in commissions, you will receive $1,000.

It is worth mentioning that to be eligible for dividends, you must own at least 6 KCS. Likewise, if you want to acquire KuCoin Shares, you may do so by exchanging them on the site for another cryptocurrency like Bitcoin or Ethereum.

4. Crypto pairs 

Every trading pair at KuCoin is crypto-to-crypto, not least because it does not provide any fiat-denominated products. Instead, if you wish to participate in the crypto-to-USD market, you must first trade your selected cryptocurrency against the USDT.

In addition to USDT, you may trade crypto-cross pairs; some examples are BTC/ETH, ETH/XRP, and BSC/BTC, which on the site, there are almost 450 pairings. 

Among other things, KuCoin is also one of the first exchanges to be used by newly launched cryptocurrency token ventures. Thus, the KuCoin team is working hard to make support for digital currencies with lower liquidity a reality. At CoinMarketCap, you can get a detailed overview of each KuCoin pair.

5. KuCoin indexes

On top of standard crypto-cross pairings, KuCoin offers several indexes; the firm’s idea is to take a weighted average of a specific cryptocurrency over many significant exchanges. 

This is done to give a more accurate price for the currency in question since it accounts for the variations across competing platforms.

KuCoin indexes are available across:

  • Bitcoin;
  • Ethereum;
  • Litecoin;
  • XRP.

KuCoin obtains its pricing data from the cryptocurrency exchanges listed below:

  • Coinbase;
  • Bitstamp;
  • Kraken;
  • Gemini;
  • Bittrex;
  • Liquid.

The price of each index is denominated in USD but settled in the cryptocurrency of choice.

6. Earn interest at KuCoin

KuCoin’s lending program is an additional feature. In its most basic form, lending your digital money allows you to earn interest on your investment. The principal idea is that the tokens will be used to help fund margin accounts.

Here’s the video showing how to lend funds on KuCoin:

Consider this: if a KuCoin trader decides to use 10x leverage on an order, the trader will have to pay interest  each day the position is open overnight since they are trading with more money than they have in their account. As a result, they are incurring a loss.

By allowing users to finance margin positions, KuCoin has accommodated everyday investors. Margin trading may be done using various crypto-assets, including USDT, Bitcoin, Ethereum, Litecoin, EOS, etc. 

The precise interest rate will differ from one coin to the next. The trader might earn an annualized interest rate of 4.83% by lending out Bitcoin for 28 days, for example.

Even though the interest rates on offer are highly appealing, you must consider the risks involved. After all, KuCoin is not a regulated cryptocurrency exchange; therefore, investors must factor this in.

Getting started with the KuCoin 

Signing up and starting trading on KuCoin is a straightforward process. KuCoin, in contrast to many Western exchanges, is unregulated. On the other hand, users do not have to spend much time getting started, and there is no chance of KuCoin disclosing sensitive personal information.

How to open a KuCoin account (step-by-step)

Step 1: Go to KuCoin.com and in the top right-hand corner, click “Sign Up” in order to access the registration page.

KuCoin Sign-up function. Source: KuCoin.com

Step 2: Next, you will be prompted to choose between two sign-up methods (via Email or Mobile phone). If you want to register using your email, choose “Email” and input your email address and a new password that you have never used before on the following page. You will not be asked for any personal information at this point in the registration process.

Registration tab via the email route:

Registration process via the email route. Source: KuCoin.com

Registration tab via mobile phone:

Sign-up using a mobile phone. Source: KuCoin.com

Step 3: Accept the terms of service (after reading them thoroughly, of course) and click “Sign Up”.

Step 4: Depending on which route you used to register, KuCoin will send you a confirmation email or a text message, which will include a verification link that you must click in order for your account to become live.

Adding additional safety features

Apart from verifying your email address and your phone number, which are standard procedures on all the exchanges, KuCoin emphasizes taking extra steps to protect the account and your assets. To this end, KuCoin utilizes Google two-factor authentication (2FA). By enabling the 2FA, traders can carry out critical account operations with a unique code provided to their mobile device, for instance, logging into your account and requesting a withdrawal.

Moreover, the brokerage has added a trading password as a new function to protect the account and the digital assets. Users can set a unique trading password which one can subsequently use to verify the transactions on the platform, withdraw money, create API and perform other functions. 

Depositing your account

Since the end of 2018, KuCoin has collaborated with Simplex, a European payment provider enabling users from over 100 countries to deposit money using a debit or credit card. As a result, the process is now a lot easier; enter your debit/credit card details and send funds to the platform if you want to trade cryptocurrencies or futures at KuCoin, but you do not have any digital currency. 

After creating your KuCoin account and implementing the security measures, you will be prompted to deposit money. You have two choices in this regard. If you already have a digital token, you may deposit it into KuCoin. Simply go to the deposit page and look for the relevant currency. Then, under the deposit page, you will notice your unique wallet address for that coin.

Copy the address to your clipboard, go to your private wallet, deposit the desired amount of coins, and complete the transaction. It takes 10-20 minutes for the funds to be credited to your KuCoin account, depending on the cryptocurrency you are depositing.

Deposit fees and conditions

However, it should be pointed out that the expenses involved are not insignificant. Although there is a rare deposit fee reduction, it will cost you a hefty 2.5–3.5% (with a minimum of $10).

KuCoin is not regulated by any government body, which means that while you may trade cryptocurrencies without giving any personal information, you will be unable to acquire digital coins using a debit or credit card through Simplex until you prove your identity.

Here’s a simple video explaining how to deposit funds on KuCoin:

Once your account has been funded, you can begin trading. The sort of trading area you require will be determined by the type of financial instrument you wish to access. This is due to the fact that KuCoin keeps its cryptocurrency exchange and futures derivative platforms separate.

How long do withdrawals take at KuCoin?

KuCoin will execute your withdrawals within 30 minutes of receiving your request in the majority of situations. This is automatic, according to the platform, and personal permission is only necessary if the size of your deposit is greater than 100,000 times the processing charge (mining fee). Additionally, customers can transfer the funds to the cryptocurrency wallet address of their choice after they leave KuCoin.

KuCoin-supported cryptocurrencies

KuCoin supports over 300 different cryptocurrencies and responds quickly to user feedback by frequently expanding support for popular currencies.

For example, if your favorite coin is not on the platform, KuCoin may include it in the future, providing that you communicate its merits to the exchange. A publicly available list of all supported cryptocurrencies and trading pairs can be seen here.

Is KuCoin safe?

KuCoin offers bank-level asset security to provide the safest possible environment for all transactions and account holders.

It utilizes several security techniques, such as micro-withdrawal wallets to safeguard your real-time withdrawals, multi-factor authentication, industry-level multilayer encryption, and a dedicated internal risk control department to ensure the safety of your investment.

The platform itself is committed to cold storage, even though KuCoin does not give an exact figure, it is believed that the vast majority of customer funds are kept offline. The remainder is stored in hot wallets to ensure that the platform can continue to offer near-instant and automated withdrawals.

To improve the exchange’s security further, KuCoin formed a strategic partnership with Onchain Custodian, Singapore’s crypto-asset custody platform, in April 2020. Onchain Custodian will provide a custody service for KuCoin cryptocurrency holdings while Lockton, the world’s largest private insurance brokerage firm, will back the custodial funds. 

Nevertheless, in September 2020, KuCoin experienced a hacker attack, resulting in the loss of $280 million.  In November, the platform’s CEO reported that the company managed to recover 84% of hacked funds; the incident has raised some serious security concerns. Therefore, since the assets are kept in wallets that you do not control, one must be aware of the risks associated with a potential external breach.

KuCoin, as referred to earlier, is not regulated by any national licensing agencies, and in many jurisdictions, the regulatory position of digital tokens is ambiguous or undetermined. Thus depending on changes in existing laws, regulations, or rules could result in digital currencies being classified as securities or be subject to additional regulations.

In that case, KuCoin may discontinue providing such services or prohibit the services in or from certain jurisdictions.

Note: To know more about the safety measures KuCoin puts in place be sure to read our in-depth ‘Is KuCoin Safe?’ guide.

Account verification procedure – Know Your Customer (KYC)

KuCoin is not obligated to ask for any of your personal information, nor will they request sensitive identification papers, as previously stated. The sole exception to this rule is using the Simplex connection to deposit funds using a debit or credit card.

In actuality, for the purpose of compliance with all applicable anti-money laundering rules, you will be asked to produce a copy of your government-issued ID (passport, ID card, or driver’s license) when using fiat money on a crypto-exchange. 

To complete your KYC for individual accounts, go to “KYC Verification”–”Individual Verification” and click “Start Verification.” Fill in your personal information, such as your country of residence, name, and ID number, and then click “Submit.” Your KYC1 will be approved shortly.

Below is a video how to do Individual KYC verification on KuCoin:

You will need to upload a photo of yourself as the account holder, holding your ID and a handwritten note next to your face. First, the handheld ID document must be original; prints will not be accepted. Second, the handwritten note must include your full name, date, and the most recent dynamic code that appears on the screen during the verification process.

The date should be written in the following format: year-month-date. Signatures printed on paper or created in Photoshop will not be accepted. When you submit the verification, it will take about 3-5 working days for your KYC verification to be reviewed, and you will receive an email confirmation once it has been confirmed.

Note: To know more about account verification procedure on the exchange check our in-depth KuCoin KYC step-by-step verification guide.

KuCoin customer support

Before contacting customer support, traders should first visit the KuCoin website’s FAQ section. If they are unable to resolve their issue through this facility, they can contact the KuCoin support team, which is available 24 hours a day, seven days a week.

You can reach the staff by email, but you can use the live chat option if you want quick one-on-one support. However, there is no telephone assistance available.

KuCoin’s customer support page and the online chat function. Source: KuCoin.com

KuCoin Pros and Cons

Pros

KuCoin features straightforward and fair fees; it is simple to use, in addition to providing excellent assistance. Furthermore, the site offers Futures and Margin Trading, as well as other ways to generate money.

  • Transparent & reasonable fees;
  • Solid customer support;
  • Ease of use;
  • Futures & Margin Trading;
  • Options for earning;
  • Native-coin (KCS) holders enjoy additional benefits and promotions.

Cons

KuCoin is not regulated; therefore, users do not have the same level of insurance that they would get with a regulated exchange.

  • Unregulated;
  • Before making a deposit with a debit/credit card, you must first authenticate your identity;
  • The platform could be challenging to navigate for novice traders.

Final thoughts

KuCoin considers that technological advancement will change the way we produce and share value, and one day, everyone will be interested in cryptocurrency. 

In the industry, KuCoin considers itself ‘the most advanced and secure cryptocurrency exchange to buy and sell crypto. Even in the competitive cryptocurrency exchange space, KuCoin has swiftly differentiated itself from its rivals. 

The platform is expanding rapidly and shows no signs of slowing down, with hundreds of currencies, Kucoin IOS and KuCoin Android apps, cheap KuCoin fees, and a unique cryptocurrency/profit-sharing system.

Even though KuCoin is not a regulated company, you may trade crypto-to-crypto pairs anonymously, but your money is never entirely safe. 

In conclusion, it is easy to understand why KuCoin has become one of the most popular cryptocurrency exchanges in the sector, since it not only provides access to over 450 cryptocurrency pairings, but it also allows you to trade crypto-specific indexes and Bitcoin futures.

FAQ’s 

Can US citizens open KuCoin accounts?

Yes, although US residents are not permitted to go through KYC on the platform, this does not preclude US users from using it. It simply implies that they are limited to withdrawing no more than two Bitcoins each day. Because crypto-to-crypto trades are taxable in many countries, including the United States, you will almost certainly need to record KuCoin trades.

When and who founded the KuCoin exchange?

KuCoin Exchange, often known as “The People’s Exchange,” is a Singapore-based cryptocurrency exchange first designed in a cafe in 2013 with a mission to make crypto accessible to everyone by Michael Gan, Eric Don, Top Lan, Kent Li, John Lee, Jack Zhu, and Linda Lin and officially launched on September 15, 2017.

Is the KuCoin exchange popular? 

Yes, KuCoin is a prominent cryptocurrency exchange that many people use to trade a wide range of altcoins that are not always available on other exchanges. Furthermore, regular trading costs are only 0.1%, which may be reduced by an additional 20% by paying using KuCoin Shares. The fact that you may now deposit funds with a debit or credit card, albeit by first undergoing a KYC check, is also a plus in today’s market.

Does KuCoin have good liquidity to offer? 

Yes, Kucoin is a high-liquidity cryptocurrency exchange software application that enables you to trade a variety of cryptocurrencies quickly. Its high liquidity rate allows for quicker transaction processing and enables you to execute trades quickly and easily. Because the platform does not limit the amount of trade and growth a firm can manage, the active exchange provides total scalability.

Be first to rate

Join us on Twitter or Telegram

Like the article? Vote up or share on your social media

Recommended content

Weekly Finance Digest

By subscribing you agree with Finbold T&C’s

Jordan Major
Author

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.