Welcome to the ultimate guide on KuCoin, one of the fastest-growing cryptocurrency exchanges in the world. In recent years, KuCoin has gained popularity among traders and investors due to its user-friendly interface, extensive range of digital assets, low trading fees, and advanced security features.
As the crypto industry continues to expand, it’s essential to have a platform that enables easy access to a variety of coins and tokens. KuCoin aims to bridge the gap between traditional finance and the emerging world of cryptocurrency, making it a popular choice for both beginners and experienced traders.
This comprehensive guide will explore everything you need to know about KuCoin, including its history, pros and cons, features, security measures, trading fees, and even how to sign up on the platform!
What is KuCoin?
KuCoin is a prominent exchange in the world of cryptocurrency, which provides a comprehensive platform for buying, selling, and trading various digital assets. Apart from regular trading options, the exchange offers advanced features such as margin trading, futures trading, and peer-to-peer (P2P) trading, providing a wide range of options to users. Moreover, users can earn rewards by staking or lending their crypto on the platform.
KuCoin’s trading fees are significantly lower compared to some of its competitors, making it an attractive option for frequent traders. In addition to the low fees, the exchange offers a user-friendly interface, making it easy for both beginners and experienced traders to navigate the platform.
The exchange supports over 700 cryptocurrencies, including popular coins such as Bitcoin, Ethereum, and Ripple, as well as emerging coins, providing users with a diverse range of options to choose from.
Overall, KuCoin is a reliable and secure platform that provides a range of features and options, making it a preferred choice for traders and investors in the cryptocurrency market.
KuCoin is a global cryptocurrency exchange that has rapidly gained popularity in the world of digital assets since its launch in 2017. Based in Seychelles, KuCoin offers a user-friendly platform that enables traders and investors to easily buy, sell, and trade a wide range of cryptocurrencies.
KuCoin has established itself as a reliable and secure platform, with a growing community of users from around the world. The exchange supports more than 400 trading pairs, and has a daily trading volume of around $500 million, making it one of the largest exchanges in the world.
In late 2022, when FTX experienced an unexpected market crash, speculations spread that KuCoin had substantial involvement with the crypto exchange. Johnny Lyu, CEO of KuCoin, promptly negated these rumors, asserting that his organization was not associated with FTX in any manner.
To further fortify user assurance during this questionable period, KuCoin displayed transparency over their Proof of Reserves similar to other cryptocurrency exchanges.
Pros and Cons of KuCoin
KuCoin is known for its user-friendly platform, wide range of digital assets, and low trading fees. However, before investing in the cryptocurrency exchange, it’s essential to understand its fair share of pros and cons.
- Coin Diversity. Supports over 700 cryptocurrencies and trading pairs
- Has a wide option of payment methods
- Supports the exchange of fiat to crypto and vice versa.
- Easy to download mobile apps for android and iOS devices.
- Availability of micro withdrawal wallets.
- Decent trading fees and reasonable rates.
- An uncluttered user interface is user-friendly and easy to navigate.
- Congestion times may lead to a slow browsing experience and transactions
- Slow customer service
- Limited bank options as a payment method
- Currently doesn’t support trading pairs for fiat pairs
Security and regulation – Is KuCoin safe or a scam?
Security is a major concern for cryptocurrency traders, and KuCoin has established itself as a reliable and secure exchange. The exchange implements several security measures, including two-factor authentication, SSL encryption, and cold storage to protect users’ funds and personal information. Additionally, KuCoin conducts regular security audits to ensure that the platform is safe and secure.
Despite its efforts to maintain a high level of security, KuCoin has not been immune to security breaches. In September 2020, the exchange suffered a major hack that resulted in the loss of $281 million worth of cryptocurrency. However, the exchange has since implemented measures to compensate affected users and improve its security protocols.
In terms of regulation, KuCoin is registered in Seychelles, where it is subject to local laws and regulations. While the exchange is not regulated by any major financial authority, it has implemented several measures to comply with regulatory requirements, such as conducting KYC/AML checks for all users. However, it is worth noting that KuCoin is restricted in several countries, including the United States, Japan, and Canada, among others.
Overall, while KuCoin is not regulated by major financial authorities, it has established itself as a reputable exchange in the world of cryptocurrency, with a strong commitment to security and compliance. However, users should be aware of the risks involved in trading on any cryptocurrency exchange and take necessary precautions to protect their funds.
KuCoin offers several trading features to make it easier for users to buy and sell cryptocurrencies. These include limit orders, margin trading, futures and options trading, leveraged tokens, spot trading, and OTC trading. Additionally, the exchange also provides an API that can be used to create automated strategies in the market.
Let’s dive in further below.
KuCoin Futures (KuCoin Mercantile Exchange) is an innovative cryptocurrency trading platform that enables traders to purchase and sell leveraged futures using Bitcoin, Ethereum, and USDT. Unlike other exchanges that use fiat currencies or additional cryptocurrencies as the basis for their trades, KuCoin Futures strictly employs only BTC/ETH – meaning all profits and losses are doled out in these two digital assets or stablecoin equivalents.
KuCoin Futures exclusively offers cryptocurrency futures trading products, which differ from spot trading in that users trade financial futures contracts with other traders on the platform. When trading futures on KuCoin, users agree to buy or sell a particular cryptocurrency asset at a predetermined price and at a specified time in the future.
Futures trading on KuCoin Futures is a popular option for traders looking to profit from price movements in the cryptocurrency market, as it allows for leveraged trading and enables traders to take both long and short positions. By trading futures contracts, traders can speculate on the price direction of a cryptocurrency without actually owning it, which can be a useful tool for managing risk and exposure to the market.
KuCoin’s trading fee model is based on the taker-maker system, which distinguishes between orders that provide liquidity (maker orders) and orders that take liquidity (taker orders). When an order is executed immediately, it is considered a taker order, and the user will pay a taker fee. Conversely, when an order is not immediately matched and is placed to enter a buy or sell order, it is considered a maker order, and the user will pay a maker fee.
KuCoin offers a tiered fee system, where the fees are based on the user’s trading volume over a 30-day period. As users increase their trading volume and move up to higher tiers, they can receive discounts on their trading fees. Additionally, users who place maker orders can receive a lower fee than those who place taker orders, as long as they reach level 2 on the platform.
If an order is partially matched, the portion that is immediately matched is subject to a taker fee, while the remainder of the order is placed as a maker order and is subject to a maker fee once it is matched. Overall, KuCoin’s trading fee system offers users a transparent and fair way to trade cryptocurrencies at competitive rates.
KuCoin is known for its support of small-cap altcoins. The exchange has a reputation for being an early adopter of new and innovative projects, which has helped it become a popular platform for traders looking to invest in small-cap altcoins with high growth potential.
KuCoin has listed a wide variety of small-cap altcoins on its platform, providing traders with access to new and emerging projects in the cryptocurrency space. This has helped to establish KuCoin as a platform that supports innovation and fosters growth in the cryptocurrency market.
Quantitive trading (Algorithmic Trading)
KuCoin provides traders with a trading bot that can save them the time and effort of continuously monitoring the market, all while making sure their trades remain profitable. This trading bot is designed to help traders take advantage of market opportunities even in extreme market conditions. By constantly monitoring the market and executing trades around the clock, traders can easily respond to market fluctuations and capitalize on potential profit-making opportunities.
In addition to increasing profits, the KuCoin trading bot is also useful in mitigating the potential risks associated with market volatility. With the Smart Rebalance bot, for example, traders’ portfolios will automatically be rebalanced in the event of an extreme unilateral price increase. This feature allows traders to customize their portfolios and set preferred thresholds, and the bot will automatically rebalance the portfolio when these thresholds are triggered.
The KuCoin trading bot offers four different trading strategies: Spot Grid, Dollar-Cost-Average (DCA), Futures Grid, and Smart Rebalance. The Classic Grid Trading bot, in particular, allows traders to create spot trading using AI parameters that take advantage of market volatility. Traders can also customize their own parameters by setting the minimum and maximum prices for buying a coin. The Spot trading bot stops trading when the price trends outside these ranges, ensuring that trades remain profitable.
KuCoin Peer-to-peer facilitates investors in transferring or swapping cryptocurrencies from their accounts to those of other users without requiring the services of a financial intermediary. Hence, it is also known as an instant exchange since transactions rely on the digital transfer between fiat currencies and cryptocurrencies.
With kucoin’s P2P marketplace, users can purchase and trade crypto like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) – to name a few. What makes this exchange stand out from the rest is its multiple payment options available for customers; you have the choice of using fiat currencies such as USD, EUR, GBP, etc., or different types of payment methods like PayPal, TransferWise, and Bank Transfers.
With KuCoin Earn (previously known as Pool-X), you can now earn rewards from staking your Proof-of-stake digital currencies, such as TOMO, ATOM, KCS (KuCoin Token), XTZ, IOST, TRX, and ZRX. Not only is it a flexible platform with diversified products; but users also have access to reliable passive income thanks to the Savings, Staking, and Promotions available on this system.
As you may have discovered while trading cryptocurrencies on an exchange, a tiny amount of the transaction is extracted as a fee. This charge equates to the commission that these exchanges demand providing their service and helping complete your trade.
In simpler terms, it is the cost of utilizing the platform provided by crypto exchanges. As there are no subscription charges for these services, trading fees become a major source of revenue stream for them. Thus, they play an essential role in helping traders to determine which exchange best suits their needs and requirements.
KuCoin charges a trading fee for all crypto trades made on its platform, which varies based on the order type and your tier level. KuCoin houses more than 1,500 spot markets with an astonishing selection of over 700 cryptocurrencies–categorized into three divisions (Class A, B & C) according to volume as well as other elements.
Notably, KuCoin has a unique trading fee structure that rewards users who have high monthly transaction volume or own KCS tokens with reduced fees. There are twelve different tiers (thirteen including the base level) to account for this system. Market makers and market takers pay 0.1% of their trade when it comes to Class A cryptocurrencies at the starting tier; however, as you move up in tiers both maker and taker fees decline until reaching Tier VIII – XII where they become negative.
Let’s see the prices between trading fees in each KuCoin trading feature.
Futures trading fees
Level 0 – Maker Fees: 0.02%; Taker Fees: 0.06%; 24H Withdrawal Limit: 200
Level 5 – Maker Fees: 0%; Taker Fees: 0.04%; 24H Withdrawal Limit: 500
Level 8 – Maker Fees: -0.003%; Taker Fees: 0.032%; 24H Withdrawal Limit: 1000
Level 12 – Maker Fees: -0.015%; Taker Fees 0.03%; 24H Withdrawal Limit: 3000
- The base level (the one you start at).
- Level 5, where the maker fee becomes 0%.
- Level 8, where KuCoin starts paying market makers.
- Level 12, is the highest VIP level.
Spot trading fees
Level 0 – Maker Fees: 0.1%; Taker Fees: 0.1%; 24H Withdrawal Limit: 200
Level 5 – Maker Fees: 0%; Taker Fees: 0.07%; 24H Withdrawal Limit: 500
Level 8 – Maker Fees: -0.053%; Taker Fees: 0.045%; 24H Withdrawal Limit: 1000
Level 12 – Maker Fees: -0.005%; Taker Fees 0.02%; 24H Withdrawal Limit: 3000
Level 0 – Maker Fees: 0.2%; Taker Fees: 0.2%; 24H Withdrawal Limit: 200
Level 5 – Maker Fees: 0%; Taker Fees: 0.14%; 24H Withdrawal Limit: 500
Level 8 – Maker Fees: -0.005%; Taker Fees: 0.09%; 24H Withdrawal Limit: 1000
Level 12 – Maker Fees: -0.005%; Taker Fees 0.05%; 24H Withdrawal Limit: 3000
Level 0 – Maker Fees: 0.3%; Taker Fees: 0.3%; 24H Withdrawal Limit: 200
Level 5 – Maker Fees: 0%; Taker Fees: 0.21%; 24H Withdrawal Limit: 500
Level 8 – Maker Fees: -0.005%; Taker Fees: 0.135%; 24H Withdrawal Limit: 1000
Level 12 – Maker Fees: -0.005%; Taker Fees 0.075%; 24H Withdrawal Limit: 3000
The above table shows 4 key levels out of the 12 possible VIP levels:
- The base level (the one you start at).
- Level 5, where the maker fee becomes 0%.
- Level 8, where KuCoin starts paying market makers.
- Level 12, is the highest VIP level.
KuCoin Demo Trading Account
Trading in cryptocurrency can be perplexing even for veteran traders. Nevertheless, the key to success is understanding how financial markets operate. This entails having a sound knowledge of price movements as well as employing trading strategies and honing them through practice.
KuCoin offers a demo trading account feature that allows users to trade in a simulated environment. This feature is perfect for new traders who are not yet confident enough to start trading with real money. It is also useful for experienced traders who want to test out new trading strategies or features before committing to real funds. The demo account is a risk-free way to explore the platform and practice trading with no financial consequences.
The KuCoin demo trading account is easy to set up and provides access to all the trading tools and features of the platform. Users can trade with virtual currency and experiment with different trading strategies without any real risk. The demo account is a valuable resource for traders who want to familiarize themselves with the platform and build their confidence before trading with real funds.
KuCoin offers a mobile app for both iOS and Android users that allows them to access the platform’s features on the go. The app provides a user-friendly interface that is easy to navigate and is designed to make it easy for users to buy, sell, and trade cryptocurrencies with ease. With the app, users can access their KuCoin accounts and trade on the platform from anywhere at any time. This feature is particularly useful for traders who want to stay updated on their trades while on the move.
In addition to trading, the KuCoin app provides access to market data, news, and analytical tools that help users stay up to date on the latest market trends. Users can track their portfolio performance, check their transaction history, and set up price alerts to be notified of any significant price changes. The app also supports push notifications, which makes it easy for users to stay informed about market news and changes in real-time.
How to Download the App?
You can scan the code below to install it directly on your device:
How to sign up
The process of setting up an account with KuCoin is straightforward and only takes a few minutes. To begin, navigate to the KuCoin website and select the “Sign Up” button located in the upper right-hand corner of the page. Afterward, you will be prompted to enter your phone number or email address, along with a verification code and password. Once your account is established, you can begin trading.
To access more features and higher daily withdrawal limits, you may opt to undergo the KYC (Know Your Customer) verification process. KuCoin offers both basic and advanced KYC verification options. To complete the basic verification process, simply log in to your account, go to the “KYC verification” section under your avatar, and provide some fundamental personal information.
If you choose to undergo advanced verification, you will need to provide additional documentation, such as a government-issued ID or a selfie, along with your basic personal information. By completing advanced verification, you will have access to more trading benefits.
Below is a step-by-step process on how to create an account:
Step 1: Access www.kucoin.com, click on Sign up at the top right of the website
Step 2: Input your email address and password, please use capital and lowercase letters and numbers to set your password.
Step 3: After registration, the KuCoin system will send an email to you.
Step 4: Check the activation email in the mailbox and click the link to activate the KuCoin account.
Step 5: Bind google two-step verification
In conclusion, KuCoin is a well-regarded cryptocurrency exchange that offers a wide variety of trading features and services to its users. From spot trading to futures and margin trading, staking, and lending, KuCoin provides its users with many options for trading and investing in cryptocurrencies. Additionally, the exchange has a robust security system and regulatory compliance measures in place to ensure the safety of its users’ funds and personal information.
KuCoin’s trading platform is user-friendly, and the exchange offers several tools to help its users make informed trading decisions, including a trading bot, market analysis tools, and a mobile app. However, it’s worth noting that the exchange has restricted access in certain countries, and users should be aware of the potential risks involved in cryptocurrency trading.
KuCoin is great for both beginner and experienced traders looking to trade cryptocurrencies safely and securely. The user-friendly platform, secure infrastructure, mobile app, and advanced features make it an attractive choice for traders who want to make the most out of their investments.
Overall, KuCoin is a strong option for anyone looking to trade or invest in cryptocurrencies, offering a diverse range of features and services that cater to both novice and experienced traders. With its low trading fees, easy account setup process, and advanced verification options, KuCoin is a competitive player in the cryptocurrency exchange market.
10. KuCoin FAQ
Q: What is KuCoin?
A: KuCoin is a popular cryptocurrency exchange platform that allows users to trade a wide range of digital assets, including Bitcoin, Ethereum, and other altcoins.
Q: Is KuCoin safe and regulated?
A: KuCoin is not regulated, but it implements several security measures to protect users’ funds and personal information. These measures include two-factor authentication, cold storage for assets, and monitoring for suspicious activities.
Q: Is KuCoin a reliable exchange?
A: KuCoin has been in operation since 2017 and has built a reputation as a secure and reliable platform. The exchange employs a range of security measures, including two-factor authentication and cold storage of user funds.
Q: How do I create an account on KuCoin?
A: To create an account on KuCoin, simply visit the KuCoin website and click on the “Sign Up” button. You’ll need to provide some basic personal information, including your name and email address, and complete a verification process to get started.
Q: What fees does KuCoin charge?
A: KuCoin charges a range of fees for different services, including trading fees, withdrawal fees, and deposit fees. The exact fee structure depends on the type of transaction and the digital asset being traded.
Q: Can I buy cryptocurrencies with fiat currency on KuCoin?
A: No, KuCoin does not currently support fiat currency deposits. To buy cryptocurrencies on KuCoin, you’ll need to deposit digital assets or use a supported payment method, such as a credit card.
Q: What trading products are available on KuCoin Futures?
A: KuCoin Futures offers Futures of cryptocurrencies, where traders can agree to buy or sell a particular crypto asset at a predetermined price and time in the future. The Futures trading products available include Spot Grid, Dollar-Cost-Average(DCA), Futures Grid, and Smart Rebalance.
Q: What is the KuCoin bonus program?
A: The KuCoin bonus program is a rewards system that offers users a daily bonus based on the amount of KuCoin Shares (KCS) they hold. The bonus is paid out in a variety of digital assets, and the amount of the bonus varies based on market conditions.
Q: Does KuCoin offer margin trading?
A: Yes, KuCoin offers margin trading for a range of digital assets. However, margin trading involves a high level of risk and should only be used by experienced traders.
Q: Can I use KuCoin in my country?
A: KuCoin is available in most countries around the world, but there are a few exceptions. Before signing up for an account, it’s important to check whether KuCoin is available in your region. KuCoin restricts residents or citizens of several countries, including the United States, Canada, and China, to use its platform.
Q: What is KuCoin’s customer support like?
A: KuCoin offers customer support through a range of channels, including email, live chat, and social media. The exchange also has a comprehensive help center that provides answers to common questions and issues.
Q: Does KuCoin have a mobile app?
A: Yes, KuCoin has a mobile app that is available for download on both the App Store and Google Play Store.
Q: How can I ensure the security of my KuCoin account?
A: To ensure the security of your KuCoin account, it’s important to use strong passwords, enable two-factor authentication, and avoid sharing your account information with anyone else. Additionally, it’s a good idea to keep your digital assets in cold storage when not actively trading.