KUCOIN
1. What is KuCoin?
KuCoin stands as a centralized exchange offering a wide array of cryptocurrency trading services, established in May 2017 by a team of seasoned professionals with backgrounds in notable projects like Ant Financial and iBox PAY. Their vision was to establish a user-friendly and secure platform catering to global traders interested in various digital assets, aiming to position KuCoin among the top cryptocurrency exchanges worldwide. Since its inception, KuCoin has garnered substantial growth, boasting over 30 million users by 2024, a significant leap from its initial 1 million users reported in early 2018. Despite slightly lower average trading volumes compared to leading exchanges like Binance, KuCoin has maintained commendable operational stability, as highlighted in numerous user reviews. Accessible via both web browsers and mobile applications compatible with Android and iOS devices, KuCoin’s platform and app are lauded for their simplicity and convenience by many users.
2. Cryptocurrencies supported on KuCoin
We were impressed by the extensive range of cryptocurrencies and crypto trading pairs available on KuCoin, surpassing popular options like Bitcoin, Ethereum, and LiteCoin to encompass even lesser-known ERC 20 tokens and various other cryptos.
The vast selection ensures ample options for trading and investment opportunities, catering to both short-term traders and long-term investors. However, the abundance of cryptos also raises concerns about the thoroughness of vetting for legitimacy and sustainability, potentially exposing investors to significant losses if any listed coin proves to be fraudulent.
3. How to Use KuCoin?
KuCoin operates solely as a crypto-to-crypto exchange and does not facilitate fiat transactions. This adherence to crypto principles ensures anonymity in transactions, aligning with the industry’s commitment to blockchain values. However, this approach presents challenges for newcomers to the crypto space. Without support for fiat deposits, users must first utilize a fiat-to-crypto exchange like Coinbase or Kraken to convert fiat currency into cryptocurrencies. Subsequently, they can transfer these digital assets to their crypto wallet and then deposit them into the KuCoin platform for trading.
1. How to Sign Up on KuCoin?
Step 1: To create a new account on KuCoin, you will need to go to their homepage. Once you’re there, click on the “Sign Up” button, which is at the top right corner of the screen.
Step 2: You will then be taken to the registration page. Here, you will need to enter your email address or phone number and read the exchange’s terms of conditions.
Make sure to actually read them, so you understand everything . Once you have, tick the accept terms and conditions box and then the “Create Account” button.
Step 3: You will then be asked to prove that you are human by solving a captcha. Once you do that, you’ll need to confirm your email address (or phone number) by filling in the code that KuCoin sends you.
Step 4: Finally, to get your account open, it’s time to come up with a password. Make sure to choose a very strong password.
Step 5: Now, you have to verify your identity to start using KuCoin products. However, you can also explore the platform and verify it later, if you wish.
2. How to trade on KuCoin
KuCoin provides a user-friendly and uncomplicated process for buying and selling cryptocurrencies. It begins with registering for a crypto trader account on the platform, which grants access to KuCoin markets upon email address verification.
Noteworthy aspects of KuCoin’s crypto market include the flexibility to select between 4 to 8 decimal prices on the order book. The interface is straightforward, featuring the order book on the left, the price of the chosen trading pair on the right, and buy and sell buttons at the bottom. Additionally, users benefit from simplified trading decisions as the platform automatically presents the best price option for their trades, typically reflecting the price of the last order.
Step 1: Once you have funded your account, click on “Markets” at the top of the page.
You could also go straight to the spot trading interface by clicking on “Trade” and then “Spot Trading,” but let’s go with the former option, as it might be a bit easier to understand if you’re a beginner.
Step 2: You then need to search for the coin you want to buy. To do this, enter it into the search box that can be found on the right side of the page.
In my example, I am looking to buy DOGECOIN. Once it pops up, click “Trade,” and you’ll be taken to the spot trading interface.
Step 3: I was taken straight to the DOGE/USDT trading pair. However, if you don’t have USDT in your account, you can pick another pair.
Just click on the pair, type in the asset you want to buy into the search bar, and KuCoin will list all the different trading pairs that are available. For example, I chose DOGE/USDT, meaning that I will be trading USDT for DOGECOIN. Click on the trading pair that matches the coin you deposited.
Step 4: You will now be on the main trading screen. On the right side of the page, look for the “Place Order” box that is displayed next to the list of orders.
To make a purchase, simply input the quantity of coins you wish to buy and then proceed by clicking the green “Buy” button to finalize your transaction. It’s a straightforward process!
Now that you understand the simplicity of account creation and purchasing on KuCoin, the final aspect to discuss in this KuCoin review is the type of traders best suited for this exchange.
4. KuCoin trading fees and commissions
To begin with, cryptocurrency deposits on KuCoin are typically free, apart from the standard blockchain transaction fee required for the transfer. This fee varies based on the specific cryptocurrency being deposited.
When it comes to withdrawing your coins from the exchange, the withdrawal fee is determined by the cryptocurrency you wish to withdraw and the network you opt to use. For instance, withdrawing BTC via the Bitcoin network incurs a fee of 0.001 + Amount * 0% BTC. Detailed information about withdrawal fees for other cryptocurrencies can be found on KuCoin’s platform.
Regarding trading fees, KuCoin offers spot and futures trading, each with its own fee structure based on the maker/taker model and a VIP-level system. Spot trading fees are further influenced by the token class to which the asset belongs, categorized into Class A, B, and C:
- Class A comprises top cryptocurrencies like BTC, ETH, and AAVE, among others, with maker and taker fees starting at 0.1%.
- Class B includes cryptocurrencies like HYDRA and PEPE2, with a base maker/taker fee of 0.2%.
- Class C encompasses less popular cryptocurrencies such as BMX and VELO, with a base maker/taker fee of 0.3%.
However, users can lower their fees by increasing their VIP level, which can be achieved by raising their KCS holdings or their 30-day trading volume. KuCoin has 12 VIP levels, with significant fee changes occurring at Levels 0, 5, 8, and 12. Additionally, users can enjoy a 20% discount on fees when using KCS tokens to cover them.
In futures trading, which is limited to Class A assets, fees also vary based on VIP level, but there are no discounts when using KCS tokens to cover these fees.
5. Security and digital assets protection
It’s noteworthy that KuCoin has never experienced a hacking incident, indicating robust security measures safeguarding both client funds and exchange systems.
KuCoin credits its ability to maintain the security of clients’ crypto assets to two primary factors. Firstly, the exchange limits the collection of personal information from clients to the bare minimum necessary for safety, preventing hackers from exploiting excess data. Secondly, despite not providing free crypto wallets, KuCoin has prioritized investment in cold storage solutions, where the majority of client crypto deposits are securely stored, inaccessible to hackers.
6. Regulation and reputation
KuCoin takes pride in its status as one of the leading unregulated exchanges. It advocates for self-regulation within the cryptocurrency sphere and chooses not to adhere to traditional financial regulatory bodies such as the U.K.’s FCA or Australia’s ASIC.
Conclusions
Despite being established in late 2017, KuCoin has risen to prominence as one of the leading cryptocurrency exchanges today. After examining its website and testing key features like the buy/sell process and customer support, we’re impressed with aspects such as their competitive fees. We’re particularly impressed by KuCoin’s track record of never being hacked and its commitment to safeguarding client information by minimizing data collection and securing whatever information they do retain. Based on these factors, we consider KuCoin to be a safe and dependable crypto-to-crypto exchange. However, users may need to exercise some patience when dealing with their customer support team.