KuCoin Review 2022
Making Crypto Simple
KuCoin is the fifth-largest cryptocurrency exchange by trading volume in the world. This global crypto trading platform is widely considered to be one of the most cost-effective third-party crypto exchanges in the business, offering a wide range of cryptocurrencies and many trading possibilities.
In this review, we’ll try to assess whether trading with KuCoin is worthwhile, explore its regulatory status, see if this trading platform is trustworthy, discuss what financial instruments are available to crypto investors and whether it offers a quality customer service to the users. Next up.
About the KuCoin Exchange
KuCoin is one of the largest social trading platforms that enables you to interact with over 10 million global crypto investors and gain access to timely and trusted crypto information. Designed to meet the needs of both beginners and experienced traders, KuCoin has offered some of the lowest fees in the industry since 2017.
The fact that KuCoin is situated in Singapore, Hong Kong, and Seychelles should be enough to inform more savvy investors that this is not a regulated exchange.
These jurisdictions often have more liberal financial rules than the US or European regulatory requirements, making them a financial paradise for startup crypto ventures. Consequently, exchanges operating in these jurisdictions provide cheaper trading costs and a diverse range of small-sized cryptocurrencies.
Since KuCoin is not a registered trading platform, the exchange didn’t allow fiat money deposits on your trading account for several years. Crypto beginners would have to swap fiat currencies for cryptos through some fiat-gateway exchanges like Binance before trading cryptos on KuCoin, complicating the trading process.
Not being able to use their fiat money was indeed a deal-breaker for some of the seasoned traders.
The Introduction of KuCoin Fiat Accounts
Following the best industry practices and recognizing the need for a simplified deposit procedure, KuCoin introduced Fiat Accounts in 2019 by employing bank cards. Users must go through due diligence and KYC procedures to fully utilize their bank cards in KuCoin trading.
The KuCoin Shares (KCS) Token
KuCoin Shares (KCS) is the native coin of the KuCoin ecosystem. Investors receive a rebate on the exchange’s trading costs and a 50% of all trading fee profits for holding these utility tokens.
KCS holders can also vote on the platform’s future development and list new coins.
Not only does KuCoin list the most liquid cryptocurrencies on the market, but it also gives you access to some of the lesser-known coins that could help newbies enter the market with a smaller investment. With more than 600 altcoins, including Bitcoin (BTC), you will certainly find your preferred coin on this platform.
Among the most traded cryptocurrencies on KuCoin, we find BTC, Ethereum (ETH), Cardano (ADA), Dogecoin (DOGE), Ripple (XRP), etc.
This user-friendly platform supports an astounding range of payment alternatives for purchasing cryptos. You can use the Fast Trade option to purchase your preferred coin with a single click using your Visa or Mastercard credit card, debit card, prepaid card, PayPal, SEPA, Simplex, or one of the 70 other payment methods. Additionally, users can pay for the P2P trades through a bank transfer.
Simply create an account, verify your identity, add your bank card or select the payment option to fund your trading account, and you’re ready to start trading crypto assets.
KuCoin Fees and Limits
With KuCoin’s maker/taker fee model, trading costs on the platform range from 0.0125% to 0.1%, depending on the level of your tier. In essence, the more liquidity you provide to the platform, the higher you rise on the tier scale, resulting in a higher rebate on your trading fees.
Compared to its competitors, this exchange’s trading fees are among the lowest on the market, with most competitors charging fees of 0.5% or more per trade.
Instant Purchases, Deposits, and Withdrawals
Buying cryptocurrency with a bank card will cost additional transaction fees, which KuCoin will withhold from your total trading costs. You will be charged only after the transaction has been confirmed. Your bank card provider may also impose charges for online or upfront payments, but KuCoin has nothing to do with these expenses.
Funding your KuCoin account is free, but you need to deposit a minimum of $5 onto your trading account before you can trade cryptocurrencies.
When it comes to the withdrawal fees, these costs are variable and depend on the blockchain traffic of the respective cryptocurrency involved in the transaction.
KuCoin cryptocurrency exchange services are offered to traders from over 200 countries worldwide. Even though the exchange appears to be built for expert traders at first sight, it actually provides simplified features for quick and easy crypto purchases.
The crypto exchange lists more than 50 fiat currencies for trading via its P2P (peer-to-peer) market and credit/debit card gateway. Some supported fiat currencies include CAD, USD, EUR, GBP, and more.
Apart from P2P crypto trades, KuCoin also provides various volatile trading products, including derivatives, futures, margin trading, leveraged tokens, trading bot, NFT trading, OTC trading desk, crypto lending, and a plethora of passive income alternatives.
KuCoin Futures Trading
KuCoin provides a platform with simplified trading tools for novices in futures trading.
The Lite Mode platform streamlines the futures trading process and provides simplified charting for following the market trends. On the other hand, the Pro Mode platform features comprehensive real-time analytic tools and advanced charting to help traders follow market trends.
KuCoin Staking Program
KuCoin Earn (formerly Pool X) is an interest-earning program designed by KuCoin. This financial product can help crypto investors increase the value of their crypto holdings by staking their coins.
KuCoin’s staking method incorporates flexible savings and staking with defined payoff conditions. Investors who choose a flexible-term staking program can withdraw their funds at any moment.
On the other hand, a client’s interest is automatically transferred back into their account when a fixed-term product matures financially. In addition, KuCoin’s fixed-term staking program has a greater chance of yielding high interest than the flexible-term solutions.
Margin Trading on KuCoin
KuCoin users can trade some of the most liquid cryptocurrencies on KuCoin’s margin trading platform. Crypto investors can leverage BTC, ETH, LTC, KCS, and other cryptocurrencies up to 10x through this platform. Traders who pay the trading in KCS become eligible for a discount on the trading fee.
This type of trading can be exceedingly risky. Novices may begin with a simulated account to understand how it works. A fictitious trading environment is created via a demo trade, allowing inexperienced traders to learn about trading and develop new trading methods.
Margin trading on the KuCoin platform should be undertaken with a modest trading position at first. As the investors become more familiar with the market and the trading positions, they can gradually raise the number of their trades.
KuCoin Trading Bots
KuCoin’s trading bots are free-to-use software that allows traders to automate their trading activities. Classic Grid (or spot trading bot), Futures Grid, and Dollar-Cost Averaging trading bots are the three most popular trading software currently supported by this trading tool.
Classic Grid Trading Bot
One of the most common and straightforward trading strategies is the classic grid or spot trading, which aims to profit from market movements by automatically arranging buy and sell orders. It’s just a matter of automatically placing purchase orders when the price of your favourite token drops or selling orders when the price of your selected token rises.
Futures Grid Trading Bot
Using a Futures Grid Bot, KuCoin users can benefit from higher profit from the orders placed on long or short positions in futures and grid trading. Investors’ money will be divided into many grids, and the bot will purchase cheap and sell high.
Investors can utilize the Futures Grid Bot in a variety of ways to boost their earnings, including going short, going long, or even investing in cryptos with leverage. If you don’t want to be exposed to the risks of the ever-volatile crypto market or if you want to trade futures but have insufficient expertise, this trading bot is for you.
Dollar-Cost Averaging Trading Bot (DCA Bot)
Once the user has provided the bot with the funds, they can then command the bot to buy a predetermined quantity of cryptocurrency at a predetermined time. Investors can also set a time limit for how much money they want to spend on certain cryptocurrency purchases. The bot will repeat the strategy according to the set parameters.
Users that buy cryptocurrency daily may find this method cumbersome. It’s a rather tedious strategy, but it can yield a good profit in the long run.
Is KuCoin.com Safe to Use?
As a non-regulated exchange, KuCoin works hard to safeguard its users and infrastructure. The cryptocurrency project follows the KuCoin Anti-Money Laundering (AML) and Know Your Customer (KYC) verification procedures intended to prevent money laundering and fraud.
KuCoin security features include encryption of all user data, a compulsory activation of the two-factor authentication protocol (2FA), and an internal risk control team.
KuCoin’s Security Incident
KuCoin issued an official statement in September 2020 confirming that a massive amount of Bitcoin and Ethereum tokens had been withdrawn from KuCoin’s hot wallets, while assets that had been held in their cold wallets remained untouched.
According to the KuCoin’s executives, the hackers were able to obtain the private keys to the exchange’s hot wallets. More than $150 million in ERC20 tokens were withdrawn from the platform.
As a result, KuCoin immediately froze all deposits and withdrawals, triggered an internal audit process, and pledged to compensate impacted users with the exchange’s money and insurance.
If you want expert assistance regarding any of the KuCoin trading functionalities or the registration procedure, a customer support staff is available 24/7 through email.
The exchange also offers a live chat, a help centre with pre-answered questions about the most important trading operations, and an informative blog page regularly adding new content.
KuCoin Pros and Cons
Here’s the best and the not so good of KuCoin in a nutshell:
- Supports over 600 different cryptocurrencies and an equally vast number of trading pairs;
- Has some of the lowest trading fees in the industry;
- Enables margin trading;
- Offers a trading fee discount for the KCS holders;
- Offers higher daily withdrawal limits for the higher KYC verification levels;
- Provides numerous passive earning instruments;
- Has 24/7 customer support and a live chat;
- Allows you to make fiat deposits to a special Fiat Account.
- Unregulated exchange;
- Wire transfers are not enabled;
- A hacking incident that resulted in a massive loss of funds.
The Bottom Line
KuCoin has some of the lowest trading fees in the industry. There’s also a broad range of digital assets and financial instruments available for trading, making this platform almost an ideal all-in-one trading spot for crypto investors.
Despite the lack of regulatory compliance, many traders flock to KuCoin, attracted by its low trading fees. However, sometimes it could be cheaper to pay more if it means trading safely and more efficiently. Jumping headfirst into uncharted waters (read: unregulated) to get a more affordable deal could easily result in a financial loss for beginners, especially when dealing with volatile products. But, if you’ve already made your way in the crypto market and have gained some experience, KuCoin is a solid trading platform overall.
Frequently Asked Questions
Using a Visa or MasterCard that supports 3D Secure (3DS) option and completing the advanced user verification process will allow you to make crypto purchases with a bank card.
If this is your first time depositing cryptocurrency to your KuCoin account, you should first activate the deposit address of the particular coin. For instance, Ethereum (ETH) can’t be sent to a Bitcoin (BTC) address. If you deposit coins that don’t match the wallet address, you might not be able to get them back. There are no exceptions to this rule.
Also, some coins (like USDT and ETH) can be used on more than one blockchain network on KuCoin. Make sure that the network you choose is the same as the network for your wallet address. The cryptocurrency won’t go into your account if you don’t do that.
KuCoin users’ identity can be verified by their passport or other identity documents (such as government-issued photo ID or driver’s license) and utility bills that list the trader’s current residential address. Businesses can be verified with the help of the Chamber of Commerce records or a notary deed.
Also, you’ll need to provide your full name, address, phone number, and a valid email during the account registration process.
There are no fees for using the P2P marketplace to purchase or sell cryptocurrencies.
Yes. If you’d rather use Kucoin on the go, there’s a mobile app for that. The Kucoin app enables you to perform almost all the trading activities provided on its web platform. You can easily swap coins, fund your account or withdraw your funds, analyze your trading history, and more with the app.
The KuCoin mobile app is compatible with both iOS and Android-supported devices.