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Best of KuCoin

• Low fees
• Strong user base
• Wide range of coins
• Earn interest on your crypto

Diego G. Crypto Enthusiast

Updated: July 5, 2024

KuCoin Review 2023: Outstanding Advanced Crypto Trading Features KuCoin’s cutting-edge features, minimal fees, and variety of coins are best utilised by seasoned cryptocurrency traders. Nonetheless, KuCoin’s lack of a U.S. operating licence lowers its ranking. To learn if you ought to create an account, read our comprehensive evaluation of KuCoin.   Complete review of the […]

KuCoin Review 2023: Outstanding Advanced Crypto Trading Features

KuCoin’s cutting-edge features, minimal fees, and variety of coins are best utilised by seasoned cryptocurrency traders. Nonetheless, KuCoin’s lack of a U.S. operating licence lowers its ranking. To learn if you ought to create an account, read our comprehensive evaluation of KuCoin.

Complete review of the KuCoin exchange

For seasoned non-American cryptocurrency traders who want access to additional coins and cutting-edge features, this exchange is a fantastic choice.

Pros:

Cons:

Key benefits

Investors can benefit from the following from KuCoin.

Low fees

The trading costs on KuCoin are among of the lowest that we’ve seen. The withdrawal fees are comparable to those charged by other exchanges, and there are no monthly account fees. Cryptocurrency deposits are free, whereas deposits of fiat (conventional) currency, such as US dollars, cost money. The cost is determined by the third-party app you use and how you send money.

Strong base of users

According to KuCoin, 1 in 4 cryptocurrency owners use its service. The main benefit of having such a large customer base is that it increases market liquidity, making it more probable that you can execute the trades you desire. Also, it implies that you can probably join a vibrant group of native speakers of traders.

Many types of coins

Compared to many exchanges or brokerages, KuCoin has a considerably wider range of cryptocurrencies. KuCoin is a good option to consider if you want to diversify your cryptocurrency portfolio. Also, it offers a Spotlight area that highlights new currencies so that users can participate early. But be mindful that riskier coins tend to be newer or less well-known than popular ones.

Increase your cryptocurrency’s interest rate.

The KuCoin Earn programme offers two ways to receive interest on your cryptocurrencies: Using Pool-X, a KuCoin-backed business, you can stake coins, or you can loan out your cryptocurrency and be paid interest.

Several cryptocurrencies employ staked coins to help validate the network and maintain it secure, similar to how stock dividends are earned. If you consent to tie up your coins for a predetermined period of time, you receive prizes.

Even though it varies by coin and demand, the interest you’ll make by lending out your cryptocurrency is higher than you’d make with a conventional savings account. You can make, on average, 8% to 12%, according to KuCoin.

Margin trading for KuCoin is funded by this cash. Lenders will always receive full repayment, according to the company, whether it comes from the borrower’s collateral or a KuCoin margin insurance fund. But, you won’t receive the same protections as you would from a typical bank, so be sure you’re okay with the added risk.

Advanced Features

Although KuCoin provides many extra features, you should carefully consider whether you wish to use them. You can, for instance, leverage your position in margin trading, which is simply borrowing money to acquire additional cryptocurrency. Leverage should only be used by very experienced traders because it increases the danger of cryptocurrencies, which is already a risky investment.

Using trading bots is another feature of the KuCoin mobile app. Trade bots can automatically buy and sell your cryptocurrencies, allowing you to track the market without constantly being online.

Crypto bots, on the other hand, are not as advanced as robo-advisors. For instance, some have technical problems. Also, it’s not always obvious how they are investing your funds, and you need to be aware of their cryptocurrency trading methods. Bots don’t really contribute anything to the equation if you’re investing for the long run.

Areas for improvement

Not authorised in the US

According to a customer service agent, the exchange only offers services to the nations that are mentioned on its Know Your Customer (KYC) page, which excludes the United States. In order to assist law enforcement in preventing money laundering, KYC entails filling out personal information forms and attaching photo IDs.

KuCoin does not have an operating licence to conduct business in the United States, which has rigorous rules for cryptocurrency exchanges. You could be tempted to use KuCoin if you reside in the US without completing the KYC check. You would be subject to limitations on the amount you may withdraw and the amount of available leverage.

There are a few dangers involved. First, your funds can be frozen if the United States takes down on persons using unregulated exchanges. Second, in the event of hacking, fraud, or theft, KuCoin does not provide the same support to unverified accounts. So if you’re a user based in the United States, proceed with caution.

Before registering with KuCoin, it makes sense to check out some of the top cryptocurrency exchanges that are authorised in the US.

Restricted payment options

KuCoin does allow you to purchase cryptocurrencies with fiat money, but you’ll have to use a third-party software to do it. Although there are more than 70 different ways to pay, bank transfers aren’t always an option for deposits. And the costs can be high. By adding cryptocurrency that I purchased using other exchanges directly to KuCoin, which has no fees, I can save these costs.

You’ll also need to buy a specific amount of one currency right away.

For instance, you might purchase Tether (USDT), a stablecoin tied to the dollar, for $200. After that, you might use Tether to purchase other currencies. That $200 couldn’t just be deposited and left to grow until the opportune moment to invest it. In other exchanges, you can deposit money and decide how and when to use it.

Not for novice traders

It’s difficult to use KuCoin’s website if you’re new to cryptocurrencies. When I tried the Quick Purchase feature, it didn’t function at all, and the peer-to-peer trading alternatives were only available to those who had successfully completed the KYC verification procedure. Having said that, the live support chat did provide prompt responses.
Although KuCoin offers some educational materials, I’d want to see a lot more, especially given the variety of coins available for purchase. You’ll need to conduct your research elsewhere because there isn’t much information accessible about new currencies.

Alternative options to consider:

• Gemini stands out for its robust security features and commitment to regulation if you’re looking for an exchange that’s safe and has no withdrawal fees. The best part is that you can withdraw cryptocurrency 10 times per month without paying a fee and that wire transfer deposits are free.
• Regulations in the United States limit the number of cryptocurrencies that residents can access, so if you want a large variety of currencies through a registered exchange, look elsewhere. Perhaps one of the most well-liked US exchanges is Coinbase because of its wide range.

How KuCoin operates

You can buy, sell, and store a variety of cryptocurrencies with KuCoin. It has a well-known cryptocurrency mobile app in addition to a web interface. You can purchase KuCoin’s native cryptocurrency (KCS) to receive incentives and lower fees.

Since account verification is not required, users can trade cryptocurrencies using only their email addresses. However, as was already said, you must authenticate your account in order to enjoy its sophisticated features. Yet due to American crypto rules, Americans are unable to do this.

Both custodial and noncustodial services are provided by KuCoin. This implies that you have the option of immediately storing your cryptocurrency assets on the KuCoin exchange or connecting a third-party wallet and trading from there. For individuals who want to maintain ownership of their cryptocurrency, this is a fantastic choice.

Along with more uncommon features, KuCoin also provides trading bots, leverage, and margin. The site has an odd requirement that you transfer money between various accounts on the platform. For instance, the first cryptocurrency deposit I made with KuCoin went into the Main Account. I had to transfer my assets to the Trading Account in order to trade it. And I had to transfer them to the Financial Account in order to take advantage of the interest-earning alternatives.

Fees overview

The table below lists the three crypto classes available for KuCoin. When you progress up, maker/taker costs decrease within each class. To achieve this, increase your trading or holding of KCS, the native token of KuCoin. Choosing to pay in KCS will further lower your fees. In comparison to other platforms, the trading fees are reasonable, especially for Class A popular cryptocurrencies. The fees associated with deposits and withdrawals must also be taken into account.

The KuCoin website claims that deposits are free. That is accurate if you can deposit cryptocurrency or use a bank transfer. Nonetheless, it’s common to have to pay to deposit fiat (conventional) currency into your account. KuCoin claims to support over 70 different payment methods and connects to a number of third-party services. Depending on how much you deposit and desire to pay, it determines the best offer. Unluckily, it can get expensive. For instance, using a debit card with one of the third party providers would have cost me $18 to purchase USDT.

Like with other exchanges, withdrawal costs vary by coin and blockchain network. The amount of gas required to record a withdrawal of cryptocurrency on a blockchain varies depending on the blockchain you’re using. For instance, using KuCoin’s network instead of the Bitcoin network results in lower withdrawal costs for Bitcoin.

Collection of cryptocurrencies

KuCoin supports more than 600 currencies and over 750 currency pairs (two coins that are compared to one another). One of the main reasons I use the site is because of the large variety of cryptocurrencies it supports, which includes well-known coins like Bitcoin and Ethereum. In fact, one of the motivations for the company’s development was to provide individuals with access to less popular currencies.

Yet, less well-known coins are riskier than well-known ones, so it’s more crucial than ever to comprehend what you are purchasing. Look at the management team, the issue the currency is attempting to address, and the existing coins in that market.

The top 20 cryptocurrencies on KuCoin as of this writing, ranked by market capitalization, are as follows:

Is KuCoin safe for your cryptocurrency?

To safeguard the digital assets kept on its exchange, KuCoin has teamed up with an organisation called Onchain Custodian. That also covers Lockton’s coverage against crimes like hacking. Also, there is a bug bounty programme to incentivize ethical hackers to report any systemic flaws.

According to KuCoin, it maintains cold storage for client assets offline (which makes it harder to hack). Nevertheless, it is not specified what fraction is kept inactive. In order for users to make withdrawals and trades, it must maintain some money in hot wallets online, but it would be helpful to know what proportion is kept there.

At the end of 2020, some KuCoin hot wallets were compromised, but the damages were all compensated by insurance. KuCoin was also prompt in acting and open about what occurred.

Moreover, KuCoin offers exceptional user-level security. Users are encouraged to set up two-factor authentication and a separate password for trading on the website. To further safeguard you against phishing scams, you can put up safety phrases that will appear in all emails from KuCoin. I value KuCoin’s proactive attitude in this case given the growth in phishing assaults, in which thieves pose as reputable businesses to steal your data.

Two words of warning: First of all, it’s unclear whether the insurance plan will protect your assets from corporate failure. FDIC insurance often kicks in to cover up to $250,000 in losses in the event that your bank fails. Exchanges for cryptocurrencies don’t operate like this.

Second, using an unregulated exchange has significant dangers if you reside in the United States. To stop money laundering and tax evasion, authorities are tough on Americans utilising unregistered services. If you utilise an unregulated exchange, you run the danger of having your account frozen and being unable to access your cryptocurrency.

KuCoin is the best option for you if:

• You’re a foreign resident who wants to purchase new or obscure cryptocurrencies.
• As a seasoned bitcoin trader, you want access to more sophisticated features.
• You want to understand the dangers associated with earning interest on your cryptocurrency.