What is KuCoin?
KuCoin is a Hong Kong-based exchange that has been in operation since 2017. The exchange was created to give people all over the world access to a simple and safe platform to buy and sell a range of digital currencies with the company marketing themselves as “The People’s Exchange”.
My Overall Thoughts on KuCoin
I used to be worried about the security of my money on KuCoin but in Sept 2020 they suffered a hack worth 150 million, every cent was insured and no customer was affected, this is a great sign of trust. Unlike other exchanges there is no forced KYC which is always nice. After registration you get access to every coin you have heard of (at low trading fees) along with a whole host of other services. So I give KuCoin the thumbs up for its insurance, range of coins and services plus their low trading fees.
What services do KuCoin offer?
KuCoin has become one of the biggest cryptocurrency exchanges in the world that serves one out of four crypto holders worldwide. They now offer a wide range of crypto services, including the fiat onramp, futures and margin trading exchange, passive income services such as staking and lending, peer-to-peer (P2P) marketplace, IEO launchpad for crypto crowdfunding, non-custodial trading, and more. Lets break down some of their more popular features:
- Buy and sell 200 cryptocurrencies with low fees worldwide. This ability alone makes KuCoin super popular. KuCoin only charges a 0.1% fee per trade and even small fees for futures trading.
- Buy crypto with top fiat currencies, including USD, EUR, CNY, GBP, CAD, AUD, and many more. KuCoin allows their customers to buy cryptocurrencies with fiat using its P2P fiat trade, credit or debit card via Simplex, Banxa, or PayMIR, or its Fast Buy service, which facilitates IDR, VND, and CNY purchases of Bitcoin (BTC) or Tether (USDT).
- Excellent customer support service, KuCoin support is available 24/7, the only issues I have had is their english is not always superb but was never bad enough to be a big issue.
- Bank-level asset security. KuCoin implements lots of security measures, including micro-withdrawal wallets, industry-level multilayer encryption, dynamic multifactor authentication, along with dedicated internal risk control departments which overlooks all transactions on a daily basis. This is not to mention the insurance they have.
- KuCoin Futures and Margin Trading. KuCoin allows their customers to long or short a cryptocurrency up to 100x leverage.
- Earn cryptocurrency. KuCoin offers crypto lending, staking, soft staking, and KuCoin Shares (KCS) bonus which can earn passive income.
- Crypto Lending. This is a cool feature that is not talked about a lot, you can lend your crypto to people who want to do margin trading and get an average daily interest rate of 0.124%. Whats even cooler is you can lend a stable coin (USDT) so you don't need to worry about the fluctuations of the crypto markets. There are definitely other things to consider here but this is an interesting feature from KuCoin.
More about Kucoin
Since its launch, KuCoin has gained a reputation for giving cryptocurrency traders access to one of the biggest selections of cryptocurrencies available on the market as well as being an early adopter of new coins, which means that savvy investors have a huge variety of choice of both established and upcoming cryptocurrencies when they choose to use the platform for trading.
KuCoin has gained popularity among professional and amateur cryptocurrency traders thanks to their unique rewards system, which not only allows users to cut down on trading costs – which can soon add up - but also gives them access to a passive income through the platform’s native cryptocurrency, KuCoin Shares. KuCoin also scored well in our breakdown of the best cryptocurrency exchanges available in the US.
Pros and Cons of KuCoin
Some of the pros and cons of using the KuCoin exchange include:
- Access to a wide range ofestablished and new cryptocurrencies
- Anonymous trading with no verification required
- KuCoin Shares let users earn a passive income
- Intuitive and user-friendly platform
- 24/7 support available through several channels
- The language barrier can make support difficult
- Platform struggles during high-traffic periods
Key Features of KuCoin
As an exchange, KuCoin gives users on the platform access to most typical cryptocurrency services. Where this exchange differs from others is the sheer amount of trading pairs on offer for both established and up-and-coming coins. As an exchange known to be an early adopter, KuCoin gives savvy traders the ability to invest in cryptocurrencies that are often not available on other platforms while they are still cheap, making it a solid choice for traders willing to take a chance on up-and-coming coins.
KuCoin was also one of the first cryptocurrency exchanges to have embraced the latest craze in cryptocurrency fundraising, initial exchange offering (IEO), with KuCoin even launching their own platform to give their users a head-start in the industry. The Spotlight IEO Platform was responsible for the launch of MultiVAc as well as Trias, both of which garnered much media attention despite their mediocre market performance.
Finally, one of the most notable features of the KuCoin platform is its unique rewards system that allows traders to not only save on trading fees but also provides passive income for users through the KuCoin dividends system. The system is based around KuCoin’s native cryptocurrency, called KuCoin Shares, which can be traded with several coins, but which is only available to purchase through the KuCoin exchange.
Advantages of KuCoin Shares
KuCoin Shares give holders access to several platform-specific features, including the Spotlight IEO Platform, as well as discounts on trading fees up to a maximum of 30%. However, the key benefit of holding KuCoin Shares is that those users are liable to receive dividends from trading fees collected on the KuCoin platform.
Through the unique KuCoin dividends system, KuCoin pays out 50% of all fee revenue from the platform each day to holders of KuCoin Shares, with the revenue divided up equally among every KuCoin Shares token held on the KuCoin platform. This means that KuCoin Shares holders can earn a passive income through the platform on top of having access to reduced trading fees for every 1,000 KuCoin Shares token they hold.
Security: How Does KuCoin Stack Up
One of the biggest concerns in the cryptocurrency industry is security. Despite the cryptocurrency industry’s best efforts, and constant updates to security systems, hacks are still a leading cause of concern among traders, and for good reason. The biggest hack of 2020 saw Japanese exchange Coincheck lose virtual assets valued at over $534 million, which resulted in the exchange freezing all deposits and withdrawals from all cryptocurrencies on its platform except for Bitcoin. In the Coincheck hack, hackers targeted a lesser-known cryptocurrency called NEM, which reportedly fell 11% after news of the hack started circulating online.
While KuCoin has implemented several security features into its user interface, the platform did fall prey to hackers in 2020 with KuCoin reporting that roughly $150 million in virtual currency was stolen from the exchange in September. Fortunately for KuCoin users, the company has robust insurance coverage which allowed for the compensation of affected users following the breach.
Compare KuCoin against other exchanges:
Exchange | Fiat Currency | Cryptocurrencies | Deposit Methods | Visit |
|---|---|---|---|---|
 | USD, EUR, GBP, CAD, MXN, HRK, CZK, DKK, CLP, BGN & 10+ more | ATOM, BAT, BTC, BCH, XRP, DAI, DASH, EOS, ETH, ETC & 20+ more | Bank transfer (ACH),Credit card,Debit card,Bank transfer (SEPA),Wire transfer | |
 | USD, EUR, AUD, CAD, GBP, JPY | BTC, ETH, ETC, BCH, LTC, ADA, QTUM, XRP, XTZ, EOS | Credit card,Debit card,Bank transfer (SEPA),SWIFT,Wire transfer | |
 | USD, EUR, GBP, JPY, CAD, CHF, AUD | BTC, ETH, XRP, BCH, EOS, LTC, ADA, XLM, BAT, ETC & 40+ more | Electronic Funds Transfer,Wire transfer,FedWire, SWIFT, SEN | |
 | USD, EUR, GBP, RUB, CNY, AUD, KRW, JPY, TRY, VND & 40+ more | BTC, XMR, DAG, ETH, XRP, EOS, LTC, TRX, NEO, ONT & 200+ more | Bank transfer (ACH), PayPal, Interac e-Transfer | |
 | USD | BTC, ETH, BCH, XRP, DASH, LTC, ETC, ADA & 5+ more | Wire transfer,Online banking |
Verdict
KuCoin is an innovative player in the cryptocurrency industry and the exchange has seen significant growth since its launch in 2017; it is now considered a top player in the industry in terms of reliability and security. The platform itself is easy to use and intuitive and, should users have issues, their 24/7 customer support service is available through a variety of channels including via the website and email.
In terms of service offerings, being an early adopter of lesser-known, small-cap cryptocurrencies means the platform is suited for both experienced traders looking for the next big name in cryptocurrency as well as new traders looking to gain exposure to a huge selection of cryptocurrencies at a range of values.
When looking for a reputable exchange with a good service offering, robust security, and access to a diverse range of cryptocurrencies, traders would be hard-pressed to find a platform more suited to the task than KuCoin.
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