KuCoin’s extensive features, cheap fees, and a wide choice of coins are ideal for experienced cryptocurrency traders.
However, KuCoin does not have a license to operate in the United States, which lowers our ranking. To find out if you should open a KuCoin account, read our entire review.
KuCoin review in its entirety
This cryptocurrency exchange is best for seasoned non-US cryptocurrency traders looking for more coins and advanced features.
Advantages of using Kucoin
- Fees are low.
- a large user base
- A wide variety of coins are available.
- Interest can be earned on your cryptocurrency.
- Features for advanced traders
- Excellent client service
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Fees are low
KuCoin has some of the lowest trading fees on the market. There are no monthly account fees, and withdrawal fees are comparable to those charged by other exchanges. Depositing cryptocurrency is free while depositing fiat (conventional) money such as US dollars costs money. The price varies depending on how you send money and which third-party service you use.
A large user base
KuCoin boasts that one out of every four cryptocurrency holders in the globe uses its service. A large customer base offers liquidity to the market, which means you’re more likely to be able to make the deals you want because there are more individuals trading. It also means you’ll be able to join a vibrant community of traders who speak your native tongue.
A wide variety of coins are available.
KuCoin offers a considerably wider range of cryptocurrencies than many other exchanges or brokerages. KuCoin is worth a look if you want to venture out into less well-known coins. It also features a Spotlight section where new currencies are promoted so that consumers can get in early. Just be aware that new or lesser-known coins carry more risk than mainstream ones.
Interest can be earned on your cryptocurrency.
The KuCoin Earn service offers two methods to earn income on your cryptocurrencies: you can stake coins through Pool-X, a KuCoin-backed company, or you can loan out your crypto and be paid the interest.
Staking is similar to receiving stock dividends in that it allows some cryptocurrencies to use staked coins to help validate and safeguard the network. If you agree to lock up your coins for a specific period of time, you will be rewarded.
The interest you’ll get from lending out your crypto is higher than you’d get from a regular savings account, though it fluctuates depending on the coin and demand. According to KuCoin, you may expect to make 8% to 12% on average. KuCoin’s margin trading is funded with this money.
Lenders will always be reimbursed in full, either from the borrower’s collateral or from a KuCoin margin insurance fund, according to the business. However, you won’t have the same safeguards as you would with a traditional bank, so be sure you’re okay with the extra risk.
Features for advanced traders
KuCoin provides a lot of extra features, but you should consider whether or not you want to use them. Margin trading, for example, allows you to leverage your position by borrowing money to acquire more cryptocurrency. Leverage should only be used by experienced traders since it makes cryptocurrencies, which is already a dangerous investment, considerably riskier.
KuCoin also has a mobile app that allows you to employ trade bots. Trading bots can purchase and sell your cryptocurrencies for you, so you don’t have to keep track of the market all the time. Crypto bots, on the other hand, are not as advanced as robo-advisors. Some, for example, have technological issues. Furthermore, it is not always evident how they are investing your funds, and you must be familiar with bitcoin trading strategies they use. If you’re buying for the long term, bots don’t add a lot to the mix.
Disadvantages of using Kucoin
- Payment options are limited because it is not licensed in the United States.
- Limited instructional materials are not suitable for new traders.
What could be better?
In the United States, it is not permitted.
According to a customer care employee, the exchange only offers services to nations specified on its Know Your Customer (KYC) page, which excludes the United States. To assist authorities in combating money laundering, you must fill out personal information and attach a photo ID.
KuCoin is not licensed to operate in the United States, which has rigorous rules for cryptocurrency exchanges. You might be tempted to use KuCoin without completing the KYC verification if you live in the United States. There would be limits on how much money you could withdraw and how much leverage you could use.
There are a few dangers here. First, your assets may be frozen if the US takes down on persons who use unregulated exchanges. Second, in the event of hacking, fraud, or theft, KuCoin does not provide the same level of support to unverified accounts. If you’re a user from the United States, proceed with caution.
It makes sense to check out some of the excellent cryptocurrency exchanges that are licensed in the United States before signing up with KuCoin.
Payment options are limited.
You can buy cryptocurrencies with fiat money using KuCoin, but only through a third-party app. You can pay with a credit or debit card, Apple Pay, or Google Pay, but not with a bank transfer. And the costs can be quite high.
You’ll also need to buy a specific amount of one currency right away. You could, for example, acquire $200 worth of Tether (USDT), a dollar-pegged stablecoin. You’d then be able to buy other currencies with Tether. You couldn’t just put that $200 in a savings account and wait for the ideal opportunity to invest it. Other exchanges allow you to deposit funds and then decide how and when to spend them.
Not for inexperienced traders.
KuCoin’s website is difficult to navigate if you’re new to cryptocurrencies. When I attempted the Fast Buy feature, it didn’t operate at all, and the peer-to-peer trading alternatives were only available to those who had completed the KYC verification process. However, the live support chat provided me with prompt responses.
KuCoin has some educational resources, but given the number of coins available, I’d like to see a lot more. There is some information on new coins available, but not much, so you’ll have to do your own investigation.
How does kucoin works
KuCoin is a cryptocurrency exchange that allows you to buy, sell, and store a variety of cryptocurrencies. It has a popular mobile cryptocurrency app as well as an online interface. To reduce fees and gain incentives, you can purchase KuCoin’s native coin (KCS).
People can trade cryptocurrency using just an email address if they don’t want to go through the account verification process. However, as previously said, you must validate your account in order to enjoy its sophisticated capabilities. Because of crypto restrictions in the United States, Americans are unable to do so.
KuCoin provides both supervised and unsupervised services. As a result, you can either keep your crypto assets on the KuCoin exchange or connect a third-party wallet and trade straight from there. For those who wish to preserve control of their crypto, this is a fantastic choice.
Trading bots, leverage, and margin are some of the less typical services offered by KuCoin.
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Overview of Kucoin Fees
By trading more or holding at least 1,000 KCS, you can lower your KuCoin costs. The maker/taker charge starts at 0.1 percent and decreases as you progress through the levels. If you choose to pay in KCS, your fees will be much lower.
Even the highest charge, 0.1 percent, is less than what you’d pay on many large exchanges. You must, however, consider the deposit and withdrawal fees.
Deposits are, according to KuCoin, completely free. That’s true if you’re depositing cryptocurrency, but you’ll have to pay to deposit fiat (conventional) currency. KuCoin has partnered with a number of third-party providers to determine the best offer based on the amount of money you want to deposit and how you want to pay.
Choosing a cryptocurrency
Over 750 currency pairings (two coins that are assessed against one another) and over 380 currencies are available on KuCoin. One of the reasons for KuCoin’s success is its large range of cryptocurrencies, which includes prominent coins like Bitcoin and Ethereum. One of the objectives for the company’s founding was to provide consumers with access to less mainstream currencies.
Coins that are less well-known are riskier than those that are well-known, so it’s more vital than ever to know what you’re buying. Examine the management team, the problem the currency is attempting to tackle, and the other coins that are currently active in the sector.
The following are the top 20 coins on KuCoin in terms of market capitalization at the time of writing:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- Binance Coin (BNB)
- Cardano (ADA)
- XRP (XRP)
- USD Coin (USDC)
- Dogecoin (DOGE)
- Polkadot (DOT)
- Uniswap (UNI)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Chainlink (LINK)
- Polygon (MATIC)
- Theta (THETA)
- Wrapped Bitcoin (WBTC)
- Stellar (XLM)
- Internet Computer (ICP)
- Ethereum Classic (ETC)
- Filecoin (FIL)
Is KuCoin a safe place to store your cryptocurrency?
To secure the crypto assets housed on its exchange, KuCoin has teamed with Onchain Custodian. This includes Lockton insurance against crimes like hacking. It also has a bug bounty scheme in place to encourage ethical hackers to report system flaws.
KuCoin claims to keep customer assets in cold storage (which makes it harder to hack). However, it is unclear what fraction of the population is kept offline. It needs to maintain some funds online in hot wallets so consumers can make withdrawals and trades, but knowing what percentage is held where would be helpful.
At the end of last year, some KuCoin hot wallets were hacked, however the damages were entirely compensated by insurance. KuCoin was also quick to respond and open about what had occurred.
KuCoin’s user-level security is also quite good. Users are encouraged to set up two-factor authentication and a secondary password for trading on the platform. To assist prevent yourself from phishing attacks, you may also set safety phrases that will appear in all emails from KuCoin.
First, it’s unclear whether the insurance policy will protect your assets in the event of a firm failure. If your bank fails, the Federal Deposit Insurance Corporation (FDIC) will usually cover up to $250,000 in losses. With bitcoin exchanges, this is not the case.
Second, using an unregulated exchange carries additional dangers if you live in the United States. To combat money laundering and tax avoidance, authorities are cracking down on Americans who use unregistered services. If you utilize an unregulated exchange, you risk having your account frozen and losing access to your crypto.
KuCoin is the way to go if;
you live outside of the United States and wish to acquire new or less popular cryptocurrencies.
You’re a seasoned bitcoin trader who wants to take use of more complex features.
You want to earn interest on your cryptocurrency while also being aware of the risks.
Register your kucoin account here