If you're looking to start buying, selling, and trading cryptocurrency, you might be wondering if KuCoin is the right exchange for you. Perhaps you've noticed a specific coin listed on KuCoin and want to ensure the platform is safe to use.
This review covers everything you need to know about KuCoin. We'll start with a brief overview of the exchange's background, then walk you through how to deposit funds. We'll also cover the range of coins available, the verification process, and finally, list all the key advantages and disadvantages.
By the end of this guide, you'll have all the information needed to decide if KuCoin is the right exchange for your needs.
KuCoin Exchange: An Overview
KuCoin is a third-party exchange that allows you to buy, sell, and trade a wide variety of cryptocurrencies. It was established in May 2017 by a group of experienced business professionals who had previously worked on projects like Ant Financial and iBox PAY. As one of the newer exchanges in the industry, KuCoin aims to provide a simple and secure platform for users worldwide to trade digital assets.
The founders' long-term goal is to rank among the top ten cryptocurrency exchanges globally. Since its launch, KuCoin has not experienced any major issues or system overloads. The platform is accessible via desktop and through its dedicated mobile applications for both Android and iOS devices.
By early 2018, KuCoin reportedly had over one million users. However, its average trading volume is significantly lower than that of larger exchanges like Binance.
KuCoin has its own native cryptocurrency called KuCoin Shares (KCS). Holding KCS tokens allows users to benefit from discounted trading fees. Additionally, KCS holders receive 50% of the trading fee profits generated by the exchange. The KCS token reached an all-time high market capitalization of over $1.8 billion in January 2018.
Supported Cryptocurrencies and Trading Pairs
At the time of writing, KuCoin supports over 300 different trading pairs. A trading pair, such as BTC/ETH, allows you to trade one cryptocurrency for another—in this case, Bitcoin for Ethereum. The exchange lists more than 75 individual cryptocurrencies, with new additions being made regularly.
The platform includes most of the popular coins like Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, as well as lesser-known but still prominent cryptocurrencies like VeChain and Lympo. KuCoin is particularly known for listing new cryptocurrencies that have recently completed their Initial Coin Offerings (ICOs), making it a great platform for investors looking to get in early on new projects.
According to its founders, KuCoin aimed to support over 1,000 different cryptocurrencies by the end of 2018.
Understanding KuCoin Fees
One of KuCoin's primary goals is to offer very competitive fees to its traders. So, how affordable is it?
Firstly, depositing cryptocurrencies into your KuCoin account is free. However, you may still need to pay blockchain transaction fees depending on the cryptocurrency you are transferring. These fees are not imposed by KuCoin but are inherent to the network of the coin being transferred.
When it comes to trading, KuCoin charges a flat fee of 0.1% of the transaction amount. For example, if you purchase $1,000 worth of Litecoin, you will pay just $1 in fees. This is among the lowest rates in the industry.
Withdrawal fees vary depending on the cryptocurrency you are moving out of your KuCoin wallet. You can find detailed and updated information on withdrawal fees on the official KuCoin website.
Payment Methods and Verification Process
As of 2020, KuCoin began accepting deposits in five fiat currencies: USD, CAD, VND, IDR, and CNY. However, for most users, depositing fiat directly might not be straightforward, and the primary method of funding an account remains through cryptocurrencies.
If you are new to cryptocurrency, the easiest way to get started is to purchase a popular coin like Bitcoin or Ethereum on a platform like Coinbase using traditional payment methods such as a debit card or bank transfer. Once you have acquired these coins, you can transfer them directly to your KuCoin account.
Using cryptocurrencies for deposits and withdrawals offers a significant advantage: anonymity. Since the exchange does not heavily rely on fiat currency transactions, it does not require users to complete extensive identity verification processes to start trading. This allows for a level of privacy not always available on other platforms.
Moreover, there are no limits on the amount of cryptocurrency you can deposit or withdraw. This is a notable benefit, as other exchanges often require uploading verification documents like passports and bank statements, a process that can sometimes take weeks to complete.
How to Register a KuCoin Account
Registering for a new KuCoin account is a straightforward process. First, visit the official KuCoin website. Click on the "Sign Up" button located at the top right corner of the screen.
You will then be presented with the exchange's terms and conditions. It is highly recommended to read through these carefully to understand your rights and responsibilities. After reviewing, check the box to accept the terms and click "Next."
You will then need to provide your email address and choose a strong, secure password. The platform will also require you to complete a simple captcha verification to prove you are human. Finally, to activate your account, click on the confirmation link sent to your email address.
That's it! Your KuCoin account is now ready. You can immediately start depositing coins and trading without needing to submit any identity verification documents.
How to Buy Cryptocurrency on KuCoin
Once your account is funded, buying cryptocurrency on KuCoin is simple. Click on the "Markets" tab at the top of the page.
Use the search bar on the right side of the page to find the specific coin you wish to purchase. For example, if you want to buy NEO, type it into the search box.
KuCoin will then display all the available trading pairs for that coin. In the case of NEO, you might see NEO/BTC, meaning you can trade Bitcoin for NEO. Select the trading pair that matches the cryptocurrency you deposited.
You will now be on the main trading screen. On the right side of the page, locate the buy box below the order book.
Simply enter the amount of the coin you wish to purchase, click the blue "Best Price" button to automatically fill in the current market price, and then click the green "Buy" button to execute the trade. The process is quick and intuitive.
Who Should Use KuCoin?
After testing KuCoin, it's clear that the platform is very user-friendly. The processes for depositing funds, executing trades, and withdrawing coins are all straightforward, making it suitable for beginners.
KuCoin also offers features that appeal to more serious traders, such as advanced charting tools and candlestick graphs for analyzing price trends. However, it's important to note that KuCoin's average trading volume is in the tens of millions, which is lower than that of giant exchanges like Binance.
This lower volume can sometimes lead to liquidity issues, especially for lesser-known altcoins. While this may not be a problem for those trading small amounts, individuals dealing with large volumes might find KuCoin less ideal due to potential slippage.
Ultimately, newly launched cryptocurrencies are sometimes exclusively listed on KuCoin. If a specific token you want is only available there, using KuCoin becomes necessary.
Is KuCoin Safe?
The safety of your funds is paramount when choosing a cryptocurrency exchange. Centralized exchanges like KuCoin operate on servers, which, if hacked, could put user funds at risk. The cryptocurrency industry has indeed witnessed several high-profile exchange hacks over the years.
For instance, by the end of 2017, reports indicated that over $15 billion worth of cryptocurrency had been stolen from exchanges. Several hacks have occurred since then, increasing that figure.
So, is KuCoin safe? The website is protected by encryption protocols that secure private account information. The exchange also has an internal risk control department dedicated to safeguarding user funds.
To enhance your account security, KuCoin allows you to enable two-factor authentication (2FA) using Google Authenticator. With 2FA activated, you will need to enter a code from your mobile device each time you log in or perform sensitive actions. This adds a crucial layer of security, as even if someone obtains your password, they cannot access your account without your physical device.
While KuCoin has never suffered a major security breach, it is still a relatively young exchange. As a best practice, it is never advisable to store large amounts of cryptocurrency on any exchange for extended periods. Withdrawing your funds to a secure personal wallet, such as a hardware wallet, is always the safer option.
KuCoin Review: Pros and Cons
Before drawing a final conclusion, let's summarize the key advantages and disadvantages of using KuCoin.
Pros:
- Extremely low deposit, withdrawal, and trading fees.
- Simple and intuitive interface, ideal for beginners.
- Supports a wide variety of coins, including newly launched cryptocurrencies.
- Robust security features, including 2FA.
- No mandatory identity verification allows for anonymous trading.
- No limits on deposit or withdrawal amounts.
Cons:
- Lower trading volume compared to top-tier exchanges, which can sometimes cause liquidity issues for smaller coins.
- Users have reported occasional performance issues during periods of high market traffic.
Frequently Asked Questions
Is KuCoin a good exchange for beginners?
Yes, KuCoin is generally considered beginner-friendly due to its straightforward interface and simple registration process that doesn't require immediate verification. However, newcomers should still familiarize themselves with basic cryptocurrency concepts like wallets and private keys.
What are the main risks of using KuCoin?
The primary risks are those associated with any centralized exchange: potential security breaches and liquidity issues for low-volume tokens. Using strong passwords, enabling 2FA, and not storing large sums on the exchange can mitigate these risks.
Can I use KuCoin without verifying my identity?
Yes, you can start trading on KuCoin without completing Know Your Customer (KYC) verification. However, certain features or higher withdrawal limits may require verified account status, depending on regulatory requirements in your region.
How does KuCoin compare to larger exchanges like Binance?
KuCoin offers a similar range of coins and features but typically has lower liquidity. Its fee structure is competitive. Larger exchanges might offer more advanced trading tools and higher liquidity but often require identity verification. 👉 Compare exchange features and fees
What is the native token of KuCoin?
The native token is called KuCoin Shares (KCS). Holding KCS provides users with benefits like reduced trading fees and a share of the exchange's trading revenue. 👉 Learn more about exchange utility tokens
Are there any hidden fees on KuCoin?
KuCoin is transparent about its fees. The standard trading fee is 0.1%, and withdrawal fees are clearly listed on the website. Always check the latest fee schedule before conducting transactions.
Conclusion
This concludes our comprehensive review of KuCoin. You should now have a clear understanding of the exchange's features, fees, security, and overall usability.
KuCoin offers a compelling option for traders seeking a wide selection of cryptocurrencies with low fees and a user-friendly platform. Its support for new coin listings makes it attractive for those interested in emerging projects. While its trading volume may be lower than some competitors, it remains a reliable and secure choice for many users.
Remember, conducting your own research and understanding your risk tolerance is crucial before investing in any cryptocurrency or using an exchange. For those exploring alternatives, other well-established exchanges are also available in the market. Always prioritize the security of your assets.