KuCoin is a modern cryptocurrency exchange that has gained a significant and devoted following due to its user-friendly design and high level of security. The exchange is well-known for its great number of cryptocurrency pairs, which allows users to buy a wide range of cryptocurrencies. On the downside, Kucoin is a crypto-only exchange, which means you’ll need to use another exchange to buy coins in fiat currency like USD, HKD, or CAD.
Kucoin is a truly global organization, with offices in Singapore, Hong Kong, and Seychelles. It’s known as “The People’s Exchange” and has an excellent reputation in the cryptocurrency community.
KuCoin has many advantages for investors. Here are some of the top perks
- Low Cost:
KuCoin has some of the lowest trading fees we’ve seen. There are no monthly account fees, and withdrawal fees are comparable to other exchanges. Depositing cryptocurrency is free, but depositing fiat (traditional) money such as US dollars is not. The fee is determined by how you transfer money and which third-party app you use.
- A Sizable User Base:
KuCoin claims that one out of every four cryptocurrency holders in the world uses its service. The main benefit of having such a large customer base is that it increases market liquidity; you’re more likely to successfully make the trades you want as there are more people trading. It also implies that you will most likely be able to join an active community of traders who speak your language.
- A Wide Variety Of Coins:
KuCoin offers a much broader range of cryptocurrencies than most exchanges or brokerages. KuCoin is worth considering if you want to diversify into less popular coins. It also has a spotlight section where new currencies are promoted so that people can get in early. Just keep in mind that newer or lesser-known coins carry a higher risk than more established ones.
Advanced Features Include:
KuCoin has a lot of additional features, but you’ll have to decide if you want to use them before you do. To put it another way, margin trading is the borrowing of money to buy more cryptocurrency. Only professional traders should use leverage because it increases the risk of cryptocurrency, which is already a risky investment.
KuCoin’s mobile app also allows you to use trading bots. Trading bots can buy and sell your cryptocurrencies for you, so you don’t have to be online all the time to keep up with the market. Crypto bots, on the other hand, are not as advanced as Robo-advisors. Some, for example, have technical flaws. Furthermore, it is not always clear how they invest your money, and you must understand the cryptocurrency trading strategies they employ. Bots don’t add much to the mix if you’re buying for the long term.
An Overview Of KuCoin Fees:
KuCoin has three types of cryptocurrency. Maker/taker fees decrease as you progress through each class. This can be accomplished by trading or having more of KuCoin’s native token, KCS. If you pay in KCS, your kucoin fees will be even lower. Trading fees are competitive in comparison to other platforms, particularly for common Class A cryptos. However, you must also consider the deposit and withdrawal fees.
KuCoin claims that deposits are free. This is true if you can deposit cryptocurrency or make a bank transfer. However, you must frequently pay to deposit fiat (traditional) money into your account. KuCoin integrates with many third-party services and claims to support over 70 various payment methods. It determines the best deal for you based on the amount you deposit and the method of payment you prefer. Unfortunately, this can be costly. For example, using a debit card with one of the third-party providers would have cost me $18.
Withdrawal fees vary depending on the cryptocurrency and blockchain network, just as they do on other exchanges. Withdrawing cryptocurrency usually entails paying a gas fee to record the transaction on a blockchain, and the fee varies depending on the blockchain. For example, it costs less to withdraw Bitcoin through KuCoin’s network than through the Bitcoin network.
Is Your Cryptocurrency Safe With Kucoin?
To secure the crypto assets stored on its exchange, KuCoin has partnered with Onchain Custodian. This includes Lockton insurance against crimes such as hacking. It also has a bug bounty program that encourages ethical hackers to report system flaws. KuCoin claims to store client assets in cold storage offline (which makes it harder to hack). However, it does not specify what percentage is kept offline. It must keep some funds online in hot wallets so that customers can withdraw and trade, but it would be helpful to know what percentage is kept where.
At the end of 2020, some KuCoin hot wallets were hacked, and the losses were fully insured. KuCoin was also quick to respond and open about what happened. KuCoin also provides excellent user protection. Users are encouraged to set up two-factor authentication and an additional password for trading on the site. You can also configure safety phrases that will appear in all KuCoin emails to help protect you from phishing attacks. Given that phishing attacks, in which criminals pretend to be legitimate businesses to steal your information, are on the rise, I like that KuCoin is taking this matter into its own hands.