KuCoin Review: Crypto Trading Features for All People
GOBankingRates Score
-
Interest-Earning
4.6
-
Fees
4.6
-
Trading Experience
4.2
-
Security
4.2
Pros
- Supports the trading of over 700 cryptocurrencies including unique altcoins that cannot be found on other crypto exchanges.
- KuCoin allows its users to participate and earn rewards through crypto staking.
- Users can earn interest by lending their crypto on the KuCoin Crypto Lending platform.
- KuCoin follows a maker/taker fee structure and charges lower fees in comparison to other exchanges.
Cons
- Despite operating in many countries, KuCoin does not have an official license in the United States.
- The KuCoin platform was hacked in 2020 which resulted in the theft of millions of dollars worth of crypto. This has raised questions about its security.
KuCoin Overview
KuCoin was founded in 2017 by crypto-enthusiast Michael Gan and is headquartered in Seychelles. Being one of the early adopters of Bitcoin and blockchain technology, Michael understood that crypto transactions were not beginner-friendly on platforms like Mt. Gox. That was how he came up with the idea of a “people’s exchange” that would serve the needs of all people, even those without a background in technology.
Currently, KuCoin has over 20 million global users and a trading volume of over $1 trillion. The company has an active user community that supports open communication and creates a forum for expressing opinions.
The KuCoin Token, or KCS, is widely used across the platform for making trades and the company wishes to develop an entire crypto ecosystem based on this token.
The platform offers various kinds of trading features for users. Even if you are a beginner, you will have plenty of resources to consult while you get started.
Is KuCoin Regulated?
Although KuCoin has several security features, it does not fall under the regulations of any government licensing bodies.
Key Features
KuCoin is a popular cryptocurrency exchange that is used by millions of people across the world. Here are a few key features that you should be aware of.
Earning Interest in Crypto
KuCoin allows its users to be a part of the crypto lending program through its platform. You can lend the cryptocurrency you own to others and earn interest on it. At present, the KuCoin Crypto Lending platform supports the lending of over 50 types of crypto including USDT, bitcoin and others.
As a lender, you can set the expected annualized percentage yield that you wish to earn on the crypto that you are lending. If the borrowers feel that the terms are suitable for them, they will request to borrow the crypto from you. The KuCoin platform ensures that all the funds are repaid which creates a sense of security for the lenders.
If you wish to lend your crypto through the KuCoin platform, you need to compare the existing market rates before setting your desired APY to increase the chances of your crypto being lent.
Fees
KuCoin has a tiered fee structure, and the costs usually tend to decrease when you have a higher trading level. The fees charged by KuCoin are quite low in comparison to other exchanges.
Here is an example of the maker/taker fee structure that KuCoin follows.
| Trading Level | Maker/Taker Fees |
|---|---|
| 0 | 0.1%/0.1% |
| 1 | 0.09%/0.1% |
| 2 | 0.07%/0.09% |
| 3 | 0.05%/0.08% |
| 4 | 0.03%/0.07% |
| 5 | 0%/0.07% |
| 6 | 0%/0.06% |
| 7 | 0%/0.05% |
| 8 | -0.005%/0.045% |
| 9 | -0.005%/0.04% |
| 10 | -0.005%/0.035% |
| 11 | -0.005%/0.03% |
| 12 | -0.005%/0.025% |
This fee structure shows that the user will incur a 0.1% fee when they get started but it will eventually become lower once their trading level is improved. You can get a 20% discount on trading fees when you make a payment with KCS.
Trading Experience
KuCoin offers a variety of services like spot trading, margin, futures, and even crypto lending to its users. You can use the mobile application or access the platform from your desktop. There is an advanced mode for all the trading options and if you are a professional trader you can use some of the complicated signals on the platform.
KuCoin has an extensive guide for all the trading features including risk management tips on its website which can serve as a great tool for beginners. However, a big reason for a negative KuCoin review is that desktop and mobile application often experiences faults. Users have raised complaints regarding issues with online trading and buying cryptocurrencies.
Security
KuCoin claims to have industry-leading security protocols and they are continuously trying to improve their security systems to serve the users. The company also has a standard KYC verification procedure for all users. If you complete the advanced KYC verification, you will be able to access more services on the platform. KuCoin also allows you to create a trading password that would be used for verification while trading, withdrawal or API creation.
Despite these security measures, the KuCoin platform was subject to a major hack when cryptocurrencies of nearly $280 million were stolen. Although the assets were insured, such an attack raises questions about the safety of this platform.
Can KuCoin be Trusted?
KuCoin uses industry-standard security protocols to secure its platforms. It also has KYC verification and two-factor authentication for its users. KuCoin can be regarded as a trustworthy crypto trading platform.
Crypto Trading Bot
Since the crypto markets are always operational, using a trading bot can help you to optimize your trading strategies. KuCoin offers a fully operational trading bot to its users that can help you with automatic trading.
How KuCoin Stands Out?
KuCoin offers a large number of cryptocurrencies for trade on its platform. Moreover, it has a great customer service department that addresses all user queries quite promptly. All these features combined with the low trading fees make KuCoin a crypto trading platform, especially for beginners.
Can US Citizens Use KuCoin?
Since KuCoin is not authorized to operate stateside, U.S. citizens can access it with limited features.
Comparable Options
KuCoin is a good crypto trading exchange, but it is not the only one. Here are a couple of other crypto exchanges that you should check out.
KuCoin Vs. Coinbase
Coinbase is a similar crypto trading platform to KuCoin. Unlike KuCoin, Coinbase only supports only over 50 cryptocurrencies and does not offer a crypto trading bot. The trading fees are much higher on Coinbase. However, Coinbase offers much higher security protocols in comparison to KuCoin and can be regarded as a safer option.
KuCoin Vs. Binance
Binance has a similar fee structure to KuCoin and offers a greater selection of altcoins. However, it does not provide a dedicated trading bot to its users like KuCoin.
How To Apply
Registration on the KuCoin platform is pretty simple. After downloading the app from the Android or iOS store, you can sign up with your email address and password. You can set up two-factor authentication by updating the same in the security settings on the app.
Once you have completed the registration, you will be allowed to buy and trade in crypto.
Who Is KuCoin Best For?
KuCoin certainly has some unique benefits that make it suitable for crypto traders. The prompt customer service and detailed blog posts can be helpful for newbies as well. It is also suitable for professional traders who want to experience advanced trading features like crypto futures or margin trading.
However, you cannot use fiat currency to purchase crypto on the KuCoin platform which makes it unsuitable for complete beginners.
Final Take
KuCoin is a good option for professionals because of the trading features and the wide variety of coins available for trade. However, since it is not licensed for operation in the US, it might be unsafe for American citizens to use. Keeping that in mind, you can use KuCoin to trade in different types of cryptocurrencies.
KuCoin FAQ
Here are the answers to some of the most frequently asked questions about KuCoin.- Is KuCoin worth buying?
- KuCoin is a good choice for a cryptocurrency exchange and the native token KCS can also fetch you a high discount in trading fees on the platform.
- What are the cons of KuCoin?
- KuCoin does not allow purchasing crypto with fiat currency. It was also subject to a major hacking attack in 2020.
- Is KuCoin a Chinese company?
- KuCoin is headquartered in Seychelles.
- Is KuCoin better than Coinbase?
- Coinbase has a higher fee structure than KuCoin but offers more security to its users. If you will be bulk trading in crypto, Coinbase is better than KuCoin.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
