With its presence in 200 countries and over 20 million users, KuCoin is a popular and unique cryptocurrency exchange and a prominent one-stop shop for all sorts of crypto operations in the crypto industry. Based in the Seychelles and launched in August 2017, Kucoin is the fifth largest crypto exchange by market cap, with over 700 cryptocurrencies listed in more than 400 markets.
The exchange has become one of the most colorful crypto hubs online because it offers bank-level security, a sleek interface, a beginner-friendly UX, and a wide range of crypto services, such as margin and futures trading, a built-in P2P exchange, the ability to buy crypto using a credit or debit card, instant-exchange services, the ability to earn crypto by lending or staking via its Pool-X, and the chance to take part in new initial exchange offerings (IEOs) via its prominent IEO platform, also known as a token launch platform. Cryptocurrency lending is yet another unique feature of the KuCoin exchange.
With its adaptability to both experienced traders and beginners, investors prefer KuCoin due to its tendency to list small-cap cryptocurrencies with tremendous upside potential, a large selection of coins, lesser-known cryptos, and generous profit-sharing incentives—up to 90% of trading fees go back to the KuCoin community through its KuCoin Shares (KCS) tokens.
Before getting your heart set on KuCoin, read our in-depth analysis of KuCoin to find out if it’s the right choice for you, as well as how it stacks up against the industry standard and what features and services it offers. Let’s get down to business and learn everything there is to know about KuCoin.
Since its launch in 2017, Kucoin has established itself as one of the most prominent crypto exchanges in the space. Topping the globalization list of crypto exchanges, KuCoin boasts 20 million+ global users, over 15 billion in daily market cap, and 700+ listed tokens.
KuCoin has been an industry-leading cryptocurrency exchange that was created with a mission to provide a professional-grade exchange for cryptocurrency traders, a mission they continue to deliver to this day.
KuCoin’s service for exchanging crypto tokens for altcoins or fiat currencies is not limited to buying and selling crypto tokens or exchanging them for altcoins or fiat currencies. In addition, KuCoin’s crypto loan service for specific interest rates differs from the other crypto exchanges in the world. As an end-to-end trading solutions provider, KuCoin offers multiple auto-trading and financial tools like trading bots and crypto lending, making it a preferred exchange for passive earnings.
Cryptocurrency lending is yet another unique feature of the KuCoin exchange. Also, KuCoin users have access to a lot of the platform’s features, such as the ability to buy cryptocurrencies with a credit or debit card, get rewards for staking, swap cryptocurrencies with no fees, and more.
Since its launch, KuCoin has quickly risen in adoption and popularity as it was, at the time, one of the few professionally developed crypto trading platforms. Users keep using the platform because they like both the standard trading features and the gamified, Vegas-style trading section, which has fun contests and ways to get involved with crypto trading.
KuCoin is enjoyed by customers all around the world and provides its services in nearly every country. To help cater to clients in various countries, KuCoin supports 19 different languages, including English, various European languages, several southeast Asian languages, Russian, Chinese (simplified and traditional), Hindi, and Arabic.
Even though it didn’t start until 2017, its founders had been looking into blockchain technology as early as 2011. With years of experience, the team was able to come up with the first KuCoin technical architecture in 2013. Since then, it has gone through many changes and improvements to become the perfect KuCoin we have today.
Despite it being unregulated and unlicensed, investors and users do not seem to be abandoning the Kucoin Cryptocurrency Exchange anytime soon. KuCoin has always been a very well-funded exchange, with some heavy investors knee-deep in its success. The first development fund for KuCoin was launched via an ICO lasting from August 13 to September 1, 2017. The exchange successfully raised $20 million worth of BTC, then $100 million in 2021 for the KuCoin Metaverse Fund.
With the raging bear market in 2022, KuCoin was able to raise a pre-series B funding round of $150 million, led by Jump Crypto, with participation from Circle Ventures, IDG Capital, and Matrix Partners. Through its successful funding rounds to date, KuCoin’s value has skyrocketed to a value of $10 billion.
During the development stage of the Kucoin Cryptocurrency Exchange, it was able to launch its native KuCoin Shares (KCS) tokens used for receiving the platform’s special offers, trading discounts, etc. The KuCoin Shares (KCS) tokens public sales was a success as it raised nearly USD 20,000,000 in BTC (at the time) for 100,000,000 KCS with its price being 0.000055 BTC.
Kucoin Cryptocurrency Exchange has experienced massive upgrades and developments through the years; the company is said to employ over 300 employees worldwide with its headquarters in the Seychelles. During the bull period in February 2019, KuCoin upgraded its platform interface to Platform 2.0. This upgrade gave the KuCoin platform a facelift with more advanced options such as order types, a new API, and other functions. Later in the year, KuCoin launched KuMEX, rebranded as KuCoin Futures, while also introducing margin with up to 10x leverage.
KuCoin continued to grow its ecosystem in 2020. The company made many significant announcements, including the debut of its Pool-X Liquidity Trading Market and the availability of its all-in-one exchange solution KuCloud. While expanding the variety of cryptocurrencies that can be acquired with a bank card option, the exchange also debuted its instant exchange P2P service in February. With the constant request from its users to increase its purchase options, on June 24, 2020, Kucoin Cryptocurrency Exchange announced that its P2P crypto marketplace now supports sales and purchases via PayPal, as well as more convenient fiat payment methods.
As of today, Kucoin Cryptocurrency Exchange provides services in most countries in the world, including Turkey, India, Japan, Canada, the United Kingdom, Singapore, and many others. KuCoin’s website is translated into 17 languages, including English, Russian, South Korean, Dutch, Portuguese, Chinese (both simplified and traditional), German, French, Spanish, Vietnamese, Turkish, Italian, Malay, Indonesian, Hindi, and Thai, so it can help people all over the world.
Is KuCoin Globally Accessible?
As a platform with worldwide access, the website is quite simple with easy navigation. However, customer feedback suggests that KuCoin’s sophisticated features may make trading difficult for inexperienced users. KuCoin is an unregulated market where traders may buy and sell a wide variety of cryptocurrencies using a number of cutting-edge methods. Kucoin Cryptocurrency Exchange is a great choice for experienced traders who want to diversify into other currencies or try out new trading options that could be profitable.
Nonetheless, the site is less daunting because of the tutorials found in the “Help” and “Frequently Asked Questions” pages. KuCoin makes sure that it is always in line with the most recent market norms by updating it often to include the most recent currency pairs. At KuCoin, you can choose from 1100 different trading pairs. If you want to buy Bitcoin but sell Ethereum instead, that’s a trading pair called BTC/ETH.
Here’s the rub: KuCoin is not authorized to conduct business in the United States due to laws governing cryptocurrency exchanges. You can still use the exchange if you’re located in the United States, but your options will be more restricted and you’ll be exposed to more risk than your international counterparts.
Can US Citizens Use KuCoin?
In the United States, KuCoin lacks an operating license. Although it complicates and makes using KuCoin risky, this does not mean that you cannot use it in the United States. Why is KuCoin risky for Americans?
Yes, KuCoin is accessible to US citizens. Pro tip: The exchange might be compelled to block you if you try to use KuCoin from a U.S. location in order to comply with laws. To conceal their IP address, some people decide to use a VPN.
This means U.S.-based users may sign up for accounts, but they will remain “unverified,” which limits access to certain features such as fiat-to-crypto trading.
No Know-Your-Customer (KYC) for KuCoin?
For accounts that make fewer than 5 BTC in withdrawals per day (over $200,000 at the current Bitcoin price), KuCoin does not require “know your customer” (KYC), so the majority of users can use Kucoin Cryptocurrency Exchange without having to provide identification.
Utilizing an exchange that doesn’t require KYC has many benefits. Being able to use it without having to upload your driver’s license and wait for the photo to be accepted (or rejected because you took a blurry photo) makes it less cumbersome. Additionally, even if the exchange is hacked, you don’t have to be concerned about your private information being exposed online.
Although the majority of Americans have used Kucoin Cryptocurrency Exchange without incident, there are some risks you should be aware of if you choose to use KuCoin or any other exchange that doesn’t demand KYC.
In the event that you are charged with money laundering and you are verified, KYC can help to protect you. If any of your transactions are flagged as potentially suspicious by the exchange’s algorithms, it may be able to demonstrate that you are not attempting to conceal your identity.
However, if unverified, the exchange may temporarily freeze your assets because it believes you obtained your deposit unlawfully. If that occurs, you might need to get in touch with customer service to show proof of your identity and the origin of your funds before you can get your deposit back.
Once more, most people have not experienced any issues when withdrawing funds from KuCoin. We do, however, want to alert you to the risk of not verifying your identity because it is unregulated.
For now, KuCoin has three verification levels:
- Unverified account. It requires email verification; lets you withdraw up to 2 BTC per 24 hours.
- Verified Individual account. Requires you to submit your identity details such as ID or passport, as well as your country of residence, and increases your withdrawal limit to 100 BTC per 24 hours.
- Verified institutional account. Increases your withdrawal limit to 500 BTC per 24 hours.
Users are strongly advised by KuCoin to finish verification in order to prevent future issues. As the fiat-to-crypto trading feature has been enabled on the platform, only verified users are allowed to take part in it.
KuCoin practices industry-standard security measures like two-factor authentication, encryption of every piece of customer data, and email confirmation upon login. Along with offering the option to create an additional password for trading on top of the one you’ll use to log in to your account, it also has an internal risk-management team.
Although, in 2020, $285 million worth of cryptocurrency was stolen from KuCoin’s hot wallets. The majority of the missing coins were found, though, and KuCoin’s insurance paid out the rest of the money. The company significantly improved and upgraded its security as a result of the hack. In the event of a future security crisis, we will be able to advise and support other industry partners more quickly thanks to the experience we’ve gained from this one, CEO Johnny Lyu said.
KuCoin Sign-up Process
The procedure for opening an account with Kucoin Cryptocurrency Exchange is quick and easy. Visit the KuCoin homepage, then click “Sign Up” in the top right corner of the screen to get started.
Step 1: Sign up
Visitors can either sign up using a valid email address or phone number.
Step 2: Enter the Verification Code
Depending on the type of method chosen, a verification code is sent to the provided email ID or phone number.
Step 3: Set a Password
After putting the code in the right spot, the next step is to set a password. This is the last step in the registration process. Once your account is set up, you can start trading.
You can then choose to go through the KYC verification process, which will give you access to higher daily withdrawal limits, more trading benefits, and more features. Kucoin Cryptocurrency Exchange offers both basic and advanced KYC verification options.
Log in to your account, click “KYC verification” under your avatar, and enter some basic personal information to finish the basic process. If you choose to go through the advanced process, you will need to provide extra documents, like a selfie or a photo of your government-issued ID, in addition to your basic personal information.
Distinctive Features of KuCoin
Founded as “the people’s exchange,” KuCoin ranks among the world’s top 5 largest crypto exchanges by volume, according to CoinMarketCap.com. KuCoin has grown into a top cryptocurrency exchange that can boast of serving every one out of four crypto holders worldwide. It has created an impressive suite of crypto services, such as the exchange for spots, futures, and margin trading; passive income services such as staking and lending; peer-to-peer (P2P) marketplaces; the IEO launchpad for various upcoming crypto crowdfunding; non-custodial trading; and much more.
Other notable KuCoin features include:
- Buy and sell over 600 crypto assets with low fees worldwide. KuCoin, one of the leading cryptocurrency exchanges, offers support for a wide range of digital assets. It charges a 0.1% fee per trade in addition to bonuses and discounts, and even smaller fees for trading futures.
- Buy cryptocurrencies using popular fiat currencies like USD, EUR, CNY, GBP, CAD, AUD, and many others. Using KuCoin’s P2P fiat trade, a credit or debit card through Simplex, Banxa, or PayMIR, or its Fast Buy service, which enables IDR, VND, and CNY purchases of Bitcoin (BTC) or Tether (USDT), you can purchase cryptocurrencies with fiat.
- Outstanding customer support available around-the-clock via its website, email, feedback system, and other channels.
- Bank-level asset security. KuCoin employs a variety of security measures, such as micro-withdrawal wallets, multilayer encryption at industry-standard levels, dynamic multifactor authentication, and internal risk control departments that are specifically charged with monitoring daily data operations in accordance with stringent security standards.
- Simple and user-friendly platform. Trading is made simple and enjoyable for everyone thanks to excellent design and a strong trading platform. KuCoin’s user interface features a modern layout where traders can delight in the excitement of active trading.
- Advanced Charting – On Kucoin, you can find fascinating and sophisticated charts that will help you better understand your trading strategy. Kucoin Cryptocurrency Exchange makes use of TradingView Charts, which have indicators as well as allow you to make decisions.
- Non-custodial trading. In an effort to increase cryptocurrency security, KuCoin now allows traders to choose non-custodial trading directly from their wallet. The exchange platform does not have custody of your funds if you choose non-custodial trading. As a trader on Kucoin, you will be entirely in charge of and accountable for your funds. “Not your keys, Not your crypto,” as it is aptly stated.
KuCoin, in collaboration with Arwen, lets you download a private key file or a mnemonic phrase. Arwen doesn’t use a third party to keep your coins safe. Instead, it uses the blockchain as an escrow agent.
KuCoin Exchange Pros and Cons
- Over 700 cryptocurrencies are supported: KuCoin’s list of supported cryptocurrencies is a mile long and gives users access to emerging altcoins.
- Multiple payment methods.
- Easy to download mobile apps for android and iOS devices.
- Availability of micro withdrawal wallets.
- Comparatively low trading fee.: Its fee structure is a little confusing at first, but KuCoin’s fees are some of the lowest in the business.
- Volume discounts on fees
- Offers advanced features like margin trading and futures trading
- Prioritizes privacy: If you’re looking to trade crypto without a lot of oversight, then KuCoin may be right for you.
- 24/7 customer support
- Ability to stake and earn crypto yields
- Simple UI with advanced charts and order books
- KuCoin Lending comes with UPTO 300% APY.
- Non-compulsion of KYC (compulsory for withdrawals)
- No bank deposits are available.
- Higher fees for fiat-crypto trades
- KuCoin is not licensed in the U.S.: KuCoin isn’t licensed to operate in the United States, so U.S.-based users will have to assume some additional risk.
- Funds kept on the platform are not insured
- Suffered a major hacking incident in 2020.
- Different trading pairs supported different markets.
- Cannot purchase crypto with fiat currency: KuCoin is a crypto-only exchange. If you want to purchase coins with fiat money, then you’ll have to do so through a partner.
- Some difficulties faced during high-traffic periods
Now, since we discussed its basic features, pros, and cons, it’s time to elaborate on how KuCoin distinguishes itself as an efficient and advanced cryptocurrency exchange in the market with its products and services.
KuCoin Products & Services
KuCoin is known as the top-ranked altcoin exchange and trading platform, with over 600 tradable assets listed on its platform. It is also referred to as a crypto platform that gives users access to a wide range of services and products through which they can generate income. The site has safety measures and security features that make trading digital assets less dangerous. The platform offers end-to-end trading solutions, from automated trading robots to cutting-edge API solutions for better trading strategies.
The products include:
- Spot Trading
- Margin Trading
- Futures Contracts or derivatives ETF
- KuCoin Earn (Staking Platform)
- Spotlight (IEO Platform)
- Crypto Lending
- KuCoin Pool
The services include:
- KuCoin P2P
- KuCoin Trading Bot
- 24/7 Customer Services
KuCoin Spot Trading
What is Spot Trading?
Spot trading is a straightforward trading strategy where traders purchase crypto assets and watch for a rise in their value. For instance, when trader Sue purchases a position in Bitcoin, she anticipates being able to sell it for a profit in the future.
In spot trading, you use your own funds to purchase the asset. This implies that you are limited to purchasing only what you can afford. It is therefore regarded as being somewhat safer than other trading markets. In this market, even when the token becomes worthless, you will never be forced to sell; in the worst-case scenario, you lose all the money you invested.
How to Make a Trade with KuCoin
KuCoin uses a taker-maker fee model for determining its trading fees. Fees for maker orders (also known as “liquidity producers”) and taker orders (also known as “liquidity consumers”) are charged differently.
You will be charged a taker fee if you place an order that is immediately executed, in which case you are regarded as the taker. You are regarded as a Maker and will be charged a maker fee if your order to enter a buy or sell order is not immediately matched.
One benefit of using KuCoin for spot trading is the fixed 0.1% trading fee for makers and takers.
How to Spot Trade on KuCoin
Step 1. Go to KuCoin.com, click on the Trade tab, then click Spot Trading.
Step 2. Find the trading pair you want to trade. Kucoin Cryptocurrency Exchange offers a variety of markets, such as stablecoins (USD/$), bitcoin (BTC), KuCoin Token (KCS), and a variety of altcoins (ETH, TRX, and more).
For instance, if you want to buy KCS with BTC, click on the KCS/BTC pair.
Step 3. Enter your 6-digit trading password to start placing an order. For security reasons, you will be prompted for the trading password once every two hours.
Step 4. Choose the order type, enter your order details, such as price and amount, then click the Buy or Sell button.
Kucoin Cryptocurrency Exchange supports the Limit, Market, Stop Limit, and Stop Market order types. This article will elaborate on each order type later.
Step 5. Once the order has been placed, it can be found in the Open Orders section. Once filled, the order will be moved to the Order History and Trade History sections.
Understanding Different Trade Orders
- Limit Order: A limit order is an order or sale request made at a specific limit price.
If the current market price of KCS is 0.96289 USDT and you would like to buy 100 KCS at the price of 0.95 USDT, you can set a limit order for that amount.
To place a 100 KCS Limit Order, click the Limit Order button and then type 0.95 USDT into the Price box. To place your order, click Buy KCS.
- A market order is a purchase or sale request made at the best price currently being offered in the market.
If the current market price for KCS is 0.96263 USDT and you plan to buy KCS worth 1,000 USDT immediately, you can place a market order.
Select Market Order, enter 1000 USDT in the amount box, and then click Buy KCS to place the order. The order will typically be filled in seconds.
- Stop Limit Order: A Stop Limit Order is an order placed to buy or sell at a limit price when the price reaches the configured trigger price.
If the current market price of KCS is 0.9629 USDT and you assume the stop price will reach 1.0666 USDT and will not continue to rise when it breaks through, you can sell when the price reaches 1.065 USDT.
Select Stop Limit Order, enter 1.0666 USDT in the stop price box, 1.065 USDT in the price box, and 100 KCS in the amount box, then click Sell to place the order. When the latest price reaches 1.0666 USDT, the order will be triggered, and the 100 KCS order will be placed at a price of 1.065 USDT.
- Stop Market Order: A Stop Market Order is an order placed to buy or sell at the current price when the price reaches the configured trigger price.
If the current market price of KCS is 0.96285 USDT and you assume the stop price will reach 1.0666 USDT and will not continue to rise when it breaks through, then you can sell when the price reaches the support price.
Select Stop Market Order, enter 1.0666 USDT in the stop price box, and 100 KCS in the amount box, then click Sell KCS to place the order. When the latest price reaches 1.0666 USDT, this order will be triggered, and the 100 KCS order will be placed at the best market price.
The market order is matched by the best available price in the current market. Depending on the market depth and how prices change, the filled price can be higher or lower than the current price.
Kucoin Cryptocurrency Exchange upgraded the Stop Order function on October 28, 2020. After the upgrade, the system will no longer pre-freeze the assets in your account for the stop order until it has been triggered.
- OCO Order: An “One Cancels the Other” order, also known as an OCO, is a unique kind of order that lets traders place two different orders at once. This strategy combines a limit order with a stop-limit order, both of which are placed simultaneously, but only one can be executed at a time.
You just bought 0.001 BTC at a price of 20,500 USDT because you believe the price is more likely to go up. However, you aren’t completely certain if the price will head up or tumble further, so you’d like to minimize your losses as well.
In this case, you can place an OCO order to use both a profit-taking limit order at 22,000 USDT and a loss-minimizing stop-limit order at 19,500 USDT that goes into effect at 19,750 USDT.
You can find your open position in the Advanced Orders tab at the bottom of the KuCoin trading page, where you can monitor the position or cancel it.
If you’re right and the BTC price does go above 22,000 USDT, your sell order will be filled and the stop-limit order will be cancelled immediately. Conversely, your stop-limit order at 19,500 USDT would be activated if the price falls and proves you to be wrong and the price falls to or below 19,750 USDT. This would potentially minimize your losses in case the price drops even more.
Until your order is executed, your assets will remain unlocked. There will be an order failure if you do not have enough funds available by the time the trigger price is reached. Unfortunately, once your order is processed, access to your assets will be denied.
KuCoin Margin Trading
What is Margin Trading?
The concept of “margin trading” refers to an investment strategy in which a small amount of money is used to make investments worth many times the original amount. In order to make larger purchases or sales with a smaller initial investment in cryptocurrency, users will often engage in strategies known as “leverage” and “borrow” in order to “go long” or “go short.”
Types KuCoin Margin trading
1. Cross and Isolated Margin
2. Borrowing and Interest
3. Long and Short
4. Debt Ratio and Repayment
1. Cross and Isolated Margin
The KuCoin margin trading platform supports cross-margin and isolated margin modes.
To maximize capital utilization and avoid liquidation, a cross-margin margin account will use all assets (of any kind) in the account as collateral. The main advantage of cross-margin borrowing is that you don’t have to part with any of the tokens you already possess in order to acquire new ones. The cross margin account accepts and processes transfers of all tokens that the platform supports. For the purpose of determining the debt ratio, all positions in a cross-margin account are considered to be one single position.
Trading on isolated margin necessitates the establishment of an isolated account for each isolated margin trading pair. Trades, risks, and debt ratio calculations are independent of one another. All transactions involving a trading pair’s two coins must take place in a special margin account. The reduction of overall risk is the primary benefit of a separated margin. Any potential liquidation risks will not affect any other isolated margin accounts. The maximum leverage also differs depending on the trading pair. Isolated margin currently supports up to 10x leverage.
Differences Between Cross and Isolated Margin
|Differences||Cross Margin||Isolated Margin|
|Account||All cross-margin transactions share the same account.||Each isolated margin trading pair has a separate account.|
|Margin||All assets in the cross margin are used to guarantee each other and share the same margin.||For an isolated margin, you can only use the two coins that go with the trading pair.|
|Debt Ratio||A single debt ratio is calculated based on all assets and liabilities under the cross-margin account.||Every individual margin account has a debt ratio that is distinct from those of other accounts. It is calculated based on the assets and liabilities in the specific isolated account. You’ll need to make changes to the debt ratio by hand, as each individual account is handled separately.|
|Risk||You will be automatically requested to increase the margin or close the position depending on the overall risk level of the cross-margin account. Once liquidation is triggered, all assets in the account may be liquidated.||Each isolated margin account’s risk is independent of the others. Even when one account is at high risk of liquidation, no other account will be affected.|
2. Borrowing and Interest
Amount of Borrowable Assets
Borrowers can get as much as a five-fold increase in their leverage when using cross-margin, and they can borrow up to four times as much as they have in their cross-margin account. With a cross-margin account, a user who has deposited 10 USDT can borrow up to 40 USDT, bringing their total balance to 50 USDT.
With a cross-margin account, you may borrow multiple coins. For instance, a cross-margin account allows you to hold Bitcoin (BTC) while borrowing Ethereum (ETH) or Litecoin (LUNA) or another coin. At any time prior to the loan’s due date, the user has the option to make a manual repayment.
In isolated margin mode, the maximum leverage differs depending on the trading pair, up to a maximum of 10x. Using 10x leverage as an example, the maximum borrowable assets are 9x the total assets in the specific isolated margin account. In a BTC/USDT isolated margin account, if a user has 10 USDT, they can borrow up to 90 USDT, bringing their total available funds to 100 USDT. This isolated margin account can only borrow BTC to go short or USDT to go long. It cannot be used to borrow other coins.
There are two different margin loan methods, namely Manual Borrow and Auto-Borrow.
- Manual Borrow: With manual borrow, the user takes out a loan to purchase assets and then executes a trade. To begin trading, the user must first borrow assets from the C2C lending market.
- Auto-Borrow: When a user places an order, the system will immediately borrow the necessary resources. Simply setting a leverage multiple is all that is required of the user. When the user places an order, the system will automatically borrow the amount required for the trade. Order placement and borrowing are executed at the same time.
Interest is calculated by Principal, the daily interest rate, and the actual borrow time. You can check the accrued interest on the “Earn,” “Crypto Lending,” and “Borrow” pages, as we show you below.
Interest Calculation Method
When you successfully borrow funds, you will be charged interest for the first time.
Every hour, the accrued interest is updated, and it will be paid off when the borrowers pay back.
If you only want to pay off a portion of your loan, the system will prioritize paying off the interest until the principal is paid off, and then it will continue charging interest on the remaining balance.
The platform will charge 5% of your accrued interest as fees and 10% as the insurance fund.
3. Debt Ratio and Repayment
If the user hasn’t taken out any loans for their digital assets, their debt ratio will be at 0%. A user’s debt ratio is determined by taking into account the user’s principal, borrowed assets, and interest when a user borrows multiple digital assets. The calculation is as follows:
Debt Ratio= Account liabilities/Account assets
Account liabilities=Borrowed assets + Accrued interest=sum(whole borrowed assets*mark price)+sum(Accrued interest for all borrowed assets*mark price)
Account assets=sum(whole holding assets*mark price)
Every five seconds, the Debt Ratio will be updated. Depending on the user’s security settings, KuCoin will send them an SMS and an email when their debt ratio reaches 95%. Once the debt ratio reaches 97%, the company will be forced to liquidate the account.
Note: You can only transfer part of your funds out of the margin account if the debt ratio is lower than 60%. The lower the debt ratio, the larger the transferable amount. If you’d like to transfer all of your funds out, kindly check the liabilities on your margin assets page and repay all the loans first.
Low risk: ≤60% debt ratio; Medium risk: 60%-90% debt ratio; High risk: >90% debt ratio.
Reducing the debt ratio to lower risk:
- Transfer more assets from other accounts to the margin account.
- Repay a portion of your debt in advance.
If you borrow tokens, it’s those you’ll have to give back. You cannot use another token to repay a loan. For instance, if you owe USDT, you must repay in USDT, and if you owe BTC, you must repay in BTC. Make sure there are enough tokens in the margin account to cover the loan payment.
Liabilities payable = Borrowed assets + Accrued interest.
A borrower can choose to pay back a loan manually at any time before it’s due. An hourly rate of interest is applied based on the time that was actually spent using the service.
If the borrower’s Margin account has zero or negative funds when the loan matures, the Auto-Renew feature will kick in and cause the system to borrow the remaining principal and interest on the loan in exchange for the existing loan’s collateral.
The objective is to facilitate timely repayment of principal and interest by borrowers and maintenance of existing margin positions by lenders upon maturity of the loan.
1) The system will borrow the same amount of assets as the amount of principal and interest on the remaining debt.
2) Repay the mature loan.
The auto-renew function will likely fail in the following situations:
1) The auto-renewal process will only be initiated if the borrower’s Margin account’s current debt ratio is less than 96%;
2) The token has been delisted from the C2C Funding market;
3) The liquidity of the token is insufficient in the C2C Funding Market;
4) The debts in the borrower’s Margin account access the token’s Margin Risk Limit;
If the Auto-Renew execution fails, the system will partially liquidate the borrower’s margin position to repay the mature loan, which means that the system will trade part of the holding assets in the Margin account to the debt assets to repay all the debts. Meanwhile, the system will automatically cancel users’ open orders in Margin.
Once auto-repay is turned on, the platform will check every 30 minutes to see if there are any assets in the margin account. If there are enough coins to pay off the debt, the debt will be paid right away and automatically. Users can toggle this function in accordance with their trading needs.
KuCoin Leveraged Tokens
KuCoin Leveraged Tokens are tokens with the leverage feature, managed by the fund manager, with the intention of giving investors access to a predetermined multiple of the gains from the underlying assets through the trading of Leveraged Token Shares.
How to profit from KuCoin Leveraged Tokens? – Investors need to judge the trend of the market. Buy when bullish and sell when bearish. For example:
If you are optimistic about Bitcoin, then buy BTC3L. When BTC price rises by 1%, BTC3L also rises by 3%; On the contrary, if you are pessimistic about BTC, then buy BTC3S. When BTC’s price drops by 1%, BTC3S also rises by 3%.
KuCoin Leveraged Tokens don’t have an end date and won’t go down in price, so there is no risk of them being liquidated. Investors can subscribe to or redeem those tokens in the primary market, or buy or sell them in the secondary market. Traders don’t need to pay any margin for KuCoin Leveraged Tokens.
What are the Advantages of KuCoin Leveraged Tokens?
1. Convenient operations with no requirement on margin
Buying KuCoin Leveraged Tokens works exactly the same way as trading on the spot market. Investors may only buy or sell those tokens in the secondary market (although they may subscribe to or redeem them in the primary market; this is not recommended for new users).
2. A dynamic rebalancing mechanism helps control risks and magnifies profits.
KuCoin Leveraged Tokens are made with a dynamic rebalancing system, which helps keep risks low and boosts profits.
For example, if an investor goes 3x long BTC on the margin market and the price of BTC drops by 33%, the investor will be forced to liquidate their position and lose all of their money. But now, thanks to the dynamic rebalancing mechanism, nothing of the sort needs to happen. Also, if the price of BTC goes up later, there is still time to turn negative profits into positive profits because the price of BTC3L will also go up. By automatically reinvesting gains and keeping leverage at a constant multiple, the mechanism makes sure that profits add up.
Fees involved in KuCoin Leveraged Tokens
1. Trading Fees: The fee schedule is the same as that of the spot trade.
2. Subscription Fees: Subscription fees are charged when users subscribe to tokens. Currently, the fee rate is 0.1% per subscription.
3. Redemption Fees: Redemption fees are charged when users redeem tokens. Currently, the fee rate is 0.1% per redemption.
4. Management Fees: Management fees are charged at the rate of 0.045% by 23:45 (UTC) every day. The fee will be incorporated into the net asset value of the Leveraged Tokens.
When will rebalancing take place?
Positions are usually rebalanced every day between 23:30 and 23:45 UTC to make sure that the portfolio’s leverage ratio doesn’t change too much from the agreed-upon one.
Why do leveraged tokens need the rebalancing mechanism?
The purpose of the rebalancing mechanism is to maintain the leverage rate by adjusting the positions of the leveraged tokens.
If User A invests $100 in BTC3L, then they have opened a long position in BTC with 3x leverage (the underlying value is $300). If the price of Bitcoin drops by 1% the following day, the value of BTC3L will drop by 3%, costing user A $3 (based on the underlying value of $297). Now the leverage rate is 3.06 (=297/97). To keep the leverage rate around 3, the underlying assets need to be rebalanced every day. This means that positions need to be changed every day.
But when there are sharp flunctuations, KuCoin will rebalance positions if the change in the underlying asset is more than the given threshold (which was set at 15% for 3 times long and short at first). This is done to control the risks. Keep in mind that when the market is very volatile, the rebalancing process will result in a negative net value.
What is net value?
Theoretically, the net value of the leveraged fund is the fair price of leveraged token shares in the secondary market. But because of changes in the market, the transaction price on the secondary market may sometimes be different from the fair price, that is, the net value of the fund, resulting in a price premium.
What kind of investors are suitable for leveraged tokens products?
This leveraged token is a product that has been refined in the traditional financial market and can thus meet the needs of most investors. Investors who anticipate price fluctuations in the underlying assets or who prefer to avoid liquidation risk will benefit most from this product. Although when markets are volatile, investors may lose money due to the high management fees and the leveraged nature of token products.
Price Mechanism of KuCoin Leveraged Tokens
KuCoin Leveraged Token is indeed a unit share of a leveraged fund. The fund’s return will be pegged to the multiple of the underlying asset that traders can profit from when buying and selling leveraged token shares, which will be ensured by the fund manager. The system will implement the rebalancing mechanism to hedge the risks and ensure that the net loss does not exceed a predetermined limit whenever the opposite side’s price volatility rises above the set threshold. To ensure transparency throughout, KuCoin will always provide the net value of the fund.
By merging the product’s shares when the net value of a leveraged token drops below a certain level, KuCoin makes price changes more apparent and enhances the trading experience for all parties involved. After merging, the net value will be 10 times higher, but the quantity will become 1/10, so the total assets of the investor will not be affected.
Supplementary to Net Value
Cycle: Taking the rebalancing time as the dividing point, a cycle is from the previous rebalancing time to the current one. The rebalancing time is divided into two categories: regular rebalancing, which takes place every day from 23:30 to 23:45 UTC.. The other is irregular rebalancing, which takes place when the intraday change of the underlying asset exceeds the preset threshold.
Management Fees: Management fees are charged every day at 23:45 (UTC) according to the fold of leverage. The fee will be incorporated into the net value of the leveraged tokens.
KuCoin Futures Trading
What is Futures/Contract trading?
Futures trading, also known as “contract trading,” is the buying and selling of standardized futures contracts. Futures trading allows you to profit from market fluctuations by going long or short with a Futures contract and increasing your returns through the use of leverage. A trader can “go long” on a Futures contract if he anticipates an increase in value, or “go short” if he anticipates a decrease in value.
What Is a Futures Contract?
Generally speaking, a Futures contract is an agreement to buy or sell a commodity, currency, or other instrument at a predetermined price at a specific time in the future. They can be either physically settled or cash-settled. KuCoin Futures offers several of its trading products in the form of Futures contracts with a cash settlement.
In KuCoin Futures, the Futures contracts are divided into Perpetual contracts and Delivery contracts based on the delivery dates (Delivery contracts are settled on a specific date, while Perpetual contracts are settled every 8-hour window). They’re also grouped into USDT-Margined and COIN-Margined contracts on the basis of the settlement coins.
How Does Futures Trading Work?
Unlike Spot trading, in which the exchange between an underlying asset (tokens) and money (USDT in most cases) happens when the order gets executed, Futures trading is conducted with a price prediction for the future. To begin trading in Futures, you can do so without actually owning any cryptocurrency. As a result, it could be more adaptable and user-friendly in the eyes of traders.
As mentioned above, whenever a trader participates in Futures trading, he can either open a long position or a short position based on his belief that the price is going up or down in the future. As a result, risk management is critical in managing futures positions. Though your gains could be amplified by leverage, your losses could also be amplified if the price is against you.
Top Advantages of Futures Trading in KuCoin Futures
Main features of KuCoin Futures
- Risk hedging: By selling/shorting a Futures contract, users can hedge against downside risk from the Spot trading market. Forget the market volatility.
- Two-way profit: Buy/sell a Futures contract to go long or short to earn a profit from both uptrend and downtrend. Plus, the funding fee is covered based on the price gap between the Spot and Futures market.
- Higher leverage: Up to 100x leverage on KuCoin Futures to magnify users’ profit with less funds. You can start trading BTC with only $1.
- Best choice for newbies: Exclusive Lite version makes every trading easier than ever, and newbies can get quickly started within 3 steps. Also, Futures Brawl is here to offer users an enjoyable trading experience.
- Diversified contract and order types: Both Coin-Margined and USDT-margined contracts supported, and a wide range of order types are available to meet various trading needs.
- Leading indexing algorithm and top 3 trading depth: No fear for drastic fluctuations in the market. Additionally, airdrop bonuses are offered for every new user to start trading for free. Furthermore, users don’t need to borrow from others when participating in Futures trading, making it more efficient and easier to get started. But there are things that need to be known before trading, such as volatility and risk.
Contract Types Supported in KuCoin Futures
Futures trading, put another way, is the practice of buying and selling a futures contract. According to the terms of this contract, the buyer will buy assets from the seller at an agreed-upon price in the future (the “delivery date”), and the seller will give the assets to the buyer on that date.
Nowadays, Futures contracts come in a wide variety of forms, including inverse contracts, linear contracts, delivery contracts, and perpetual contracts. Because of this, traders can come up with more creative ways to use these contracts, which helps them make more profits.
- Inverse contracts vs. Linear contracts
- Perpetual contracts vs. Delivery contracts
Inverse contracts vs. Linear contracts
Inverse contracts are coin-margined contracts. If a trader would like to trade BTC, ETH, XRP, or DOT contracts, the underlying cryptocurrency has to be used as the margin to trade the respective contract. A revenue-based increase or decrease does not cause a linear change in the underlying price.
For example, you must use bitcoin as the underlying asset in a BTC-margined contract, which is one of the most popular inverse contracts. If you want to trade Ethereum contracts, you must do the same with Ethereum.
A linear contract is a USDT-margined contract that uses USDT to make contract transactions with cryptocurrencies and has underlying prices that rise and fall in a linear fashion with revenue. In a linear contract, trading and settlements are done in USDT. This means that holders of USDT can settle cross-currency contracts in any of the major world currencies right away.
What is the difference between USDT-margin and BTC-margin contracts?
Contracts with USDT margins are less complex, less risky, and less volatile than those with bitcoin margins. As a result, users who operate under a fiat currency standard prefer USDT-margined contracts due to their low transaction costs and simple settlement. Hedging users led by miners or a small group of believers in a cryptocurrency that they plan to hold for a long time tend to favor contracts with BTC margining.
|Type||USDT-Margined Contract||BTC-Margined Contract|
Many seasoned contract traders, however, will base their decision on their analysis of market conditions. When they think the short-term market is rising, they choose a BTC-margined contract to hold; when they think the short-term market is falling, they choose a USDT-margined contract to sell. In this way, they can make more profit.
Perpetual contracts vs. Delivery contracts
Delivery contracts are one kind of cryptocurrency contract with a determined delivery date. Both parties will settle and deliver at the agreed-upon price and on the agreed-upon delivery date. For example, KuCoin Futures just started offering a contract for quarterly delivery, such as the BTC Quarterly 0625. This kind of contract will settle at 08:00 on June 25, 2022 (UTC).
Perpetual contracts are a type of contract without a settlement time. Users can keep their open positions in perpetual contracts open until they close them or are forced to close them because their margins are too low. KuCoin Futures has released more than 60 perpetual contract products, such as the USDT-margined BTC PERP, ETH PERP, BCH PERP, and BSV PERP, and the BTC-margined BTC Perpetual, ETH PERP, XRP PERP, and DOT PERP. The USDT-Margined contracts cover the DEFI to NFT fields, and still keep adding more down the road.
What is the difference between Perpetual and Delivery contracts?
There are two main differences between perpetual and delivery contracts:
First, the biggest difference between perpetual contracts and quarterly contracts is that their highest leverages are different. KuCoin Futures has launched BTC and ETH perpetual contracts, which offer up to 100x leverage. Delivery contracts offer up to 20x leverage. Perpetual contracts are more risky in some ways, but also more speculative.
Second, unlike Delivery Contracts, Perpetual Contracts do not have funding that expires and has a settlement fee. Here’s a handy comparison table to help you wrap your head around it all.
|Perpetual Contracts||Delivery Contracts|
|Contracts||BTC PERP/USDT||BTC Quarterly 0625|
|Expiry Date||Perpetual||2021/6/25 08:00:00 (UTC)|
|Max Order Quantity||1,000,000 lot(s)||10,000,000 lot(s)|
|Contract Size||1 lot(s) = 0.001 BTC||1 lot(s) = 1 USD|
|Funding Rate||Yes, differs in each contract||/|
|Settlement Fee||/||Yes, 0.025%|
The average user has the option of investing in either perpetual or delivery contracts, depending on their risk tolerance and personal investment philosophy.
Typically, in order to reduce their exposure to risk and maximize the effectiveness of their investments, institutional and professional investors will select both perpetual contracts and delivery contracts, forming a more intricate investment strategy.
KuCoin Earn is an all-in-one financial management solution developed by KuCoin. Multiple financial instruments are available to customers for use in growing their wealth. KuCoin Earn (previously named Pool-X) is a staking platform that allows users to earn money via staking Proof-of-stake cryptocurrencies like TOMO, ATOM, KCS (KuCoin Token), XTZ, IOST, TRX, and ZRX, among others.
KuCoin Earn has a lot of diversified and flexible products, like savings, staking, and promotions, that help users make a steady passive income. For flexible-term products, users can redeem their funds at any time. When fixed-term products reach their maturity date, the funds are automatically redeemed to the account. The yield of fixed-term products is higher than that of flexible-term products.
- KuCoin Rewards Hub
The KuCoin Rewards Hub is a cutting-edge service that lets users do different things to earn more rewards. Beginners can get started by visiting the Rewards Hub, where they can watch introductory videos and read introductory articles on cryptocurrency, trading, and trading strategy. Once the mission is finished, the hub will award free USDT or coupons.
As the market changes, so will the tasks in the KuCoin Rewards Hub, which will have a wide variety of tasks related to trading. As they go about their day, users can pick and choose the activities they’d like to complete, all while discovering promising new cryptocurrencies and investment opportunities. Rewards will be distributed after each designated task is completed.
- KuCoin Savings
Users can get rewards by transferring to the position currency (to meet the minimum position size without locking the position). The proceeds generated on the day will be issued to the user’s financial account in the form of compound interest in proportion to the number of snapshots held by the user.
- KuCoin Staking
Users who take part in staking will be rewarded with both staking rewards and POL Credits. It works with a wide range of cryptocurrencies, and users can get rid of their holdings during the staking phase by trading them on the Liquidity Trading Market. The user can also choose to cash out during a redemption period. The redemption period for each currency is set, and during the redemption period, there is no local currency income or POL mining income.
What is POL?
Proof of Liquidity (POL) is a token that is issued by the Earn exchange and is based on the TRC20 protocol used by TRON. It is in the nature of things for zero reservations to be provided to the team or any individual ahead of time. POL is an important part of the Earn ecosystem. It acts as a bridge between staked tokens and tokens that are already in circulation, giving users instant liquidity even while the crypto assets are still staking. POL is both a reward for people who help keep the market and the environment in balance and the fuel for getting system resources.
What is the token supply and distribution of POL?
The total supply of POL stands at 1 billion. The distribution of POL is divided into 3 parts: LockDrop, staking, and the budget system. In addition to the staking, POL node mining will also be opened soon.
How to obtain POL
- Participate in the LockDrop event
- Staking tokens on Earn
- Trade on Earn Exchange
- Trade POL at KuCoin spot trading market
- Participate in mining in POL nodes
- Participate in community governance and apply for an operation budget in POL and get approved and supervised by the node
Why are there two annual yields?
The Reference Annual Yield is made up of staking rewards and the annual yield after converting POL to the staked coins. The annualized rate of return is estimated based on past market earnings, which are used as a guide. The real rewards will be based on how much money you actually have in your account.
For example, the annual rate of 21.75% refers to the expected annualized return of ORN, which is 20% (the annual yield of ORN) + 1.75% (the annual yield after converting POL to ORN).
Flexible Staking Promotion & Fixed Staking Promotion
What is Fixed Staking Promotion?
Users need to lock their tokens to get rewards; during the “subscription period” (usually set as 2 or 3 days), users can stake to participate, and the staked assets are allowed to be redeemed in advance.
Can I get Rewards During the Fixed Product Subscription Period?
Fixed products don’t count as staking, so there are no staking rewards or POL mining rewards during the subscription period.
What is Flexible Staking Promotion?
Users have to lock their assets, but they can stake or unstake at any time during the activity period. Users must wait for a redemption period (usually set at 1-3 days) after they have unstaked assets.
Can I get Rewards from the Redemption Period?
When the user decides to redeem the flexible position, there is no local currency income and no POL mining income during the redemption period.
- KuCoin Dual Investment
What is KuCoin Dual Investment all about?
Dual investment is a high-yield, structured wealth management financial product involving two different currencies. It’s an investment that doesn’t guarantee your initial investment and has a variable rate of return. Using a target price that has already been established, the returns will be modified accordingly.
Simply put, Dual Investments require users to deposit a single cryptocurrency and offer returns based on two different assets. Once a cryptocurrency is deposited, it will be frozen, giving investors the chance to profit from the asset’s appreciation. The potential return for investors is contingent upon the eventual value of the staking asset.
Why is Dual Investment a Non-Principal-Protected Financial Product?
Dual Investment is a non-principal-protected product whose biggest risk comes from possible market price changes. When there is high volatility in the market, it may be difficult for users to predict potential differences between the target price and the market price at the time of maturity. Therefore, it may also be difficult to predict what the settlement currency will be. So, before you sign up, make sure you understand what the product is and what risks it might have.
There are two types of Dual Investment products KuCoin offers:
- Buy Low – provides users with the chance to buy a cryptocurrency at a lower price in the future, while earning yields regardless of the market conditions.
- Sell High – provides users with the chance to sell a cryptocurrency at a higher price in the future, while earning yields regardless of the market conditions.
Dual investment products are a good alternative to limit orders because they give users the same result while giving them more choices.
Why Should Users Start Using Dual Investment Products?
Users can buy a Dual Investment product if they want to do any of the following:
- Increase Cryptocurrency Holdings: Users can buy more cryptocurrencies when they have already held some cryptocurrencies and want to continue profiting from them.
- Hold More Stablecoins: Users can purchase more stablecoins when they already owned stablecoins and want to continue profiting from them.
- Buy at a Low Price: When the market is going down, users can buy cryptocurrency at the target price, i.e., to obtain higher yields by “buying the dip.”
- Sell at a High Price: When the market is going up, users can sell cryptocurrency at the target price, i.e., to obtain higher yields by “sell the rallies.”
- KuCoin Spotlight Platform (IEO Platform)
What is KuCoin Spotlight?
Spotlight is a token launch platform on KuCoin that facilitates the initial distribution of tokens for pre-release crypto projects, allowing investors to get in on the ground floor of their projects of choice while also benefiting from the platform’s low entry requirements.
For KuCoin Spotlight to maintain its position as the best altcoin trading platform, it must adhere to stringent screening criteria to guarantee the quality of the listed projects and the tokens they use.
First, the KuCoin Research Team is made up of more than 20 experts who are in charge of the whole process of choosing candidates and final tokens to be listed. There will be a total of three separate groups working on this, with four sets of eyes reviewing their work.
Next, the team considers candidates from nearly a hundred different perspectives across six main areas: prior work, technical proficiency, team composition, financial stability, marketing prowess, and external review. Less than 10% of the candidates will pass the selection and be listed on KuCoin Spotlight. In conclusion, the tokens listed in Spotlight have been hand-picked using rigorous criteria to ensure their superior quality.
Spotlight helps early-stage crypto projects through crowdfunding, marketing exposure, and industrial influence so that they can grow and provide more promising crypto assets for investors.
KuCoin, the crypto industry’s mecca, has launched 22 spotlight projects in the past year. Here are the top 5 best performance projects, as follows:
The Most Popular Spotlight Projects
Victoria VR (VR)
Victoria VR is a decentralized online role-playing game (MMORPG) powered by blockchain technology, featuring photorealistic graphics on an unrealistic engine.
Cryowar is a multiplayer NFT game built on blockchain. It is being made for PC, iOS, and Android using Unreal Engine 4 and the Solana network. It takes the form of a real-time, cross-platform multiplayer PVP arena where players engage in fierce multi-realm battles in an expansive sci-fi medieval game world.
Chumbi Valley (CHMB)
Chumbi Valley is an enchanting blockchain role-playing game built on BSC and Polygon. Chumbi is a charming NFT creature who lives in a lush, mysterious forest valley. Chumbi is open to everyone, and you can be paired with a Chumbi ancestor to start your adventure. You can get more rewards if you help Chumbi take care of a farm and grow crops. You can create NFT items using in-game resources and even earn money while offline by using Chumbi automation spells.
ClearDAO is KuCoin’s 18th spotlight project, and it has taken on a lead role in the market for DeFi derivatives. ClearDAO is tackling the DeFi derivatives space by building the infrastructure for customizable derivatives.
Polkadex is a fully decentralized, peer-to-peer, orderbook-based cryptocurrency exchange for the DeFi ecosystem in Substrate. It is built as a parachain of Polkadot, offering crypto-crypto and crypto-fiat asset trading.
- KuCoin P2P
KuCoin Peer-to-Peer allows users to transfer or trade cryptocurrency directly with one another, bypassing the need for a middleman such as a broker or a bank. Here, trades between buyers and sellers are dependent on the electronic exchange of crypto and fiat currencies. Thus, it is sometimes called the “instant exchange.”
KuCoin offers an escrow service on its P2P trading platform to guarantee the security and fairness of all transactions. To put it succinctly, a buyer can place an order on the KuCoin P2P platform, at which point KuCoin will temporarily freeze the seller’s cryptocurrency. As soon as the funds have been transferred to the seller’s bank account from the buyer’s bank account, the seller will release the cryptocurrency to the buyer’s KuCoin Main Account. By doing so, the risk of counterparty default is reduced for both parties. So, everyone is happy.
KuCoin is one of the few exchanges that supports multiple payment options. Users can instantly convert their fiat currency to cryptocurrency on the platform. It supports the instant exchange of fiat currencies such as USD, EUR, GBP, CAD, IDR, AUD, and so on. Users can also choose different payment methods like PayPal, Transferwise, Bank transfer, etc.
Advantages of KuCoin P2P Trading
Among the various P2P solutions available in the crypto industry, Kucoin Cryptocurrency Exchange P2P Trading has a number of appealing features and advantages, including:
- Zero Fees: Traders can make the transaction easily and smoothly with zero fees.
- High Liquidity & Best Price: A number of professional merchants on KuCoin P2P provide deep liquidity. Competitive USDT price in comparison with other P2P platforms.
- Support for Multiple Local Payment Methods: More local payment methods are supported, like local bank transfers: IMPS and UPI, Momo in Vietnam, and Paytm in India. New payment methods are added every month.
- Extremely User-Friendly Funds Protection Policy: Only Vetted and verified merchants are allowed to sell crypto on KuCoin. Each merchant on KuCoin has a safety deposit to ensure buyer protection. KuCoin escrows and holds merchant funds for 24 hours if the buyer doesn’t complete the order.
- Professional and Reliable Merchants: To guarantee a professional merchant team, all the KuCoin merchants undergo a strict selection process. Merchants that cooperate with KuCoin are required to offer favorable prices and quick responses to our users. The Golden Merchant Program, Merchant Weekly Ranking, and regular Merchant Qualification Tests are also being held by KuCoin to improve the P2P services.
- Safe Transactions: With a robust system and a growing global professional merchant team, KuCoin P2P has been able to cover users’ business needs in most markets around the world. The transaction is safe as KuCoin offers an escrow service, as explained before.
- Fast Transactions: The transaction usually takes a few minutes, so you will not miss any trading opportunities in the rapidly changing crypto market.
- Integration with the KuCoin Ecosystem: KuCoin allows both desktop and mobile users for fiat-to-crypto conversion and receives instant access to the entire KuCoin ecosystem.
How to Exchange Fiat to Crypto with KuCoin P2P Trading
For website users:
Step 1: Log into your KuCoin account. On the main page, click “Buy Crypto” and then “P2P” to enter the KuCoin P2P Trade page.
Step 2: Then click “P2P”>>“Buy”. Choose the fiat currency, then choose a merchant, and click “Buy.”
Step 3: Enter the total amount you want to buy and click “Place Order.”
Step 4: Complete payment via the payment method requested by the merchant. Click “Mark as paid” after you have completed the payment.
Step 5: Wait for the seller to confirm and release the token, which will arrive in your Main Account, and the order will be completed.
For App users:
Step 1: Log into your account via the KuCoin App. From the homepage, tap “Buy Crypto.”
Step 2: Then click “P2P”>>”Buy”. Choose the fiat currency and tap “Buy” from one of the merchants.
Step 3: Fill in the token quantity or the fiat amount and tap “Buy Now.”
Step 4: Complete payment via the payment method requested by the merchant. Tap “I Have Paid” after you have completed the payment.
Step 5: Wait for the Seller to confirm and release the token, which will arrive in your Main Account, and the order will be completed.
- KuCoin Trading Bot
Earlier in 2021, IDG-backed Kucoin Cryptocurrency Exchange announced the launch of its own cryptocurrency trading bot. The bot, like other similar software, can be used for automated crypto trading. Simply put, users need to create an account, enter certain parameters, and deposit some money as their first investment.
After that, the bot can handle all trading activities automatically. With the help of analytics and other tools, it will use the parameters to analyze the market and make price predictions. Based on those, it will place buy and sell orders, which will get executed as the price moves.
What Can the KuCoin Trading Bot Do?
In terms of trading methods, the bot is versatile and most often employs spot trading, also known as “classic grid trading.” This approach involves making money off of fluctuations in the market by placing buy and sell orders.
In essence, the system will continuously buy coins at predetermined intervals and sell them when their price rises above the base currency. Therefore, it will prosper by capitalizing on market fluctuations.
The bot is typically quite successful when it comes to grid trading, as it is simple, and the biggest reason why people tend to lose money while using it manually is the human factor itself. People make mistakes due to their emotions, while the bot uses nothing but rules and information to guide its decisions.
So, during volatile periods, when the price of specific coins, such as Bitcoin or Ethereum, falls below a certain level, the bot will place buy and sell orders based on the total grids and price range that have been predetermined. Then, the orders will be executed as the price moves up or down. When the situation changes and the price begins to rise, it will make a forecast to determine when to sell. If successful, it will recover the invested money as well as the extra funds, which will be pure profit.
Apart from Classic Grid trading, the Kucoin Cryptocurrency Exchange Trading Bot also supports Dollar-Cost Averaging, which is essentially a long-term investment strategy. For example, if someone wanted to invest $10,000 in BTC, it is not recommended to invest it all at once. It’s also possible to instruct the bot to invest smaller amounts at regular intervals, as specified by the user. Although it can be challenging to maintain this strategy when trading manually, it has been shown to be effective, so delegating this task to the bot may prove to be worthwhile.
It’s also worth mentioning that you won’t have to pay a dime to use the bot. Absolutely no money is required from users in order to make use of it. This includes no subscription costs, no entry fees, and no other hidden costs. All that is required to get the bot trading is a trading account at the exchange and some starting capital.
Buy Crypto with Fiat Currency Services
This KuCoin review highlights the fact that the exchange accepts a wide variety of fiat currencies for cryptocurrency purchases, including USD, EUR, AUD, CAD, GBP, and more. Without taking into account any bonuses or discounts, KuCoin already has the lowest trading fees.
Kucoin Cryptocurrency Exchange supports debit and credit card purchases via Visa, MasterCard, ApplePay, and SEPA. KuCoin’s peer-to-peer exchange offers bank transfers along with 20 different payment options. There is also a fast-buy option to receive cryptocurrencies instantly. Investors from around the world can purchase cryptocurrencies using fiat currency. You can trade many different cryptocurrencies by using this platform, which has very low fees.
Overview of KuCoin Fees
KuCoin does not charge any fees for cryptocurrency deposits. Deposits in fiat currencies, on the other hand, have to pay the fees that come with these kinds of transactions. This is something that the bank or payment gateway in question decides.
Also, the cost to make a withdrawal varies widely depending on the cryptocurrency being used. For example, the withdrawal fee for Tether is 20 USDT, while it is 1 ADA for Cardano.
The costs associated with trading can fluctuate widely depending on whether the trader engages in spot trading or margin trading. It also depends on the funds held in the trader’s account. In addition, the KSC balance has an effect on the standard trading fee over a 30-day period. Therefore, it has been segmented into a number of tiers, as shown below for both spot and futures trading.
Spot Trading Fees
KuCoin has very low trading fees of 0.1%. An important point to note is that the fees decrease based on the 30-day trading volume of KCS holdings in the user account, which is as follows:
|TIER||MIN. KCS HOLDING (30 DAYS)||MAKER/TAKER FEE|
|LV 0||0||0.1% / 0.1%|
|LV 1||1,000||0.09% / 0.1%|
|LV 2||10,000||0.07% / 0.09%|
|LV 3||20,000||0.05% / 0.08%|
|LV 4||30,000||0.03% / 0.07%|
|LV 5||40,000||0% / 0.07%|
|LV 6||50,000||0% / 0.06%|
|LV 7||60,000||0% / 0.05%|
|LV 8||70,000||-0.005% / 0.045%|
|LV 9||80,000||-0.005% / 0.04%|
|LV 10||90,000||-0.005% / 0.035%|
|LV 11||100,000||-0.005% / 0.030%|
|LV 12||150,000||-0.005% / 0.025%|
Futures Trading Fees
The USD/USDT lending rates for futures are adjustable, as they could have positive or negative values. Funding for futures trades occurs once every eight hours, and the value is calculated accordingly.
|TIER||MIN. KCS HOLDING (30 DAYS)||MAKER/TAKER FEE|
|LV 0||0||0.02% / 0.06%|
|LV 1||1,000||0.02% / 0.06%|
|LV 2||10,000||0.015% / 0.06%|
|LV 3||20,000||0.01% / 0.05%|
|LV 4||30,000||0.01% / 0.04%|
|LV 5||40,000||0.01% / 0.04%|
|LV 6||50,000||0% / 0.038%|
|LV 7||60,000||0% / 0.035%|
|LV 8||70,000||-0.003% / 0.032%|
|LV 9||80,000||-0.006% / 0.03%|
|LV 10||90,000||-0.009% / 0.03%|
|LV 11||100,000||-0.012% / 0.03%|
|LV 12||150,000||-0.015% / 0.03%|
KuCoin Customer Support
KuCoin’s superior customer support and round-the-clock availability set it apart from competing counterparts. KuCoin’s popularity stems in large part from the 24/7/365 availability of its live chat and email support, as well as the speed with which its staff responds to inquiries. In addition to real-time chat support, the site also provides a digital application form for users to submit questions or comments. Customers can also contact KuCoin’s support staff via social media channels like Facebook, Twitter, LinkedIn, and more. In case of any questions or concerns, the KuCoin staff is always available to help.
Comparison Table Between Binance and KuCoin
An overview of our findings by comparing Binance versus KuCoin
Kucoin and Binance are two well-established crypto exchanges. Both share a similar approach to doing business and a comparable pricing structure. It is reasonable to assume that most investors will view the two exchanges as being comparable with respect to the range of available assets, the safety of their transactions, and the quality of their support staff.
KuCoin and Binance are two cryptocurrency exchanges that make it easy to buy, sell, and trade digital currency.
After debuting in 2017, KuCoin has grown rapidly to become a major cryptocurrency trading platform. Apart from basic trading options, the platform also offers peer-to-peer (P2P) trading, margin trading, and futures trading.
It also has lower trading fees than its rivals and facilitates currency lending and staking for rewards. If you’re a US trader, you need to sign up for a KuCoin account to use KuCoin; however, the features are limited.
Binance, on the other hand, started out as a decentralized cryptocurrency exchange in China in 2017. It is the largest crypt exchange, leaving KuCoin way behind in the race. The platform supports almost all popular tokens at the moment, including Bitcoin, Litecoin, Polkadot, DogeCoin, and more.
Binance is not only a flexible exchange, but it also has a wallet where traders can keep their money safe. It also has a pool for mining and gives traders ways to earn interest for extra rewards.
Binance has a separate platform, Binance US, for all US users, with almost all the advanced features of its parent.
|Product Features:||Cryptocurrency exchange, margin trading, derivatives, options, NFT marketplace, prediction market, Earn, leveraged tokens, P2P||Cryptocurrency exchange, margin trading, derivatives, options, trading bots, Earn, leveraged tokens, P2P|
|Crypto Assets Supported:||400+||550+|
|Maker/Taker Fees:||Lowest: 0.02% / 0.04%Highest: 0.1% / 0.1%||Lowest: 0.00% / 0.04%Highest: 0.08% / 0.08%|
|KYC/AML Verification:||Yes||No for limited trading. Users will need to KYC for higher volumes of trading.|
|Fiat Currency Support||AUD, BRL, COP, EUR, GBP, GHS, HKD, KZT, KES, PHP, PEN, RUB, TRY, UGX, UAH, USD directly60+ fiat currencies through various integrations and P2P marketplaces||50+ Currencies supported through integrations and various methods|
|Deposit/Withdraw Methods||ACH Bank Transfer, Wire Transfer, PayPal, and Credit/Debit card||Sepa Bank Transfer, debit/credit card, P2P, Apple Pay, Simplex, Banxa.|
Withdrawing fiat is not supported
Which is Actually Better? KuCoin or Binance
Actually, there are more similarities between these two exchanges than differences. The choice of “which is best?” depends on the user’s preferences, what they are looking for, and what they are familiar with.
KuCoin was once the third-largest exchange, but recently dropped to fifth after being overtaken by FTX and Kraken in terms of trading volume. I’ve used both KuCoin and Binance, and I have to say that it is pretty obvious why Binance is still the best and has maintained its top ranking for so many years.
While KuCoin and Binance have earning and trading products and features that are very similar, I believe that Binance stands out because they have a fiat off-ramp, which is understandably a crucial requirement for many cryptocurrency users. Numerous crypto users also use Binance’s NFT marketplace and debit card, and Binance.US enables the company to target the US market.
Even though debit cards and NFTs are great, many traders still choose KuCoin because of the trading bots, extensive altcoin support, and entertaining trading games. The fact that KuCoin is not available to traders in the US is, however, a big downside.
Both of these are excellent options. They both have a long history, a large number of happy customers around the world, and are as safe as an exchange can be.
Comparing Binance and Kucoin, it is obvious that Binance has a larger active user base, with about 28.6 million users. Contrarily, Kucoin has about 1 million users who are actively using it. If we examine the cryptocurrencies that these exchanges accept, we can see that Binance has a greater selection of supported cryptocurrencies than Kucoin.
Additionally, it’s crucial to carefully compare cryptocurrency exchange fees. When this metric is compared between Binance and Kucoin, it is evident that Binance has the lowest trading fee percentage at 0.10%, while Kucoin comes in second with a fee of up to 0.05%.
When Binance is the Better Choice
Binance might be a better option for you if you’re interested in esoteric altcoins. Compared to Kucoin, they offer more crypto assets. Binance’s fee structure is more affordable if you plan to trade in small volumes.
When KuCoin is the Better Choice
On the other hand, Kucoin is a definite winner if you plan to trade in large volumes and advance through the tiers. Kucoin is a good fit if you enjoy trading bots and automated customer service. Binance is for you if you don’t mind waiting for a real person to respond to your service ticket. Kucoin’s lending marketplace will set you apart if your trading strategy relies on crypto lending. Keep in mind that you must still pay taxes on your cryptocurrency gains regardless of the exchange you select.
Between these two exchanges, it’s difficult to determine who won. They are both really good and reliable platforms. Consider both of their user interfaces and decide which one appeals to you more.
In this KuCoin review, we have tried to cover all the information that you need to know before you start trading. We did a thorough analysis of the services and products the trading platform offers, as well as some of its other pros and cons. In addition to the KuCoin review, we also talked about how KuCoin is different from Binance, which is the most popular cryptocurrency exchange.
Our conclusion is that KuCoin is an easy-to-use mobile app and browser that has cutting-edge tools that make it simple to earn money by trading cryptocurrencies. We also think that KuCoin will add more features, services, and products for its users in the coming months or years. Lastly, KuCoin is a known name in the cryptocurrency industry.
Moritz Pindorek (Moritzpindorek.com)
Social Media, Marketing & Blockchain
Crypto/Web 3 Advisor, Top 10 Crypto Influencer 2022(Forbes Monaco) & Top 10 Entrepreneur 2022 (Forbes Monaco)
Owner and writer for Cryptouserguide.com