KuCoin Exchange Appraisal: Advantages and Disadvantages, Charges and Security Measures
Welcome to the world of KuCoin, a cryptocurrency trading platform known as the "People's Exchange!" Founded in 2017, this platform has grown in popularity due to its support for new, lesser-known coins and its commitment to giving traders early access to promising crypto assets.
KuCoin is ranked seventh globally in terms of trading volume and boasts a user base of over 30 million individuals across 200+ countries. The platform was born from the minds of Johnny Lyu, Chun Gan, Ke Tang, and Michael Gan, with Lyu serving as the current CEO.
In this KuCoin review, we'll answer your burning questions such as "What is KuCoin?" "What are its key features?" "What are the fees?" and "Is it safe and legit?" We'll even show you a step-by-step guide on how to start trading on this exciting platform!
What Is KuCoin?
KuCoin is a popular cryptocurrency exchange where traders can engage in spot and derivatives trading. With a user-friendly interface, access to both new and established coins, and advanced trading tools, KuCoin is an ideal choice for both beginners and experienced traders alike.
Together, let's take a quick peek at the basic features of KuCoin:
| | || ------------- | ---------------------- || Exchange | KuCoin || Founded | 2017 || Founder | Johnny Lyu || Features | Spot trading, Copy trading, Asset & wealth management, Fast trade || Supported Cryptocurrencies | Over 750 & 1300 trading pairs. || User Base | 30 million users worldwide. || Security Measures | Multi-factor authentication, proof of reserves, risk control system, cold storage, advanced encryption. || Customer Support | 24/7 customer service is available via email and live chat. || Trading Fees | 0.10% - 0.30% || Trading Options | Spot, Futures, Options, Margin || Payment Methods | Multiple options, including bank transfer, credit cards, crypto, SEPA bank transfers. || Geographic Restrictions | Not available in the United States, UK, Mainland China, Singapore, Iran, North Korea. |
User Score: 9.5
Exclusive Benefits: Up to 10,800 USDT
Exchange
10% trading fee discount
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KuCoin
What are the Pros of KuCoin?
- Competitive fees
- Strong security measures
- Over 700+ supported cryptocurrencies and 1300 trading pairs
- User-friendly interface
- Advanced trading features
- Staking and Lending Options
Let's dive deeper into the benefits of using KuCoin for your cryptocurrency trading journey:
- Competitive Fees
Founded
KuCoin offers lower trading fees than many other exchanges, with trading fees ranging from 0.10% to 0.30%. Even better, higher VIP levels bring even lower fees!
- Strong Security Measures
2017
KuCoin provides various security features to safeguard users' funds and data. This includes multi-factor authentication, bank-grade security, and advanced encryption, to name a few.
- Over 700 Supported Cryptocurrencies & 1300 Trading Pairs
KuCoin supports a wide variety of cryptocurrencies, including popular ones such as Bitcoin, Ripple, Cardano, Ethereum, and Litecoin, as well as lesser-known altcoins like Kaspa, Near Protocol, Shiba Inu, and APECoin.
- User-friendly Interface
Founder
Featuring a clean, easy-to-navigate design, as well as a demo trading option and copy trading features, KuCoin is perfect for both beginners and experts alike!
- Advanced Trading Features
Johnny Lyu
With various markets to trade cryptocurrencies against other cryptocurrencies, fiat currencies, and stablecoins, you'll have all the information you need to monitor and manage your trades in the Spot and Futures Trading interfaces.
- Staking and Lending Options
KuCoin offers opportunities to earn passive income through crypto staking and lending, allowing you to maximize your returns!
What are the Cons of KuCoin?
Features
- Not available for US traders
- Limited liquidity for some altcoins
- Experiences congestion during high-traffic periods
- Not Available for US Traders
Much like Binance and Bybit, KuCoin is currently unavailable for US traders due to regulatory challenges. If you're a US resident looking for alternatives, check out our comprehensive list of other exchanges.
Spot trading
Copy trading
Asset and wealth management services
Fast trade
- Limited Liquidity for Some Altcoins
Since KuCoin lists numerous lesser-known altcoins, some may have low trading volume and activity, resulting in limited liquidity.
- Experiences Congestion During High-traffic Periods
During times of high user activity, the KuCoin web interface may become slower, causing delays in completing transactions. This can be especially frustrating when trying to open or close orders.
Supported Cryptocurrencies
What are KuCoin's Features?
KuCoin offers a wide variety of features tailored to meet the needs of various traders. Here, we'll explore some of the key features available:
Over 750 and 1300 trading pairs.
1. Spot and Futures Markets
Access advanced trading tools in the KuCoin Spot market, allowing you to trade cryptocurrencies against fiat or other cryptocurrencies while enjoying the 10x leverage offered for Spot trading!
KuCoin provides various options for USDT-denominated futures contracts for Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Bitcoin SV (BSV), Chainlink (LINK), Uniswap (UNI), and more, as well as USDC-denominated futures contracts for BTC and ETH!
Users can open positions with up to 100x leverage on futures contracts, increasing their profit potential, but also heightening their risk of capital loss.
User Base
2. Trading Bots
Life can often be hectic, and keeping an eye on your trades constantly can be challenging. Enter KuCoin's Trading Bots, which automate buy and sell orders based on specific trading parameters!
30 million users worldwide.
Simply input the trading parameters required, and let the Bot handle the rest. It will keep watch for price movements on your behalf and execute trades when specific thresholds are reached, making it a convenient tool for both beginners and experts alike!
3. KuCoin Spotlight
Capitalize on the potential gains of new projects by buying tokens before they hit the broader market with KuCoin Spotlight. This feature lets users buy tokens at a discounted price, offering the opportunity to earn massive returns when the project takes off!
The process involves committing KuCoin's KCS tokens for each launch event you're interested in, similar to Binance's Launchpad feature.
Security Measures
4. Crypto Lending and Staking to Earn
Earn interest on your crypto holdings by lending them to other traders or staking them to support various blockchains. KuCoin offers various earning options under its KuCoin Earn program, including flexible and fixed-term options.
Multi-factor authentication, proof of reserves, risk control system, cold storage, and advanced encryption.
- Simple Earn: This option offers a straightforward and flexible way to earn interest on your crypto holdings, with the ability to deposit and withdraw funds as needed.
- Staking: Lock up your assets to help support the operations of various blockchains, earning significant rewards in the process. You can choose from flexible and fixed staking options, with the latter usually providing higher returns.
- Learn and Earn: This program encourages users to take courses and complete quizzes, rewarding them for their efforts. However, there are specific deposit requirements to access earnings.
- Dual Investment: This investment strategy allows users to earn returns based on the performance of two digital assets.
5. NFT Marketplace
Beyond just cryptocurrency trading, KuCoin has also launched a decentralized NFT marketplace, Windvane, which allows users to buy, sell, mint, and invest in Non-Fungible Tokens (NFTs). KuCoin differentiates its NFT marketplace from others by offering fractionalization of NFTs, increasing liquidity and making ownership more accessible for everyone!
6. Fast Trade and KCS Discounts
Customer Support
KuCoin's Fast Trade feature makes it simple to buy or sell crypto using third-party payment platforms. PayPal, transfers to local bank accounts, and ACH transfers are just a few examples of the supported payment methods.
In addition, the KuCoin Token (KCS) lies at the heart of the platform. As a profit-sharing cryptocurrency, KCS holders receive 50% of the overall trading fee revenue and enjoy up to 29% discounts on trading fees across all VIP levels.
24/7 customer service is available via email and live chat.
7. P2P Trading
Connect with other individuals to buy and sell crypto using fiat currencies with ease via the KuCoin P2P marketplace! The marketplace supports various payment methods depending on your location, with ACH transfer, PayPal, and bank transfers being particularly popular.
However, you must complete your KYC verification to utilize the P2P marketplace on your KuCoin account.
8. KuCoin Leveraged Tokens
Trading Fees
KuCoin Leveraged Tokens provide users with leveraged exposure to underlying cryptocurrencies such as Bitcoin and Ethereum. They allow traders to magnify their profits without the risk of liquidation, making it an attractive option for those looking to amplify their returns. For example, a 3x long token (BTC3L) would increase by 3% if Bitcoin rose by 1%.
What are the Fees on KuCoin?
0.10% - 0.30%
KuCoin offers competitive fees, making it an appealing choice for many traders. Here's a breakdown of withdrawal, trading, listing, transfers, and deposit fees on the platform:
Withdrawal Fees:
Withdrawal fees for cryptocurrency vary depending on the token and the blockchain network. For example, withdrawing 5 USDT would require a withdrawal fee of around 1 USDT on the Ethereum network (ERC-20), while on the same network, a withdrawal of the same amount of USDT would cost more.
For fiat withdrawals, SEPA withdrawals have a fee of around 1 EUR with a minimum withdrawal of 5 EUR. Please note that no transfer fees are charged for direct crypto deposits.
Trading Options
Withdrawal Limits:
- Verified Individual Account: 100 BTC per 24hr
- Verified Institutional Account: 500 BTC per 24hr
- Non-verified Account: 1 BTC per 24hr
Spot, Futures, Options, Margin
To increase your withdrawal limit, complete your KYC verification.
Trading Fees:
Trading fees on KuCoin are 0.10% for both makers and takers. The fees decrease with higher VIP levels, as shown below:
Payment Methods
While these are the standard fees, the actual fee for your transaction may vary based on various factors, so remember to check the transaction page for the exact fee.
Listing Fee:
Multiple options, including bank transfer, credit cards, crypto, and SEPA bank transfers.
KuCoin does not openly disclose the cost of listing a token on its platform. However, a token's inclusion on the platform depends on various factors such as the exchange's listing criteria, the level of support and services required, and the token's popularity.
Transfer Fees:
KuCoin offers free transfers for most cryptocurrencies, allowing users to move assets from one wallet to another without incurring any fees. For withdrawals from your KuCoin wallet, the fees vary by cryptocurrency and network. For example, withdrawing Bitcoin incurs a fee of 0.0005 BTC, while Ethereum costs 0.005 ETH.
Deposit Fees:
Geographic Restrictions
KuCoin does not charge fees for direct crypto deposits. There may be a small fee for EUR deposits, which is generally around 1 EUR, depending on the amount. Free deposits are available when using other fiat currencies.
Is KuCoin Safe and Legit?
Not available in the United States, UK, Mainland China, Singapore, Iran, and North Korea.
KuCoin is generally considered safe and legitimate, but it has faced challenges in the past. In 2020, the platform suffered a large-scale hack, resulting in the loss of over $281 million worth of crypto assets. However, KuCoin was able to recover around $204 million of the stolen funds shortly afterward.
To avoid future incidents and safeguard user funds and data, KuCoin has implemented several security measures:
- Multi-factor Authentication: Users can configure Google Authenticator, email links, text message verification, and biometric authentication for added security.
- Proof of Reserves (PoR): KuCoin's PoR ensures that user assets are fully backed by real reserves, with a 100% reserve ratio for major assets like BTC, ETH, USDT, and USDC, verified by Mazars.
- Advanced Encryption: The platform employs 256-bit encryption technology to secure private account information.
- Privacy Protection: KuCoin takes care to collect only the necessary data and protects it using advanced security systems.
- Risk Control System: KuCoin has a risk control system in place that includes account verification, risk identification, secure login, and withdrawal mechanisms, along with monitoring of wallet addresses and alerts for suspicious activity.
Is KuCoin in Trouble?
KuCoin has encountered several legal issues and regulatory challenges in the past, but it remains operational and growing in popularity. Here are some of the notable legal issues KuCoin has faced:
Legal Issues:
- CFTC Charges: In 2024, the U.S. Commodity Futures Trading Commission (CFTC) charged KuCoin with multiple violations of the Commodity Exchange Act (CEA) and CFTC regulations[2][4]. The case is still ongoing due to uncertainties arising from a policy shift under the Trump administration.
- Anti-Money Laundering (AML) Violations: KuCoin and its founders were also charged by the Department of Justice for violating AML laws. In the case, they were accused of accepting over $5 billion and transferring more than $4 billion in suspicious funds[2][4]. This led to a settlement agreement with the Department of Justice, where KuCoin agreed to pay a fine of $297 million and exit the U.S. market for at least two years[2][4].
- Failure to Register as a Money Service Business: KuCoin was indicted for failing to register as a money service business with FinCEN and for not implementing basic AML regulations[5]. The exchange allegedly allowed billions of dollars in suspicious transactions to pass through its platform without proper KYC/AML programs[5].
Regulatory Challenges:
- Exit from the U.S. Market: As part of its settlement with the Department of Justice, KuCoin agreed to exit the U.S. market for at least two years[4][5]. This move was intended to address regulatory pressures.
- Global Regulatory Compliance: KuCoin is working to align with global AML standards, resulting in mandatory Know Your Customer (KYC) measures[5]. This is a response to increased legal pressure and regulatory scrutiny worldwide.
- South Korea Regulatory Environment: KuCoin has, as of yet, not officially exited the South Korean market and is waiting for the right regulatory opportunity to re-enter[3]. This highlights the challenges of navigating different regulatory environments across various countries.
How to Trade on KuCoin?
To trade on KuCoin, you'll first need to register an account. Here's a guide to help you get started:
Step 1: Get Trading on KuCoinDownload the app or sign up on the website, then click on "Trade" and select "Spot" or "Futures" trading.
Step 2: Choose a Trading PairOn the trading page, use the search bar to locate the trading pair you wish to trade. For example, if you want to trade KCS (KuCoin Shares), simply type "KCS" into the search bar.
Step 3: Place an OrderAt the bottom of the trading interface, select either "Buy" or "Sell" and fill in the required details (price, amount), then click either "Buy" or "Sell" to complete your transaction!
Pro Tip:
To save money and earn an additional $60 reward on KuCoin, be sure to use our referral code "A1LXFV4F" during registration to unlock exclusive benefits!
How to Withdraw Money from KuCoin?
Follow these steps to withdraw cryptocurrency:
Step 1: Log InAccess your KuCoin account and go to the "Assets" tab, then click "Withdraw" and select the cryptocurrency you wish to withdraw.
Step 2: Enter DetailsFill in the wallet address where you want to send your crypto, select the network (if applicable), and enter the amount.
Step 3: Confirm WithdrawalConfirm the transaction by completing security verification, such as entering multi-factor authentication codes.
For fiat withdrawals, please note that KuCoin does not support direct fiat withdrawals. Instead, you'll need to transfer your crypto to another exchange that allows fiat withdrawals.
What are the Supported Countries on KuCoin?
KuCoin is operational in around 180 countries, supporting 30 million users worldwide. Some of the supported countries include France, Spain, Brazil, Argentina, Chile, India, Nigeria, and Vietnam, among others.
Is KuCoin Available in the US?
No, KuCoin is not available in the US, including US territories such as Puerto Rico, Guam, the Northern Mariana Islands, and American Samoa. If you're a US resident, consider checking out our list of the best exchanges for Americans instead.
Alternatives to KuCoin:
While KuCoin offers many features and benefits, there are several alternative exchanges that might better suit your needs. Some notable alternatives are Binance, Bybit, Coinbase, and Crypto.com. These exchanges provide:
- Binance: Ranks as the largest global cryptocurrency exchange by trading volume, supporting over 500 cryptocurrencies and offering a wide range of trading options, such as spot and futures trading, as well as decentralized finance (DeFi) solutions. For more information, check out our comprehensive Binance review.
- Bybit: Renowned for its user-friendly interface and perpetual contracts for Bitcoin and Ethereum trading, Bybit supports 1000+ cryptocurrencies and over 300 trading pairs, offering a variety of tools to help maximize your investments. To learn more, check out our in-depth Bybit review.
- Coinbase: Known for its deep liquidity and low fees for trading major cryptocurrencies, Coinbase also provides fiat support in many countries, making it a great choice for US traders. Learn more in our Coinbase review.
- Crypto.com: This exchange offers a suitable alternative to KuCoin, supporting a wide range of cryptocurrencies and boasting low trading fees. Plus, it's operational in 49 US states, as well as American Samoa, the Northern Mariana Islands, Puerto Rico, and the US Virgin Islands. For more details, read our Crypto.com review.
- KuCoin is a cryptocurrency exchange that supports spot and derivatives trading, with a user-friendly interface, access to lesser-known coins, and advanced trading tools.
- The platform was founded in 2017 by Johnny Lyu, Chun Gan, Ke Tang, and Michael Gan, with Johnny Lyu serving as the CEO.
- KuCoin offers over 750 cryptocurrencies and 1300 trading pairs, making it ideal for both beginners and experienced traders.
- KuCoin features a competitive trading fee structure, with privileged VIP levels offering even lower fees.
- The exchange provides various security measures, including multi-factor authentication, proof of reserves, advanced encryption, and a risk control system.
- Users can enjoy 24/7 customer support via email and live chat.
- Pros of using KuCoin include competitive fees, strong security measures, and over 700+ supported cryptocurrencies and 1300 trading pairs.
- Cons of KuCoin include not being available for US traders, limited liquidity for some altcoins, and congestion during high-traffic periods.
- KuCoin offers features such as spot and futures markets, trading bots, KuCoin Spotlight, crypto lending, staking, NFT marketplace, fast trade, P2P trading, and KuCoin Leveraged Tokens.
- Withdrawal fees for cryptocurrencies vary depending on the token and the blockchain network, while transfer fees for most cryptocurrencies are free on KuCoin.
- KuCoin was affected by a large-scale hack in 2020, but has since implemented several security measures to prevent future incidents.
- KuCoin has faced legal issues and regulatory challenges, such as charges from the CFTC, AML violations, failure to register as a money service business, and the departure from the US market.
- To start trading on KuCoin, users must first register an account and choose a trading pair.
- The platform supports numerous white-listing events, ICO, airdrops, and staking programs for extra passive income.
- The KuCoin ecosystem also incorporates DeFi, yield farming, and leverage in its features, offering users more ways to capitalize on the crypto market.
