KuCoin Review: Everything You Need to Know About This New Exchange
KuCoin has recently emerged as serious competitor to Binance and all other altcoin exchanges. In this KuCoin Review, we’ll fill you in on the key details of the exchange, the history behind the company, and how it compares to competitors.
You can navigate this review using the following links:
- Key Details of the Exchange
- A Brief History of the Exchange
- KuCoin Shares Cryptocurrency and Bonuses
- Vs the Competition
- How to Use the Exchange
- Launched in 2017
- Based out of Hong Kong
- Has a world-wide user base and supports English, Spanish, French, German, Chinese, Russian, Portuguese, Korean, and Dutch languages.
- Available Cryptocurrencies: KuCoin currently supports trading for 70+ cryptocurrencies. See full list here.
- Deposit/Withdrawal Methods: KuCoin is a cryptocurrency only exchange, meaning you can deposit, withdraw, and trade only cryptocurrencies (no fiat currency support).
- Customer support in our experience has been above average compared to other exchanges.
- Trading Fees are 0.1% (taken from the cryptocurrency you’re purchasing).
- Official Site: KuCoin.com
According to the KuCoin Whitepaper, the founders of the platform successfully built its “technical architecture” in 2013. It wasn’t until 2017, however, that the group decided to launch their exchange.
On Auguest 8th, 2017 the Hong Kong based company (Kucoin Co. Limited) raised funds from angel investors and their consultant team. Just five days later, the exchange went live.
In the short time KuCoin has been operating, they’ve already managed to rank in the top 20 cryptocurrency exchanges by trade volume on many days.
While this section is a bit out of the scope of what we usually cover in exchange reviews, its worth explaining as it’s a unique feature of the KuCoin exchange.
Like exchange competitor Binance’s BNB cryptocurrency, KuCoin also has its own native cryptocurrency “KuCoin Shares (KCS)”. KCS arguably offers greater advantages to investors than BNB, as discussed below.
The KCS cryptocurrency was first made available for purchase through a presale and subsequent Initial Coin Offering (ICO). 35% of KCS were held by KuCoin founders, 15% was given to advisors and angel investors, and the remaining 50% was sold through the public ICO.
KuCoin exchange users, who hold KCS tokens on the platform, are paid a daily bonus from fees the exchange charges for trades. 50% of all daily fees made by the exchange are divided amongst KCS holders.
The exchange also shares 40% of its daily fees to users who’ve referred other customers to the platform. For example:
- If you refer a friend to KuCoin, you get 20% of the fees they pay to the exchange.
- And you get 12% of the fees from users your friend refers to the exchange.
- And you get 8% of the fees your friend’s friends refer to the exchange.
- And you get 12% of the fees from users your friend refers to the exchange.
For more details on the KuCoin Shares Bonus and the Invitation Bonus, see the infographic below:
Below we’ll discuss the Pros and Cons of KuCoin vs other leading exchanges that we’ve reviewed.
1) Very Low Trading Fees
KuCoin charges just a 0.1% trading fee for all cryptocurrencies on their exchange. This fee is taken from the cryptocurrency you’re purchasing. For example, if you buy Ethereum with Bitcoin, you’ll receive 99.9% of the Ethereum you purchased.
This fee is lower than many competing altcoin exchanges. See the table below for more details:
2) No Verification Required
Unlike many popular exchanges, KuCoin does not require identity verification to deposit, withdraw, or trade.
3) Large Number of Cryptocurrencies Available
In the short time since its launch, KuCoin has already added over 70 cryptocurrencies to its exchange. They also are showing plans to consistently add more coins as time goes on.
The platform is great for users looking to invest in new or smaller cap altcoins. You can see the full list of coins here.
Trading pairs on KuCoin are denominated in BTC, ETH, NEO, USDT, and KCS. This means you can use these 5 cryptocurrencies to buy other cryptocurrencies.
4) Above Average Customer Support
Overall, it seems KuCoin’s customer support is better than most of their competitors. This has been both our experience and what we’ve seen expressed in most online forum postings.
With that said, only time will tell if they can manage to scale their support efforts as the exchange continues to grow.
1) No Fiat Cryptocurrency Support
If you’re looking to buy cryptocurrencies with fiat currency (USD, EUR, etc.), KuCoin is not an option. Instead, KuCoin focuses on crypto-to-crypto trading.
2) Untested Against Time
So far everything with KuCoin has been relatively smooth for users, but it’s worth taking into account just how new the platform is. For instance, competing exchange Bittrex has operated roughly three and half years longer than KuCoin.
It’s always wise not to keep a significant amount of cryptocurrency on any exchange, but we’d be extra careful due to the uncertainty of this platform. There’s no evidence we’ve found of “sketchy” behavior from KuCoin, but it’s always best to be cautious.
3) Low Liquidity in Some Markets
As a smaller exchange, some of KuCoin’s markets have low levels of volume. This can be an issue if you’re wanting to buy a large amount of a specific cryptocurrency.
This issue primarily exists for smaller cap coins that aren’t “hot” at the time of your trade.
Below we’ll show you step-by-step how to go from creating a KuCoin account to trading cryptocurrency on the platform.
1) Sign Up
The signup button can be found in the upper right-hand corner of the KuCoin website. Once you’ve clicked this button, you’ll be brought to the following signup form.
All that’s required for a KuCoin account is an email address and to create a password.
After submitting the signup form, you’ll need to verify your email address by clicking the link sent to you from KuCoin.
Note: KuCoin warns users that Gmail may have issues receiving emails from their site. While we’re not sure what’s causing the problems, we had issues when trying to sign up using a Gmail email address.
2) Secure Your Account With 2FA
When you first log into your account, you’ll be brought to the following page.
It’s always recommended that you enable 2-Factor Authentication (2FA) when using any cryptocurrency exchange. KuCoin offers 2FA through Google Authenticator (Google 2-Step), which provides a second layer of protection when using your account.
3) Deposit Cryptocurrency to the Exchange
You can view all available cryptocurrencies to deposit, withdraw, and trade on the “Overview” page under “Assets” in the menu of your account.
Unfortunately, KuCoin does not currently have a search feature on this page. You’ll need to either manually find the cryptocurrency you want to deposit or search for it in your browser using “CTRL + F”.
Once you’ve found the coin you want to deposit, click the “Deposit” button. In this example, we’ll be making a 0.1 Ethereum (ETH) deposit.
After clicking the “Deposit” button, you’ll be taken to the following page. An address will be provided where you can send your chosen cryptocurrency to deposit.
Once you’ve sent the specified funds to the given address, your deposit should show up as pending under “Deposit records”.
4) Buy Cryptocurrency on KuCoin
Once your deposit has been processed, locate the “Markets” page in the main menu.
Here you can search for the cryptocurrency pair you want to trade. In this example, we’ll be buying Litecoin with Ethereum, so we’ve found the LTC/ETH trading pair.
Click on the icon of your trading pair.
You’ll then be brought to the exchange page for your trading pair. This page may seem overwhelming, but using it is actually fairly simple.
In the first section we marked (1), you can see currently placed buy and sell orders from other KuCoin users. Buy orders are shown in green, while sell orders are shown in red. This section can help you choose what price you want to ask for in your purchase order.
The second section we marked (2) is the order form. You’ll need to enter both the amount of the cryptocurrency you want to purchase and the price you’re willing to pay.
Your order will be filled, once it’s matched with a seller who’s willing to sell at the price you’re asking for. You can cancel an unfilled order at any time, then place a new order with an adjusted price if necessary.
In this example, we’ll be placing an order to buy 0.5 Litecoin (LTC) with Ethereum at a price of 0.186972.
After your order has been filled, your coin balances will be updated on your accounts “Overview” page. As you can see in the image below, KuCoin’s 0.1% fee was taken out of the 5 LTC we purchased, so we received 0.4995 LTC.
You can click the “Withdraw” button on the “Overview” page, to be brought to the KuCoin “Withdraw” form. Enter the address where you want your cryptocurrency sent, as well as the amount you want to withdraw.
In KuCoin’s short existence, it’s made significant headway in becoming a top exchange. So far, the business has done a good job running their exchange and managing customer support.
Kucoin is continuously adding new cryptocurrencies, quickly making it a go to for altcoin traders.
Our only concern with this exchange is how new it is. While thus far there’s been no major issues, it will take time to fully gain the trust of the cryptocurrency community. As a precautionary measure, we recommend limiting the amount of funds you hold on this platform.
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