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KuCoin Exchange Review 2024: Is it Safe?
KuCoin is a relatively new cryptocurrency exchange that has quickly developed a fervent fan base thanks to its intuitive design and high level of security. The exchange is highly regarded for its large number of different cryptocurrencies pairs, which means users can purchase a wide variety of cryptos. On the downside, Kucoin is a crypto-only exchange, which means you will need another exchange if you’re looking to purchase coins with fiat currency such as HKD, USD or CAD.
Kucoin is positioned as a truly international organization with offices in Hong Kong, Singapore and the Seychelles. It’s sometimes referred to as “The People’s Exchange” and has a stellar reputation in the cryptocurrency community. Keep reading to learn more in our in-depth Kucoin review.
- International exchange with hundreds of different cryptos
- Extremely simple sign-up process
- Very high level of security
- Users can invest in the success of KuCoin through KuCoin Shares
Meet Our Reviewing Team
KuCoin General Overview
Pros
Users can invest in the success of KuCoin through KuCoin Shares
Integration with Arwen allows users to trade without depositing their funds to a third party wallet
KuCoin’s dedication to quickly adding new, innovative crypto assets means users have access to a large number of trading pairs
Users have access to a large number of trading pairs
Cons
Can be difficult to use for crypto newcomers as it is a Crypto-only exchange
KuCoin does not have the trading volumes found at some of the more established platforms
KuCoin at a Glance
KuCoin Sign-up Process
Being a crypto-only exchange, the sign-up process at KuCoin is extremely simple. Here is all of the information that is required to make a new account: An email address. Or a phone number. Seriously that’s it.
Once you provide KuCoin with your email address or phone number, you will then be asked to input a verification code that was sent to you. After that, you’ll be ready to start trading. That’s a significant difference to many other exchanges, which require personal identification and can take weeks to validate your identity. That’s a major plus for anyone looking to start trading immediately.
What You Can Buy
There are over 100 cryptocurrencies available for trade on KuCoin. Here are some of the most popular crypto assets that can be purchased on the KuCoin platform:
- Bitcoin
- Ethereum
- KuCoin Shares
- Ripple
- Tezos
- EOS
- Bitcoin SV
- Litecoin
- Cosmos
- Bitcoin Cash
- Tron
- BNB Coin
- Zcash
- Cardano
- Bittorrent Token
- Dash
- NEO
- MakerDAO
- Monero
KuCoin Supported Applications
In addition to offering the ability to trade on all major desktop operating systems (MacOS, Windows and Linux), It also has apps available on both the Android and iOS app stores, and has an internal risk department that investigates any potential shady business on the site.
Unfortunately Kucoin has so many features for treading that it can be a little overwhelming for new users. The mobile apps are especially cluttered and take a little more work to navigate.
Is KuCoin Safe?
Yes. It is considered one of the safest cryptocurrency exchanges thanks to its stellar reputation over the years and its high volume of trades. The site also offers two-factor authentication for its users. To date the site has never been hacked, which is a stark contrast to some of the competing exchanges. It’s worth noting that because it is crypto-only it has slightly differently security protocols than sites that accept fiat (paper) currency.
Customer support is generally quite strong and you can always send concerns directly to the staff.
Keep in mind that it’s generally not a good idea to keep large amounts of cryptocurrency on an exchange as several high-profile exchanges have been hacked in the past. If you have a large amount of cryptocurrency we recommend getting a personal wallet.
Fees
In general Kucoin’s fees are extremely low compared to other cryptocurrency exchanges. This is partly because Kucoin does not offer the ability to purchase crypto with fiat, which is where you’ll encounter the steepest fees on other exchanges.
While all of the exchange’s markets have a 0.1% trading fee, users are able to receive a discounted rate by holding KuCoin Shares. Users receive a 1% discount on fees for every 1,000 shares they hold. There is a maximum trading fee discount of 30%.
KuCoin Shares (KCS) Explained
KCS are the native token of the exchange and offer users plenty of rewards for those who hold and stake the asset. By holding a minimum of 6 KCS in their exchange account users receive rewards including dividends from the site’s daily received trading fees, discounted trading fees, and access to additional trading pairs.
The dividends are the most intriguing part of the reward system. Fifty percent of the daily trading fees received by the exchange are paid out to KCS holders in proportion to the number of shares they hold, with the aforementioned 6 KCS being the minimum you can have to receive the bonus. The more shares you hold the higher the bonus you receive. Payouts occur daily and are paid in KCS which you can keep to earn a higher bonus or trade for another asset of your choice. If the exchange were to start seeing consistently high trading volume and therefore make money on fees, there is potential for great dividends to all holders.
To ensure inflation of KCS does not occur, the exchange uses 10% of its net profit to buyback and burn KCS every quarter. This process will occur until there are only 100 million KCS left in circulation. There are currently about 171 million KCS left, with an initial supply of 200 million after the Initial Coin Offering.
This is a huge benefit to users and many Kucoin reviews list it as one of the top features of the site. If you’re a high-volume trader than you should at least consider investing in some KCS.
Unique Aspects of Kucoin
The platform has a number of features and programs that it uses to set itself apart from some of the other, similarly-sized exchanges on the market.
In terms of bonuses, the site regularly runs trade competitions allow the top traders to earn even more. Many of these competitions give out rewards to the top 50 users in terms of the trading volume around a particular digital asset.
Another unique aspect comes in the form of higher security found via the Arwen protocol. This platform uses technology somewhat similar to Bitcoin’s Lightning Network, which allows users to remain in complete control of their funds instead of having to trust the exchange with cryptocurrency holdings. Having more protection when your cryptocurrency is parked on an exchange is a very good thing.
Moreover, there is a referral program that allows users to profit from getting other people to sign up for an account at the exchange. When a user invites someone to the exchange, that initial user will receive up to 20% of the trading fees incurred by the invited user for the first year of their time on the platform.
KuCoin Referral Program
KuCoin’s referral program allows users to profit from getting other people to sign up for an account at the exchange. When a user invites someone to the exchange, that initial user will receive up to 20% of the trading fees incurred by the invited user for the first year of their time on the platform. If you know a large number of high-volume traders than the referral bonus could represent a significant chunk of change for you.
Disadvantages of Kucoin
The biggest disadvantage of Kucoin is that you won’t be able to use fiat currency to purchase cryptocurrency. That means that Kucoin is not a great option for anyone just getting started with cryptocurrency. Instead Kucoin is positioned for experienced cryptocurrency users who are looking to diversify their portfolios.
Most people buy their crypto using an exchange but Kucoin is simply not an option for new crypto users at this point. Instead you’ll have to purchase your crypto on another exchange (or some other method such as a crypto ATM, peer-to-peer exchange, or a personal connection).
Once you have crypto than Kucoin offers a number of features you might find attractive including its wide range of cryptocurrency pairings, low transaction fees and its dedication to safety and security. It’s also extremely easy to sign-up for Kucoin so it’s not problem making another account on the site, even if you already have an account with a competing cryptocurrency exchange.
KuCoin Frequently Asked Questions
KuCoin launched for trading in September 2017, not long after their initial coin offering was completed.
There are no sign-up bonuses available for new KuCoin users, but anyone who holds KuCoin Shares is able to gain a discount on their trading fees.
The KuCoin Dividend System allows KuCoin Shares holders to profit as the KuCoin exchange grows in popularity. 50% of all trading fees collected by KuCoin are evenly distributed to KuCoin Shares holders based on how much of the token the user holds.
KuCoin Shares are a token created by KuCoin in an initial coin offering. The coin offers a number of benefits to its holders in the form of dividends and discounts. Holders of KuCoin Shares get a 1% discount on trading fees for every 1,000 coins they hold. Additionally, 50% of all KuCoin trading fees are distributed to KuCoin Shares holders.
KuCoin runs a large number of promotion because they need to gain market share. Because they launched in late 2017, KuCoin is relatively late to the cryptocurrency exchange market. Obviously, liquidity is a key feature of any exchange, so KuCoin is attempting to attract more money to the platform.
KuCoin may not be the best option for cryptocurrency newbies due to the lack of fiat funding options and large variety of trading pairs on the platform. Having said that, KuCoin’s customer support is willing to do a lot of hand holding for those who are new to the cryptocurrency space.
Yes, NEO is available for trade on KuCoin.
Yes, KuCoin’s lack of fiat funding options makes it available in nearly every country around the world, including Canada.
No, KuCoin has never been hacked. In fact, users who take advantage of KuCoin’s Arwen integration are able to take care of the security of their funds on their own rather than handing them over to KuCoin.
While KuCoin has not had any serious security incidents up to this point, it should be remembered that this a relatively new exchange, which means it does not necessarily have a long track record when it comes to security.
