How KuCoin works

How to use KuCoin

KuCoin offers a wide range of services for crypto investors including free automatic trades, a lending service, a p2p marketplace, margin trading, and futures trading.

Most beginners start by using a fiat currency to purchase a cryptocurrency. It’s recommended to start with a stable coin such as USDT and then trade crypto-to-crypto.

KuCoin education and crypto training for beginners

While KuCoin doesn’t offer specific beginner courses or training programs for new investors, it does offer some useful content including a blog that features important industry news and a beginner’s guide that explains how to use different exchange features.

How many coins and altcoins are available on KuCoin?

KuCoin more than 200 coins and altcoins listed on the platform as of summer 2021.

KuCoin regularly adds new tokens to keep up with demand. According to its LinkedIn page, “The exchange is quick to identify up and coming coins with the best blockchain technology applications. Their ability to choose tokens that users are interested in has shot them to Unicorn Status faster than any other company in history at just 3 1/2 months as a startup reaching 1 billion in value.”

Countries where KuCoin is available

KuCoin is available in nearly 200 countries and it supports more than 45 fiat currencies. It is legal to use in the U.S., where financial rules tend to be more stringent than in other countries.

KuCoin Security

KuCoin uses micro-withdrawal wallets, secures withdrawals as they happen, it uses dynamic multi-factor authentication, and multiplayer encryption. It also has a staff of risk control employees to monitor data operations.

Many experts still recommend storing your crypto in a secure hard wallet instead of on an exchange.

Can KuCoin be hacked?

Since security is very important when selecting a crypto exchange, many people may wonder if KuCoin has been hacked and what happened next?

KuCoin was breached in September 2020 and about $281 million through large withdrawals of bitcoin and ethereum, Coindesk reported. The stolen assets were recovered or covered by insurance.

Is KuCoin trustworthy?

KuCoin, which is based in Singapore, does not need to adhere to the same stringent security requirements that other crypto exchanges do, but it does have powerful security features in place.

Can you get scammed on KuCoin?

Just like any digital tool, KuCoin does open users up to various types of scams. Common scams include phishing attempts and fake KuCoin support phone numbers. KuCoin issued up-to-date security guidelines in June 2021.

Verification process

KuCoin uses optional KYC verification levels to determine maximum daily withdrawal limits. KYC Verification will take several business days to complete and users can choose to get KYC1 Basic Verification or KYC2 Advanced Verification. ID verification requires a government-issued ID card, driver’s license, or passport.

KuCoin ensures that it is safe to upload a driver’s license and other personal identification documents to the site for verification purposes. One ID can be used for as many as three KuCoin accounts.

Users who want to participate in large volumes of daily trading should take the time to verify their identities using their real names and personal information.

Verification can take a few days to complete, but users can still deposit and withdraw funds as KuCoin works to verify their identity.

KuCoin fees explained

It’s pretty easy to understand how KuCoin fees work. Maker and taker fees range from 0.024% to 0.1% depending on a user’s VIP level. Higher trading levels lead to lower trading fees. Users reach higher VIP levels by making more trades.

With KuCoin’s lending platform, users can lend crypto to other users with interest. Rates can range from 0 to 0.2%.

There are no KuCoin deposit fees.

In the U.S., investment-related expenses are not eligible for itemized deductions for tax years 2018 to 2025. However, crypto traders can add the cost of fees to their cost basis and deduct fees from the proceeds from the asset.

KuCoin payment method

Deposits can be made on the web or via the KuCoin mobile app. Users will need their deposit address available to paste into the withdrawal platform.

Deposits can be made using a credit or debit card, but not directly from a bank account. Users can also deposit cryptocurrency they already own into KuCoin. There are no fees or amount limits for deposits.

Most users begin by depositing their fiat currency, such as USD, on a major exchange such as Coinbase. From there, users can transfer their crypto assets to their KuCoin account where they will enjoy lower fees no limits on withdrawals and deposits.

As of April 2019, KuCoin deposits and withdrawals using USD were instant.

KuCoin withdrawal method and fees

Before making a withdrawal, users need to enable “Phone Number + Trading Password” or “Email + Google 2fa + Trading Password” on the account security settings page.

To withdraw a token, select it and add the wallet address and the amount you want to withdraw. You’ll also need your trading password, email verification code, and a two-factor authentication code to complete the transaction.

Withdrawal fees vary based on the currency, but fees are relatively low. There are no limits on withdrawals for verified users.

Withdrawals are processed within 30 minutes. If a withdrawal is more than 100,000 times the handling fee, the request is manually processed. Tokens have different withdrawal fees, which are listed on the withdrawal page.

KuCoin customer service reviewed

KuCoin offers 24/7 customer support via online chat, however some users say they’ve had problems with receiving help for their problems. 

KuCoin is best for beginner traders who want access to a wide range of tokens and services. KuCoin traders can use instant buy, advanced trading, margin trading, futures market, p2p marketplace, crypto lending, and a free crypto bot. Be aware that KuCoin’s trading platform does include a lot of data that may be overwhelming for a beginner, but other platforms may charge a subscription fee for access to that information.

KuCoin mobile app

The KuCoin mobile app is available for iOS and Android devices. The app utilizes the same security features that the desktop website uses to keep data safe.

KuCoin features

- Trading Bot: If you’re too busy to actively manage your investment portfolio, KuCoin offers a trading bot to do it for you. There are three strategies the bot can use to automatically manage KuCoin transactions. There is the classic grid trading bot, the futures grid trading bot, and the dollar-cost averaging trading bot.

- Instant exchange: KuCoin’s Instant exchange tool allows users to convert an existing crypto balance into another crypto, making it easy for beginners to build a portfolio they’re happy with.

- Crypto Lending: KuCoin allows people to lend their crypto to other users who want to do margin trading. There is an average daily interest rate of 0.124% on the funds.

- Futures trading: Futures are financial contracts that require parties to perform a transaction at a predetermined date and price. KuCoin hosts regular Futures Brawls that encourage people to participate in more futures trades.

- Leverage and margin trading: KuCoin allows users to participate in margin trades using borrowed digital assets.

- Long and short selling: KuCoin allows users to long or short a crypto up to 100 times leverage

- KuCoin staking: KuCoin’s soft staking program allows users to access their coins at any point. There is no minimum staking period and users can receive rewards while participating.

- KuCoin Shares: The exchange has its own cryptocurrency called KuCoin Shares (KCS). Users who hold KCS get discounted trading fees and KCS coins receive a 50% share of all trading fee profits made on the exchange.

Is KuCoin safe?

KuCoin is considered a safe platform to buy, sell, and trade crypto. Users should note that the platform does not use cold storage to keep user funds secure, which is common for other crypto exchanges. Experts recommend storing crypto assets on a hard wallet to minimize the risk of data breaches since exchanges are a frequent target for cybercriminals.

KuCoin also allows margin trading, which allows you to use borrowed funds to trade. Only experienced investors should participate in futures and margin trading to prevent making avoidable trading mistakes.

Is KuCoin legit?

KuCoin is a relatively new crypto exchange platform, but it’s quickly gaining popularity for its wide selection of tokens and low transaction fees. Some users say they have experienced problems accessing their funds, and that tokens may be delisted without notice. Overall, however, KuCoin is considered a legitimate exchange and does not pose any more risk than other platforms of its kind. 

Does KuCoin have a wallet?

KuCoin does have its own wallet to support the tokens available on the exchange. It has a built-in exchange function that makes it easy to access funds and trade whenever you want.

If you want to store your crypto for longer safekeeping, consider investing in a hardware wallet to store funds offline. This minimizes your risk of data breaches and is good for long-term savings.

KuCoin pros and cons

Millions of people successfully use KuCoin every day, but there are a few notable pros and cons associated with the exchange.

KuCoin Pros

- KuCoin is willing to offer different coins than popular exchanges and lower market cap coins

- Fees are in line with other exchanges

- API capabilities allow users to customize their exchange

- The p2p marketplace allows users to buy and sell crypto with other users without facing a transaction fee

- It’s relatively easy to reach a higher trading level, which means you’re subject to fewer fees

KuCoin Cons

- Customer service is not always instantly responsive when there is a glitch, and some problems can take months to resolve. Some users report facing a language barrier with some customer service representatives.

- The platform has problems handling high-traffic trading times

- People have said their accounts or tokens have disappeared

- Users receive a lot of promotional emails that they can’t unsubscribe from

- Cannot consolidate small balances into a single coin automatically

- Cannot trade fiat-to-crypto on KuCoin

Why KuCoin is better than Coinbase

Coinbase is a very popular crypto exchange platform, but it does not support as many cryptocurrencies or fiat currencies as KuCoin. KuCoin’s fees are also significantly lower than Coinbase’s. Others prefer Coinbase because it’s easier to use and offers simpler data.

Review summary

With low user fees and lots of trading options, KuCoin is a worthy crypto exchange to consider.

KuCoin’s features make it good for beginner investors to frequent day traders thanks to the platform’s ability to offer both simplified and advanced trading features based on a user’s preferences.

KuCoin is a legit and safe way to execute crypto exchanges and sales, but users should consider ways to securely store their crypto assets offline for maximum security.

KuCoin is good for beginners who hope to become more advanced crypto traders. It offers a good solid base of services, low fees, and the ability to use more advanced trading features as you go. Other popular exchanges, such as Coinbase, requires that users switch over to a premium user interface to access more advanced features.