Last Updated On December 26th, 2019
The cryptocurrency exchange market is getting more crowded every day. One relative newcomer, KuCoin, is making waves with a combination of novel features and better than average customer service. This KuCoin review will cover its basic history and give you information on its interface, account creation and funding process, fees, supported currencies, and other key information. By the end of this article, you’ll be able to have a comprehensive understanding of KuCoin.
What is KuCoin?
KuCoin was created in August 2017 with the goal of providing digital asset transactions and exchange services in an easy to use and highly secure format. The team behind it has been exploring blockchain technology since 2011 and hope to establish the gold standard for exchanges with KuCoin. It was originally based in China but moved to Singapore after China’s crackdown on cryptocurrency related companies. It has since opened offices in Bulgaria, the Philippines, and back in China.
Advertising itself as “The People’s Exchange”, this platform has implemented several programs designed to allow users to invest in the success of the exchange itself. This platform tries to stand out from the pack by offering exceptional customer service, comprehensive security, and an interesting range of customer programs. It created its own KuCoin coin, KuCoinShares (KCS), and tied several discounts and earning programs to it. It offers an excellent KuCoin invitation bonus which is a referral bonus for users with a wide social network.
KuCoin is one of the easiest exchanges to join and use. It currently has no country use restrictions and allows users to choose from over 350 trading pairs. While it doesn’t have some of the advanced features traditional investors might look for, it does offer an excellent option for buying and selling a wide range of cryptocurrencies. It’s about middle of the pack as far as major exchanges go, reporting an average trading volume of more than $60 million.
Sign up & Identification
Creating a KuCoin account takes just a few minutes. The only information required is a working email address. Because this platfom doesn’t accept any form of fiat currency, they don’t have to comply with KYC or AML requirements on the same level an exchange like Gemini or CEX.io does.
KuCoin exchange is one of the friendliest cryptocurrency exchanges for those seeking privacy and anonymity. They do not require KYC identification verification so long as you withdraw less than two Bitcoin equivalent a day. As long as you keep your withdrawals below that threshold, you can buy, sell, and deposit cryptocurrency without ID verification.
If you plan to move significant funds around, you will need to verify your identity. You can do it yourself or wait until you get a notice. The process on KuCoin is simpler and faster than on many other exchanges. You’ll need a form of government-issued ID and will have to describe the source of your funds. Once you’ve completed the process, there is about a five-day waiting period for confirmation.
Deposit & Withdrawal Methods
One of the biggest questions potential investors have when considering cryptocurrency exchanges is how they can access their money. With that in mind, deposit and withdrawal speed and ease of use is paramount to an exchange’s success. KuCoin does a pretty good job with this.
This platform offers clear information about the deposit and withdrawal process. It has easy to follow guides on making a deposit and usually processes withdrawals within a matter of seconds.
While it doesn’t currently accept any form of fiat currency, it does offer significant cryptocurrency funding options. Once you create an account, it automatically generates wallet addresses for every coin KuCoin supports. Simply select the coin you wish to deposit or withdraw from a drop-down menu in your account and the relevant address will appear.
Word of warning, double check that you’ve selected the correct cryptocurrency before initiating any transfer. All transactions are irreversible.
With more than 2000 cryptocurrencies in existence, one of the most important considerations for an exchange is how many it supports. We’ll be honest, right now KuCoin doesn’t stand out here. It, of course, supports BTC, ETH, NEO, LTC, and other major coins, as well as a selection of popular altcoins. The base level technology behind the exchange allows just about any trading pair to be created, but at the moment they simply can’t match the breadth of currencies available on an exchange like Binance.
KuCoin is taking steps to fix this. It has a streamlined process for adding new coins and is working hard to become a major trading hub for altcoins.
From its inception, KuCoin has had some of the lowest fees among cryptocurrency exchanges. This platfom has a flat fee structure that doesn’t take into account maker/taker positions. For every transaction, there is a .1% fee across the board. The only exception to this is users who hold their own currency KCS.
For every 1000 KCS a user has in their account, they get a 1% discount on trading fees. This is on a daily basis from an account total captured at UTC+8. This is capped at a 30% discount, for which you would have to hold 30,000 KCS. They also offer something called the KuCoin bonus, a daily distribution to KCS holders.
Everyday 50% of trading fees are paid back to holders of KCS, similar to a dividend. As of July 2018, this is received as distributions of KCS.
One of KuCoin’s major selling points is that they only keep 10% of their already very low fees. 50% is paid back in the aforementioned KuCoin bonus, but another 40% is distributed to users who invite others to the platform. This KuCoin invitation bonus allows investors with a wide following to benefit from introducing new users to the platform.
Like most others, there are a range of KuCoin withdrawal fees depending on what currency you wish to withdraw and how much you’re withdrawing. It also imposes a minimum KuCoin withdrawal limit that prevents tiny movements from going through. For Bitcoin, the minimum withdrawal amount is .002 BTC. Some cryptocurrencies, such as NEO, can be withdrawn without paying any fee.
KuCoin doesn’t currently charge any fees to make a deposit.
A cryptocurrency exchange is only as valuable as it is secure. From the beginning KuCoin has combined security best practices with innovative new techniques, providing some of the best security in the industry. This platform requires two-factor authentication and the creation of security questions on all accounts.
One of the best things about KuCoin’s two-factor authentication is the requirement to use an authenticator app rather than a phone number. There have been several reports of hackers hijacking an investor’s SIM card through social engineering and compromising their investment accounts. The use of an app like Google Authenticator or Authy prevents this.
This platform takes two-factor a step further than most other exchanges. It requires you to answer security questions periodically while you use your account. You’ll also need to reenter your two-factor token every time you wish to make a withdrawal.
When you create your account, you’ll not only have to set up two-factor authentication, you’ll also create an anti-phishing phrase. This is a word or phrase that will be displayed whenever you attempt to log in to your KuCoin account. If it isn’t present, you’ll know that you’re not on the actual KuCoin website.
On the exchange side, everything was constructed to the standards of a major financial institution. All data transfers are encrypted and it has an internal auditing department to check for security vulnerabilities.
The glaring exception to this security policy is KuCoin’s lack of an offline cold storage option for users. This is becoming standard across most major exchanges. Hopefully, KuCoin will step up to the plate soon. Other than this failing, this platform provides some of the best security among cryptocurrency exchanges.
Is KuCoin safe?
KuCoin may be young, but it has proven that it’s doing everything possible to secure user funds and create a safe environment for the trade of cryptocurrency. With so much news about hacks and other bad actors in the cryptocurrency space, it’s a great sign for KuCoin’s longevity.
Is KuCoin legit?
The only whiff of a KuCoin scam involved the location of their headquarters. Where is KuCoin based? Many investors believed them to be based in Hong Kong when in fact they are in Singapore. This was revealed to be nothing more than a miscommunication, and the KuCoin team responded rapidly to clear things up.
As it stands now, KuCoin offers only a single trading interface. It provides in-depth information and supports a variety of graph analysis functions. But, it doesn’t provide the same range of functionality some higher end trading sites do. This platform only allows limit orders and doesn’t currently support margin trading.
KuCoin offers both an Android and iOS app. It stresses the security of these apps in press releases and currently provides them through the Play Store and App Store. These apps provide full trading and analysis capabilities.
It advertises that they have the most advanced API in the cryptocurrency market. Word of warning though, KuCoin only has one level of access for API, allowing any connected service full buying and selling power on your account.
KuCoin’s interface is simple to use and has a standardized and easy to follow format that traders of all experience levels will appreciate.
This is one area where KuCoin really stands out from the market. Since its creation, KuCoin has done everything it can to build a reputation of having excellent customer service. Most cryptocurrency exchanges provide mediocre support at best. KuCoin has 24/7, 365 days a year support available that guides its users. It also has reported response times that blow others out of the water.
For most issues, you can find an answer on its comprehensive list of support guides. These cover everything from getting started to steps to take in case your account is hacked.
KuCoin absolutely dominates in actual human support. Not only does it have the standard help request form, but it also has a monitored support hotline, email address, and both Chinese and English language Telegram groups. Reports from users have stated they get quick response times and helpful resolution of issues by support personnel.
Ease of Use
KuCoin’s basic market page provides an easy to read overview of all current trading pairs. You can select the comparison currency from a list of the major cryptocurrencies along the top of the screen.
Clicking on one guides you with more information about a given pair. The detail page is pretty standard, anyone who has traded stocks or cryptocurrency before will recognize the candle graphs and other information displays. It also allows you to display a significant number of technical indicators on the graph. These include Bollinger bands, ATR bands, Coppock curves, and many more.
Overall the interface gives you an intuitive and easy to digest informational display while still showing open orders clearly. The available funds menu is represented by a currency graphic and quickly displays a list of all cryptocurrency available in your account.
To begin, you’ll navigate through their homepage and select create account. Make sure you always verify that you’re on the correct website.
Start by clicking the “Sign Up” button in the top right corner of the KuCoin homepage. This guides you to their sign up page and allows you to begin the process. You’ll be required to provide your email address and a secure password. Unlike others, you won’t immediately have to give your name or any other identifying details.
Once you’ve submitted this, you will get a verification email. This will allow you to proceed with the rest of the signup process.
When you first log in to your email verified account, you’ll be prompted to finish securing it. This will include two-factor authentication, a set of three security questions, and the creation of an anti-phishing phrase.
If you don’t already have one, you’ll need to download a two-factor authentication app. Copy the authentication key and bind your account to it using your app. It’s highly recommended that you create a copy of your authentication key and store it somewhere offline, such as a safe or safety deposit box.
The security questions available are fairly standard, including things like your honeymoon destination and spouse’s birthday. Once you’ve completed these two operations you’ll need to once again verify your email and log in using your two-factor authentication.
Finally, create an anti-phishing phrase to be displayed on all emails from KuCoin and on the account login. It should be something you can easily remember but that a potential hacker couldn’t guess.
Verify Your Account
If you plan to withdraw more than two Bitcoin during any 24-hour period you’ll need to provide identity verification. For KuCoin, this is a three-step process.
You’ll start by filling out a basic information form. Things included here are your first and last name, date of birth, phone number, and residence information. You’ll also need to upload a residence verification in the form of a utility bill or other addressed official form.
Step two is the upload of a government-issued photo ID. Commonly accepted forms of ID include passports, military IDs, drivers permits, etc. Make certain that the ID you use is valid, has up to date information, and that you take very clear pictures. You’ll need a picture of the front and back of your ID and a selfie of you with the ID. KuCoin requires you to also hold a dated and signed piece of paper with “KuCoin” written on it. For simplicity’s sake, be sure that the address on the ID you choose matches your reported residence as well.
The final step is to provide a source of funds declaration. This requires you to list out your current employment status, annual income, and expected income from investments.
Once you’ve completed this, it will be about five days before your identity verification is approved.
Fund Your Account
KuCoin doesn’t accept any fiat currency at the moment. To fund your account, you’ll need to buya major cryptocurrency like Bitcoin or Ethereum elsewhere then deposit it into your Kucoin account.
Click on the Assets tab at the top of the KuCoin homepage then select Deposit. Select the cryptocurrency you wish to deposit from the provided list, then press the Confirm button. A KuCoin wallet address will appear on your screen, you can either copy and paste it or use the provided QI code to initiate the transfer. Whichever method you choose, the selected funds will be moved automatically after 6 to 12 confirmations from the blockchain.
Make absolutely certain you have selected the correct cryptocurrency to transfer. Once the process begins, it is absolutely irreversible.
Trading on KuCoin
When your account is set up and funded, you’ll be ready to buy. Select the Markets tab on the top level of the homepage and you’ll be presented with a list of all trading pairs. Select the base pair you wish to trade in and you’ll see all available coins and the last sale price, 24-hour volume, 24-hour change, and trade change.
Click on your desired trading pair to reach the detailed information window. This allows you to run algorithmic analyses and find out more in-depth information.
To buy, simply enter in the amount you wish to buy at market price and press buy.
Withdraw Your Cryptocurrency
Thankfully the withdrawal process is just as intuitive as the deposit. The only real twist is the added security measures KuCoin requires.
Click on the Assets tab again and select Withdraw this time. Scroll through your available balances and select the coin you wish to withdraw. Click on the Add Wallet Address button and enter your destination wallet address. You’ll be prompted to enter in your two-factor authentication code and answer a security question before you can proceed.
Once you’ve verified that you are the authorized user, you can enter the amount you wish to withdraw and press the Confirm button. You’ll then have to confirm the withdrawal via email. Once you get final confirmation, the funds will be released and transferred.
We probably sound like a broken record, but make absolutely sure you’ve selected the correct destination wallet address. Sending your funds to the wrong wallet will result in an irreversible loss of your cryptocurrency.
It’s easy to see KuCoin’s focus on security in the withdrawal process. At every step along the way, there are multiple checks to make sure no unauthorized user can steal your cryptocurrency.
In this KuCoin review, we learned that it is a cryptocurrency exchange that does a good job combining functionality and growth potential with an excellent user experience. Its security is very strong and its customer support is the absolute best of any exchange we’ve seen. The only real downsides for KuCoin is its lack of fiat trading capability and advanced options or margin trading.
We really love the flexible verification policy it has. Access to full trading functionality without a KYC requirement is becoming rarer among cryptocurrency exchanges. When you add in KuCoin’s extremely low fees and excellent user loyalty programs, it quickly becomes one of the best for users who are looking to invest widely in different cryptocurrencies.