Founded in 2017 and based in Seychelles, KuCoin is a leading cryptocurrency exchange that offers a wide range of digital assets. When initially launched, KuCoin supported spot trading only. But as of 2021, KuCoin offers margin trading, futures trading, and leveraged tokens.
A unique feature of KuCoin is the availability of cryptocurrencies and different trading pairs and fiat trading pairs. As of now, it lists more than 200 cryptocurrencies, along with the majority of cryptos that have recently had their ICO.
When it comes to futures trading, KuCoin offers all the standard benefits, including up to 100x leverage, low trading fees, a robust trading platform, and more.
So, is KuCoin a safe and legit trading platform, and should you use it for margin trading and futures trading? This KuCoin review will answer all your questions.
KuCoin Exchange Supported Cryptocurrencies
KuCoin lists more than 200 cryptocurrencies (at the time of writing) and 400+ markets. These include popular coins like Bitcoin (BTC) and Ethereum (ETH) and less popular coins like Lympho and VeChain.
KuCoin has emerged as a popular exchange for new cryptocurrencies that have completed their initial coin offering (ICO).
If you are interested in investing and trading cryptocurrencies that are in the initial phase of their journey, you can find them on KuCoin.
KuCoin’s Margin Trading Pairs and Leverage Offerings
KuCoin supports spot trading as well as futures trading. Let’s talk about spot trading first.
- Spot Trading
KuCoin supports the spot trading of more than 70 cryptocurrencies. You can choose to trade cryptocurrencies settled in USDT, BTC, KCS, and TRX, and ETH as per your preferences.
KuCoin also offers margin trading where you can trade cryptos with up to 10x leverage.
KuCoin has a daily trading volume (spot) of USD 1.16 billion – the sixth-highest in the market.
- Derivatives Trading
When it comes to derivatives trading, KuCoin offers perpetual and quarterly futures contracts. Two types of futures are available on KuCoin:
- USDT-Margined Contracts: Perpetual futures settled in USDT
- COIN-Margined Contracts: Perpetual futures settled in USD
Please note that traditional futures contracts with a quarterly expiry are available for BTC only. For other cryptocurrency futures, only perpetual contracts are available.
KuCoin has a 24h derivatives trading volume of USD 1.65 billion – the 13th-highest in the market. Coming to leverage, KuCoin offers up to 100x leverage on all traditional and perpetual futures contracts.
- Leveraged Tokens
KuCoin offers leveraged tokens, which are tradable assets in the spot market that can be traded at high leverage up to 3x long/short leverage without any liquidation risk. Unlike margin and futures trading, in which users need to have a maintenance margin, leveraged tokens require no collateral and are completely risk-free.
- KuCoin P2P
KuCoin also has an instant exchange service called KuCoin P2P. The service allows buying and selling of cryptos using numerous fiat payment methods, such as PayPal.
- KuCoin Lending Platform
KuCoin’s lending platform allows users to lend cryptocurrencies to other users and earn an interest rate. The lender can fill the loan amount and daily interest rate, ranging from 0 to 0.2%. The default lend terms selection is 28 days; however, it can also be 14 days and seven days.
KuCoin Trading Fees
KuCoin follows a market maker-taker KuCoin fees structure for both spot and KuCoin futures trading. Let’s quickly go through the market maker-taker fee structure and how it works.
All the orders placed on an exchange are categorized into two types:
- Orders that add liquidity
- Orders that reduce liquidity
Orders that enter the order book, such as limit orders, add liquidity to the market. Such orders are known as market maker orders. Contrarily, orders that don’t enter the order book, such as market orders, reduce liquidity from the market. Such orders are known as market taker orders.
The market maker-taker fee structure is further classified into two models:
- Flat-fee model
- Tiered fee model
In the flat-fee model, the KuCoin instant exchange charges a fixed market maker and market taker fee. In the tiered fee model, the market maker and taker fees depend on the last 30-day trading volume and other factors.
KuCoin uses a tiered fee model for both spot and futures trading. It has 13 tiers (Level 0 – Level 12).
- KuCoin Spot Trading Fees
For spot trading, users with the last 30d trade volume of less than 50 BTC and a KCS holding of less than 1,000 falls into Level 0. For Level 0 traders, the market maker/taker fee is 0.1%/0.1%, which reduces to 0.08%.0.08% when paid using KCS.
Similarly, traders with the last 30d trading volume of more than 80,000 BTC or KCS holding of more than 150,000 falls into Level 12. For Level 12 traders, the market maker/taker fee is –0.005%(rebate)/0.025%, which reduces to –0.005%/0.02% when paid using KCS.
- Futures Collected Trading Fees
For futures trading, users with the last 30d trade volume of less than 100 BTC or KCS holding of less than 1,000 falls into Level 0. For Level 0 traders, the market maker/taker trading costs are 0.02%/0.06%
Users with the last 30d trading volume of more than 160,000 BTC or KCS holding of more than 150,000 falls into Level 12. For Level 12 traders, the market maker/taker fee is –0.015%(rebate)/0.03%.
- KuCoin Deposit and Withdrawal Fees
Deposits are free on KuCoin regardless of the payment method. However, when depositing fiat from third-party payment gateways, additional transaction charges may apply.
KuCoin charges a nominal withdrawal fee for all cryptocurrencies. For instance, it charges 0.0005 BTC for Bitcoin withdrawals and 0.004 ETH on ETH withdrawals.
KuCoin Native Token (KCS) & Trading Fee Discount
KuCoin issued its native token –KCS – in 2017. The ICO price of KCS was 0.000055 BTC, which as of July 2021, has surged to around USD 10. Users who hold KuCoin shares can enjoy significant trading fee discounts.
KuCoin Deposit Methods
KuCoin allows you to deposit funds using cryptocurrency and fiat currency. As of 2021, the KuCoin exchange supports five fiat currencies: USD, CAD, VND, IDR, INR, EUR, AUD, NGN, and CNY. If your country’s currency isn’t supported, you can go to a Bitcoin exchange platform like Coinbase to convert your cash into BTC and transfer it into your KuCoin wallet.
KuCoin offers several convenient fiat payment methods, such as credit/debit cards, ApplePay, SEPA, and P2P bank transfer, with more than 20 options.
When it comes to cryptocurrency deposits, KuCoin supports BTC, USDT, ETH, and PAX.
KuCoin Futures Funding Fees
In KuCoin futures, the Last Price can deviate significantly from the spot price. Since traditional futures have a quarterly expiry date, the Last Price converges into the spot price at regular intervals. However, perpetual swaps don’t have an expiry date, and hence, the Last Price can continue to trade away from the spot price.
KuCoin uses the Funding mechanism to ensure that the Last Price of a futures contract stays close to the global spot price. When the Last Price is higher than the spot price, long traders pay a funding fee to short traders. Similarly, short traders pay a funding fee to the long traders when the Last Price is lower than the spot price.
The following formula calculates the funding fee:
- Funding Fee = Position Value x Funding Rate
KuCoin uses two components: Interest Rate and Premium Index to calculate the Funding Rate.
The formula for Perpetual Futures Funding Rate is:
- Funding Rate = Premium Index + clamp (Interest Rate – Premium Index, 0.05%, – 0.05%)
KuCoin futures funding occurs every eight hours at 04:00 UTC, 12:00 UTC, and 20:00 UTC.
KuCoin Liquidation Mechanism
Traders need to hold a percentage of their position value, also known as Maintenance Margin, to keep their positions open.
If a trader cannot fulfill their maintenance margin requirements, their position will be forcefully closed and taken over by the liquidation engine. This process is known as forced liquidation or auto-deleveraging.
KuCoin takes several steps to minimize liquidations, including:
- KuCoin uses a Fair Price Mechanism to avoid liquidations due to price manipulations or illiquid markets.
- Traders can reduce their leverage size and increase their initial margin by adding margins to their initial positions.
- If liquidation is triggered, KuCoin automatically cancels all open orders on the contract to free up margin.
KuCoin uses an Insurance Fund to hold liquidation orders until the auto-deleveraging mechanism takes over. This ensures that profitable traders receive their profits even if the losing traders’ positions get automatically liquidated.
KuCoin Account Opening Process
KuCoin doesn’t have mandatory KYC requirements. However, verified account holders enjoy certain benefits over unverified account holders.
Unverified accounts and KYC Level 1 accounts have a withdrawal limit of 5 BTC per day. KYC level 2 accounts enjoy a higher withdrawal limit of 200-300 BTC per day.
In addition, KYC is mandatory for users who want to deposit or withdraw fiat currencies. KuCoin also recommends KYC verification to offer bank-level security to the user’s account and make the exchange a trustworthy place for all traders.
KuCoin Trading Platform and User Interface
The KuCoin platform plays a vital role in the overall trading experience, regardless of whether you are a new or experienced trader. Let’s delve deep into the trading platform features offered by KuCoin.
Desktop Trading Platform
KuCoin provides two desktop trading versions for futures trading. The first one is Futures Lite, which is ideal for beginner traders. It has a simple user interface with a price chart, a long/short ratio meter, and an Order Form. It allows you to select the pair you want to trade and place orders.
Futures Pro is a comprehensive trading platform that uses the TradingView charting system. It features the Order Form at the extreme right. On the left of the Order Form is the Order Book that provides real-time trade information and helps you analyze the market sentiment.
At the of the panel, you’ll find the position manager that shows your positions, closed positions, open orders, stop orders, take profit orders, fills, and order history. The charting system is located on the left side of the trading panel.
Technical Analysis Trading Tools
KuCoin uses the TradingView charting system and retains all the features of the TradingView platforms. These include:
- Chart Types: You can choose from seven types of charts: Candles, Line, Bars, Hollow Candles, Heikin Ashi, Area, and Baseline.
- Time Frames: KuCoin allows you to view charts in a wide range of time frames, from 1 minute to 1 month.
- Indicators: KuCoin comes with hundreds of built-in technical indicators that enable a seamless and accurate technical analysis to help you develop the right trading strategy.
- Drawing Tools: KuCoin provides various drawing tools, including trend line tools, Gann and Fibonacci tools, Geometric Shapes, Annotation Tools, Patterns, Prediction and Measurement Tools, and Icons.
KuCoin OTC Trading Desk
The KuCoin Over-the-Counter (OTC) Trading Desk enables institutional traders to execute large trades at specific prices without putting the market at risk of sudden fluctuations. The desk allows you to deposit funds using fiat currencies for fiat to crypto trading. Please note that KYC is mandatory for OTC trading.
KuCoin has a mobile app for iOS and Android users. It comes with various features, such as account opening, deposit and withdrawal, KYC verification, and placing orders, and more. The mobile app is intuitive and user-friendly and offers a pleasant trading experience.
Overall, KuCoin deploys an industry-grade trading platform that is ideal for both beginner and professional traders. It comes with all the essential tools and features needed to help traders make informed trading decisions.
Furthermore, the platform is intuitive, robust, and user-friendly. It is easy to use and enables seamless navigation. Therefore, if you are looking for an exchange with a simple yet powerful trading interface, KuCoin will be the right pick for you.
KuCoin Order Types
KuCoin offers three basic order types: limit, market, and stop. Let’s discuss these order types in detail.
- Limit Order: KuCoin supports limit orders. A limit order is placed at a specific price. Limit orders enter the order book, thereby adding liquidity to the market. A limit order is filled only when the price reaches the entered price.
- Market Order: A market order is the opposite of a limit order – it is filled at the market price and doesn’t enter the order book. Please note that a market order doesn’t essentially get filled immediately. The speed of execution depends on the market liquidity.
- Stop Order: A stop order is a type of conditional order placed against a currently open position. You can place a stop order in the same direction (take profit) or the opposite direction (stop loss) of your trade. The purpose of a stop order is to specify an exit price. Your order will exit when the price reaches the stop price.
How to Start Trading on KuCoin?
The process of starting trading on KuCoin is similar to other exchanges. First, you need to open a trading account. Depending on your requirements, you can either verify your identity or begin with an unverified account. Once you have opened your account, follow these steps to place your first trade on KuCoin.
1. Pick the Right Segment
As discussed, KuCoin enables trading in three market segments: Spot, Futures, and Leveraged Tokens. Futures are naturally the first choice for traders as you can trade with high leverage and low margin. However, the risk is also high.
So, if you’re looking to trade for the short term (like intraday) and have a good risk appetite, you can opt for futures trading. Spot trading is the ideal pick if you want to hold crypto for a few months or years.
2. Pick the Right Pair
Once you have chosen the segment you want to trade, the next step is to pick the trading pair. It’s wise to choose a pair that has good liquidity, like BTCUSDT and ETHUSDT.
3. Choose the Order Type
The next step is to choose the order type. If you want to enter a trade at the current market price, you can place a market order. On the other hand, a limit order would be the ideal pick if you want to enter at a specific price.
4. Place Your Order
Once you have determined the type of order you want to place, fill the Order Book and place an order book. You’ll also need to select the position size (quantity) and leverage. After filling these fields, you can Buy or Sell to go long or short, respectively.
5. Exit Your Order
The final step is to exit your order. You can exit order in two ways: manually exiting your open position or placing a stop-limit order. It is ideal to trade with stop-limit orders as it provides you with better control over your trade.
KuCoin Security Features
Since its launch in 2017, KuCoin hasn’t experienced any hacking or security incidents. It implements bank-level asset security, along with all the essential security measures prevalent in the cryptocurrency space. These include:
- Cold Wallet Storage: KuCoin uses cold storage micro withdrawal wallets to store users’ funds, protecting them from hacker attempts. KuCoin also uses industry-level multilayer encryption.
- Dynamic Multifactor Authentication: KuCoin encourages its users to enable two-factor authentication to protect their accounts from unauthorized login attempts.
- Security Questions: KuCoin allows you to set security questions that will be asked when you take important actions, such as change passwords, withdraw funds, etc.
- Withdrawal Authentication: The KuCoin team manually authenticates all withdrawal requests, ensuring that no unauthorized withdrawals occur.
- Notifications: KuCoin sends email and pushes notifications for important account actions, such as fund deposit/withdrawal, password change, etc.
KuCoin Customer Support
KuCoin has a reliable customer support team and offers support in the following ways:
- Help Center: Kucoin Users can seek email support from KuCoin by raising a ticket from the KuCoin Help Center accessible via the official website.
- Live Onsite Chat: It is one of the few cryptocurrency exchanges that offer live onsite chat support.
- FAQ: KuCoin has a comprehensive knowledge base that answers all the frequently asked questions about trading cryptos on KuCoin.
- Mobile App Support: KuCoin offers dedicated support to mobile app users.
Additionally, KuCoin users can interact with the KuCoin team on social media channels, including Facebook, Telegram, Twitter, and Reddit in English, Russian, Vietnamese, Turkish, Italian, and Spanish.
Frequently Asked Questions
- Where is KuCoin Located?
The KuCoin exchange is based in Seychelles.
- Is KuCoin Safe and Legit?
Yes. The KuCoin exchange is completely safe and legit, with more than five million global users. KuCoin implements robust security features to provide a safe and secure trading experience to its users. It also enables you to perform identity verification.
- Is KuCoin Regulated?
No. KuCoin, like most cryptocurrency exchanges, is regulated in someplace and not regulated in some. However, it implements all the essential security features needed to provide a seamless experience to its users.
- Can I Use a Credit Card to Deposit Funds on KuCoin?
Yes. KuCoin uses Banxa – a third-party payment gateway provider – to enable various fiat payment methods, including MasterCard/Visa, Apple Pay, and more.
- Is KYC Mandatory on KuCoin?
No. KYC is not mandatory on KuCoin; however, the exchange recommends users to complete KYC to create a trustworthy platform for trading.
- Does KuCoin Have Any Withdrawal Limits?
Yes. The daily withdrawal limit on KuCoin is 5 BTC for unverified users and 200-300 BTC for verified users.
Let’s conclude this KuCoin review by revising the pros and cons of the exchange.
Coming to the pros, KuCoin supports a multitude of cryptocurrencies, trading pairs, and markets. It also offers various trading products, such as spot trading, futures trading, and leveraged tokens. If you’re someone who prefers a lot of options in crypto trading, KuCoin will be an ideal platform for you.
Another major upside to using KuCoin is its robust trading platform. KuCoin has one of the most powerful and intuitive trading platforms in the crypto space. Other benefits include the lowest trading fees, kucoin, leading-edge security, and good-quality customer support.
The only downside to using KuCoin is that it charges a withdrawal fee on all cryptocurrencies. There are also withdrawal limits on unverified users.
Overall, KuCoin is an excellent platform for crypto traders and has all the features you’ll see in other leading exchanges.
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