Whether you are just getting started with your crypto trading journey or are a seasoned veteran looking to try out a new platform, KuCoin and FTX are two great options. Both support the most common digital assets, have some affordable trading fees, and are secure enough.
While you can always try out both and settle for what gives you the best experience, this takes more time and is not always feasible. An even better way to decide between these two is by comparing them side by side, starting with a bit of background, and this guide does just that.
Introduction: KuCoin vs. FTX
FTX is a Bahamian-based exchange that has been live since 2019. The crypto exchange platform has been around since 2019. However, by July 2021, the daily trading volume on the exchange was already averaging over $10 billion.
The exchange has at least 1 million active users. Besides a highly robust spot trading market, it also allows for derivatives trading with a futures market, offers leveraged tokens, and now has NFTs.
KuCoin is the older crypto exchange as it has been in operation since 2017. The Singapore-based company has over 10 million registered users and a presence in over 207 countries.
Besides spot trading, KuCoin currently supports P2P fiat trading, staking, futures trading, and allows for crypto lending.
KuCoin vs. FTX: Supported Cryptocurrencies
Both KuCoin and FTX have a wide selection of cryptocurrencies to allow traders to trade hundreds of pairs, increasing their profit-making options.
KuCoin offers a relatively more expansive cryptocurrency catalog with over 400 different assets available. Their coin offering includes popular assets like BTC and ETH and some less-known ones like Zcash coin. Also, the exchange is constantly updating its catalog to add new assets and remove non-performing ones. Here is a list of the assets the platform currently supports.
FTX supports over 120 digital coins and tokens. While this might sound like a smaller number compared to what KuCoin offers, they only support top-tier assets like BTC, ETH, LTC, and XRP. FTX provides a complete list of supported assets and pairs for spot, futures, and OTC trading.
KuCoin vs. FTX: Trading Fees
Exchanges like KuCoin and FTX will charge fees when you place an order on their platforms. These fees will reduce your profits and hence it is essential to know them from the onset.
FTX uses a tiered trading fees structure that charges fees according to a trader’s 30-day trading volume. With a zero 30-day trading volume, traders will pay a maker fee of 0.020% and 0.070% in taker fees. Those with a trading volume of over $50 million will not pay any maker fees, and their take fee is just 0.040%.
Here is a breakdown of the FTX tiered fees structure:
KuCoin also uses a tiered trading fees structure for their spot and futures trading. Also, they have Class A, B, and C categories for the spot market. The tiers are from level 0 to level 12, depending on a 30-day trading volume.
Traders at LV 0 have a $0 trading volume and will pay 0.1% in make and taker fees. Those at LV 12 have the highest trading volume on the platform, which is over 80,000 BTC equivalent, and they will get a maker rebate of 0.005% and pay 0.025% taker fees.
FTX has relatively lower fees than KuCoin for most traders and is a better choice for those looking to save on trading fees.
KuCoin vs. FTX: Account Funding Methods
Like many other leading crypto exchanges, KuCoin and FTX provide several methods for funding your account to start trading.
KuCoin allows traders to deposit with both fiat and crypto. Depending on where you are using the exchange, you can add funds to your account using a credit card, but adding crypto directly from other wallets seems to work best.
KuCoin does not support wire transfers, but they make it possible to fund the account using fiat, but you will have to go through third-party apps like Google Pay and Apple Pay.
FTX provides more account funding methods than KuCoin. Besides funding your account by sending crypto, you can also add fiat. FTX supports over ten different currencies for fit deposits, including USD, GBP, EUR, HKD, and AUD.
Traders on the FTX platform can fund their accounts through wire transfers, credit cards, ACH, SEN, and Signet.
KuCoin vs. FTX Liquidation Mechanism
Liquidation is triggered when the margin fraction on your position goes below the maintenance margin requirement. When this happens, the liquidation engines on the exchange will take over and start closing down your position.
FTX uses a 3-tiered liquidation model that aims to minimize the likelihood of clawbacks. The first step in this model will entail closing the trader position carefully using the rate-limited liquidation order.
Next, FTX uses their unique backstop liquidity provider program that will come in to fund accounts in danger of getting to the bankrupt position. Lastly, FTX leverages its insurance fund to ensure customers do not incur massive losses during liquidation.
Under the new KuCoin liquidation mechanism, the liquidation process only triggers when the trader’s debt reaches the exchange’s liquidation line, 97%. When the liquidation mechanism is activated, it will replace the secondary market mechanism to deal with the position and repay any outstanding debts.
Opening Account & Account Limits
The account opening process for both KuCoin and FTX is relatively straightforward and takes just a few minutes. However, the account limits will differ for the two accounts, and they depend on the verification level of your account.
KuCoin users can withdraw up to 1 BTC per day without any KYC verification. Those with KYC 1 verification can withdraw up to 200 BTC a day, while KYC 2 traders, which is the highest verification level on the exchange, can withdraw up to 3,000 BTC per day.
FTX has three verification tiers: tier 0, 1, and 2. Tier 0 traders are unverified and can only explore the site since the platform does not allow them to deposit/withdraw or trade. Tier 1 traders can withdraw up to 2,000 USD per day or its equivalent in crypto assets, while Tier 2 traders have unlimited fiat and crypto withdrawals.
How to Open an Account on KuCoin
- Go to https://www.kucoin.com/ and click the “Sign Up” button
- Fill the form that opens with your phone or email, set a password, and enter a referral code if you have one
- Check your email to validate your account
- Complete KYC verification
How to Open an Account on FTX
- Go to the FTX homepage https://ftx.com/ and click the “Register” button
- Fill your email and password on the form that opens and agree to the terms of service
- Verify your email from the mail you get in your inbox from FTX
- Go to your profile setting to set up 2FA and complete KYC verification
KuCoin vs. FTX: Ease of Use & Interface
KuCoin markets itself as the crypto exchange for the people, and one of its key highlights is the ease of use. Overall, it is a pretty straightforward exchange with an intuitive interface that is simple to navigate for fast and easy trading. However, there is still a learning curve for beginner traders.
FTX is all about enhancing users’ experience. Overall, it is an easy-to-use exchange even for beginners, with everything on the trading interface being self-explanatory and highly intuitive.
Also, the sleep interface allows traders to switch from dark to light and between different back modes. Better yet, FTX makes it possible for traders to drag around and rearrange various features to create a layout that best suits them.
KuCoin vs. FTX: Security Features
KuCoin and FTX have put in place several security features to keep traders and their assets safe when using their platforms. Like most other top-tier crypto exchanges, they employ various advanced security features.
KuCoin employs a combination of different security features starting with 2FA to make unwanted access to trader accounts difficult. Also, the exchange allows traders to set security questions for securing their accounts and provides other security features like anti-phishing safety phrases and IP restrictions.
FTX is a highly secure platform that allows traders to set up 2FA for their accounts. Additionally, the exchange has a system to keep track and notify users in case of suspicious activities. Also, the crypto exchange allows IP whitelisting and a backstop liquidity fund to eliminate potential loss for traders.
KuCoin vs. FTX: Customer Support
Any crypto exchange platform you choose should have good customer support as you might need it if you run into issues when on the platform. Here FTX seems to have the edge over KuCoin as it has one of the best customer support systems in the industry.
FTX offers live chat support on their dedicated help center, and traders can also open support tickets for email support. Additionally, there is a lot of helpful material on different subjects at the help center, including videos that can be very handy when facing challenges.
Unfortunately, Kucoin does not have live chat support, so you have to request support through an email ticket. However, you can also get help through social media platforms like telegram and Twitter, and they also have a lot of helpful material on their help page.
Is KuCoin a Safe Exchange?
KuCoin is a safe enough crypto exchange platform that employs highly advanced security features to protect traders and their assets.
Also, the exchange is constantly monitoring their system to detect any suspicious activities and upgrading their security systems to deal with emerging threats.
Also, they have KYC verification that is highly effective at weeding out unscrupulous traders to ensure a more secure trading space.
Is FTX a Safe Exchange?
FTX has never been hacked despite the rampant hacking cases that many other exchanges have been facing over the years.
The exchange also has KYC to ensure only genuine traders can access and use the platform, which minimizes the risk exposure for traders.
Additionally, FTX uses Chainalysis to monitor suspicious transactions on its platform. What’s more, the company does a manual review for all large and suspicious deposits/withdrawals to provide an extra layer of protection, which makes FTX a safe exchange.
KuCoin and FTX provide some of the best platforms for crypto traders looking for ways to make money with their digital assets. Although both work well for all kinds of traders, FTX has the edge over KuCoin.
FTX charges lower overall trading fees, is a more secure platform that has never been hacked, and overall it is also more intuitive and easy to use.
Also, many traders will love that FTX has a live chat as this makes customer service more accessible and ensures quick resolution of issues.
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