As a top 10 exchange by trading volume, KuCoin is a major hub at the heart of the cryptoconomy. With hundreds of crypto trading pairs, hundreds of millions of dollars in daily volume, a slick interface, and a variety of trading tools, KuCoin has a lot going for it.
Based out of Singapore, KuCoin has over six million users and daily volume of $1 billion. Since beginning in 2017, KuCoin has continued to evolve, adding new features while growing in lockstep with the cryptocurrency market. Here’s what the spot and derivatives exchange has to offer.
KuCoin’s Defining Features
One of KuCoin’s greatest differentiators is the vast amount of trading pairs if hosts. These include emerging defi projects and low cap altcoins, many of which cannot be found on other exchanges of its caliber.
KuCoin caters to pro and novice traders, giving its users the ability to interact with the exchange without KYC (know your customer) registration. This option limits the amount that users can withdraw on a daily basis, though privacy purveyors may deem this a small price to pay for retaining relative anonymity. Kucoin also offers margin and leverage trading, options that experienced traders enjoy using to maximize their potential profits. Users can opt for up to 20x leverage on margin trades and 100x leverage on futures.
Upon visiting KuCoin, you will encounter the following sections: Markets, Buy Crypto, Trade, and Earn. You also have the opportunity to try a demo account if you are a new trader or want to test out the platform. KuCoin will give you valueless cryptocurrency to trade with and get to know the platform, giving you a better understanding of how the exchange operates before you trade with real crypto. In addition to its website, a KuCoin application is available for users on iOS or Android devices who prefer to trade on the go.
Spot trading is the most basic form of trading offered by exchanges, but with all the market options KuCoin has, it’s far from basic. KuCoin’s spot trading exchange can handle up to 1 million transactions per second (TPS), with traders given the option to make a market, limit, or stop order on over 400 trading pairs. KuCoin has an easy to use fiat onramp, enabling users to deposit and trade with most major currencies (the US dollar, Euro, British Pound, Japanese Yen, Korean Won, and more). Your KuCoin trading level determines your trading fees, and starts at a competitive 0.1 percent and lowers as you climb.
KuMEX is KuCoin’s futures trading platform, giving traders the option to invest in futures contracts. KuCoin recognizes there are traders with all skill levels on its platform, so it provides a Lite and Pro option to suit your experience. Focused mostly on leverage trading, KuMEX offers low trading and withdrawal fees, standing at 0.05 percent for takers, 0.02 percent for makers, and a 0.0005 BTC withdrawal fee, 40 percent lower than the average industry rate.
With the takeoff in popularity of decentralized finance (defi), lending has become a key component of the crypto industry. KuCoin has created KuCoin Lend for users to capitalize on this innovation. Offering much higher annual yields than could be received from a traditional bank, at between 8 to 12 percent, KuCoin has implemented a new way for users to monetize their crypto assets. There are over 30 cryptocurrencies that can be used to earn a passive income on your holdings.
The KCS Token
Like a number of other tier-one exchanges, Kucoin has created a native currency for its exchange that unlocks benefits for its owners. If you hold 40,000 KCS, you will be entitled to zero fees on maker spot and contract markets, significant savings for frequent traders. KCS also redistributes a portion of the transaction fees generated to token holders daily, incentivizing them to use and promote the platform to garner fees.
Staking is a passive income generating mechanism available for Proof-of-Stake (PoS) blockchains. KuCoin has launched its own staking platform, Pool-X, offering its users the opportunity to passively earn staking rewards and Proof of Liquidity (POL) tokens. POL tokens give users the ability to obtain Pool-X staking resources. Pool-X is a little more complex than simply depositing your coins and watching them instantly grow, but the comprehensive range of staking options, and the attractive APYs, provide ample incentives to learn how it works.
A Full Recovery: A Case Study on Building Trust
In 2020, KuCoin suffered from a hack that resulted in the loss of over $280 million from active wallets. Thanks to the exchange’s dedication, investigatory skills, and hard work, they were able to completely recover from the breach. The efforts taken to reimburse all users affected, coupled with beefing up of security, have worked in KuCoin’s favor.
KuCoin continues to work on new upgrades and features for its trading platform, adding to its robust set of trading options. As a hybrid spot and futures platform with low fees, a fiat onramp, low latency, and hundreds of trading pairs, it’s easy to see why KuCoin is one of the top 10 cryptocurrency exchanges in the world.