KuCoin Review: Advantages and Disadvantages of the Exchange
One of the actively growing cryptocurrency trading platforms is the KuCoin exchange. This project was able to enter the tops in a matter of months after its appearance in 2017. Let’s consider the main points of working with KuCoin and define the exchange’s advantages and disadvantages.
What is KuCoin
This platform was founded by a team of professionals who had experience developing Ant Financial, iBOX PAY, and other severe projects in the industry. The exchange aims to provide traders with a secure way to exchange cryptocurrencies using modern technology.
In May 2017, the development team was finally formed. The exchange managed to declare itself on the market in a few months loudly. There were no particular problems with it after launch. Later, mobile applications for smartphones on Android and iOS were presented.
KuCoin also has an internal cryptocurrency called KuCoin Shares (KCS). Any registered user can purchase it, and it will generate passive income. The KCS price depends on the number of active users of the exchange. The purchase of these tokens allows you to reduce the trading commission. The Ethereum platform network is used as a blockchain for KCS. These are ordinary ERC-20 tokens that can be held on the exchange and on a cryptocurrency wallet that supports the standard.
Today KuCoin is a quality cryptocurrency trading tool with a user-friendly interface. The site has been translated into many languages. Russian, English, German, French, Spanish, Portuguese, and some Asian languages are among them.
Registration and verification
The registration process for KuCoin is straightforward. No unique action is required, and everything happens as on most other exchanges. You need to go to the official website, select the interface language and click the “Register” button. Next, you will be prompted to enter your email address and password two times. Click “Next,” open the specified mailbox, and follow the link to confirm the registration in the reply letter. It completes the creation of a new trading account, and there is no need to verify identity and send a passport ID. For two-factor authentication, you will need to connect to the Google Authenticator system.
Deposit and withdrawal of money
After completing the registration process, you will have the opportunity to fund your account on the exchange. To do this, go to the “Assets” page, where a list of all available cryptocurrencies will be displayed in a unique table.
Select the coin you need, and next to its name, find the “Deposit” button. When you click on the button, you will see the wallet address explicitly generated for your account. Transfer funds to this address, and after receiving all the necessary confirmations, funds will be credited to your account.
In the same section, you can also withdraw cryptocurrency from your account. To do this, you need to click on the “Withdraw funds” button. There, enter the address to receive the desired amount and a temporary password from Google Authenticator. If everything is entered correctly, then after a while, the transaction will be sent.
KuCoin exchange functionality
To start trading cryptocurrency, you need to go to the Markets page. It displays a list of all available trading pairs. For beginners, a simplified option for buying cryptocurrency is provided. You can click “Buy” or “Sell” in front of the desired pair. If you are a more experienced trader and want to engage in full-fledged trading, then select the market you are interested in with one click. The trade page will open in front of you. When you go to the trading terminal, you will also need to enter the password from the Google Authenticator service to start trading.
The developers have provided the ability to fine-tune the chart for user requests, which is undoubtedly a plus and helps to simplify trading. You can see buy and sell order books and statistics of the last concluded deals in the chart. Below are the forms for placing an order for the purchase or sale of cryptocurrency. It should be noted that the ability to place orders with a stop loss function is supported. Even below, there are charts with the current open buy and sell orders and a little to the right – information about your orders.
One of the advantages of the project is low commissions for using the exchange. They make up only 0.1% for ordinary users and those who hold KuCoin tokens on their account – 0.05%.
In addition, KuCoin has a referral program that allows you to receive bonuses for inviting users. The referral system has three levels. The reward is 20, 12, and 8 percent for the first, second, and third levels of referrals, respectively.
Ku Coin boasts a decent trading volume. The most popular cryptocurrencies on this site:
- KuCoin Shares;
Security and support
The project developers pay a lot of attention to the safety and reliability of use. That is why severe encryption and user authentication algorithms are used here. The security system is often retested and tested and then upgraded. The primary means of protecting users’ money is two-factor authentication.
KuCoin’s support is also receiving good reviews on the Internet. Users who had a chance to contact the support service note the high qualifications of its employees and the high speed of receiving a response and assistance. The technical support of the exchange works around the clock.
Exchange affiliate program
One of the essential advantages of the kucoin.com cryptocurrency exchange is its affiliate program, which allows all active participants of this crypto exchange to earn money. So, approximately 90% of the entire resource profit from commissions and trading fees is spent on rewarding active clients.
Here’s how it all happens:
- 50% of all site commissions are received by all owners of the exchange’s internal currency – KCS coins. To make a profit, you need to purchase them and keep them in your wallet on the exchange.
- 40% of trading fees go to generous user rewards in the bonus program, which is based on the principles of MLM business. So, the reward is credited to three levels of attracted participants. Each exchange user can create a stable and increasing passive income for himself by recommending this convenient cryptocurrency exchange to his friends or acquaintances.
- 10% is spent on periodic redemption of tokens from the kucoin.com exchange. So, the largest holders of KCS coins are the exchange development team. That is, the resource owners are directly interested in the growth of their rate.
Thus, you receive 20% of the exchange’s trading fees from the users you invited, 12% come to you from those users who were invited by your referrals, another 8% you receive from the 3rd level of referrals. Thanks to this structure, you can receive about 40% of the total profit of the exchange.
Advantages and disadvantages
Summarizing all the knowledge about the exchange, let’s highlight its advantages and disadvantages.
Pros of the exchange
The clear advantages of KuCoin include:
- The commission size is relatively small, and there are discounts on commission for KSC coin holders.
- High level of account protection: 2fa, security questions, login alerts.
- Platform reliability. During its existence, it was not hacked and also was not noticed in significant scandals.
- Support for a large number of languages.
- Fast transaction processing.
- Instant withdrawal of funds.
- Mobile applications.
- Fast technical support.
Cons of the exchange
The lack of fiat currencies is almost the only drawback of KuCoin. There are many complaints on the Internet about the lack of trading in fiat currencies on KuCoin. For many users, this has become a decisive factor when choosing a trading platform.
Another disadvantage of the platform is the lack of margin trading. That is, a trader can trade exclusively with the funds available to him.
Despite all the advantages of the exchange, cryptocurrency exchanges often close the registration of new users for an indefinite period, and wallets are often closed for verification. To avoid such problems, experts advise keeping funds in cold wallets and having active accounts on several exchanges.