KuCoin: Exchange Review

KuCoin is a top-tier crypto exchange that seemingly has all the bells and whistles at the surface level. However, on closer inspection, we can see that it has its strengths and weaknesses that users should be aware of.

‍

Quick Verdict

KuCoin is a top-tier cryptocurrency exchange with robust derivatives and spot trading features, supported by a stronger list of coins and tokens that is better than some of its competition. New and existing customers alike will appreciate the many ways in which KuCoin provides to buy and sell assets and earn yields through its savings and staking features. Its fees are also on par with some major exchanges, so traders are gaining more regarding value for money.

However, it lacks some popular features that other global exchanges offer, like a paper trading mode, copy-trading, and the ability for users to create their own trading bots.

‍

Pros

• A large collection of coins and tokens for traders to buy and sell. 
• A comprehensive earning hub with many mechanisms for users to generate yields.
• It has 0.1% trading fees for maker and taker orders on its spot and futures markets. 

‍

Cons

• Cannot withdraw funds to a bank account. 
• No demo mode.
• No copy trading features.

‍

Create a free account with KuCoin.

‍

The KuCoin Features We Liked

A wealth of cryptocurrencies to trade 

KuCoin supports one of the largest cryptocurrency listings in the world, and customers have access to 812 digital assets across 1,346 trading markets (at the time of writing).  

This is greater than the number of coins and tokens offered by other exchanges we’ve reviewed, such as Binance (418), OKX (328), and Bybit (649), making it a viable platform for those who want to trade lesser-known altcoins as well as Bitcoin, Ethereum, and stablecoins.

‍

Buy and sell crypto without the charting interfaces

Aside from KuCoin’s advanced spot and derivatives trading markets and interfaces, the platform offers other, more straightforward ways to trade digital assets.

One is its Fast Trade feature, which lets investors quickly purchase crypto assets with fiat currency and various payment options, including credit/debit cards, bank transfers, Simplex, Banxa, and SEPA. Over 40 fiat currencies can be exchanged for 50+ digital assets, including BTC, ETH, and popular altcoins like BONK and PEPE.

‍

‍

Trade with others on the P2P marketplace

KuCoin users can purchase digital assets with fiat currency via the KuCoin Peer-to-Peer (P2P) marketplace. The P2P network enables investors to conduct fiat-to-crypto transactions directly with other users with no trading fees incurred from KuCoin. 

The main pro is that users can trade with zero fees using 20+ payment options not offered by KuCoin. However, tradeable digital assets are limited to USDT, BTC, ETH, USDC, and the platform's native coin, KCS. 

‍

‍

Robust derivatives and margin trading

KuCoin has incredibly strong and comprehensive derivatives trading markets that rival the offerings of other platforms. On top of their trading fees, KuCoin allows unverified users to trade on these markets, which is a distinguishing feature that other exchanges don’t offer.

• Margin with leverage: Traders can choose between Isolated Margins (10x leverage) or Cross Margins (5x leverage) on over 120 pairs where USDT and BTC are the primary base assets.
• USDT-M, USDC-M, and COIN-M perpetual contracts: These allow users to trade without direct exposure to the base asset. For shorting perpetual contracts, KuCoin offers up to 125x leverage, which is consistent with prominent exchanges such as Binance. 
• Leveraged tokens: Traders increase their earnings (and losses) by collecting leveraged tokens, which can amplify price swings by 2x to 4x. Short and Long tokens allow users to benefit regardless of market direction. Leveraged tokens are free of liquidation risk, making them good for long-term wagers in unpredictable markets. We noted that this product was also offered on MEXC during our testing of this platform.

‍

Crypto trading bots

While KuCoin’s selection of six crypto trading bots is limited to those on other platforms, they are designed well to provide sound control, especially when the users input their own parameters.

Some of the trading bots that can be employed include:

• Spot Grid: A bot that automatically buys and sells crypto within a set price range.
• Futures Grid: Similar to the Spot Grid, it trades with up to 10x leverage on the futures market.
• Spot Martingale: Buys an asset and increases position size when the price falls to reduce the average cost, then sells when a specified profit % is reached.
• Smart Rebalance: Keeps assets in a portfolio at specific proportions set by the trader. 
• Recurring Buys: The trader can set the frequency at which the selected crypto is bought and the amount invested.
• Infinity Grid: Automatically buys low and sells high in percentages with no maximum.

‍

Multiple ways to generate crypto yields

The KuCoin Earn hub contains several products where customers can generate yields differently, appealing to a wide range of investors.

• KuCoin Savings: A versatile product in which investors can deposit coins into a savings wallet and receive interest ranging from 0.03% to 10% APR on 120+ crypto. Yields are compounded daily with flexible terms so that assets can be withdrawn anytime.
• Staking: KuCoin also offers a customisable crypto-staking platform. 45 Proof-of-Stake (PoS) cryptocurrencies like BNB, FTM, and DOT can be pledged for payouts ranging from 1% to 25%. Yields are automatically transferred into the user's funding account.
• Promotions: KuCoin frequently offers promotions that give existing customers bigger returns than usual. These are limited-time deals with a participation limit. In addition, a mix of fixed and flexible products is available, users can earn up to 100% APR. 
• Dual investment: KuCoin's Dual Investment, akin to an options contract, allows users to deposit 25 tokens and earn incentives based on their performance after the term.

‍

Crypto lending to borrow cash

KuCoin offers crypto-backed loans to its customers. Essentially, users can use their coins and tokens as collateral to borrow money. 

Users who wish to do this need to input their parameters, such as the minimum lending APY, the amount to put up as collateral, and the time period. Although all supported coins have a minimum lending APY, the ability for users to choose their own interest rate is a distinguishing feature that separates KuCoin’s Lending feature from others where the parameters are often fixed. 

‍

‍

Deposit Methods

Customers can deposit cryptocurrencies and 40+ fiat currencies, including USD, GBP, CAD, EUR, and AUD. While bank deposits are accepted, the majority of the fiat currencies offered on KuCoin only support credit and debit cards.

KuCoin also accepts deposits from external wallets such as Skrill and Revolut via its Fast Trade feature. However, adopting this approach will result in additional spreads. 

‍

KuCoin Fees and Charges

Deposit fees

Transferring any of KuCoin’s supported cryptocurrencies is free. However, fees and charges apply to fiat currencies. Buying crypto using one of KuCoin’s payment providers will incur fees of around 2.84%, depending on the asset being purchased.

‍

Spot trading fees

KuCoin's fee structure begins at 0.1% for maker and taker orders on the spot markets, the same as Binance’s starting fees. Discounts are available to traders who satisfy greater 30-day trading volumes or hold certain amounts of the platform’s native token, KCS. Users can also reduce their fees by 20% by paying them in KCS. 

However, the 0.1% fee only applies to coins and tokens that KuCoin considers “Class A.” Lesser-known cryptos, categorized as “Class B” and “Class C,” attract higher starting fees of 0.2% and 0.3%, respectively.

‍

Futures trading fees

Maker and taker fees on its futures markets start at 0.02% and 0.06%, respectively. Similar to its spot trading fee structure, these can be reduced depending on the user's 30-day trading volume or the amount of KCS held. However, all cryptos fall into one class, meaning the fees apply to all trading pairs.

‍

Withdrawal fees

KuCoin does not impose additional withdrawal fees. However, the exchange charges a set price to cover blockchain network costs and prevent swings, as is customary for most exchanges. 

Create a free account with KuCoin.

‍

‍

Using KuCoin

The KuCoin platform is akin to other global crypto exchanges but manages to capture straightforward processes in some areas but not in others. Account processes such as funding, withdrawing, managing wallets, and using tools to balance out portfolios are all straightforward to navigate and use. The simplicity and structure are reminiscent of those offered by Binance, a crypto exchange that markets itself to the broader community. 

‍

The charting interface for spot and futures trading uses the traditional order book-based layout, which makes the learning curve relatively short. The trading interface is stocked with the tools and charting software that one would expect from a top-tier crypto exchange. Users can use the TradingView charts and a multitude of drawing tools and indicators to find suitable positions. 

Order types available to traders include stop limit, stop market, OCO, trailing stop and TWAP, which should satisfy most.

‍

‍

Final Verdict

KuCoin is a world-class crypto exchange with strengths in its future trading features and markets. Its other strengths also lie in providing people with many straightforward ways of trading and investing in cryptocurrencies, from its multiple onboarding avenues to its Earn hub.

Whilst it appears to be an all-in-one crypto platform, it lacks some features that others provide. These include a demo trading mode where traders can test strategies using virtual funds, copy-trading capabilities, and the ability for users to create their own trading bots.‍‍

‍

‍

***

We aim to publish factual and accurate information as of the publication date. For specific information about a cryptocurrency exchange or trading platform please visit that provider's website. This information is general in nature and is for educational purposes only. We do not provide financial advice, nor does it take into account your personal financial situation. We encourage you to seek financial advice from an independent financial advisor where appropriate and make your own inquiries.

‍

--

Start a crypto exchange just like KuCoin using a white-label exchange software today.