Maybe you have used the Kucoin exchange when buying one of your favorite cryptocurrencies. The Kucoin exchange is indeed one of the popular exchanges which some recommend against this exchange.
In this article, we will present to you, all about Kucoin exchanges, what is Kucoin, what features are available, and is it a safe exchange?
A quick look at Kucoin’s ranking on Coinmarketcap, this exchange is ranked sixth, out of the top exchanges under FTX. The average daily volume reaches 1 billion USD, Kucoin gets a score of 8.3 from an assessment based on web traffic, volume, and average liquidity.
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Contents
Kucoin Exchange explained
KuCoin is a cryptocurrency exchange platform based in Seychelles. The exchange provides a secure and easy-to-use platform for a global audience to trade digital cryptocurrencies. The founders of Kucoin are Michael Gan and Eric Don.
It offers an impressive selection of trading pairs and crypto-related services that has over 200 cryptocurrencies, along with around 400 markets.
Kucoin issues its own cryptocurrency called Kucoin Shares (KSC). For all KSC coin holders will get impressive discounts on trading fees and earn more crypto.
Through the Kucoin platform, users can buy, sell cryptocurrency assets for various purposes, trading or storing investments.
The founders of Kucoin have experience in Ant Financial and iBox PAY projects. They had a target of becoming the world’s top 10 exchanges, and now they have achieved that target because currently the Kucoin exchange is ranked sixth in the Coinmarketcap exchange rankings.
History and background
The background for the establishment of Kucoin is the experience of Michael Gan and Eric Don who at that time became blockchain adopters from the start. Learned coding for 8 years and started mining after hearing about Bitcoin in 2012 from his boss Eric.
Even they founded a startup at the age of 16. When trying to sell BTC on Mt.Gox, they had the idea of making a platform that was simple and easy for people to use. Because the Mt.Gox platform is quite difficult for novice users.
Then Michael and Eric eventually built a new system that served everyone in the world – even the uneducated, unemployed, and unbanked. The idea led them to write the first code in a cafe, in 2013 and start what is called the People’s Exchange to allow everyone to get involved with crypto.
10 Principles in Kucoin
- Respect Financial Markets and Remember Risk Control.
- Business Oriented and User-Centered.
- Set Ambitious Goals and Make Efforts in the Right Direction.
- Maximize income and make every penny count.
- Take responsibility for results with a data-driven mindset.
- Embrace challenges and respond quickly to changes.
- Efficient cooperation creates win-win results.
- Clear and sincere in communication.
- Brave and fight like a warrior.
- Be professional and be mature.
Kucoin Exchange account verification
Basically, without verifying KYC, users can still make deposits and withdrawals, but the treatment will be different from users who do KYC verification. Since November 1, 2018, Kucoin has officially implemented KYC, because it can reduce fraud, money laundering, terrorist financing, and other suspicious activities.
By launching the KYC process, this exchange hopes to become a trustworthy company.
Does Kucoin require KYC?
The main thing that distinguishes verified and unverified KYC is the daily withdrawal limit. Even though users allow without KYC verification, they have low withdrawal limits. Meanwhile, users who have verified KYC 1 and KYC 2 will get a higher daily withdrawal limit.
The withdrawal limit difference between unverified and verified KYC 1 is not too much, Kucoin recommends going through the KYC 2 verification process for maximum withdrawal limits.
Another function of verified KYC is when a user forgets a secret password, or maybe the account is taken over by someone else, with verified KYC it will be faster to get help solutions from Kucoin support.
How to verify KYC
The verification process will be completed within 3 to 5 working days, the user will get an email notification if the verification document is received and approved.
To start the verification process the user must log in to the account and click on KYC verification. Fill out the form correctly according to the ID, then click submit. In the next process, the user needs to take a selfie with the ID document in hand and a handwritten certain unique Code that changes every day, signature, and date.
In the verification process, there are two choices of individual and institution, depending on the user, if the individual user selects individual verification and for organizations or corporations chooses institutional verification.
Kucoin Exchange Feature
Kucoin has several service products, the marketplace consists of stable coin pairs USD, BTC market, Altcoin market, KCS market, Defi, NFT, Polkadot, ETF, and Spot Index.
Overall the Kucoin platform supports 400 cryptocurrencies, which gives all customers freedom of choice. Kucoin also supports P2P transactions, to buy and sell crypto with zero transaction fee to achieve flat to crypto conversion.
Besides KUcoin also offers fast buy for BTC, ETH, and USDT with AUD, BDT, CNY, CSD, IDR, INR, VND, PHP, RUB, USD.
Spot trading
Kucoin utilizes the Tradingview platform for spot trading. Traders can trade by utilizing the tools available on the Tradingview platform which is a popular social trading platform.
Trader allows choosing cryptocurrency pairs available on Kucoin spot trading after trading account login. The user-friendly platform offers a variety of indicator trading tools to help market analysis.
Margin trading
Maybe those of you who are experienced in forex trading already know the concept of margin trading. This is a trader pledging a certain amount of funds for a trading contract with lower funds depending on leverage.
Simply put, margin trading is trading by borrowing a certain amount of crypto to exchange by pledging a small number of funds in a trading account.
Kucoin exchange offers trading margins of up to 1:10, this is higher than some forex brokers who offer crypto accounts which on average provide a maximum leverage of 1:3.
Trading Bot
For automated trading, Kucoin also offers a trading bot. This is a new way of trading crypto by leveraging AI software for profit. Traders choose robots and settings for dynamic markets, invest funds and robots will trade according to strategies and settings automatically and in real-time 24 hours 7 days a week.
Even traders can run 10 robots at the same time, and support 100+ coins trading with robots.
Trading futures, how Kucoin futures work
The next feature is futures trading, traders can use the cryptocurrency futures trading facility, which is trading with a certain period of time that has a set price and time in the future. Simply put, the merchant makes a predetermined price and time for the future. Simply put, the traders makes a predetermined price and time for the future. It also uses the concept of margin trading with varying leverage options.
There are three options for futures trading with different facilities, futures lite, futures pro and futures brawl. Futures lite is simple to start for the short term, Futures pro supports leverage up to 1:100 and more complete trading tools, and Futures brawl allows traders to trade and win prizes.
How Kucoin lending works
Another feature that is no less interesting is crypto lending, crypto holders can lend a number of crypto coins in the lending market liquidity market and earn daily interest.
The mechanism of the crypto lending market, when the market tends to be bullish it will make the USDT price increase because more buy long and this will result in our USDT lending being profitable. On the other hand, if the market tends to be bearish, it encourages crypto borrowers to open short which will provide a profit for lend.
Token holders can choose the auto-lend option to choose automatically and choose three options of 7 days, 14 days, and 28 days, in which the system will lend out available funds at a prioritized interest rate.
Pool X earn
Pool X earn is liquidity for pledged assets exchange, it is different from the traditional staking model competing in network nodes, Pool X staking participants do not have to lock their tokens. It only requires a deposit or coin transfer to Pool X account and will get profit calculated daily flexibly and distributed the next day.
In the Pool X environment, it uses the POL (Pool Of Liquidity) token which is a decentralized token. Staking Pool participants will get POL tokens that have been registered with Kucoin. To join Pool X earn by login Kucoin account at https://pool-x.io/.
KCS bonus
KCS is the native token of the Kucoin exchange, this coin has been listed on several rating sites. On Coinmarketcap, KCS is currently ranked 75th with a current price of $11.28, a 19% drop from its previous high of $13.
KCS itself has a total supply and a maximum supply of 170,118,638, with the current circulation reaching 47%.
One interesting thing about Kucoin exchange is that they offer a KCS bonus which is an incentive or payback from transactions in the Kucoin environment.
The calculation of the bonus use a certain formula and it depends on the KCS tokens that are held with a minimum of 6 KCS, and the volume of transactions. The larger the KCS transaction volume, the bigger the bonus that will be received. Besides to eligible received a KCS bonus, the account requires a bind Google verification or Phone number.
Referral program
For company spreading, Kucoin gives their clients the opportunity in a referral program where if someone successfully invites, they will get a reward based on a certain calculation.
When someone invites another person to join Kucoin, he gets a unique code that serves as a program referral code. It is not surprising that some participants offer discounts if they register with a certain unique code.
To get this unique code, the inviter must log in to a Kucoin account, which can then spread the invitation through, whether in forums, websites, instant messages, and so on.
Kucoin payment deposit
Deposit is the process of transferring cryptocurrency into a Kucoin account, it requires a deposit address which can be obtained in the Kucoin account navigation. The deposit address is used as the transfer destination from the withdrawal platform.
After finding the deposit address, you can copy and paste it on the withdrawal/transfer platform, where your Coin available to sent. The deposit address must also match the cryptocurrency being transferred.
Crypto deposits can be made via the web, as well as applications available for Android and iOS.
If you don’t have crypto assets, you can deposit crypto using available payments in flat currencies, in this case buying crypto. If you have a credit card or debit card. can use this option, or it could be with SEPA transfer or Apple pay.
How long do Kucoin deposits take
Based on the Kucoin support explanation, if you use a deposit address that matches the token being transferred, the deposit will arrive in about 1 to 2 hours. It is very important to double-check the deposit address and the matching token.
But an experience from a Kucoin user in the Reddit community shared that he did not receive any ETH tokens sent from Binance to Kucoin for more than two hours.
Although the transaction confirmation has been completed, the funds have not yet appeared on Kucoin, this experience was shared three years ago.
The step that is recommended when the deposit has been confirmed but has not arrived at Kucoin. is to wait 1 or 2 hours later. By re-checking because it might only be a delay in the system recording the transaction.
If the problem is not resolved. The next step is to contact the support contact by including the TXID. or transaction ID.
Transaction fee
Transaction fees in the Kucoin environment are divided into three types, the spot market, futures, and deposit or withdrawal fees. In general, the transaction fee will be lower at a high level of trading with the larger funds will be subject to a lower fee.
In the spot market, level 0 with a value below 50 will be subject to a fee for makers and takers of 0.1%. But if using KCS only a fee of 0.08% is charged. It’s lower if using KCS. The smallest fee at level 18 with 150000 or >80000 will only be charged -0.005%/0.025% fee.
For futures fees, level 0 with funds below 100 is subject to a fee for takers 0.02% and maker 0.06%. At level 12 with 150000 funds or 1600000 fee maker -0.015% and fee taker 0.03%.
Meanwhile, the deposit fee is free, and the withdrawal will depend on the tokens withdrawn. Meanwhile, each token has a varying withdrawal fee.
Kucoin customer service
Kucoin claims that they provide contact support 24 hours 7 days, by providing online support and a help center. But when you first access it will get a reply from the bot. You need to select the issue to be asked before continuing the online chat. You need an email address to continue.
Another option is to utilize the request form from the help center. This also requires an email address. And may take a few days to get a reply as there may be a queue waiting.
Platform design
Kucoin uses platform 2.0 since 2019, this platform is applying to web-based, Android, and IoS. It supports additional features such as a WebSocket API, Device Trust System, Stops Orders, and SNS push notifications.
This 2.0 platform offers stability and dynamics even for more than 5 million users. WebSocket API and Rest API functions can increase liquidity and market depth.
The features in Kucoin platform 2.0 include:
- Advanced Brand New API allows building secure and programmatic strategies.
- Various order types including Limit, Stop, Market, Post Only, Iceberg, etc.
- Enhanced security, allows using notification SMS for account authentication.
- Supports internal transfers, self-service releases, account freezes, and other user self-service functionality to improve service efficiency.
- KuCoin WebSocket feed, enable push notification SMS to get access to real market data.
Kucoin Jurisdiction
There is no definite information available on where Kucoin is located. In a Reddit forum discussion, someone said it was from Hong Kong, but the location was not clear. While referring to Cryptonews, this is Kucoin located in Seychelles.
Kucoin already has customers in more than 100 countries. But the official explanation may be that Kucoin is prohibited in certain countries. So that services depend on regulations in the jurisdiction of that country.
In general, Kucoin is only for customers over 18 years of age. Although Kucoin has operations in more than 100 countries. It is still doubtful if this company has an official license to operate in the jurisdictions of all these countries. As in the case of Binance. Its exchange was accused of not having official operating license permissions in various countries.
Kucoin japan
To reach customers from Japan, Kucoin’s strategy is to create a Japanese community. That serves as a forum for discussion among community members.
- Japanese Telegram https://t.me/KuCoin_JP.
- Twitter account https://twitter.com/KuCoinJPFans.
However, now suspend the Japanese community’s Twitter account. Because it was deemed to have violated the terms of use. This is a challenge for Kucoin as it comes under global regulatory pressure.
Besides creating a Japanese community. Kucoin also provides payments in Japanese Yen (JPY) which is integrates with debit/credit card payments.
Kucoin In Malaysia
Generally, Kucoin is a global exchange, it is also available in Malaysia. But there is no official information that they are on the list by Malaysian regulations. Although it still allows Malaysian people to use Kucoin services with a credit card. However, it is an anonymous user. Because basically only officially in the list brokers allow operating.
Kucoin Singapore
Citing a report from Cointelegraph, the Kucoin domain was locked at the end of March by order of the High Court of Singapore. And GoDaddy, Domain provider reportedly complied with Singapore’s highest court decision.
Permission regulations in various countries are a problem for major exchanges today including Binance and Kucoin.
Is Kucoin a good exchanger?
One of the biggest enemies in the world of cryptocurrencies is vulnerability to hacking. Although basically the security layer has been designed strongly hackers often find a way to steal users’ wallets.
Kucoin in its history experienced a hack in September 2020. The exchange suffered a security breach with 230 different cryptos stolen from its hot wallet for a total theft totaling around US$285 million.
But the CEO of Kucoin Johnny Lyu confirmed that KuCoin had recovered around 84% of the stolen funds. This is a step to ensure that Kucoin is responsible for the security of user funds.
On the other hand, it is about permissions, it is possible that in a country suddenly ban Kucoin from operating because there is no official permission to the authorities.
China is one of the countries that strongly prohibit any form of cryptocurrency use. This is a challenge for Kucoin if it comes from Hong Kong. How they overcome its issues.
Final thought
This trade-off may be between secure and insecure, due to the fact that globally customers have spanned hundreds of countries. This means that customers trust this exchange.
But on the other hand, risk will always lurk, so an investment value must be a risk calculation.
Note: This article is for information only and not investment advice, forex and crypto trading involves risks, each investor is responsible for their investment.
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