Kucoin Beginners Guide
The KuCoin exchange is one of many cryptocurrency trading platforms available to people looking for a modern, secure venue to trade digital currencies. You may also want to read about Bittrex Crypto Exchange.
KuCoin was founded by a group with a strong interest in blockchain development, a team that had already built a solid reputation working with industry names such as GF Securities, Ant Financial, Youling, Jianbang Communication, and iBOX PAY. The stated aim of the platform is to give users a secure, direct way to move their coins onto a modern trading system.
Related: How the Binance platform works for crypto trading.
Although KuCoin is a relatively new addition to the exchange world, the team behind it established itself quickly, and the exchange ran without downtime after launch. To put the platform’s youth in perspective: the research and development team was only assembled in May 2017, an angel investment came in that August, and the first version went live just a few days later. Since then the team has rolled out the KuCoin bonus plan, multiple additional coins, and mobile apps for both Android and iOS.
While KuCoin itself is relatively small, its founding team had been researching blockchain technology since 2011, and the technical architecture of the exchange was worked out in 2013. That gave the team several years to refine the details and aim for a smooth service.
Signing up and registering on KuCoin
Registering on the official KuCoin site (you can sign up here) is as simple as you would expect. You start by entering your email and receive an activation code, then create your chosen password. From there you receive a verification message with further instructions.
Once you are logged in to your KuCoin account, you can adjust various settings, track your assets, or manage rewards such as invitation bonuses and the KuCoin bonus. Traders generally agree that KuCoin is among the smoother exchanges to use, even for people new to cryptocurrency.
Enabling two-factor authentication (2FA) is strongly recommended to add an extra layer of security to your account.
Related: Top 10 trading platforms in the forex market.
Viewing cryptocurrency prices
KuCoin uses a clean, modern layout across the site, and that carries over to the market overview screen where you can see the available trading pairs and choose between BTC, ETH, KCS, NEO, and USDT.
Selecting a trading pair takes you to the trading screen, where you can view the usual candlesticks, place orders, and then buy or sell the chosen coins. The first time you reach this screen you are asked for your 2FA code before you can trade. It can be a little inconvenient, but it adds an extra layer of security.
Related: Cryptocurrency prices.
KuCoin fees
KuCoin aims to keep both trading and withdrawal fees very low. There are no deposit fees, and the trading fee is only 0.1%. Withdrawal fees depend on the cryptocurrency involved: some are free, including GAS and NEO, while others are set very low, such as BTC at 0.0005, LTC at 0.001, and ETH at 0.01.
Withdrawals below the current threshold (a fee multiplied by 100,000) are processed in seconds. For example, if you withdraw less than 50 BTC (a fee of 0.0005 x 100,000 = 50), this speed applies. Other withdrawals may take extra time to process.
It is worth pointing out that most of KuCoin’s already-low fees flow back to users: 90% of total trading fees are returned to users in one way or another, and KuCoin keeps only 10% of the trading service fee. The largest share, 50%, goes to users who hold KCS in their accounts as their KuCoin bonus, and another 40% is shared out through invitation rewards.
Platform features
KuCoin tries to set itself apart from similar exchanges through its feature set. Between the interface, its customer service, and the team’s experience in the field, several features stand out:
- Customer service: support is available 24 hours a day, seven days a week through a hotline, email, and the website, and the team is easy to reach.
- Many popular assets on the blockchain: KuCoin supports a large number of trading pairs. The initial list included ETH, BTC, and USDT markets, along with pairs involving various ERC20 tokens, NEO, KCS, and LTC. There is also a feature that lets crypto managers or ordinary people list their own crypto pairs and start trading. New coins are added continuously, with QLink, LAToken, and UTRUST listed on 29 December 2017 and TFL the day before. KuCoin has built a reputation for listing coin pairs earlier than some other exchanges, which has helped it gain market share.
- A strong API.
- An experienced team: the KuCoin team has years of experience in blockchain and cryptocurrency, having held leadership roles at large companies, with a strong focus on research and development.
- An advisory team of financial experts.
The platform’s financial system
System stability: KuCoin says it applies the kind of stability levels usually reserved for finance sectors. The core financial system was modeled on the exchange’s core system through a multi-layer, multi-level architecture. KuCoin also takes bank-style precautions, including three centres and two sites for disaster recovery.
Financial safety: KuCoin wallets use multiple security levels suited to the amount stored. Small withdrawal wallets are stored on a private network built with Amazon Web Services Cloud, which lets the wallets benefit from the cloud’s multi-layer firewall. The wallet files themselves carry industry-standard multi-layer encryption, and larger (macro) wallets are usually stored inside the bank.
Bank-level asset security.
Fast processing: withdrawals below a certain amount are processed within seconds, larger withdrawals take at most 10 minutes, and deposits complete within about two minutes.
A high-throughput core trading engine: KuCoin uses high-efficiency in-memory matching accelerated by hardware. The engine is rated at a maximum of 2 million+ operations per second with a peak order-processing value of 1 million+ per second. For perspective, these figures are hundreds to thousands of times the typical industry benchmark, which the platform says helps avoid delays during the core order process, even during market surges.
Trading strategies
KuCoin’s operating approach is also worth noting: the operations team runs large-scale, wide-reaching online operations. Most operators are rewarded with a commission paid by the exchange to active users who trade on, promote, or invest in KuCoin. Through these incentive policies KuCoin aims to keep enthusiasm high while improving the business, and the reward plan is meant to bring in new traders and subscribers.
Invitation reward: to encourage further growth, users who register receive a reward for inviting new users. The user who sends the invitation receives a portion of the trading fees generated by the invitee. This has a tiered effect, so you can accumulate rewards from traders you invite. It should not be confused with a pyramid scheme even though the structure looks similar: unlike a pyramid system, KuCoin does not make money from this. In fact it loses money on each transaction for every referral a user makes, since the referring user receives part of the fee.
Related: Forex trading strategies.
Customer support on KuCoin
Customer support on KuCoin is described as good, with multiple ways to contact the support team. Support is available around the clock, seven days a week, and team members aim to resolve issues promptly. You can email support@kucoin.com or contact support through the website. Beyond troubleshooting and answering questions, the support team says it also listens to suggestions from users.
Is KuCoin safe?
KuCoin points to security work at both the system and operational levels. At the system level, the platform is built using finance-level standards, including a standard transport-encryption protocol for data-transfer layers, meaning sensitive and user data are stored with bank-level data encryption. There is also dynamic multi-factor authentication for added security.
- At the operational level, KuCoin has a dedicated internal risk-control function alongside an operations department. Each of these departments has its own strict standards for handling and using data, involving multi-level review and approval.
The one caveat the article raises is that KuCoin was still relatively new and had not yet been fully proven as secure. That said, the team’s broad experience together with the many security features in place should support confidence in the system. As with any exchange, treat this as background information rather than a guarantee, and apply your own caution.
KCS: the KuCoin token
KuCoin’s token, KCS, had a total supply of 200 million units at issue. After the planned buyback is completed, there will be a fixed figure of 100 million. At least 10% of net profit each quarter is set aside to buy back KCS, and the tokens bought back are destroyed immediately. KCS works with all Ethereum wallets, as it is an Ethereum-based token.
The initial coin offering happened in three phases. The first phase accounted for 35%, roughly 70 million tokens, and involved the founding members. The second phase was for industry figures, advisers, and angel investors, at 15 to 30 million KCS. The third phase was for all users; this public ICO made up the remaining 50%, or 100 million KCS.
KCS held by the founders in the first phase is subject to a four-year lock-up ending on 2 September 2021. Before 2 September 2018 the founders could not sell or transfer their KCS holdings. Angel investors and advisers have a two-year lock-up ending on 2 September 2019. KCS bought during the public sale has no lock-up, so those tokens reached the exchange on 2 September 2017.
Benefits of the KCS token
The token comes with the KuCoin bonus, granted to users who hold it. This incentive reward is equal to half of all trading fees the platform charges, with the percentage subject to change in future. To receive the daily reward, users must deposit KCS on KuCoin.
Users who hold a minimum amount of KCS in a KuCoin account can benefit from reduced trading fees when placing orders online. Over time, as KCS reaches certain levels, holders of the token gain access to Fast-Pass customer service, one-on-one investment consultation, and other exclusive services.
Development timeline
According to the white paper, KuCoin was set to have more than 50 major cryptocurrency pairs listed as of December 2017, and based on the coins and fees listed at the time of writing, that target was met. By June 2018 the self-listing feature for crypto pairs was due to become available, and KuCoin soon expanded to allow trading of more in-demand crypto assets that developers may have overlooked. By December 2018 the team hoped to have more than 1,000 crypto listings and a daily exchange volume exceeding 100,000 BTC. As a long-term goal, KuCoin hoped to be among the world’s top 10 exchanges by June 2019.
Conclusion
Although KuCoin became relatively well known in the crypto exchange world only recently, it had been in the works for years, with the founding members exploring many possibilities as early as 2011. At this moment the options for trading pairs are somewhat limited, but they cover all the most common cryptocurrencies. The platform also tends to list new coins early (taking a cue from Binance), which means those coins can be traded on KuCoin sooner than on some other exchanges.
With competitive withdrawal fees and no deposit fees, KuCoin appears set to make its mark among crypto exchanges. Incentives such as the invitation reward are meant to help the platform expand.
Frequently asked questions
How do I withdraw my money from KuCoin?
According to KuCoin, the platform offers a convenient set of deposit and withdrawal methods, such as depositing by Visa or Mastercard or through PayPal. Coins can also be traded, bought, and sold person-to-person on KuCoin.
Who founded KuCoin?
KuCoin was founded by a group specialising in blockchain technology, connected to names such as GF Securities, Ant Financial, Youling, Jianbang Communication, and iBOX PAY.
What is KuCoin’s commission?
The FAQ states that KuCoin charges no deposit or withdrawal fees on the platform, but does charge a 0.1% fee. (Note that the fees section above describes per-coin withdrawal fees, so check current fees on KuCoin before trading.)
Is KuCoin safe?
The article describes KuCoin as using bank-level encryption and multi-factor authentication. It also notes the exchange was still relatively new and not yet fully proven, so this should be treated as background rather than a guarantee.
Disclaimer: This article is for educational purposes only and is not investment advice. Cryptocurrency and CFD trading carry a high level of risk, including leverage risk, and you can lose more than your initial deposit. Fees, listings, and features mentioned here reflect the original source and may be out of date, so confirm current details on KuCoin’s official site before trading. This page may contain affiliate links: if you sign up through them we may earn a commission at no extra cost to you, and this does not influence the information provided.
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