Gianluca L. Fact checked by Gianluca L.
Updated: 26 april 2022
9 minutes

KuCoin is one of the most exceptional crypto exchanges today. Is it safe to use?

This tokize review shall give you an overview, answering all your questions.

In today’s crypto trading platform ecosystem, you can quickly get spoilt for choice due to the many rich options. The KuCoin crypto exchange is one of them. It is among the best-known and most important platforms in the world. So, what is the KuCoin exchange? Is KuCoin safe and regulated? How do you trade crypto on KuCoin? 

In this KuCoin review below, we shall examine every facet of the exchange. Read on.

KuCoin

  • Wide range of cryptos
  • Advanced Trading Options
  • Competitive fees

What is the KuCoin Exchange?

KuCoin is a crypto trading platform that enables you to buy, sell, and trade cryptocurrencies. Although it is less popular than giants like Binance or Coinbase, KuCoin is a well-known exchange worldwide. These are some statistics about the company:

  • More than 30 million users worldwide
  • More than 200 countries served
  • More than 20 international communities
  • Around 700 coins are available

The platform is known for stimulating the listing of new cryptos. Moreover, the platform can offer about 700 cryptos for trading, making it one of its strong points. The native token of the platform is KuCoin or KCS. Here are some views of KuCoin from recognized players in the crypto sector:

  • TokenInsight reports that KuCoin has the most globalized user base among all crypto exchanges, with 70% of its users coming from North America, Europe, Russia, and Southeast Asia.
  • CoinMarketCap added KuCoin to the top 10 of the largest exchangee in terms of overall performance.
  • ICO Rating Ranked KuCoin as the fifth largest exchange in terms of overall performance.

The Ascent named KuCoin as one of the best crypto exchanges and apps of 2022.

The History of KuCoin

Kucoin

KuCoin was created in 2012 and is based in Seychelles. KuCoin’s founders are Michael Gan and Eric Don. The former is a computer enthusiast who took his first steps in coding at eight years old! Precocious, Michael created his first start-up at 16. In 2021, he heard about Bitcoin for the first time from Eric.

Michael quickly started mining Bitcoin and resold his coins on a well-known crypto platform at the time, Mt. Gox. Faced with the lack of user-friendliness of the platform, an idea was born in the minds of the two people – that of creating their crypto platform. At the end of 2013, Michael and Eric began creating an exchange; KuCoin was about to be born!

In 2017, KuCoin officially launched, and crypto trading became possible. The exchange raised funds via an ICO (Initial Coin Offering) for this. This ICO occurred from August 13, 2017, to September 1, 2017. The ICO aimed to distribute as much of its native token, the KuCoin Shares (KCS) (now called KuCoin token), as possible at a reduced price. 

KuCoin was called “the people’s exchange” due to its user-friendliness and many trading pairs available. The exchange continued to develop and was used in many countries to reach a recognized position in crypto platforms in the next few years. Moreover, in 2021, the famous Forbes Magazine cited KuCoin as among the “best crypto exchanges” of the moment.

KuCoin

  • Wide range of cryptos
  • Advanced Trading Options
  • Competitive fees

The KuCoin Ecosystem

A considerable strength of KuCoin is its complete ecosystem. In this next section, we shall explore the different services offered by the KuCoin platform:

Crypto trading

Kucoin

The main activity of the KuCoin platform concerns crypto trading. Ideally, you can buy, sell, and exchange cryptos. As mentioned above, KuCoin has the edge of offering many cryptocurrencies, with over 650 coins available.

Thus, the exchange offers the main cryptos but also “smaller” crypto or tokens such as:

  • Bloktopia (BLOK)
  • Chumbi Valley (CHMB)
  • Victoria VR (VR)
  • Calamari Network (KMA)
  • DAO Maker (DAO)
  • Lumerin (LMR)
  • Melos Studio (MELOS)
  • GMT Token (GMT)
  • League of Kingdoms Arena (LOKA)
  • ApeCoin (APE)
  • Survive (SURV)
  • KP2R.Network (KP2R)
  • 3X Long Bitcoin Token (BULL)

The platform is known for responsiveness and does not delay the quick listing of new tokens. For example, the platform recently added the following tokens:

  • Social (SLCL)
  • vEmpire DDAO (VEMP)
  • CEEK VR (CEEK)
  • Beta Finance (BETA)
  • Ripio Coin (PRC)
  • UpOnly Token (UPO)
  • Spell Token (SPELL)
  • IndiGG (INDI)
  • IRON Titanium (TITAN)
  • Keep3rV1 (KP3R)
  • Chain (XCN)
  • Looksrare (LOOKS)

KuCoin offers three possible types of trading:

  • Spot trading: This corresponds to buying at market price.
  • Margin trading: This allows investors to increase their profits by taking out a loan.

Trading bot: These robots can place orders on your behalf extremely quickly to take advantage of market variations.

Derivatives Trading on KuCoin

KuCoin also offers crypto derivatives trading services (“Derivatives” menu), such as

  • Futures Classic: These are advanced trading tools for professional traders. You can trade crypto with up to 100x leverage.
  • Futures Lite: This tab allows you to trade Futures quickly and easily.
  • Duel Futures: With this menu, you can choose a short or long position and win prizes.
  • Leveraged tokens: This menu allows you to trade ETFs. Concretely, you can buy a token that reproduces the price of a crypto but includes leverage. This trading allows you to multiply your gains. For example, you can buy the BTC3L token. As its name suggests, this token reproduces the price of Bitcoin with 3x leverage in a long position (“Long”). What does that mean? If the price of Bitcoin increases by 1%, the price of the BTC3L token increases by 3%. This type of trading also enables you to bet on falling prices. If we stay on the example of Bitcoin, you can, for example, buy the BTC3S token. This token is similar to BTC3L, except that it represents a short position. If Bitcoin loses 1%, the price of the BTC3S token will increase by 3%.

KuCoin

  • Wide range of cryptos
  • Advanced Trading Options
  • Competitive fees

KuCoin Spotlight

KuCoin Spotlight could be compared to Binance Launchpad. It is a platform for launching new projects and tokens. This tab allows you to participate in the financing of new crypto projects by buying tokens at discounted prices. If the project subsequently develops and gains some notoriety, the token’s price explodes, and then you can earn money. Of course, everything depends on the choice of the basic project.

Cryptocurrency loans

Kucoin

The KuCoin platform offers crypto loans. Concretely, this service allows you to:

  • Lend your cryptos and earn passive income through interest
  • Borrow cryptos. The crypto loan is an increasingly used solution because it will enable you to obtain funds (cryptos) quickly without setting up a file, as would be the case in a bank. The crypto loan can, therefore, help you increase your capital to meet an expense. But also, the crypto loan allows you to have funds to do crypto trading without reselling your cryptos. To borrow cryptos, you must have KCS tokens beforehand, as they are used as collateral.

KuCoin Crypto Mining Services

Does cloud mining mean something to you? Mining (or mining in French) is the activity that allows the creation of new cryptos by validating transaction blocks. You have certainly already heard of, for example, Bitcoin mining, an increasingly complicated but very profitable activity.

Cloud mining at KuCoin allows access to mining without purchasing advanced IT equipment, which is very expensive. With cloud mining, you invest money that is pooled with other participants. This money is used globally to buy and maintain mining equipment. The earnings from mining are then redistributed in proportion to your investment.

Another crypto mining service offered by the exchange is the KuCoin Pool. A mining pool is a team of miners who pool their computing power. Since crypto mining (for cryptos operating with POW) requires more and more computing power, setting up a pool increases the chances of winning the race. The KuCoin Pool aims to become the largest POW mining pool in the world.

KCS: The Native Token of the KuCoin Exchange

The native token of the KuCoin platform is KCS. It allows the operation of the exchange and facilitates certain procedures for investors. KCS owners can also enjoy exclusive benefits. For example, the platform sets up a KCS bonus system that rewards holders of KCS tokens. 

Concretely, owners of at least 6 KCS receive gifts from sharing half of the daily trading fees. Additionally, when users choose to pay their transaction fees in KCS, they receive a 20% discount. Currently, the KuCoin token has a capitalization of more than 800 million euros, which ranks in the top 200 worldwide.

KuCoin

  • Wide range of cryptos
  • Advanced Trading Options
  • Competitive fees

NFTs on KuCoin

Like other exchanges, KuCoin quickly understood the success of NFTs and now offers its own NFT platform. On its marketplace, you can buy NFTs and discover NFT collections from new artists. This is a great way to start with NFTs and invest in a promising sector. The latest collections highlighted on the marketplace could gain value quickly.

How to trade crypto on KuCoin?

Now that you are familiar with KuCoin and its ecosystem find out how to trade crypto on the platform.

Opening an Account

Kucoin


As is often the case, the first step is to open an account on KuCoin. To do this, you need to go to the KuCoin homepage and log in. To create an account, you only need to provide a password and then a phone number or email. Whether you use your email or phone number, the platform will carry out a verification.

Verify your Account

Secondly, the platform will ask you to provide more personal information. This approach meets the requirements of KYC or Know Your Customer regulation. These questions allow KuCoin to know your identity and understand your profile.

Deposit Funds

The next step is to fund your KuCoin account so that you can then use the funds for trading (for example). To do this, you must click on “Assets” and then go to “Main account.” Then, you must click on “Deposits” then “Fiat Currency” and select the currency of your choice (euro, for example). You can transfer funds through a wire transfer or credit card. 

If you already have cryptos stored in a wallet, you can also transfer them directly to KuCoin.

Crypto Trading

You have two accounts on KuCoin. One is the main account; the other is the trading account. You cannot trade from funds in your main account. To trade crypto, you must, therefore, transfer funds from your main account to your trading account.

Then, all activities for trading take place in the “Market” tab. Once you have selected the crypto to buy, the platform will ask you to enter your trading password, which consists of 6 digits.

Then, in a classic way, KuCoin offers two types of order:

  • Market: The order is then executed immediately according to the current price.
  • Limit: This allows you to set conditions for the execution of your order. For example, you can set a minimum price from which your order will execute.

What are the Fees on KuCoin?

The KuCoin crypto trading platform implements the following fee schedule:

  • Trading or transaction fees: These fees are payable each time you place an order, whether on the Spot or Futures market. Transaction fees on KuCoin are variable and depend on the asset considered. On the spot market, transaction fees start at 0.10%, which is rather attractive compared to other exchanges. As mentioned above, by owning KCS tokens, you can receive a 20% discount on trading fees. In addition, KuCoin is implementing a VIP service for regular users of the platform. By being a VIP, you can benefit from other reductions in fees. The discount amount takes into account the transaction volume over the last 30 days and the number of KCS tokens in your possession. If the table explaining these reductions is rather complicated to understand, the main thing is to know that these reductions exist.
  • Deposit/Withdrawal fees: These fees occur when you deposit or withdraw funds. On KuCoin, deposits are free. Concerning withdrawals, the fees depend on the crypto considered. KuCoin’s strong point is providing a clear table of fees for withdrawals. So you can find the exact amount of fees for each crypto. For example, below are the withdrawal fees for certain cryptos:
  • Bitcoin: 0.0005 BTC (for a minimum of 0.0008 BTC)
  • Monero: 0.001 XMR (for a minimum of 0.02 XMR)
  • Cardano: 1 ADA (for a minimum of 2 ADA)
  • Terra: 0.05 LUNA (for a minimum of 0.5 LUNA)
  • Polkadot: 0.1 DOT (for a minimum of 5 DOT)
  • Filecoin: 0.01 FIL (for a minimum of 0.1 FIL)

Is KuCoin Exchange Safe?

The KuCoin exchange suffered a major attack in 2020 which led to the theft of approximately $275 million. The attack was attributed to a group of North Korean hackers called “Lazarus Group.” Following this theft, the platform worked hard to recover the funds. While it took some time, the KuCoin exchange was eventually able to recover 84% of the stolen funds. The rest was taken from the exchange’s own funds.

If the attack negatively impacted the platform at first, it also allowed KuCoin to enhance its security protocols. The platform did not simply survive the attack; it emerged from it stronger, as evidenced by its now-acquired place among the largest exchanges in the world. No attack of this scale has since been deplored.

The KuCoin exchange can therefore be considered safe. For example, it has developed measures against phishing. In addition, it also implements a two-factor authentication (2FA) service and security questions

Regulations of the KuCoin platform

The KuCoin platform is not regulated by any government agency. However, this does not mean that you cannot use the platform. This simply means that the exchange operates without a license, and as such, it is not obliged to ask you for personal information. In fact, the platform still follows the principles of Know Your Customer for certain operations.

KuCoin

  • Wide range of cryptos
  • Advanced Trading Options
  • Competitive fees

Advantages and Disadvantages of KuCoin

What we like

Low trading and withdrawal fees

Free deposits.

Large selection of cryptocurrencies with around 700 coins.

24/7 customer service.

Ability to buy cryptocurrencies directly with fiat money.

Complete crypto ecosystem, including crypto loan solutions, etc.

Ability to trade on margin and use trading bots.

What we don't like

No fiat trading pairs.

Interface partially translated into French.

No regulations and random KYC checks.

The platform was the subject of a major hack in 2020, even though no major attacks have been reported since then.

FAQs

Is KuCoin regulated?

KuCoin is currently unregulated. But that doesn’t mean KuCoin is illegal. You can use KuCoin services in France

Is KuCoin a safe exchange?

The KuCoin exchange experienced a very significant cyberattack in 2021. But since then, no significant attack has been reported. The exchange has significantly improved its security protocols. From now on, it is notably implementing double authentication (2FA). The KuCoin exchange is one of the most used platforms in the world.

Is KuCoin better than Coinbase?

KuCoin and Coinbase are two very similar and recognized exchanges in the cryptocurrency community. While the latter is larger regarding transactions and the number of users worldwide, the former is popular for its low fees.

Can I buy Shiba Inu on KuCoin?

Yes. Shiba Inu crypto is available on the KuCoin exchange.

Why use KuCoin?

KuCoin is an exchange that is one of the largest crypto trading platforms in the world. A big advantage of KuCoin comes from the fact that the exchange offers a large number of coins. In addition, its costs are too low.

Is there a KuCoin app?

KuCoin  has a functional mobile application that is compatible with both iOS and Android devices.

About the author

Tobi Amure

Tobi began his career in 2017 as a crypto writer, where he focused on producing educational content. He worked with Stockbossup, an investment platform dedicated to educating black people. Prior to that, he worked as a copywriter with Turboxbt, a crypto trading platform. In 2021, Tobi joined Watcher Guru as a crypto news editor. He was recognized as one of the top 333 web3 creators on LinkedIn for crypto in 2022.