KuCoin review: Is it a scam or not?
Well, it is needless to say that choosing a cryptocurrency exchange can be very tiresome and time-consuming as there are countless aspects to look on. Many people go for Binance, Coinbase, Cryptopia and other popular ones but it is necessary to explore some new and some not so popular exchanges in the crypto space as well. This is because of their low fees, availability of multi Cryptocurrencies, trading pairs, advanced features and other advantages. KuCoin is relatively older and extremely reliable platform than many other exchanges but it is not so popular when compared to the major cryptocurrency exchanges like Binance and Coinbase. The reason is that many people don’t try it and end up saying that Binance and Coinbase are better. But, if you look at the pros of using KuCoin, you will definitely want to give it a try. Here is a didactic and unbiased review about KuCoin considering various aspects of this cryptocurrency exchange.
What is KuCoin?
KuCoin is an Asian cryptocurrency exchange platform which is primarily based in Hong Kong, China. The cryptocurrency exchange was started back on September 15, 2017, by a group of Blockchain experts and developers. There were in total 12 members including the CEO, Micheal Gam and technical experts from Ant Financial, the affiliate team of Alibaba. The main operation of KuCoin is Crypto to crypto-based which means that no fiat currencies are accepted for buying various Cryptocurrencies. So, at the initial stage, you need to buy Bitcoin or Ethereum from some other exchanges like Coinbase, Binance, Bittrex, Coinmama, etc. and then use that cryptocurrency coins to buy the desired altcoin. However, apart from that limitation, there is hardly anything which can stop a customer from continuously using it for regular exchanges. In spite of being in Hong Kong, it has got a lot of traction from all over the globe. The acceptance rate in the global market is quite exceptional because the company chiefly focuses to target foreign users. Although it a comparatively new addition to the list major cryptocurrency exchanges, with the determined KuCoin’s team, they have managed to prove themselves and emerge as a major player in the crypto space. Along with that, they have a loyalty reward scheme where they give a bounty to traders through their native cryptocurrency token KuCoin Shares (KCS). The reward scheme is simple where it pays 90% of the exchange fees to the KCS token holders
A brief history about KuCoin
The whole concept of KuCoin started back in 2011 where the cryptocurrency exchange founders began researching about the Blockchain technology and how it can change the life of people. The development of the KuCoin exchange platform started in 2013 where it started building its own architecture and launched the official platform in September 2015. The main goal of the company is to be listed in the “top 10 cryptocurrency exchanges in the world” by 2019. By now, KuCoin is the 18th largest cryptocurrency exchange by 24-hour trading volume. Until its inception, it is compared a lot with Binance as both resemble quite much when it comes to available coins, overall trading fees, security, and support. The company started following a profit-sharing system wherein the algorithm automatically distributes 505 of the trading fees to the users for holding KCS token. It also resembles Binance in terms of giving incentives to the users.
In this review, we will compare Binance with KuCoin and learn about its technical analysis, trading fees and steps for registration, verification, and exchanges.
The KuCoin Company at initial stages comprises of 12 core members where the CEO of the company claimed that “KuCoin aims at providing users, digital asset transaction and exchange services which are even safer and convenient, integrating premium assets worldwide and constructing state of the art transaction platform”. The CEO cum founder, Micheal Gam was a Technical expert at Ant financial which is closely related to the Chinese Alibaba group. Apart from that, he served as a senior partner at major Internet giants like KF5.com and MikeCRM. The COO of the company, Eric Don is the senior system architect, senior internet researcher and one of the most renowned faces in the digital world. He is also a former CTO of major IT companies like KITEME, YOULIN.com, and REINOT. Other members include the CTO, Top Lan, Business operator John Li, Product Designer Remy Ran, Marketing director, Jack Zhu, Operation director Kent LI, Ark Designer DK and few more.
KuCoin key features
There is an extensive list of features offered by KuCoin making it quite different from other cryptocurrency exchanges. Here is a list of all the major features of the KuCoin and why should consider it.
KuCoin has a powerful API interface where to provide the user with real-time prices and market access, it pulls out data from other systems.
Financial system stability
To keep the digital safe and private from hackers, there are multiple levels of security designed. This is to ensure that the desktop wallet is sufficient to store all your purchased coins and you don’t need to make another wallet to store the desired coins. Thus, it reduces the efforts of the users and facilitates them an all in one wallet for storing all their Cryptocurrencies. Even for protection against hardware failure and database glitches, extra precautions are taken. This ensures a complete level of security and stability in the system as they usually deal a high trading volume in a day.
Competitive and reasonable fees
KuCoin charges extremely low fees for trading and different withdrawal methods. In addition to that, the crypto deposits are absolutely free of charge. While this is the same approach as many other exchanges, the trading fees of KuCoin are really competitive and impressive. It charges a flat fee of 0.1% per trade much similar to Binance while the average of these fees in all the cryptocurrency exchanges is around 0.20% – 0.25%. Apart from that, for the traders who hold KuCoin tokens (KCS), there are attractive discounts where the price is instantly halved. In addition to that, the withdrawal fees applied by KuCoin to the customers are also reasonable. For example, Bitcoin withdrawals methods are charged with flat fees of 0.0005 BTC. Here you can find all the information about various withdrawal methods and its fees. The withdrawal fees of KuCoin token is 2 KCS while that of Bitcoin is 0.0005 BTC. For NEO and GAS, there are no withdrawal fees while that of USDT is 5. The withdrawal fees of Ethereum are same as of Bitcoin at 0.0005 whereas for Litecoin, the fees are 0.001. The best thing about KuCoin is that it gives 90 percent of the trading fees back to the user and only retains 10 percent of it. In this case, it is better than Binance where Binance only gives a discount of 50 percent; KuCoin gives a discount of 90 percent. It also offers 1% discount for every 1000 KCS you purchase. So for 30000 KCS, you will be entitled to receive 30% equivalent discount.
Dedicated and professional team
The specialized and well-established team of KuCoin is another great thing about the exchange. This is because every member has years of experience in their field of specialization. Apart from the financial sector, they have worked in the Blockchain and the crypto world as well.
Many Cryptocurrencies offered
Indeed, the best thing about KuCoin is that it has a vast list of available cryptocurrency coins. Until September 2017, it had around 80 Cryptocurrencies for trading on their platform. The company keeps on adding new coins so that the customers don’t have to rush to some other exchanges for getting the desired altcoin. In their website, the trading pairs are mostly categorized into 5 categories which include BTC, ETH, USDT, NEO and KCS markets. It was also the first exchange to launch the Red Pulse token (RPX) which also has a trading pair with Bitcoin and Ethereum. By December 2018, the company aims to expand its scope to more than 1000 altcoins. So, there is a going to be an exponential increase in the number of Cryptocurrencies.
Great customer support
The aspect which plays an important role in deciding the overall reliability and ease of trading is regarded by its customer support. KuCoin is always available for its customer, no matter whenever you want to get in touch with them. You can contact them via email or their website for any queries or problem you have. The KuCoin support team usually replies to your email or tickets in a few hours and in your desired language. However, as it is established in Hong Kong, there is a bit of a problem for English speakers due to less number of English speaking Support Executives.
How do KuCoin works?
Buying or selling Cryptocurrencies on KuCoin is extremely easy. You just need to register on their website by providing a valid email address and choosing a password. You will get a verification link for verifying your email address. After that, you need an ERC20 compatible wallet to trade for other Cryptocurrencies as it does not allows fiat exchanges. Signing up on KuCoin is extremely easy and does not require any identity verification like other cryptocurrency exchanges. So, you can simply start with the trade as soon as you register on their website and log in. But remember, first you have to deposit funds from other wallets to KuCoin wallet for starting with the exchange. The Google 2Factor Authenticator is optional but it is advised to complete this step as it provides you with an extra layer of security. You can choose between various trading pairs with BTC, ETH, USDT, KCS, and NEO. The fee for each trade is 0.1% and as you increase the limit, the discount increases (1% for every 1000 KCS worth). The impressive thing about KuCoin is that the trading fee is similar or less than Binance which is considered to be the most cost-effective and affordable trading platform.
KuCoin referral bonus and Loyalty program
A very few Cryptocurrency exchange platform gives you such privilege and bounty as KuCoin. The referral program is quite straightforward: you get 20% of the fees whenever your referral completes an order. If your referral refers someone else, you will still get 12% of his order fees while 8% for the referral’s referral (for the next stage). The referral bonus is simply calculated by the formula “Referral Bonus = Invitee’s transaction amount * Transaction fee rate * Referral Bonus rate based on the level of the invitee.” Apart from the referral program, it has a lot of promotions where the registered user gets an invitation bonus for every friend he brings to the KuCoin platform.
KuCoin vs. Binance
Binance is a well-known cryptocurrency exchange which offers a lot of assets. So, if it comes to assets selection, the list for both Binance and KuCoin is high. But Still, KuCoin’s available coins are increasing dramatically and the platform has a slight edge over Binance. When it comes to fees, we have to say that KuCoin compete well against Binance and as they are similar, we have to consider this as a tie. Security at KuCoin is top-notch where many extra precautions are taken to avoid any jeopardize to the website. Binance is also extremely safe, but there have been few cases of fund loss and hence, KuCoin is a winner in this segment. Customer service of Binance is always a concern, as they don’t have 24 hours support. So, KuCoin with 24X7 support and swift replies wins under this category. However, when it comes to reliability and popularity, Binance is straightaway a winner. Also, Binance offers the highest transactions of 1.4 million in a second making it the most powerful and speediest platform for transaction processing.
- A wide range of currencies
- An early adopter of new altcoins
- Affordable and low trading fees
- No additional verification and easy registration
- Security is the topmost priority
- 24×7 customer support
- No fiat currency accepted (So you need a wallet prior to exchange)
- As it is based in Hong Kong, sometimes it is difficult to get English language support
- No margin trading
Is KuCoin safe?
Many people ask that is KuCoin safe? Or is it a scam? But the large customer backing of KuCoin speaks for itself. There is no absolute winner between Binance and KuCoin and it completely depends on the requirements and the preference of the traders. Binance offers high speed, reliability, and advanced features while KuCoin offers a referral program, great customer support, exceptional cryptocurrency selection, and top-notch security.