KuCoin tested: Review and experiences 2019

Brief information

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Introduction of KuCoin

KuCoin is a Singapore based global cryptocurrency exchange headquartered in Singapore with offices in China, Thailand, the Philippines and Bulgaria. KuCoin is a quite young exchange, which only came onto the market in August 2017.

It was founded by a group of blockchain enthusiasts who previously worked for Ant Financial and GF Securities. The foundation stone for KuCoin was laid by the founders many years before the launch, in 2013, when the team behind KuCoin began developing the technical architecture of the platform.

However, the exchange did not receive greater attention until it carried out an initial coin offering for its own token, the KuCoin Shares (KCS), from 13 August to 1 September 2017 in order to finance the further development of the platform. This makes the KCS very similar to the Binance Coin (NBB), which was also issued by Binance at the launch of the exchange. Both cryptocurrencies now have the task of being a kind of incentive system for users. Thus, KCS holders can receive daily bonus payments (a kind of dividend). In addition, the KuCoin Shares are used in the context of advertising campaigns and discounts on trades. More about this later.

Since the launch, the KuCoin team has continuously developed the platform and introduced new features. Among other things, a bonus plan, numerous new cryptocurrencies, the direct purchase of cryptocurrencies and mobile apps for Android and iOS have been added to the KuCoin ecosystem. The main intention of KuCoin is to offer a fully-fledged spot trading platform for many cryptocurrencies, which is very secure and convenient at the same time.

The number of users speaks for the success of the exchange. The spot trading platform for currently more than 350 trading pairs is very well received by users worldwide. By early 2019, KuCoin had more than 5 million users on its platform.

Which cryptocurrencies can I buy on KuCoin?

The supply of cryptocurrencies at KuCoin is huge! At the time of writing, the exchange offered a total of more than 250 different cryptocurrencies for trading. The only drawback for newcomers to cryptocurrency is that only 5 cryptocurrencies can be bought directly with Fiat money:

• Bitcoin (BTC)
• Ethereum (ETH) 
• Litecoin (LTC)
• Ripple (XRP)
• Bitcoin Cash (BCH)

KuCoin, like Binance, uses the payment service provider Simplex for the purchase process. He offers the payment methods Visa and Mastercard. There are no other payment methods for Fiat deposits.

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With regard to the deposit and withdrawal of cryptocurrencies, it is important to know that no fees are charged by KuCoin for the deposit. For the withdrawal of cryptocurrencies, however, a fee is charged which depends on the respective coin. The following table shows the payout fees for the most popular cryptocurrencies, including the minimum payout amount:

These fees are relatively low compared to other cryptocurrency exchanges. On the other hand, the fees for the direct purchase of cryptocurrencies by credit card (Visa or Mastercard) are significantly more expensive. Since KuCoin uses the payment service provider Simplex, these are not determined by KuCoin, but by Simplex. According to Simplex’s official statement, the fee can amount to up to 5 percent of the transaction “depending on the volume of traffic”, but at least USD 10.

In our experience, the average fee for the purchase of Bitcoin and Ethereum was 4.1%. This means, for example, that when you buy one Bitcoin for 8,400 USD, you pay a surcharge of around 350 USD. However, as explained by Simplex, the fee may vary depending on the market situation.

Compared to other providers, there are significantly cheaper brokers such as LiteBit or Coinbase. It is also important to know that the price of the cryptocurrency is based on the current price, but does not necessarily have to be the final price. However, if the price changes by more than +/-2.5 percent, Simplex will request a new confirmation.

Verification and limits for the purchase of cryptocurrencies

Like Binance, KuCoin does not require KYC verification (“Know Your Customer”) from its users because KuCoin itself does not own a Fiat gateway (but uses Simplex) and is not a regulated broker within the framework of local legislation. For new users, this means that they do not have to provide any detailed personal information and do not have to submit any proof of identity (copy of ID, proof of residence, etc.).

The submission of personal data and evidence is therefore voluntary. However, KuCoin users who have completed KYC verification enjoy higher daily payout limits. If users do not perform verification, the limit is 2 Bitcoins (BTC) within 24 hours. The following limits exist:

• Verified individual account: 100 BTC per 24 hours
• Verified institutional account: 500 BTC per 24 hours
• Unverified account: 2 BTC per 24 hours

Account verification can be requested on the “Account” and “KYC Verification” tabs. According to KuCoin, the KYC verification is completed within five days of the data transmission at the latest.

Please note that other regulations and limits apply to the direct purchase of cryptocurrencies by credit card via Simplex. KYC verification is mandatory for Simplex. There is also a daily limit of USD 20,000 and a monthly limit of USD 50,000 (which includes fees). The daily limit is not calculated on a calendar day basis, but as a 24-hour period from the time of purchase. The monthly limit is counted as the 31-day period since the purchase on which the limit was reached.

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Trading cryptocurrencies on KuCoin

How can I buy cryptocurrencies on KuCoin?

First of all, when using KuCoin, it should be noted that there is a “Main Account” and a “Trading Account”. The “Main Account” is mainly used for deposits and withdrawals. The funds on this account cannot be used for trading. For this purpose, the funds must be transferred to the “Trading Account”. By default, the cryptocurrencies that you can deposit or buy on KuCoin are stored in the “Main Account”. To transfer your funds between both accounts, there is the link “Transfer”.

The purchase of cryptocurrencies works very quickly and easily in four steps:

1. Click on “Deposit” and create a receiving address for Bitcoin.
2. Click the “Buy Now” button to buy cryptocurrencies and enter your desired amount.
   
3. Click on “Buy Now”.
4. Activate “I have read and accept the terms of use”. By clicking on the “Confirm” button you will be redirected to the Simplex page to complete the payment.

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How can I trade cryptocurrencies on KuCoin?

To trade cryptocurrencies on KuCoin, you should first transfer the amount you want to trade to your “trading account”. You must also assign a trading password for security reasons. Once you have entered it, it is activated for 2 hours and no longer needs to be entered.

Then you can click on “Exchange” in the main menu. After this you will get a trading overview. To give you an initial overview, we have marked the most important functions and will explain them to you below.

1. Selection of the trading pair using the search function: In this field you can enter the cryptocurrencies you want to trade. If, for example, you are looking for all trading pairs for EOS, you can enter EOS here. You will then be shown the available trade pairs.
2. Selection of the trading pair by button: Alternatively, you can make the selection using one of the buttons. The options are Bitcoin (BTC), Ethereum (ETH), Neo (NEO), Tether (USDT), KuCoin Shares (KCS), TrueUSD (TUSD), Paxos Standard Token (PAX) and USD Coin (USDC). Not all tokens have a trading pair for each market. In addition, prices may vary depending on the market you are looking at.
3. All available trading pairs: By clicking on one of the trading pairs you can make the selection to view the chart and the trading pair. For example, if you want to use BTC to buy KuCoin Shares (KCS), you need to select the BTC market and use the search box to find KCS. Then you can click on the KCS/BTC trading pair.
4. Setting the time interval for the chart
5. More advanced options for the chart: To the right of the time intervals you have various advanced options for displaying the chart (e.g. selection of technical indicators).
6. Buying and selling cryptocurrencies: In this section you can choose whether you want to buy or sell cryptocurrencies.
7. Selection of the order type: The Limit, Market, Stop Limit and Market Stop Loss orders are available for selection.

Order types on KuCoin

In the following we would like to provide you with a short description of the individual order types.

With the limit order you enter your desired price at which you would like to buy a fixed quantity. For example, if the current market price for Bitcoin is 8,400 USDT, you can plan to buy 1 BTC if the price drops to 7,800 BTC. If the condition is fulfilled, the order is executed. If not, it stays open. You can also cancel the order later.

Market order means that you buy a specified order quantity at the current market price. For example, if the current market price for Bitcoin is 8,400 USDT and you want to buy at that price, you can place a market order. Market orders are executed immediately, which is the best way to buy or sell quickly.

The stop limit order has two price limits, the stop limit and the actual limit. The stop price is the price that triggers a limit order, and the limit price is the specific price of the triggered limit order. This means that your limit order is placed in the order book immediately after reaching the stop price.

Example: If the current market price of BTC is 8,400 USDT, the support is about 7,800 USDT and you think the price could fall further if it breaks through the support, then you could sell BTC if the price falls to 7,600 USDT. Since you are unlikely to be able to follow the market around the clock, you can place a stop limit order to avoid excessive losses.

The Market Stop Loss Order means that when the price reaches the specified trigger price, the preset order quantity is bought at the current market price. For example, if the current market price of BTC is 8,400 USDT, the resistance is about 9,000 USDT and you think the price will continue to rise if the resistance is breached, you could automatically trigger a market order at 9,100 USDT.

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The KuCoin wallet

The KuCoin Wallet is suitable for beginners and active traders who do not want to set up their own wallet (desktop, mobile or hardware wallet). The wallet can be accessed via the menu item “Assets” and “Deposit” and “Withdraw”. In contrast to eToro for example, KuCoin offers the possibility to send cryptocurrencies to an external wallet.

This is also our recommendation, as we do not believe that exchange wallets should be a permanent solution for the storage of cryptocurrencies. The safest option are hardware wallets, which should be a mandatory purchase for larger investments.

The KuCoin Shares bonus program

The KuCoin Shares had a total volume of 200 million KCS at the time of the Initial Coin Offering (ICOs). However, as part of the ICO, KuCoin has undertaken to repurchase 100 million tokens through the profit from the trading fees. Therefore, KuCoin uses 10 percent of each quarter’s net profit to repurchase KCS and destroys it. The remaining 90 percent are returned to the users of KuCoin.

For this purpose, KuCoin has launched a bonus program, which provides that the largest part of the trading fees, 50 percent, goes back to the user (in KCS). The KuCoin bonus amount is calculated from the amount of assets held daily at 00:00 and the trading fee for KuCoin Shares (KCS) and is paid out each day. The daily dividend depends on how much KCS a user holds. The more KCS you own, the higher the dividend. If the calculated amount is less than 0.000000000001 KCS, the amount is neglected.

KuCoin distributes the other 40 percent via an invitation bonus. In order to promote the further growth of KuCoin, those who register will receive a bonus for inviting new users.

KuCoin tested

Security and seriousness

The safety of KuCoin can be classified as very good. At the operational level, KuCoin has an internal risk control department that sets strict standards for the operation and use of data. There is also a multi-level review and approval hierarchy. Even though KuCoin is still a very young cryptocurrency exchange, it has so far proven to be safe.

Fees and payment methods

The Maker and Taker fees of KuCoin are relatively low compared to other cryptocurrency exchanges. On the other hand, the fees for the direct purchase of cryptocurrencies by credit card are significantly higher. KuCoin’s service in cooperation with Simplex is comparatively expensive. The fee is “depending on traffic” up to 5 percent of the transaction, but at least 10 USD.

The fees of the best broker in comparison

Litebit	Coinmerce	Bitpanda	Coinmama	Coinbase
Available in: Europe	Available in: Europe	Available in: worldwide	Available in: worldwide	Availbale in: 103 countries
Fees: approx. 1-2%	Fees: approx. 1-3%	Fees: 1,49%	Fees: 5,9%	Fees: 1,49%
Visit Broker*	Visit Broker*	Visit Broker*	Visit Broker*	Visit Broker*

The Support

KuCoin’s customer support is available around the clock and can be contacted through multiple channels. It is possible to send an e-mail to [email protected] or contact the support via the website. In various online forums, KuCoin Support is highly praised for its speed and competence.

Hacker attacks

We are currently not aware of any successful hacker attacks on KuCoin.

Summary

KuCoin is not the largest cryptocurrency exchange in terms of trading volume like its direct competitor Binance. Nevertheless, the spot trading exchange offers a number of advantages. So the maker / taker fees are very low. In addition, the exchange is very user-friendly and offers with the KuCoin Shares bonus program an opportunity to earn a passive dividend. Only the direct purchase of cryptocurrencies should be made due to the high fees with other brokers.

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KuCoin alternatives

Litebit is our top recommendation for you if you want to buy cryptocurrencies directly with Fiat money. The Exchange offers 50 different cryptocurrencies for purchase by credit card, SEPA, SOFORT, GiroPay and EPS. The customer support is very good and can be reached quickly. We have been a regular customer for 4 years. >> Read our Litebit review <<

Coinmama is a UK based exchange that supports the purchase of cryptocurrencies by credit card, Paypal and bank transfer. On the platform you can also send your purchased cryptocurrencies directly to your external wallet. This exchange is to be classified as absolutely trustworthy and safe. >> To the Coinmama testreport <<

Binance is one of the world’s largest exchanges and is considered to be particularly user-friendly. Within just a few months, Binance has risen to become the largest exchange in terms of trading volume in 2017. In addition to the spot trading platform, Binance offers direct purchases of Bitcoin, Ether and XRP by credit card. The selection of coins for trading is huge. >> Have a look at our Binance report <<

eToro is a well known cryptocurrency broker offering both the purchase of “real” cryptocurrencies by credit card and the trading of cryptocurrency CFDs. You can use up to a double lever to bet on the price of the cryptocurrencies.  >> Look at our eToro review <<