KuCoin is a Seychelles-based cryptocurrency exchange that labels itself ‘The People’s Exchange.’ Their goal is to provide an easy and secure way to purchase and trade various cryptocurrencies. They have grown their user base to almost 8 million in only four years, servicing one in every four crypto holders globally.
KuCoin is now one of the world’s largest cryptocurrency exchanges, thanks to its extensive features and services. KuCoin offers several benefits over other crypto exchanges. If you’ve looked into the best crypto exchanges, you’ll know that the choices are many and tough to narrow down. But KuCoin stands out for many reasons.
Over 250 different cryptocurrencies: KuCoin has one of the widest choices of cryptocurrencies available on the market’s best crypto exchanges. Every day KuCoin adds new cryptocurrencies to its site, allowing you to be among the first to purchase the latest crypto. Beyond that, it also allows users to do margin, spot, and even futures trading.
Crypto Exchange
Cryptocurrency exchanges allow users to trade cryptocurrencies for other assets, such as digital or fiat funds. Cryptocurrency exchanges earn money by charging commissions and transaction fees to buyers and sellers.
Cryptocurrency is attractive in terms of short-term profits but also volatile and risky. It is built on a distributed ledger that records every transaction. If you want to trade or invest in crypto, you will need a crypto exchange. Transactions are encrypted, and investors need to create an account and trade on online exchanges.
A typical crypto exchange operates 24 hours a day, seven days a week. Their anonymity is one of their appeals. Nobody knows who buys and sells cryptocurrency. Modern technological solutions like encryption (cryptography) ensure ultra-secure transactions.
A cryptocurrency exchange is an online service that exchanges money and digital currencies. It could also be a physical storefront that exchanges digital currencies and accepts funds.
Listing on a cryptocurrency exchange is a complex process that requires extensive research. Also, creating a community of supporters and a support network is critical to forming the right team and achieving desired promotions. For example, the whitepaper, investor agreement (if any), and legal opinion stating that the token is a utility token with detailed reasoning are reviewed during due diligence.
Exchanges serve as a middleman between buyers and sellers. Centralized exchanges are more reliable since a business manages them. Almost all cryptocurrency transactions happen via centralized exchanges.
Decentralized cryptocurrency exchanges (DEX) enable users to trade directly without a third party. Some users choose decentralized exchanges because of problems with centralized exchanges. However, decentralized exchanges do not allow exchanging fiat for crypto.
How to spot trade and margin trade in KuCoin?
Margin Trade
Contrary to popular belief, crypto margin trading is simple. The cryptocurrency market is renowned for its extreme price volatility, which could help investors gain profits. However, the volatility makes it difficult for traders to earn fast gains. Price swings offer an excellent chance for traders to earn via margin trading.
This feature came in November 2019, and it allows traders and investors to utilize other users’ money on Kucoin to increase their capital. Moreover, this gives them leverage. KuCoin margin trading supports 15 cryptocurrencies, including KCS, ETH, and BTC.
They provide both short and long trading services. Remember that borrowing money may increase your earnings. Nevertheless, they may incur a significant loss relative to their original investment. A 10X leverage trading pair is available on KuCoin. For both long and short trades, this KuCoin tool provides up to 10x leverage.
After enabling margin trading, you must know four procedures to execute a margin trade:
1) Transfer principal to margin account
2) Borrowing Funds from Funding Market
3) Margin Trade (buy/sell)
4) Repay loans
Spot Trade
Spot trading enables users to purchase and sell cryptocurrencies at a fixed exchange rate.
Spot Trading is the most popular function, and KuCoin does not charge takers and makers separately. Instead, the crypto exchange charges a “flat fee” of 0.1 percent for every KuCoin Spot Trading transaction, lower than the worldwide crypto industry average.
The fixed trading cost of 0.1 percent for makers or takers is one of the reasons to use KuCoin. Compared to EOS and Binance, it is low. The low fees are likely due to the 30-day trading volume and KuCoin Share ownership (0.1 percent only).
These are the steps involved:
First, choose ‘trading’ from the ‘trade’ menu
This option launches the trading market. This area offers substantial USDT, BTS, ALTS, and KCS possibilities. Other crypto marketplaces have various trading pairings, and prices vary depending on the market. For example, to purchase KuCoin shares KCS using BTC, the trader must choose the BTC market and use the search tab.
Spot trading fee
KuCoin has a 0.1 percent trading fee. Notably, fees are reduced depending on the 30-day trading volume of KCS assets in the user account.
Traders should be aware that 0.1 percent maker and taker fees may not apply to all trading pairs. For example, trading fees are reduced based on trade volume and ownership of KuCoin’s native token, KCS, during the preceding 30 days.
Increasing your trading volume over 30 days reduces the cost. Alternatively, hold KCS coins for at least 30 days to reduce fees. Other trading expenses, such as institutional investor programs, are also discounted depending on the factors.
Margin trading fee
Traders must include interest when repaying borrowed funds. Therefore, consider interest rates before borrowing money.
Pros
- Get paid to hold crypto
- Service to clients
- Over 8 million users globally
- Less Trading fees plus a 20% reduction if you pay with KCS
- App for iOS and Android
- Crypto lending, trading bots, leveraged trading, and futures trading
- Low Fees for trading and withdrawals
- Ample security features including 2-Factor Authentication and email alerts
- Advanced charts and order books
- Free-deposit
- A large number of tradeable assets
- KYC is optional (compulsory for withdrawals)
Cons
- No bank deposits accepted.
- Some traffic-related issues
- Fiat’s purchase of crypto
- Trading costs for fiat-crypto
- No US license.
- No fiat currency withdrawal
- Due to the high degree of complexity, new users may have trouble engaging with specific functions.
Summary
Taking everything into account, KuCoin is a well-known cryptocurrency exchange that offers cheap trading charges for Spot, Futures, and withdrawals. In addition, the crypto exchange platform’s cost structure is clear and transparent, enabling traders to grasp the setup quickly.
Customers that own KuCoin’s native utility token, KCS, may also get extra savings by paying their trading costs using KCS.
KuCoin is a globally popular cryptocurrency exchange and highly regulated platform. Traders must first comply with their jurisdiction’s cryptocurrency regulations before using the KuCoin website or KuCoin mobile app.
KuCoin is a cryptocurrency exchange platform for traders and investors of various skill levels and risk appetites. The crypto exchanges platform’s UI is straightforward to use on PC, Android, and iOS. Also, KuCoin offers basic settings and gamified apps like Futures Brawl to assist users in understanding the various instruments. Overall, it’s a solid platform for traders seeking unique trading items not available on other crypto exchanges.
KuCoin is a great crypto exchange to use if you want to check out the wide variety of currencies accessible today. Those interested in trading with leverage may also do so here. The platform works effectively and gives investors and traders access to virtually every instrument conceivable for growing their holdings. The UI is user-friendly on both mobile and desktop but may take some time for newcomers to the financial markets to get accustomed. Overall, KuCoin is a reliable cryptocurrency exchange that caters to both new and seasoned investors and does justice to the tag of being one of the best crypto exchanges in the crypto market.