Review: KuCoin Exchange
There are a lot of crypto exchanges on the internet today. So, it might be hard to make decisions on which exchange is right for you. Below is a full analysis and the necessary information regarding KuCoin exchange. Let’s get right into the review…
What Is KuCoin Exchange?
KuCoin is a popular crypto exchange that provides its users with digital asset transactions and exchange services in its safe, secured, and prominent one-stop shop for all forms of cryptocurrency transactions. It is a safe and easy-to-use exchange that was launched in September 2017. Currently, the exchange has over 200 cryptocurrencies, more than 400 markets and has developed into being “The People’s Exchange.”
It was founded in the Seychelles and has offices in Hong Kong, Singapore, and Seychelles, making it an international cryptocurrencies exchange. The exchange has become colorful and the most chosen hub online with over 8 million users in just 4 years of launching.
Who Are the Founders of KuCoin Exchange?
The KuCoin cryptocurrency exchange has Johnny Lyu as the co-founder and CEO. Others include Eric Don as the COO, marketing director Jack Zhu, president of business operations John Lee, operations and maintenance director Kent Li, chief legal consultant Linda Lin, and CTO Top Lan.
History of KuCoin Exchange
KuCoin exchange was officially launched in Seychelles, September 2017, and was crowned one of the Best Crypto Exchanges of 2021.
However, the founding team had been experimenting with blockchain technology since 2011 while the platform’s technical architecture was created in 2013. Still, they waited 4 years before launching to ensure a smooth run during use.
The initial coin offering(ICO) which lasted from August 13, 2017, to September 1, 2017, was used to raise development funds for Kucoin. The token offered during the ICO period was the Kucoin Shares (KCS)token. It also offers its holders special offers, trading discounts, and exchange profits. It was a successful crowd sale because Kucoin received $20 million in BTC equivalence.
Currently, the headquarters of Kucoin is in Singapore with over 300 employees in other parts of the country where the crypto exchanges have offices.
Kucoin completed its series A funding round with $20 million in funding from NEO Global Capital (NGC), Matrix Partners, and IDG Capital on November 15, 2018. The Kucoin 2.0 platform was funded by the funds obtained from series A.
Is KuCoin Exchange Decentralized?
KuCoin is a cryptocurrency exchange that describes itself as a hybrid exchange featuring both centralized exchange and decentralized characteristics. KuCoin exchange’s final goal and aspirations are to transition to a fully decentralized exchange model.
The current mode of operation is a centralized model. It attempts to duplicate best practices in traditional asset exchanges including dedicated risk and compliance teams.
Is KuCoin Exchange Secure?
This exchange platform offers its users a Kucoin wallet. The KuCoin wallet is protected by multi-layer encryption. It also has offline storage through bank safe and/or funds escrow. These teams manage the internal controls and cross-departmental reviews. All these are aimed at keeping the platform secured and reducing the risk of fraud. The KuCoin exchange, regardless of how young the exchange is, has not been hacked.
KuCoin’s Exchange Token
KuCoin Share token (KCS), the native token of KuCoin, was launched back in 2017. It is a profit-sharing token that allows traders to make gains from the exchange. KuCoin functions as an ERC-20 token built on the Ethereum network. In addition, it is supported by most Ethereum wallets.
KCS is currency ranked #81 with a market cap of over $1 billion. It has a circulating supply of over 80 million KCS coins and a maximum supply of 170, 118, 638 KCS coins.
Why Was There a KuCoin Burn?
Coin burning is a form of sending cryptocurrency tokens to a wallet with no access key. This means without a private key, these tokens cannot be accessed by anyone and are invariably lost forever. Coin burning is a way of reducing the token circulating supply.
Originally, the initial supply of the KCS token was set at 200 million. Then, the KuCoin and KCS team announced that they were buying back KCS from the market and burning them quarterly. The amount of KCS is dependent on the quarterly trading volume of the KuCoin Exchange. They plan on continuing the process until the circulating supply eventually settles at 100 million.
How Many Kucoin Shares (KCS) Tokens Are in Circulation?
According to CoinMarketCap, there is a circulating supply of 80,118,638 KCS coins and a maximum supply of 170,118,638 KCS coins in the cryptocurrency community.
How To trade On KuCoin Exchange
(Mobile web version)
Registration Process on KuCoin Exchange
STEP ONE: Visit the KuCoin website
STEP TWO: Click on [Login/Sign up] and fill in the necessary information
STEP THREE: Fill in the necessary information as requested
STEP FOUR: If you decide to [Claim Now], you will be redirected to this page as shown below.
STEP FIVE: You might be asked to carry out some tasks like:
How to Buy/Sell Cryptocurrency on KuCoin Exchange
STEP ONE: Click on [Buy Crypto]
STEP TWO: Select the currency of your choice
For fiat currency, choose any means of payment as shown below:
To buy with cryptocurrencies, click on the crypto option:
For other options, you can check the home page and follow the instructions as listed.
Verification Process on KuCoin Exchange
On November 1, 2018, KuCoin implemented Know Your Customer(KYC) verification. This is a process implemented by most cryptocurrency exchange platforms to keep records of their users. The main aim is to combat cyber theft and money laundering.
Unlike other exchanges, the account verification process at KuCoin is entirely optional if you are a small volume trader. You may choose to verify or not verify.
Although, it is important to verify your identity because verified users receive some extra benefits, including:
- Increased daily withdrawal limits.
- Simplified account recovery in case of a lost password or two-factor authentication device.
KuCoin currently has three verification levels on the website:
Unverified Account: It only requires email verification. The daily limitation is 2 BTC every 24 hours.
Verified Individual Account: This may require you to submit a means of identification such as ID or passport, as well as your country of residence. There is an increase in the daily withdrawal limit to 100 BTC every 24 hours.
Verified Institutional Account: This verification process increases your withdrawal limit to 500 BTC every 24 hours.
It is recommended that users should partake in the complete verification. It will avoid troubles in the future with issues like account recovery and transaction errors. Verified users can also make use of fiat-to-crypto trading once it becomes available on the platform.
What Makes KuCoin Exchange Unique?
KCS Bonus provides an opportunity for its users to earn a passive income. Users who are liquidity suppliers i.e, users who hold more than 6 KCS can get a daily dividend. This dividend comes from 50% of KuCoin’s daily trading fee revenue.
The percentage of rewards its users get depends on the number of KCS held and also, the trading volume of the KuCoin Exchange.
It also has advanced features that add to its uniqueness. They include:
- Margin trading
- Use of trading bots through the mobile app.
KuCoin exchange provides 17 languages for its users which include English, Russian, South Korean, Dutch, Portuguese, Chinese (simplified and traditional), German, French, Spanish, Vietnamese, Turkish, Italian, Malay, Indonesian, Hindi, and Thai
Pros and Cons of KuCoin Exchange
Pros of KuCoin Exchange
The following are the benefits enjoyed when using KuCoin exchange:
- Low deposit, withdrawal, and trading fees.
- Simple to use.
- Includes a variety of coins, including newly released cryptocurrencies.
- High-security features.
Cons of KuCoin Exchange
Unfortunately, everything with good sides comes with a downside. Here are the downsides of using KuCoin exchange:
- No anonymous trading.
- Low trading volume — sometimes issues with liquidity on smaller coins.
- Difficulties in processing transactions during high traffic.
- Not a licensed exchange in the U.S.
- Limited payment methods.
- Limited educational resources for newbies.
Since KuCoin is not licensed in the U.S, it’s not advisable to make use of the exchange for transactions in the USA but it can be used in other countries that allow for crypto trading globally. The advanced features are for experienced cryptocurrency traders to create new opportunities for them to explore. Cryptocurrency trading, in general, is a risky process; it’s only wise to explore calculated risks.