Title: KuCoin Review: All You Need to Know About Kucoin and its ERC-20 Token
Kucoin is a cryptocurrency exchange with several trading options for its users. Its six million users are involved in trading options including spot, margin, futures, peer-to-peer trading, lending, and staking.
This review will expose yout to all there is to learn about what Kucoin, its token, and how it works.
What is Kucoin?
Kucoin, launched in 2017, is a secure global crypto exchange that lets users buy, sell and store a variety of cryptocurrencies like BTC, SHIB, DOGE, ETH, and KCS. It started in China but due to the favorable regulatory environment, Kucoin relocated to Hong Kong.
As of the time of writing, the Kucoin token—Kucoin shares (KSC)—is ranked sixty-one according to CoinMarketCap ranking and has a live market cap of $1,596,697,412.
Kucoin's native token (KCS) can be bought with just an email address since a coin verification process is optional. However, the account verification process needs to be done for users to access Kucoin's advanced features.
With Kucoin, you can store your crypto assets directly on the exchange or connect a third-party wallet and trade from there.
How does Kucoin Work?
Kucoin, like any exchange, has been developed for crypto enthusiasts to seamlessly buy, sell and securely store cryptocurrencies.
You can use Kucoin for one or more of the following:
- Spot grid trading
- Margin trading
- P2P trading
What is a Spot Grid on Kucoin and How does it Work?
A spot grid trading is a trading strategy that profits from the market fluctuations by positioning buy and sell orders. And it does so automatically.
Simply, the system is prompted to buy coins when the price is low and sell coins when the price is high. It uses a combination of market trends it gets through analytics and certain artificial intelligence (AI) parameters based on the user's historical data.
Users can, however, manually customize parameters. For example, as a user, you can specify the minimum price for buying and the maximum price for selling your coins.
To participate in this strategy you need to:
- Go to Kucoin and create an account
- Go back to Kucoin's homepage and click the “Trading Bot” Option
- Login to continue
- Select “Spot Grid” and click the “Create” button to enter the grid bot creation page
- Select the trading pair then enter an amount for your investment. You can also use the base currency by clicking the switch to increase the investment amount
- By default, you can use the AI parameters for your spot grid trading or customized parameters. However, letting the bot do it for you is probably better as it takes away guesswork and emotion
What is Kucoin Margin Trading and How does it Work?
Margin trading is a crypto trading concept used by traders to borrow funds for trading and increase profit by holding the collateral.
Margin trading gives users the opportunity to turn a profit by taking advantage of the price fluctuation of cryptocurrencies.
Margin trading on Kucoin step-by-step:
- Visit the Kucoin website and sign-up
- Login to the Kucoin website and click on “Trade.” Then select the option “Margin Trading” to enable the margin trading on your account
- Choose the class of asset you want using leverage and click on “Enable” at the bottom right corner
- Deposit funds into your account and choose your preferred leverage asset class to trade
- Based on your analysis, enter the trade after you have chosen your preferred order type
- Finally, return Your borrowed funds when you make a profit. You can do so by repaying the borrowed coin or by repaying coins with high-interest rates
What is Kucoin Lending and How does it Work?
Kucoin lending is a peer-to-peer lending feature that allows users to borrow funds and get matched with appropriate lenders. The lender earns an interest when the transaction is matched and the borrower receives the money.
To get started with Kucoin lending:
- Sign up on the Kucoin website and login into your account
- Next, click on the Kucoin lending option and select the asset you want to lend
Depending on your preferred asset to lend, you can look at the lending market if the rate is competitive. At the bottom, there are options like the order details, unsettled trades, settled trades, and order history that provide necessary information to users.
What is Kucoin Staking?
Staking in cryptocurrency is a system where users lock their coins to participate in validating new transactions to earn interest on their investment.
- Sign up to Kucoin and go to finance then select earn
- On the next page which is the Pool-X platform select staking
- Select either the “FlexibleTerms” or “Staking” and choose an asset to stake
- Deposit an amount of your chosen asset and study the information provided on the page
- Tick the “I have read and agree” box and click the “confirm” or “participate now” button.
What is Kucoin Token (KCS)?
Kucoin share is an ERC-20 token and the native coin of Kucoin based on the Ethereum network. It is issued by the cryptocurrency exchange and holders of this token can receive a portion of the revenue generated when stored on the exchange.
The total circulating supply of KCS is 80,118,638 KCS with an initial total supply of 200 million. The Kucoin burning feature has reduced the number of KCS in circulation to around 170 million at the time of writing. This is to increase the value left in the circulation.
How to Buy Kucoin Token (KCS)
To purchase Kucoin on the Kucoin exchange is seemingly simple.
- Visit the Kucoin website and open an account online. You will be required to input your email and password and then verify your account
- Once your account is set, log in to Kucoin and buy a USDT token to swap for KCS
- Next, enter the amount of USDT you want to swap and proceed
- Now your Kucoin share (KCS) can be found in your asset portfolio. You can store KCS on the Kucoin exchange or use a wallet that gives you control over your assets to store your KCS
What Features and Benefits does Kucoin Offer?
Kucoin has a lot of features available to its users. Some of its features are advanced and only experienced traders should be involved in such trade as it is riskier.
Kucoin offers investors the following:
- Low fees: among other exchanges, Kucoin is considered to have some of the lowest trading fees
- Security: Kucoin partnered with an Onchain Custodian digital asset-based Singapore.
This partnership provides security such as two-factor authentication and the Know Your Customer (KYC) verification process. As a result of Kucoin's commitment to security, it has become one of the largest cryptocurrency exchanges
- Customization: through its API functionality, users can customize the software to align with their needs
- Kucoin Shares: with the Kucoin native token, Kucoin Shares, you can earn incentives daily when you hold the coin. Also, you can participate in exclusive rewards and promotions.
Pros and Cons of Kucoins
Kucoin offers users numerous cryptocurrencies, nonetheless, it has gotten bad reviews from users.
- Low fees
- A broad selection of cryptocurrencies is available
- Opportunity to earn interest
- Advanced trading options
- Strong user base
- Not licensed in the U.S.
- The payment method is limited
- Not easy to use for new traders
- Not connected to banks
- Poor customer service
- Subject to congestion when a high volume of transactions occurs
Is Kucoin Safe and legit?
Kucoin allows users to easily trade various cryptocurrencies. It is highly secured and has a program that encourages ethical hackers to report any weakness found in the system called the bug bounty program.
Kucoin's wallets were hacked and its losses were fully covered by insurance. It did so quickly and with transparency. Kucoin encourages an additional trading password, two-factor authentication, and a Know Your Customer verification process.
Although Kucoin has profound user-level protection, it may not be the best exchange if you live in the U.S. Your account can be frozen because of the risk involved in using unauthorized services. Authorities want to prevent money laundering and tax evasion hence they clamp down on U.S. citizens using unregulated and unlicensed services.
Kucoin Vs Binance
Depending on your investment and trading approach you will need certain crypto exchanges because of the features they offer.
Kucoin, as well as Binance, are established crypto exchanges with similar business strategies, fee breakdown, and little difference between the platforms.
They both offer access to several altcoins and have a fee structure that starts at 0.1%. Each has a native used to reward investors for holding the coin services like futures, crypto lending, trading bots, margin trading, and a P2P marketplace are offered by both companies.
However, they are different in a number of ways.
Both fees start at 0.1% and decrease in percentage as you move up to a higher trading tier.
Kucoin is much more preferable for trading large volumes. Kucoin's tier structure is more intense and the fee for users in higher tiers is very competitive.
Binance on the other hand is suitable for small traders. Binance does not offer deposit and withdrawal fees. It wins over Kucoin if you are going to use the futures market.
Customer Service Comparison
Kucoin poses amazing customer service and has a Telegram support channel for a quick response which runs for 24 hours.
Finance uses tickets to offer customer service and this results in longer waiting times. But the service from Binance is incredible despite its long process.
Kucoin and Binance have good security history and support two-factor authentication. Although there have been attempts to game the platforms, hence, it is important that users are very careful when entering their details online.
Kucoin has over 170 altcoins. Binance supports up to 242 altcoins. In sheer volume, Binance wins.
During trading, Kucoin offers its token, Tether, NEO, and BTC cash. Finance offers trading with its token and Tether.
Kucoin is more flexible to trade in other tokens but the Binance trading fee structure is competitive.