The Ultimate Guide To Investing In Kucoin

KuCoin is a global cryptocurrency exchange that offers digital assets and provides crypto services to its users. Launched in September 2017, KuCoin has grown to become one of the most popular crypto exchanges, with over 8 million registered users across 200 countries and regions worldwide. Known as the People's Exchange, KuCoin operates in Seychelles and provides 24/7 multi-language customer support. In this article, we will discuss the steps on how to invest in KuCoin, including registering an account, depositing funds, and purchasing cryptocurrencies. We will also explore the different features and benefits that KuCoin offers to its users.

How to buy Shiba Inu tokens

To buy Shiba Inu tokens, you can follow these steps:

Step 1: Register an Exchange Account

The first step in the process of buying Shiba Inu is selecting an exchange that suits your trading needs. Different cryptocurrency investors have unique requirements, and their preferred exchanges differ accordingly. Owing to the popularity of the Shiba Inu coin, it is available for trading at several cryptocurrency exchanges worldwide. One of the best platforms to buy Shiba Inu is KuCoin, so you can start by registering an account there. Registering an exchange account is straightforward and will only take a couple of minutes.

Step 2: Deposit Funds to Your Account

The second step involves depositing funds into your account, which will then allow you to purchase Shiba. You can fund your account using other cryptocurrency assets, digital currencies, or fiat currency. If you use fiat currency, you can do a bank transfer or use a credit or debit card.

Step 3: Buy Shiba Inu Token

The third step is to purchase the Shiba Inu token. Go to the trading section of your chosen exchange (in this case, KuCoin). Search for the desired trading pair (e.g., USDT/SHIB), enter the number of USDT you wish to exchange for SHIB, and confirm the transaction details. The exchange will display the Shiba price, fees, and the amount of Shiba Inu you will receive.

Step 4: Store in a Crypto Wallet

Once you have confirmed the transaction, you will be able to see the Shib tokens in your crypto wallet within a few minutes. After buying Shiba Inu, you need to decide where to store your tokens. You can store them on the exchange itself or transfer them to an external cold wallet. Alternatively, you can join a platform like KuCoin Earn or create a trading bot to earn passive income with your Shiba Inu instead of leaving it idle.

Important Considerations:

• Online vs. Offline Wallets: If you are a trader, consider storing your Shib tokens in an online wallet for easy access and regular trading. If you plan to hold the tokens instead of utilizing them, an offline or hardware wallet may offer more security, although selling will take longer.
• Shiba Inu's Volatility: Shiba Inu is a "meme coin," and its value is highly responsive to public sentiment and trends. This can introduce unpredictable fluctuations that may not correlate with the project's intrinsic milestones or achievements.
• Risk and Uncertainty: The high level of market risk and uncertainty associated with trading meme coins make it challenging to know if they are good investments. Always consider the risks involved and only invest what you can afford to lose.

Choosing tokens to start your crypto journey

The crypto industry has surged in popularity over the past few years, with the market capitalization of all cryptos combined growing from $131.1 billion in January 2019 to over $1.4 trillion in July 2021. With thousands of cryptocurrencies in circulation, choosing tokens to start your crypto journey can be overwhelming. Here are some tips to help you get started:

Always Have BTC in Your Portfolio

Bitcoin (BTC) is the king of the crypto market. It has been classified as an asset by financial regulators globally, including the US SEC. Over its lifetime, BTC has gained over 804,000%, and despite short-term fluctuations, you can count on it to appreciate in the long term.

Look Out for Legit ICOs and IEOs

Initial coin offerings (ICOs) and initial exchange offerings (IEOs) are the most common method for introducing new crypto projects to the market. While there have been successful ICOs and IEOs, scammers also use ICOs as their weapon of choice. The quickest way to spot a scam ICO is if they offer 'guaranteed returns' on your investment—there is no such thing as a guaranteed return on investment in the crypto world. If you are new to crypto, stick to investing in mainstream options and avoid ICOs that don't seem legitimate.

Consider Crypto Lending

The explosion of decentralised finance (DeFi) has unlocked earning potential for newbies looking to earn passive income from the crypto market. Crypto lending allows you to earn interest by lending your cryptos via crypto lending platforms or exchanges. KuCoin, for example, offers daily interest rates of up to 2%.

Only Invest in Crypto Projects That Have Utility

When considering which token offerings to invest in, always think about the purpose of the crypto project. If it doesn't address at least one of the issues in decentralised finance (like scalability, absolute privacy, or interoperability), don't bother investing.

Avoid the Hype

Don't fall prey to FOMO (fear of missing out) and jump into a buying frenzy. Celebrities and media headlines can create hype around random cryptos, but often these are overvalued and may turn out to be scams. Be cautious, especially with unknown cryptocurrencies that aren't proven in the DeFi community, as they could be pump-and-dump schemes.

Remember, when choosing tokens to start your crypto journey, it's crucial to do your research and only invest what you can afford to lose. Crypto is a highly volatile market, and it's important to understand the risks involved.

Crypto lending

There are several types of cryptocurrency loans available:

• Collateralised loans are the most popular and require deposited cryptocurrency that is used as collateral for the loan.
• Crypto lines of credit allow users to borrow up to a certain percentage of deposited collateral, without set repayment terms. Interest is only charged on funds withdrawn.
• Uncollateralised loans are less common and function similarly to personal loans, with identity verification and a creditworthiness review required.

How to fund your account

There are several ways to fund your Kucoin account. You can use other cryptocurrency assets and digital currencies that you own and exchange them for the cryptocurrency you wish to purchase on Kucoin. For example, you can buy Shiba Inu (SHIB) through the SHIB/USDT trading pair, exchanging your USDT for the Shiba Inu coin.

You can also fund your account using fiat currency. This can be done through a bank transfer or by using a credit or debit card. Kucoin has recently launched a Fiat Account to allow users to deposit U.S. Dollars to their Kucoin Main accounts using a credit or debit card, and then purchase crypto assets such as BTC, ETH, and USDT. The Fiat Account currently supports USD deposits only, but 20+ fiat currencies are available for 50+ countries and regions, including EUR, AUD, GBP, and RUB.

If you are new to cryptocurrencies, it is recommended to invest in mainstream cryptos and avoid Initial Coin Offerings (ICOs) that don't seem legitimate. Bitcoin (BTC) is a good option as it is often considered the trendsetter for the crypto market and has gained over 804,000% from $10 in 2011 to highs of over $64,000 in April 2021.

Another option is to consider crypto lending, which allows you to earn passive income while maintaining your crypto portfolio. Kucoin offers daily interest rates of up to 2%.

How to store your crypto

When it comes to storing your crypto, you have several options, each with its own advantages and disadvantages. The most popular solution is a digital wallet, but other options include offline wallets, hardware wallets, paper wallets, and physical coins. Here's a breakdown of each storage method to help you make an informed decision:

Digital Wallets

Digital wallets are hot wallets, meaning they are connected to the internet and easily accessible. They are typically encrypted and can be accessed from a computer or smartphone, providing instant access to your crypto almost anywhere in the world. However, digital wallets are not immune to hacking and can be compromised by malicious actors. It's important to enable two-factor authentication and password rotation whenever possible to enhance security.

Offline Wallets

Offline wallets are considered cold wallets as they are not connected to the internet. They can be stored on a device, such as a computer or phone, that is not connected to the internet. Offline wallets are generally safer than digital wallets since they are less likely to be exposed to online threats. However, it's important to protect your device with antivirus software to safeguard against malware.

Hardware Wallets

Hardware wallets are physical devices, similar to external hard drives or USB sticks, that store your crypto. They offer completely anonymous transactions and do not store any user data. They are less susceptible to malware compared to other wallet types. However, if you lose the physical device, the funds stored on the hardware wallet may be lost forever.

Paper Wallets

Paper wallets are a more traditional form of storing crypto. They require printing out your public and private keys, usually in the form of QR codes, and storing them in a secure location. Paper wallets offer anonymity and are highly secure since they are offline. However, they are less user-friendly, and if the paper is lost, damaged, or the ink fades, you may lose access to your crypto.

Physical Coins

Physical coins are a unique way to store and transact crypto. They are similar to paper wallets but in a tangible coin form. Physical coins have tamper-proof stickers that cover a certain amount of crypto. They don't require an internet connection, making them secure and less vulnerable to online theft. However, physical coins can be lost or stolen, and there may be additional costs associated with printing them.

When deciding how to store your crypto, it's important to consider your personal needs and preferences. If you are an active trader, you may prefer the convenience of a hot wallet, while a long-term investor might opt for the added security of a cold wallet. Additionally, it's crucial to work with reputable platforms, enable security measures like two-factor authentication, and regularly back up your recovery phrases or private keys to ensure the safety of your crypto assets.

Frequently asked questions