Kucoin: A Good Investment Option?

KuCoin is a cryptocurrency exchange that offers a wide selection of cryptocurrencies, competitive trading fees, and advanced features like margin trading and futures trading. It is not licensed in the US, which makes it complicated and risky for US-based users. KuCoin has also received poor reviews from users, with reports of problems with withdrawals, customer service, and market manipulation. However, it is currently the fifth-largest crypto exchange by volume, and its native KuCoin Token (KCS) is widely considered to be one of the best passive-income plays in the industry. So, is KuCoin a good investment?

Kucoin's rich feature set and low fees

Kucoin offers a wide range of features that make it a compelling choice for advanced crypto investors, particularly outside the U.S. The platform offers basic trading options as well as margin, futures, and peer-to-peer (P2P) trading. Users can also choose to stake or lend their crypto to earn rewards.

One of Kucoin's standout features is its low fees. Compared to other major exchanges, Kucoin offers relatively low trading fees, with users paying between -0.005% and 0.10% per trade. Additionally, Kucoin offers a 20% discount on trading fees when using its native token, Kucoin Token (KCS). This makes Kucoin an attractive option for high-volume traders.

Kucoin also provides a variety of payment options and discounts on trading fees, setting it apart from other crypto exchanges. The exchange has a maker/taker fee structure, with fees ranging from 0.1%/0.1% for popular cryptocurrencies like Bitcoin and Ethereum to 0.2%/0.2% for more obscure coins.

Kucoin also offers advanced features like margin trading and futures trading, which are not available on all crypto exchanges. The platform also supports staking, allowing users to earn passive income on their crypto holdings.

In addition to its low fees, Kucoin provides a broad selection of tradable cryptocurrencies, with over 700 coins supported. This gives investors and traders access to a wide range of options, including popular and lesser-known coins.

Kucoin also has a user-friendly account opening process, making it simple and straightforward for new users to get started on the platform.

Overall, Kucoin's rich feature set and low fees make it a compelling choice for crypto investors and traders, particularly those looking for a platform with a wide range of options and low costs.

Kucoin's token utility and price

Kucoin Token Utility and Price

The Kucoin Token (KCS) is the main native cryptocurrency of the Kucoin exchange. KCS is an ERC-20 token, which means it is built on top of the Ethereum network. The token was launched in 2017, and its value is derived from the exchange with which it is associated. KCS provides utility to its users, who can use it to pay for trading fees on the Kucoin Exchange. Traders are incentivised to do so as they are rewarded with a 20% fee discount.

KCS also offers other benefits to its holders. Holders can earn daily cryptocurrency dividends depending on the amount of KCS they hold, from a pool of more than 200 tokens. They are also rewarded for not selling KCS by receiving trading discounts and lower withdrawal fees. KCS holders will always be the first to qualify for special offers, exclusive promotions, and rewards. Additionally, holders with a large KCS portfolio have exclusive access to consultation services, where they can learn more about investment strategies.

KCS has performed well in recent years. In 2021, it was up more than 2,800% as of November 28. In 2024, KCS is predicted to reach $12.67. In the long term, it is predicted to increase further, potentially reaching $31.67 by 2030 and $63.33 by 2040.

However, it is important to remember that cryptocurrency investment is inherently speculative and volatile. Kucoin is also not licensed in the U.S. and has received poor reviews from users, with reports of problems with withdrawals, customer service, and market manipulation. In 2020, Kucoin suffered a major hack, with more than $280 million in assets stolen.

Kucoin's drawbacks and risks

While Kucoin offers a variety of benefits to investors, there are also some drawbacks and risks to consider. Firstly, Kucoin is not licensed to operate in the United States, which presents significant limitations for US-based users. Although US users can still access the platform and create accounts, they will remain "unverified", restricting their access to certain features. This lack of licensure also leads to increased risk and security concerns for US customers, as they are unable to complete standard Know Your Customer (KYC) disclosures, which are meant to reduce crime and money laundering.

Another drawback of Kucoin is the poor user reviews the platform has received. Users have reported issues with withdrawals, customer service, and market manipulation. There have also been accusations of assets randomly disappearing from accounts, which is particularly concerning. Additionally, Kucoin suffered a major hack in 2020, with over $280 million in assets stolen. While the stolen assets were reportedly recovered and users compensated, this incident highlights the security risks associated with the platform.

It is also worth noting that investing in cryptocurrencies carries inherent risks and speculation. The market can be extremely volatile, and investors should exercise caution and conduct thorough research before making any investment decisions.

Kucoin's security features

Security is one of the most important aspects of investing in crypto. As one of the most well-known exchanges in the world, KuCoin has put in place comprehensive security measures to assist you in daily use and ensure the security of your account. Here is an overview of KuCoin's security features:

Two-Factor Authentication (2FA)

Activating two-factor authentication (2FA) is a secure way to protect your KuCoin account and crypto-assets. KuCoin supports three types of 2FA: phone binding, email binding, and Google Authentication. 2FA provides "double protection" for your account and adds a convenient step when changing your trading password or processing withdrawals.

Strong Passwords

It is recommended that users set unique passwords for their KuCoin accounts, containing a mix of uppercase and lowercase letters, numbers, and special characters. Changing your password regularly is also a good practice to protect your account.

Trading Password

In addition to the regular login password, KuCoin offers a 6-digit trading password for important operations such as transactions, withdrawals, and API creation. This adds an extra layer of protection for your account.

Login IP Restriction

The Login IP Restriction feature automatically logs you out whenever your IP address changes, making it harder for attackers to gain unauthorized access to your account.

Anti-Phishing Measures

KuCoin accounts have an anti-phishing security function to prevent phishing attacks, which are attempts to steal your funds by obtaining your login credentials. Users can set a security anti-phishing safety phrase that will be displayed when logging into the website or receiving an email from KuCoin. If the phrase is missing or incorrect, it indicates a potential phishing attempt.

Address Book

KuCoin's Address Book feature allows users to limit the wallet addresses that can be used to withdraw their crypto assets. This helps ensure that withdrawals are only made to trusted and whitelisted addresses.

Official Media Verification

To prevent fraud and scams, KuCoin recommends that users confirm the official KuCoin contact or domain before using their services. This can be done through the KuCoin Official Media Verification process, which includes verifying the telephone number, email, WeChat, Telegram, Skype, Twitter, or website address.

Know Your Customer (KYC) Verification

Completing the Know Your Customer (KYC) verification can help reduce potential fraud attempts and enhance account security. Verified accounts on KuCoin enjoy higher daily withdrawal limits and access to the fiat-to-crypto service. KYC information also assists in quicker account recovery if credentials are forgotten or the account is compromised.

Standard Security Measures

KuCoin also employs standard security measures such as identity verification, anti-fraud measures, data security, and system security. The platform follows strict guidelines for development, testing, and deployment to secure its systems. Additionally, KuCoin has a multi-layered defense system that provides 24/7 security operations and prompt responses to any security incidents.

Kucoin's customer support

Kucoin offers 24/7 customer service from its support team. The Kucoin Help Center provides a range of self-service options, including how to deposit, how to trade, reset passwords, export history, and more.

Kucoin also has an online technical support channel, where users can join the Kucoin API communication group to get answers to their questions. Kucoin engineers are on hand to assist users in finding optimal solutions to improve the user experience. The technical support channel is also open to related technical cooperation.

For those who have problems with the verification process, Kucoin recommends contacting its customer support team.

Frequently asked questions