Trading in bitcoin became quite popular in the recent month, with many new platforms opening as well. In this KuCoin review, we go over one of such trade websites. We intend to investigate the features and functions offered by this platform. These are registration & verification processes, payment methods, fees, security tools, customer support, and of course, its trading marketplace.
Throughout the review of KuCoin, we benchmark findings with similar sites, such as Bitfinex, CEX.IO, Kraken, and others. We propose pros and cons based on the benchmarking analysis. The aim is to provide you with a clear understanding of what our strengths and weakness of KuCoin trading.
About the Platform
KuCoin is a relatively new trading platform that works with cryptocurrencies, establishing its operations in 2017. The concept itself traces back to 2011, with 2013 being the starting point on which developers assembled and plans made. The team behind the platform has headquarters located in Hong Kong, providing services globally.
Upon its Angel fundraiser in 2017, the company behind the platform developed its own coin called KuCoin Shares (KCS).Each of the team members is known to the public and it is said that they worked in prominent companies. These include GF Securities, Ant Financial, Youling, and several others. In March 2018, the marketplace claimed that its daily trade reached over 2.000 BTC.
Registration and Verification
Registering account at KuCoin should not take you more than 5 minutes in total. You provide your email address and password, which you verify through a link sent to you. That is about it when it comes to registration though it is worthy to note that KuCoin follows industry standards.
There are several steps you need to take in order to successfully deposit and withdraw coins. You need to complete email verification, two-factor authentication (2FA) and security questions, to be specific. You also have a section dedicated to KYC(Know Your Customer) verification. There, you provide your scanned ID, personal information and other personal details, as seen below.
The said verification process applies only for large withdrawals, meaning you are free to trade without completing KYC requirements.
Payment Methods and Fees
KuCoin works only with cryptocurrencies, meaning that fiat money is not available for trade. Deposits through bank transfers or credit cards are thus unavailable. You only have the option of using your wallets when sending and receiving crypto coins.
There are two sets of costs that you should be aware of, them trading fees and withdrawal expenses. The first set concerns with trade done on the marketplace, standing at 0.1%, no matter the chosen cryptocurrency.
When compared to other platforms, it is in line with the industry. Bitfinex, for example, provides maker/talker structure, where you pay from 0% to 0.2% depending on monthly volume. The same goes for others, such as BitMex, GDAX, and Bithumb. The difference is that deposits do not cost anything since there are no fiats.
Withdrawal costs vary between coins and from day to day, depending on the network. These costs are not held by the platform but transfer directly into the blockchain.
As for the security measures, you have two-factor authentication (2FA), password manager, security questions and API keys available to you. It is worthy to note that in order to trade at KuCoin, 2FA and security questions (three of them) need to be set up.
Other than that, there is no additional protection measure. GDAX and Bitfinex offer cold storage of coins while also implementing email notifications and IP whitelists.
Thus, we deem KuCoin to have lower security standards than those offered by the industry leaders. It is on par with Bithumb and BitMex though we also deem that improvements are needed in near future.
KuCoin offers basic FAQ page, where account and trade functions are explained in detail. There are no live chats or video tutorials at the moment. You do have a robot support should you have a question that you wish to get outside of FAQ. You also have a ticket system and ZenDesk support in case you face issues that need immediate attention.
Much of the industry’s participants are yet to implement live chat at this stage. Thus, KuCoin can be seen as having an adequate support. Most of the reviews, both form users, and bloggers list KuCoin as responsive in terms of customer support.
Trading Platform and Functions
To start off, it is important to mention that margin trading, like in BitMEx and Bitfinex, is not available at KuCoin. You have a very simple trading platform, where you can buy or sell coins in exchange for other cryptos. Leverage or stop functions are not available at this time, making this platform a lot less suitable for experts.
Apart from functions, charts, on the other hand, are there for you to use. The interface is responsive, where you can switch between the new and old version of the marketplace. Charts can be designed according to your needs, but nowhere near like in BitMex.
You also have order history, presenting all market activities at the moment, updated in real time. The said tool is pretty much available now in all trade platforms, meaning that it cannot be considered as an advantage.
You can trade with over 100 cryptocurrencies, constituting over 150 trading pairs at KuCoin. This number is closer to what Poloniex has while other platforms such as BitMex or Bitfinex trail far behind.
Pros and Cons
- a large number of cryptocurrencies and trading pairs available
- scanned ID not needed for trade to take place
- platform available globally
- lack of security features like cold storage and IP whitelist
- no fiat deposits or trade allowed
In this KuCoin review, we went over its trading features and strengths. We came up with the result that points out the fact that only starters might find KuCoin interesting. Experts do not have margin trading functions available to them and security is of low level.
Thus, we deem it necessary to not keep large batches of coins inside the platform. Work only with what you wish to trade and withdraw the rest is our main recommendation.
Further Reading: GDAX reivew