Kucoin is one of the leading cryptocurrency exchanges that provide a range of advanced features for active and experienced cryptocurrency traders. It has a relatively low trading fee as compared to other crypto exchanges. The traders can trade hundreds of cryptocurrency pairs on this exchange.
They can also use margin and future products to earn better rewards. The exchange also provides passive income options for people who can’t trade actively. However, it’s not licensed in the U.S due to which it becomes a less attractive option for US-based cryptocurrencies.
KCS is the native token of this crypto exchange that can be used as a payment method and users can also exchange it for different cryptocurrencies.
Cryptocurrencies Available on Kucoin
Traders can trade more than 750 cryptocurrencies on the Kucoin exchange. Bitcoin, Ethereum, Polkadot, Cardano, Matic, Solana, LTC, and Decentraland are some of the most popular cryptocurrencies available on this exchange. The traders can choose from a variety of trading pairs including BTC, KCS, ETH, and USDT.
How Does Kucoin Work?
Kucoin has a web portal and a smartphone app where users can trade cryptocurrencies listed on this exchange. The users can create an account with just an email address. They don’t need to complete a verification process. However, they can turn on the two-step verification process to keep their account secure.
Furthermore, the users can only use the basic features of the exchange if the account isn’t verified. Kucoin enables its users to store their assets on the exchange or they can directly connect their account to a third-party wallet.
It’s better to connect the account to a decentralized wallet because Kucoin is a centralized exchange. So, the users have a risk of losing their assets in case of a hacking attempt. Those who don’t have a decentralized wallet can connect their account to Google Authenticator to keep their assets safe.
Kucoin Trading Fees
Kucoin uses a maker-taker model for spot trading and futures trading. The users need to pay around 0.1%-0.16% of the total trading amount as trading fees. The users can get a discount of 20% when they pay the trading fees in the form of KCS tokens.
The users can also get a discount on trading fees if they’re holding more than 1,000 KCS tokens in their wallets. The users have 0 Level when they create an account on Kucoin. The level keeps increasing over time and it ultimately helps with reducing trading fees. The level can go as high as number 12.
Holding KCS tokens for a longer period of time is one of the effective ways to increase the level of Kucoin. The users can directly purchase USDT from Kucoin using their credit/debit card. The trading fee for this kind of transaction will be around 1%-3% of the total transaction amount.
Trading Bot is one of the amazing features of Kucoin as it enables users to trade cryptocurrencies without having to look at the screen every now and then. The bot automatically buys low and sells high depending on the range selected by the users. The users can also use the trading bot for DCA (Dollar-cost Averaging).
Trading Bot can also be used for future trades where traders can open short positions automatically once certain conditions are met. The tutorials to use a trading bot can be obtained from the official website of Kucoin.
Strong User Base
Kucoin has a huge user base that provides liquidity to the market. The traders can instantly convert their cryptos into fiat currencies by trading online. Another advantage of the large user base is that traders can communicate with each other to explore some new aspects of the crypto industry.
Earn Passive Income
The users can stake their crypto tokens through Pool-X to earn rewards on their crypto holdings. Traditional staking is quite an expensive option because the investors need to hold a huge amount of tokens to participate in the validation process of different crypto projects.
But Pool-X enables them to participate in this process with a very small amount. The best part is that the users won’t have to worry about losing their staked tokens. Pool-X is pretty much similar to a mutual fund as it collects funds from a group of people and invests it in the right place to earn some money.
Later on, the money earned from the investment is distributed among investors equally. The only difference is that Pool-X only invests in the parent project whose native tokens are staked by the community members. For instance, if users are staking their ICP tokens on Kucoin, Pool-X will only stake them in the Internet Protocols because they can’t be staked elsewhere.
The users need to lock their tokens for a specified period. It can be around 1 to 3 months. The users can redeem their tokens even before the completion of the period but they won’t receive any reward for pulling out the investment earlier.
The Crash Problem
One of the negative aspects of Kucoin is that it crashes whenever there’s a sharp move in the market. In the first quarter of 2021, the crypto market crashed and people couldn’t close their trades because Kucoin stopped working because of increased traffic. The company then claimed that the problem has been solved and it won’t happen again.
But again, in the fourth quarter of 2021, the traders had to face the same problem. However, the Kucoin fixed the problem pretty quickly. Still, many traders lost their money because they couldn’t exit at the right time. Kucoin team is now working on finding a permanent solution so that the users don’t have to face such problems again.
Kucoin is one of the most popular crypto exchanges where users can trade hundreds of cryptocurrencies with relatively flexible trading fees. Kucoin offers a number of advanced features like bot trading and staking that equally facilitate the traders and long-term holders. Feel free to get in touch with us if you need more information about how Kucoin works.