An Introduction to KuCoin: Everything You Need to Know

Carson O.
12 Min Read

KuCoin is a popular cryptocurrency exchange that allows users to easily buy, sell and trade hundreds of different cryptocurrencies. Originally founded in 2017, this platform has grown to become one of the top 10 crypto exchanges in the world in terms of trading volume, with Binance topping this list.

Some key things to know about KuCoin:

  • It was founded by a team with backgrounds in blockchain and fintech. The name KuCoin comes from “KuCoin Shares,” the exchange’s native cryptocurrency token.
  • It is based in Seychelles but has teams globally, including in Singapore, China and other countries.
  • The exchange aims to provide an easy-to-use platform for both new and experienced traders and cryptocurrency enthusiasts. Their motto is “The People’s Exchange.”
  • It provides access to many popular coins and tokens as well as newer and more obscure altcoins. Overall it supports over 250 different cryptos.
  • Trading fees on this platform are lower than on many major exchanges. It also has its native utility token, KuCoin Shares (KCS) which provides discounts on fees when held by users.

Registering for a KuCoin Account

Registering for KuCoin only takes a few minutes. Here are the steps:

  1. Go to KuCoin and click “Sign Up” in the top right.
  2. Enter your email and password. Make sure to use a strong password.
  3. KuCoin will send a confirmation email. Click the link in the email to verify your address.
  4. Once verified, you can log in with your email and password.
  5. Upon the first login, you’ll be prompted to enter some basic personal details and verify your identity.

Verifying your Identity (KYC)

KuCoin gives users the ability to start trading immediately with only an email signup. However, to access increased account functionality, you’ll need to complete identity verification or “Know Your Customer” (KYC) checks.

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The KYC process requires:

  • Your name and gender
  • Proof of identification – a photo of your passport, national ID card or driver’s license.
  • Mobile phone verification – receiving a text code to enter.
  • Facial verification – uploading a live selfie photo.

Completing KYC verification gives increased account limits on trades, withdrawals and other features. Verification only takes a few minutes once you have your ID documents ready.

An Overview of Trading on KuCoin

Once registered, here is a quick overview of buying, selling and trading coins:

  • Wallets – Each supported coin has its wallet. You can deposit crypto here to fund your trading.
  • Markets – The trading section shows all available trading pairs and markets. Search or browse for the coin you want to trade.
  • Orders – There are two main order types: limit orders and market orders. Limit orders let you set a fixed price to buy or sell at. Market orders purchase coins immediately at current market prices.
  • Trading Fees – General trading fees are 0.1% per transaction. Using KCS tokens can reduce fees by up to 30%. There are also discounts for high-volume traders on the platform.
  • Funding your trades – You can fund your trading by depositing crypto into your KuCoin wallet or purchasing directly with credit/debit cards through a third-party service.
  • Security – This platform provides mobile app 2FA authentication for added account security beyond just a password. It’s recommended to set this up.

Below we’ll go into more detail on how to deposit, buy, sell and trade on KuCoin.

Funding your Account

To start trading, you’ll first need to fund your accounts by depositing cryptocurrency. Here are some of the main ways to add money to KuCoin:

  • Crypto deposits – Deposit supported coins from an external wallet into your KuCoin wallet. This includes coins like BTC, ETH, USDT, XRP, LUNA and many more.
  • P2P trading – KuCoin has a peer-to-peer marketplace that allows you to buy USDT or BTC directly from other users, and fund your account that way.
  • Buy Crypto with Credit or Debit Card – KuCoin allows you to easily buy crypto with Visa or Mastercard credit and debit cards. This is facilitated through Simplex, Banxa or another third party. While convenient, these third-party transactions often have higher fees.
  • Wire transfers – KuCoin supports fiat deposits through wire transfers. This allows you to fund your account and buy crypto by wiring in USD, EUR or other supported fiat currencies. Wires come with fees and minimum deposit requirements.

Once funded, you can easily trade between supported cryptocurrencies on KuCoin by placing orders on the exchange.

How to Buy, Sell and Trade Crypto on KuCoin

KuCoin provides an intuitive and easy-to-use interface to allow you to buy, sell and trade coins. Here is how it works:

  1. Select your trading pair – On the Markets tab, browse or search for the coin you want to trade. Click the trading pair to open the order book and chart. For example, if you want to buy Bitcoin, you would search for the “BTC/USDT” pair.
  2. Review order types – KuCoin has two main order types. A limit order lets you set a fixed price you want to buy or sell at. A market order buys or sells immediately at the current market price.
  3. Place your order – Open a “Buy” or “Sell” order ticket. Enter your quantity and price (for limited orders). Click “Buy” or “Sell” to place the order. Your order will show as pending until it is matched and filled.
  4. Check order status – You can monitor your orders and account balances on the Assets page. Once an order executes, your balance will update. You can then trade or withdraw your purchased coins.
  5. Withdraw coins – When wanting to withdraw coins to an external wallet, go to Assets, select the coin, enter your withdrawal address and the amount and submit the withdrawal.

Note that some coins have minimum withdrawal amounts and network transfer fees you’ll want to be aware of. Also, be sure to enter the correct wallet address for your chosen coin when withdrawing.

KuCoin Wallets

To store, send and receive coins on KuCoin, you’ll use the platform’s built-in crypto wallets. Here are some key things to know:

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  • Each supported cryptocurrency has its own KuCoin wallet. For example, separate wallets for BTC, ETH, XRP, etc.
  • Wallets allow you to deposit and withdraw coins from KuCoin. You can also simply hold crypto in your KuCoin wallets.
  • There is no limit on the number of wallets you can create.
  • KuCoin wallets support both crypto deposits and withdrawals. Withdrawals can be sent to any valid external wallet address.
  • KuCoin wallets are custodial wallets. This means the private keys are managed by KuCoin on behalf of users.
  • For added security, use 2FA authentication and store funds across multiple wallets offline and online.

Overall, the KuCoin wallets provide a simple way to manage your funds on the platform and transfer crypto in and out.

Fees and Discount Programs

When trading and transacting on KuCoin there are a variety of fees to be aware of. These include:

  • Trading fees – Maker/Taker trading fees start at 0.1% per transaction. Discounts are available for high-volume traders.
  • Deposit fees – Free for most cryptocurrencies.
  • Withdrawal fees – Varies per coin, to cover blockchain network costs. Some coins have small withdrawal fees.
  • Credit Card fees – Buying with credit/debit cards incurs higher fees from third-party services. Around 3-4% per transaction.
  • KCS Discounts – Holding KuCoin’s utility token KCS provides up to 30% trading fee discounts and other perks.
  • Margin trading fees – Interest and borrowing rates apply for margin/leveraged trading.

KuCoin also provides discounted trading fees through its VIP Program for high-volume traders on the platform. Overall, KuCoin aims to keep fees competitive across its services.

Security Features

As a centralized exchange holding user funds, KuCoin implements various security measures including:

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  • Mandatory 2FA – Users are required to set up Two Factor Authentication (2FA) for account logins. This adds an extra layer of protection beyond just a password.
  • Encryption – User data and funds are encrypted using industry standards like AES-256 encryption. Private keys are also encrypted.
  • Cold storage – KuCoin stores the majority of user funds offline in cold storage to limit exposure on the main exchange servers.
  • Security audits – KuCoin contracts third-party security firms to regularly audit and test its systems and procedures.
  • Insurance fund – KuCoin maintains an insurance fund as an extra layer of protection in case of incidents impacting user funds.

While no exchange can guarantee 100% security at all times, KuCoin implements leading security technologies and practices to help keep user data and funds protected.

Conclusion

KuCoin has proven itself as a popular exchange for newer cryptocurrency traders to get started, as well as for more advanced traders looking for a wide variety of assets to trade.

With low fees, an easy-to-use interface and both mobile and desktop access, KuCoin can be a good option for accessing the expanding world of cryptocurrencies. As always, be sure to practice good security measures like 2FA and be cautious about investing money you can’t afford to lose.

By following this guide, you should now have a better understanding of how to get started with KuCoin and begin exploring the platform’s trading and investment opportunities for yourself.

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I am a multi-faceted professional with a strong foundation in Business and Finance, honed since 2020. Additionally, I possess a deep passion for automobiles, serving as an avid car enthusiast. In parallel to my diverse interests, I am also a dedicated student pursuing a career in the medical field.
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