Beginner’s Guide: Kucoin Complete Review

Beginner’s Guide / 17.12.2018

Kucoin was founded in 2017, by a group of blockchain enthusiasts with a strong and proven reputation in the industry. Kucoin is a modern and secure platform aiming to provide users with a safe and straightforward method of converting their cryptocurrencies on a state-of-the-art platform.

Kucoin it is relatively new in the cryptocurrency world, however, Kucoin’s team has already proven itself, and the exchange built up a solid reputation among the biggest and most trusted exchanges. To put Kucoin’s youth into perspective, the research and development team was only assembled in May 2017; they had an Investment Program in August, and Kucoin V1.0 went live a few days later. Since its inception, the team had multiple milestones of their journey accomplished, including but not limited to: a Kucoin Bonus Plan, a wide range of cryptocurrencies and tokens available, mobile apps for both Android and iOS and an Institutional Investor Program.

Kucoin Signup & Registration

Registering an account with Kucoin is as easy as you could expect it to be. It’s a straightforward process in 2 steps: you begin by entering your email, chosen password and, of course, agreeing to their terms and conditions, after which you will get a verification email with your registration activation code and further instructions.

Once you log into your Kucoin account, you can manage your account settings based on your needs. You may want to keep track of your assets, or manage your rewards, such as invitation bonuses and Kucoin bonuses, etc. Kucoin is the most straightforward exchanges to use and one of the best places to start your crypto adventure if you’re new. It is highly recommend you enable 2 factor authentication and other security options available to properly secure your account.

Kucoin Verification Process

Starting on November 1st 2018, Kucoin implemented limitations on the amounts a user can withdraw within a 24-hour period, as part of their KYC Verification Process. Although the KYC Verification is not mandatory, it’s recommended to complete it to enjoy higher daily withdrawal limits. Current 24h period withdrawal limits:

  • Non-verified Account: 2 BTC per 24hr
  • Verified Individual Account: 100 BTC per 24hr
  • Verified Institutional Account: 500 BTC per 24hr

Kucoin’s KYC Verification process is nothing out of the ordinary, you will need to complete an online questionnaire, submitting supporting documents (identity and address verification) and authorizing KuCoin to complete the verification process. The processing time for KYC Verification can take up to 5 days, but usually is done within 24h.

Kucoin Markets & Trading View

Kucoin has a very clean and modern layout throughout the website which extends to the markets overview screen too, where you can choose from its whopping nine base trading pairs ( BTC, ETH, KCS, NEO, USDT, PAX, USDC, DAI & TUSD).

Selecting a trading pair will then take you to the trading screen where you can view the usual candles, order book and can then buy or sell the selected currencies. When you first enter this screen you will be prompted for your Google Authenticator code before being able to trade. This can be a little annoying but it adds an extra layer of security to the site.

Kucoin Fees

Kucoin aims to always offer very low fees, both for trading and withdrawals, making it a very affordable to use exchange. There is no fee for deposits, and the trading fee is only 0.1%, based on the asset that you purchase. The fees for a withdrawal depend on the cryptocurrency in question, but some don’t have fees such as GAS and NEO. Others have incredibly low fees, such as BTC at just 0.0005, LTC at just 0.001, and ETH at just 0.01.

Withdrawals that are for less than the current fee x 100,000 will be processed in just seconds. If you withdraw less than 50 BTC (fee of 0.0005 x 100,000=50), for example, this speed will apply. Bigger withdrawals may require additional time for processing but they are very fast in processing them.

It is important to note that Kucoin’s fees, which are already minimal, go back to its users. Ninety percent (90%) of the total trading fees are returned to users in one way or another, with Kucoin retaining only 10 percent of trading service fees. The largest portion, 50 percent of the fees, goes to users with KCS in their accounts as their Kucoin Bonus on a daily basis and the other 40 percent via the Invitation Bonus.

Kucoin Key Features

Kucoin strives to separate itself from other similar cryptocurrency exchanges via its outstanding features. Between the powerful interface, the excellent customer service, and the experience of the team, there are many key features worth mentioning:

  • Customer Service: Customer support for Kucoin is very good, with multiple methods of contacting the support team. Support is available 24/7, and team members pride themselves on resolving any issues in a timely manner. It is possible to contact them by chat, email support@kucoin.com or submit a ticket via their website. In addition to troubleshooting and answering questions, the support team is ready to listen to suggestions, as Kucoin likes to take user preferences to heart.
  • Popular Assets: Kucoin uses an underlying technology that supports an infinite number of cryptocurrency trading pairs and has already 9 base pairs with 474 markets and over 216 coins available. Kucoin has already developed a reputation for offering coin pairs earlier than other exchanges, helping it secure a market share.
  • Powerful API Interface: Kucoin is very well known among traders for its powerful API interface.
  • Top Professional Team: The team behind Kucoin has years of experience in the blockchain and cryptocurrency worlds, working in leadership roles in major companies.
  • Consultant Team with Financial Experts and Financial System Stability: Kucoin has levels of stability typically reserved for financing sectors. The underlying financial system’s design inspired the core exchanging system with its multi-cluster and multi-layer architecture. Kucoin also takes precautions like those of banks, including three centers and two locations to be disaster proof.
  • Financial Safety: Wallets within the Kucoin platform have multiple security levels to fit the storage scale in question. The micro-withdrawal wallets are stored in a private network architecture built using Amazon Web Services Cloud, which allows the wallets to take advantage of that cloud’s multi-layer firewall while Macro-wallets are typically stored within the bank.
  • Assets Security & Fast Processing: Withdrawals under a certain amount are processed in a matter of seconds, and larger withdrawals only take about 10 minutes at the most. Deposits are completed within just two minutes.
  • One of the Best Trading Engine: The memory matching technology is highly efficient and accelerated by hardware. The peak order-making value of this tech is 2 million+/second with a peak order-processing value of 1 million+/second. To put it in perspective, those figures are hundreds to thousands of times of the typical industry standard. The result is no lags or delays during your core order process, even during a market boom.
  • Operation Strategies: Kucoin’s operation strategies are also worth mentioning, as the operation team works on large-scale and long-term offline and online promotion and operations. Most of the commission from the exchange is rewarded to users who are active and exchange, promote, or invest in Kucoin. With these incentive policies in place, Kucoin hopes to sustain high levels of enthusiasm while improving business.
  • Invitation Bonus: To encourage further growth of Kucoin, those who register receive a bonus for inviting new users. The user who sends the invitation will receive a portion of trading fees accrued by the invitee. This has a multi-layer effect, so you can accumulate bonuses for the traders that someone you invited invites.
  • Voting System: Kucoin has an embedded voting systems allowing users to vote for their favorite coin to be listed.

Kucoin Institutional Investor Program

To encourage institutional investors to participate more actively in trading activities, Kucoin has released its own Institutional Investor Program. By Institutional Investors Kucoin is referring to those that want to participate in quantitative trading, high-frequency trading, etc. All institutions that qualify will receive significant trading fee discounts and in order to qualify, applicants must complete Kucoin’s KYC verification process and the dedicated request form for this program. Once qualified, institutional investors will enjoy trading fee discounts of 20% to 80%, depending on their volumes.

Is Kucoin Safe?

Kucoin is regarded as one of the most trusted and safe exchanges to use thanks to their security efforts on both the system and operational level. On the system level, it helps that Kucoin was constructed using financing-level standards. This includes standard transfer encryption protocol for data transfer layers, meaning that all of the sensitive data and user data are stored on data encryption at a bank level. There is also multi-factor dynamic authentication for additional security.

On the operational level, Kucoin has a dedicated internal risk control department, as well as one for operational processes. Each of these departments has its own strict standards for operating and using data involving multilevel review plus approval.

Kucoin KCS Token

Kucoin has its own native token, KCS or Kucoin Shares, with a total supply of 200 million. A minimum of 10 percent of each quarter’s net profit is allocated to buying back KCS, and those that KCS bought back are destroyed immediately, until they reach 100 million. KCS works with all Ethereum wallets, as it is a decentralized cryptocurrency based on Ethereum

Kucoin ICO (Initial Coin Offering) occurred in three stages. The first phase accounted for 35 percent, about 70 million tokens, and involved issues for the founders. The second phase was for industry stars, consultants, and early investors, accounting for 15 percent or 30 million KCS. The final, third phase, was for all users, and this public ICO accounted for the remaining 50 percent or 100 million KCS.

The KCS issued by founders within the first phase undergo a lockup period lasting four years and ending Sept. 2, 2021. Before Sept. 2, 2018, founders cannot sell or assign their KCS holdings. The angel investors and consultants have a two-year lockup period, ending on Sept. 2, 2019. The KCS purchased during the public offering do not have a lockup period, so they went on the exchange on Sept. 2, 2017.

Holding KCS Token comes with the Kucoin bonus awarded on a daily basis. This incentive bonus is 50% of all trading fees that the platform charges, with the percentage open to adjustment in the future. To achieve the daily bonus, users must have their KCS deposited within the Kucoin Platform.

Those with a minimum number of KCS in their Kucoin account can also take advantage of reduced trading fees at the time that they place orders for online trades. Eventually, KCS will reach certain levels, at which point those users who hold this token will get access to customer service Fast-Pass, one-on-one investment consultation, and other exclusive services.

Conclusion

Although Kucoin has arrived relatively recent in the world of cryptocurrency exchanges, it has been in the works for years, with the founding members having explored and researched various possibilities as early as 2011. Kucoin covers all of the most common cryptocurrencies with multiple trading pairs, plus they are very quick to list new coins. With the competitive trading and withdrawal fees, Kucoin seems ready to make its mark as a leader for cryptocurrency exchanges.

Soruces: BlockonomiKucoin Website

avatar
Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.