What is Kucoin? How It Works? Complete Guides 2024

KuCoin is a centralized cryptocurrency exchange created in 2017 with an aim to be a “simple and safe platform for people all over the world” to trade various digital coins. It has made it to Forbes’ list of best crypto exchanges of 2021 due to the “wide library of altcoins at low fees”.

It has a native token, KuCoin Token (KCS), with a circulating supply of 78 million and a total supply of 168 million. Its market cap is currently valued at $880 million. As a KCS token holder, you can earn passive income through trading fee rewards.

How does kucoin work?

Kucoin is a cryptocurrency exchange platform that allows users to buy, sell, and trade various digital assets. Here’s a breakdown of its functionalities:

Trading:

• Spot Trading: This is the most common type of trading on Kucoin, where users buy and sell cryptocurrencies at current market prices or place limit orders to buy/sell at specific prices
• Margin Trading: For experienced users, Kucoin offers margin trading, allowing you to borrow funds to amplify your returns (higher risk as well).
• P2P Trading: This feature connects buyers and sellers directly, enabling users to agree on prices and payment methods for peer-to-peer crypto transactions with Kucoin acting as an escrow service

Other Features:

• KuCoin Earn: This product allows users to earn passive income on their crypto holdings by staking or lending their assets
• KuCoin Pre-Market: This unique feature enables users to participate in the trading of new tokens before their official listing on the exchange
• Trading Bots: Kucoin offers trading bots that automate your trading strategies based on pre-set parameters.

Additional Points:

• KuCoin Shares (KCS): Holding KCS, the native token of Kucoin, offers benefits like reduced trading fees and profit sharing.
• Fees: Kucoin has a tiered fee structure, with lower fees for higher trading volumes and KCS holders.

Getting Started:

If you’re interested in using Kucoin, you’ll need to create an account and fund it with crypto or fiat currency (depending on your location and payment options). There are also resources and tutorials available on the Kucoin website to help you get started.

Important Note: Remember, cryptocurrency trading involves risks. Always do your own research before investing in any crypto asset.

Features of KuCoin Exchange

On the KuCoin cryptocurrency exchange, you can buy, sell and trade over 400 cryptocurrencies. It offers various trading options such as spot, margin, futures, peer-to-peer, lending, and staking. Other features include:

1. Low fees trading

KuCoin charges a 0.1% fee per trade. For example, if you purchase $1,000 worth of Litecoin (LTC), you’d only pay one dollar trading fee. This is one of the lowest in the industry and similar to Binance.

2. Supporting small market cap cryptos

KuCoin lists a large selection of tokens including lesser-known coins or small-cap coins with huge growth potential.

3. Buy crypto with top fiat currencies

Using a peer-to-peer fiat trade, credit or debit card, you can buy cryptocurrencies with fiat currencies i.e. USD, EUR, GBP, CNY, CAD, and AUD.

4. User- and beginner-friendly platform

You can access KuCoin via desktop or mobile app and experience excellent design that makes trading easy and enjoyable.

5. Non-custodial trading

If you’re particularly concern about security, you can trade on KuCoin directly from your private wallet via its partner, the Arwen protocol.

Why KuCoin Is Unique

Unlike other cryptocurrency exchanges, you can stake your KCS tokens on KuCoin and earn rewards. This is one way for you to earn passive income when joining the KuCoin community. If you hodl more than six KCS tokens, you are eligible to earn rewards daily.

Besides that, there are no forced KYC checks; it’s optional. You’d only need to register an account with your email address. However, if you choose to go through the verification process, you will be able to access advanced features. These include increased daily withdrawal limits, simplified account recovery, and opportunities to earn rewards.

What Is KCS Token Used For and Its Benefits

You can use KCS tokens to pay trading fees and participate in events and token sales, as well as a payment method across various applications.

Initially, the KCS token supply was at 200 million. But due to the burning strategy, it’s been brought down to 168 million at the time of writing. This will continue until only 100 million tokens are left.

As a KCS token holder, you will receive benefits such as:

• Daily cryptocurrency bonus i.e. a 50% share of all trading fee profit.
• Trading fee discount—you would need at least 1000 KCS for a 10% discount and a minimum of 40,000 KCS for a full discount, but some trading pairs may have different fees.
• Access to more trading pairs including BTC, ETH, LTC, USDT, XRP.

How Does KuCoin Trading Bot Work?

You can make use of KuCoin’s Trading Bot if you’re an avid trader who perhaps needs more sleep or wants to avoid trading based on emotions.

With the Trading Bot, you can maximize your potential profit as it automates buy and sell orders based on your preferences and market analysis. You would only need to enter specific trading parameters and then let the Trading Bot look out for price moves on your behalf.

Additionally, the Trading Bot also offers long-term strategies where you can instruct it to invest small amounts at certain periods of time. That way you don’t have to invest thousands of dollars all at once.

KuCoin Trading Bot automates your crypto trading strategies on the exchange. Instead of manually monitoring markets and placing orders, the bot executes trades based on your predetermined rules. Here’s a breakdown of how it works:

Types of Bots:

KuCoin offers various bots suited for different strategies:

• Spot Grid Bot: Sets buy and sell orders within a price range, aiming to profit from market volatility.
• Futures Grid Bot: Similar to Spot Grid but operates in the futures market, allowing leveraged positions (higher risk, higher potential reward).
• Dollar-Cost Averaging (DCA) Bot: Invests a fixed amount of money into a chosen asset at regular intervals, aiming to average out the purchase price over time.
• Infinity Grid Bot: An advanced version of Spot Grid with a wider price range for potentially more trades.
• Martingale Bot: A riskier strategy that increases investment after a loss (not recommended for beginners).
• DualFutures AI Bot: A fully-automated bot using AI to manage positions across two futures contracts.
• Smart Rebalance Bot: Rebalances your portfolio holdings to maintain your desired asset allocation percentages.

Setting Up the Bot:

• Choose your preferred bot type based on your trading strategy and risk tolerance.
• Define the parameters for your chosen bot, which may include:
  • Trading pair (e.g., BTC/USDT)
  • Investment amount
  • Price range for buy/sell orders (for Grid bots)
  • DCA investment interval and amount
  • Leverage (for Futures Grid bot)
• Once configured, the bot monitors market prices and executes trades automatically based on your set rules.

Benefits:

• Reduced emotional trading: Removes human emotions like fear and greed from your trading decisions.
• 24/7 market monitoring: The bot can constantly watch the market, unlike a human trader.
• Discipline and automation: Ensures you stick to your trading strategy and automates repetitive tasks.

Things to Consider:

• Not a guaranteed profit: Cryptocurrency markets are volatile, and profits are not guaranteed.
• Backtesting and monitoring: Test your bot’s strategy with historical data (backtesting) before deploying it with real funds. Monitor the bot’s performance and adjust parameters as needed.
• Understanding the risks: Choose a bot strategy that aligns with your risk tolerance and understand the inherent risks of cryptocurrency trading.

Overall, KuCoin Trading Bots can be a valuable tool for automating your crypto trading strategies. However, it’s crucial to choose the right bot for your goals, understand the risks, and monitor its performance.

Is KuCoin Safe?

Up until 2020, the exchange was free of hacks and was considered very secure. The data encryption and security were at bank-level or finance industry standards. They also have specialized risk control departments to ensure user funds are safe.

However, in 2020, $281 million was stolen by suspected North Korean hackers. KuCoin claimed to have recovered 84% of the stolen funds and refunded their customers.

Despite that incident, it seems that many users still trust that KuCoin is fairly safe and reliable as the exchange gains popularity over the past year.

But with any crypto exchange, it’s important that you don’t store all your funds in the exchange wallet. You should also take the time to set up security measures such as two-factor authentication, utilizing a password manager, and using a hardware wallet.

Summary of KuCoin Pros and Cons

Over the years, KuCoin has built a solid reputation in the industry. Due to its commendable features, it’s now ranked as one of the top 10 cryptocurrency exchanges.

Here is a summary of the pros and cons of KuCoin for you to consider trading and staking crypto tokens:

Pros:

• Supports a variety of cryptocurrencies
• Low trading fees
• Opportunity to earn crypto yields
• Optional verification process
• Simple to use and beginner-friendly

Cons:

• Low trading volume
• No fiat trading pairs
• May experience congestion during high-traffic periods

Disclaimer ||

The Information provided on this website article does not constitute investment advice,financial advice,trading advice,or any other sort of advice and you should not treat any of the website’s content as such.

Always do your own research! DYOR NFA

Coin Data Cap does not recommend that any cryptocurrency should be bought, sold or held by you, Do Conduct your own due diligence and consult your financial adviser before making any investment decisions!