Kucoin (KCS) 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.
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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.
What is Kucoin Chain?
Kucoin Chain (KCC) was built by the fans and communities of KCS and launched just a month ago. This is a decentralized public chain with high performance to provide users with faster, convenient, and low-cost experiences.
The chain is fully compatible with Ethereum Network (ERC-20) and smart contracts with a block time of 3 seconds. Adopted by the Proof of Staked Authority (PoSA) algorithm, Kucoin Chain offers low latency, high security, and stability for its users.
KCS holders can use the native token (KCS) to get benefits of reducing transaction costs by paying on-chain gas fees on the Kucoin Chain. This means KCS usage will be increasing followed by the evolution of the chain.
Understanding KuCoin Exchange and KCS Token
KuCoin has a tendency to list small-cap cryptocurrencies that have huge growth potential. Additionally, it offers access to a large selection of tokens, including lesser-known coins. Moreover, it has one of the most generous profit-sharing incentives – up to 90% of trading fees are given back to KCS holders.
The total market cap of KCS is currently $919,605,428 and ranks 96 on CoinMarketCap, at the time of writing. There are 80,118,638 KCS in circulation with a max supply of 170,113,638. KuCoin’s buyback and burn strategies will continue till only 100 million tokens are left.
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
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.
What Makes KCS Unique?
KCS Bonus is a unique incentive mechanism for KCS holders and KuCoin ecosystem builders. It is also regarded as one of the best ways to make passive income. Users who hold at least 6 KCS can get a daily bonus, which comes from 50% of KuCoin’s daily trading fee revenue. The amount of rewards that users can get depends on the number of KCS hold and the trading volume of the KuCoin Exchange. With the increasing trading volume of KuCoin, the estimated APR of KCS bonus exceeds 30% lately. According to the KuCoin annual report, one KuCoin user got 70,000 KCS bonus in 2020. Buy KCS and get a daily KCS bonus.
What Is KCS Used For?
Kucoin, as a utility token, has a number of use cases. In the KuCoin ecosystem, KCS can be used to pay trading fees on the KuCoin Exchange, allowing users to enjoy discounts of 20%. The use case of KCS also includes participation in token sales on KuCoin Spotlight, as well as LockDrop/BurningDrop on the Pool-X platform.
Furthermore, KCS, as a payment method, also has a lot of use cases, such as:
1)SwirlPay, a decentralized payment service, supports KCS payments.
2)PlayGame, a direct-to-play gaming platform, enables users to play games with Kucoin.
3)KCS can be used to make hotel reservations on Travala, the leading blockchain travel booking platform.
4)Purchase fashionable products on Print-ted with KCS.
5)KCS is able to serve various offline and online payment scenarios via Pundi X.
6)Use Kucoin to buy monster card packs on Splinterlands.
7)Collateralize KCS to borrow US Dollars (USD) and Vietnamese Dong (VND) on Constant.
8)CoinPayments, a borderless online payment platform, accepts payments in Kucoin.
9)BetProtocol added KCS as the main token used on their gaming applications.
What Is KCS Burn?
The KCS team is executing KCS buyback and burn regularly. Starting from January 2021, the KCS team decides to adjust the period of KCS buyback and burn from each quarter to each month. In each period, 10% of the net profit will be applied to the buy-back of KCS.
KCS Token Metrics
- Ticker: KCS
- Contract: 0xf34960d9d60be18cc1d5afc1a6f012a723a28811
- Decimal: 6
- Blockchain: Ethereum
- Token Standard: ERC-20
- Token type: Utility Token
- Total Supply: 170,118,638
- Circulating Supply: 80,118,638
KCS Token Distribution Plan
The ICO lasted from August 13th 2017, until September 1st and raised nearly $20 million in BTC with 100M KCS distributed among founders and private investors, as well as another 100M sold during the crowdsale for an average price per coin at 0.000055BTC or approximately $0.197326 each.
This was a significant increase since launch when they were only trading at ฿0.0002100.
KCS Token Use Case
KCS Token will be used as:
- Token Burning – A certain amount of KCS will be bought back and burned regularly using the platform’s profit. This model is similar to other exchanges such as Binance and Huobi. The detailed information on the process is provided on the exchange website.
- Holding Initial Exchange Offerings (IEO) – Users usually have to lock Kucoin for a certain period of time to participate in new listings from Kucoin Exchange. Various new IEO projects can be found on their website.
- Trading commission discounts – The trading fee on Kucoin starts at 0.1%. Those fees can be reduced by 20% if users pay in Kucoin tokens. Further discounts are also available based on the certain amount of KCS held by users.
- Voting and other management functions – Kucoin gives privileges to Kucoin holders by allowing them to vote in its ecosystem.
- Incentives bonus – KCS holders receive their daily dividends by holding their tokens.
Using the KuCoin Exchange
Just like any exchange, KuCoin has been designed to allow its users to buy, sell, and safely store a variety of cryptocurrencies either using their online platform or mobile applications. Although you can register an account using just an email address or a phone number, if you go through the verification process, you can enjoy access to advanced features in addition to reduced fees and opportunities to earn rewards.
As for the KCS token, there are a number of applications and uses. It is used not only to pay trading fees but also to participate in events and token sales featured on KuCoin Exchange. The token is also used as a payment method across tons of applications ranging from gaming to retail to NFTs and even travel. SwirlPay, PlayGame, Travala, Print-ted, PundiX, and BetProtocol are just a few platforms that accept KCS as payment.
KuCoin Trading Bot
KuCoin offers the facility of Trading Bot that makes it easier for users to trade.
After creating an account and making a deposit, users can enter specific trading parameters and let the bot take over. Its Trading Bot uses information and analytics about the market in addition to other tools to analyze prices and forecasts. In addition to the users’ preferences, the bot then uses this combination of information to place buy and sell orders as the price moves. And voila! Trading Bot helps crypto traders make money while they sleep by recovering invested money as well as making pure profit.
KuCoin Trading Bot offers long-term trading strategies as well. Instead of investing several thousand dollars into any cryptocurrency all at once, users can instruct the Trading Bot to invest small amounts at certain intervals over time.
As CEO of KuCoin Global Johnny Lyu, makes note of, “Unlike other financial markets, crypto trading occurs on a 24/7/365 scale. Human traders can’t keep up with the ongoing changes. KuCoin acknowledges that its Trading Bot tool will solve the problem of needing sleep and trading based on emotions. It is a passive approach to trading cryptocurrency and maximizing one’s potential profit. Traders will have more time to enjoy life and do what they like, knowing that their crypto trading portfolio is working on their behalf.”
Kucoin Tokenomics
KuCoin Token (KCS) is the native cryptocurrency of the KuCoin exchange. It plays a crucial role in the KuCoin ecosystem and offers various benefits to its holders.
Key Features of KCS Tokenomics:
- Deflationary Model: KuCoin employs a deflationary model for Kucoin, involving monthly buybacks and burns of the token. This mechanism reduces the circulating supply over time, potentially increasing its value.
- Profit Sharing: KCS holders are entitled to a share of the exchange’s trading fee revenue. This profit-sharing model incentivizes token holders and fosters a sense of ownership.
- Trading Fee Discounts: Using KCS to pay trading fees often results in significant discounts, making it more cost-effective for users.
- Exclusive Benefits: KCS holders may enjoy exclusive benefits, such as access to token sales, airdrops, and other perks offered by the KuCoin platform.
- Staking Rewards: While not currently available, there’s potential for staking rewards to be introduced in the future, allowing users to earn additional Kucoin by holding their tokens.
- Governance: Kucoin holders might have a say in platform governance decisions through voting rights or other mechanisms, although this aspect is still evolving.
Token Distribution and Supply:
- Initial Supply: KuCoin had a total supply of 200 million KCS tokens.
- Burn Mechanism: The ongoing buyback and burn process gradually reduces the circulating supply.
- Target Supply: The ultimate goal is to stabilize the supply at 100 million KCS through consistent burning.
Importance of KCS in the KuCoin Ecosystem:
- Ecosystem Growth: Kucoin plays a vital role in incentivizing user participation and driving the growth of the KuCoin ecosystem.
- Platform Sustainability: The profit-sharing model helps ensure the long-term sustainability of the exchange.
- User Benefits: Kucoin holders enjoy various advantages, including fee discounts and potential access to exclusive offerings.
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.
Conclusion
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.
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