Introduction
Since its launch in 2017, KuCoin has quickly risen to become one of the top 5 cryptocurrency exchanges worldwide thanks to competitive fees, an extensive range of altcoin assets and a slick user experience.
But how does it stack up across critical categories like fees, security, regulation and support compared to giants like Coinbase and Binance? This comprehensive KuCoin review will analyze key strengths and weaknesses to see if it‘s the best fit for you.
Here‘s what I‘ll cover:
- Founding and growth milestones
- Standout features
- Competitive fee structure
- Altcoin selection pros/cons
- Deep dive into 2020 hack
- Support and regulation limitations
- Final recommendation with scoring
Let‘s start at the beginning – how, why and by whom KuCoin came to be.
The Origins of a "People‘s Exchange"
In 2013 Michael Gan, Eric Don, Kent Li and Johnny Lyu wrote the first lines of code for what would become KuCoin during a casual meetup at a Hong Kong café.
Their vision? To build a next-generation cryptocurrency exchange catering to regular investors – not just institutions and whales.
"KuCoin aims to provide users digital asset transactions and exchange services which are even simpler, quicker and safer." – Johnny Lyu, KuCoin CEO
The founding team named it "KuCoin" combining multiple meanings…
Ku: Based on kupi, Thai slang meaning "to buy assets at a discounted price."
Coin: Short for cryptocurrency, the exchange‘s primary focus.
After four years of development, KuCoin (conveniently abbreviated KC) finally launched full trading services in September 2017 out of their headquarters in Singapore.
Business growth exploded through 2018 raising over $20 million USD in Series A funding alone. Here‘s a quick look at major milestones since 2013 founding:
| Year | Milestone |
|---|---|
| 2013 | KuCoin founded, early codebase development starts |
| 2017 | KuCoin exchange goes live fully after 4 year buildout |
| 2018 | Raises $20M USD in Series A funding, launches iOS app |
| 2019 | Launches KuCoin Spotlight and Pool-X staking platform |
| 2021 | $150M USD raised in Series B funding round |
| 2022 | Surpasses $500M USD in financing, adds Windvane NFT Marketplace |
Fueling this exponential growth? Let‘s analyze the standout features attracting millions of traders in the next section.
Key Features – What Makes KuCoin Stand Out?
With over 200 competing crypto exchanges in 2022, unique features and perks separate the top platforms. KuCoin‘s developed several through constant innovation that appeal to traders.
KCS Token Unlocks Platform Benefits
The exchange‘s own KCS token powers incentive programs based on the user‘s KCS balance including:
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Daily Bonus: KCS holdings earn bonus interest daily paid in KCS automatically. Rates run from 0.5% up to 4% based on membership level tier.
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Trading Discounts: Holding and paying fees with KCS grants a baseline 20% discount off trading fees. At higher membership tiers this expands up to 36% off.
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New Listing Benefits: KCS holders get exclusive preview trading windows and larger allocations for lucrative new crypto listings before the general public.
As one of the oldest exchange tokens, KCS burns have exceeded 968 million tokens destroyed so far. Continued burns and buyback initiatives make holding KCS promising long-term.
Margin Trading Allows Advanced Strategies
KuCoin caters nicely to active traders through its web and app interfaces. Users enjoy stop-limit orders, good charting tools and order books.
One powerful feature is the margin trading platform allowing traders to go long/short with up to 10x leverage on BTC, ETH, XRP, EOS, LTC, BSV and more against USDT or KCS.
Available leverage varies by pairs based on volatility considerations. This allows for advanced trading techniques impossible on standard spot exchanges. However the substantial risks of liquidations means margin trading remains for experienced investors only.
Lending and Staking Opportunities
In addition to trading, KuCoin allows users to grow holdings passively via staking and lending programs.
KuCoin Pool uses a PPS+ distribution model allowing miners to band together to earn higher profits supporting BTC, BCH and ETH with just a 2% fee.
Meanwhile KuCoin Lend facilitates token lending to vetted institutions and market makers. Unlike risky defi protocols, lenders retain ownership while earning attractive daily interest between 3-20% APY denominated in the asset lent including popular coins like BTC, ETH, DOT, SOL and stablecoins.
Auto-subscription makes participating a breeze directly through your account.
Fees – Low Cost Trading at All Levels
Trading fees represent a significant expense over an active investor‘s portfolio lifetime. Minimizing these per trade or swap costs results in major savings.
KuCoin utilizes a adjustable maker/taker structure with progressive discounts based on 30-day trade volumes and KCS holdings. They‘ve structured one of the most aggressive fee schedules compared to large competitors.
| Exchange | Lowest Possible Fees | Maker/Taker Model? |
|---|---|---|
| KuCoin | 0% Maker / 0.02% Taker | Yes – 11 Volume Tiers |
| Coinbase | 0.4% Maker / 0.6% Taker | No – 2 Tiers Only |
| Binance | 0.02% Maker / 0.06% Taker | Yes – 9 Volume Tiers |
| Crypto.com | 0% Maker / 0.04% Taker | Yes – 8 Tiers + CRO Staking |
Among mainstream exchanges, only Binance matches KuCoin‘s ceiling with ultra-low fees for biggest traders.
However KuCoin‘s base fees start lower and its mid-tier brackets like 0.07% maker / 0.1% taker applicate to more moderate investors compared to Coinbase‘s 0.5% charges.
Here‘s a real example. With $50K monthly spot trading volume and 50,000 KCS holdings, you‘d qualify for Level 6 fees:
- Maker: 0%
- Taker: 0.06%
On a $10,000 Bitcoin trade, that would cost just $6 in taker fees compared to $50 on Coinbase Pro or $35 at baseline Binance pricing.
Savings add up quickly, especially for altcoin traders who may convert several times across many assets.
Altcoin Offerings – Top Exchange for Small Caps
Unlike Coinbase which focuses heavily on the top 20-30 largest cryptos, KuCoin built its reputation on altcoin gems and small caps.
With over 600 coins and 1400+ pairs, KuCoin crushes competitors on asset selection size. Listings span multiple sectors like smart contracts, DEXs, layer 1s, algorithmic stablecoins, gaming/metaverse tokens and more.
Popular coins include LUNA, AAVE, UNI, SUSHI, BNB, MANA, SAND plus up and comers like GMT, JUNO or LBLOCK.
But this long tail approach isn‘t without downsides…
Obscure project listings undergo less rigorous vetting so plenty of junk lands on KuCoin too. And hidden gem liquidity can remain low between hype cycles.
Still, traders hunting early entry to innovative crypto projects consistently rank it as among the best exchanges to find tomorrow‘s Top 50 winners today.
Trust and Security – Lessons Learned from 2020 Hack
No cryptocurrency owner wants to lose access to funds due to negligence, technical failures or theft by malicious actors.
So an exchange‘s security track record and risk management safeguards should weigh heavily in any recommendation.
In September 2020, KuCoin suffered a devastating security breach resulting in over $280 million worth of crypto assets stolen from compromised private keys.
The root cause? An internal private system became exposed granting the initial foothold hackers exploited to begin siphoning funds.
KuCoin deserves credit for their decisive response…
The company directly informed users within 15 minutes of detection while immediately halting withdrawals. Withdrawing services resumed less than two weeks later as the team contained damages.
Remarkably by the one month mark, KuCoin recovered 84% of stolen funds in collaboration with fellow exchanges, law enforcement and industry partners – all without impacting user accounts. Insurance covered remaining losses.
They published a detailed post-mortem outlining improvements to locking procedures, hot/cold wallet management, internal access policies, DDoS countermeasures and more.
Since then – no further incidents.
Of course risks persist in crypto and users should activate all available account security like 2FA. But KuCoin deserves praise for their recovery efforts and using the breach to meaningfully upgrade defenses.
Regulation and Support
KuCoin maintains headquarters in Seychelles with core operations residing in Hong Kong and Singapore.
Without licensure to support USD deposits/withdrawals, KuCoin focuses less on US-based customers leading to limitation around fiat channels.
Domestic traders must utilize crypto transfers or wire services eating into funding/cashing savings. And the platform lags American counterparts in complaint resolution policies.
However English language assistance excels across live chat, Discord and Reddit with simple queries answered promptly and politely.
As a more internationally targeted exchange, KuCoin sets itself apart on altcoin assets unlike Coinbase tailoring itself to institutional investors with stricter compliance standards.
So weighing advantages around fees, security and innovation against lagging regulatory approval and support – is KuCoin the best crypto exchange for you?
Final Verdict – Who is KuCoin a Fit For?
For traders focused exclusively on major market cap assets, U.S. dollar onboarding/offboarding and cautious security models – Coinbase Pro likely better suits your needs despite higher base costs. Binance.US operates similarly with improved altcoin variety in a regulated framework.
But for heavy altcoin traders globally prioritizing early access, niche pairs, staking benefits and rock bottom fees over fiat channels or hand holding support – KuCoin deserves your attention.
The exchange stands clearly among best in class for low fee structure appealing to active investors across the portfolio size spectrum. With 600+ assets, margin capabilities, lending yields and innovative growth initiatives like Windvane NFT marketplace – KuCoin stays ahead of competition.
While 2020‘s hack rightfully shook confidence, the team‘s response kept users whole while crystallizing security improvements further legitimizing KuCoin‘s long term staying power.
Combined these factors make KuCoin a 4.5 out of 5 star cryptocurrency exchange recommendation and cost-effective trading destination for knowledgeable investors.
Despite communication gaps with support and lingering regulatory uncertainty that caps score from a perfect rating – KuCoin continues positioning itself as a top innovation leader focused on what matters most to traders.
