KuCoin is a centralized cryptocurrency exchange (CEX). It was launched in 2017. The key services provided are KuCoin spot and margin trading, derivatives market, and peer-to-peer (P2P) fiat transfers. It also offers additional services such as the KuCoin Wallet, the Windvane NFT Marketplace, as well as staking and lending mechanisms.
The KuCoin crypto exchange is not licensed in the USA. This means that US-based traders cannot use any of the services provided by KuCoin.
Markets
As of 2022, there are more than 700 different assets listed on the exchange. This brings the number of available KuCoin trading pairs up to more than 1,200. The KuCoin blockchain has its own token, known as KuCoin Shares (KCS). Customers that use KCS tokens on the KuCoin crypto exchange are eligible for discounts and lower trading fees.
The KuCoin spot trading platform uses an automatic matching engine to complete market orders. According to the company, KuCoin can support up to 1 million transactions per second. KuCoin offers free deposits for all digital assets. The withdrawal fee rates are asset-specific and demand a minimum withdrawal amount.
There are 13 levels to KuCoin crypto fees, from LV 0 to LV 12, as well as three classes that are based on the base currency – A, B, and C. Fees may differ for makers and takers. The KuCoin crypto price can be discounted if the trader pays using KCS tokens.
At Level 0, if the 30-day KuCoin spot trading volume is below 50 BTC and the user holds up to 1000 KCS, both the maker and taker fees are 0.1%, discounted to 0.08% if the payments are made using KCS.
At level 12, traders must hold a minimum of 150,000 KCS, and the spot trade volume must be at least 20,000 BTC. At this level, the KuCoin exchange fees are 0.005% for makers and 0.025% for takers, discounted to 0.005% and 0.02%, respectively, when paying with KCS.
Since April 2021, the KuCoin crypto exchange has been offering leveraged tokens. They act as KuCoin spot tokens that provide up to 10x leverage in margin trading. Subscription, trading, redemption, and management fees apply.
There are three types of futures markets on KuCoin:
- Futures Classic – standard cryptocurrency futures trading;
- Futures Lite – simplified futures trading;
- Futures Brawl – gamified trading that can be done individually or in teams.
There are over 130 KuCoin trading pairs available in the futures market. All tokens in the futures market are considered Class A. The KuCoin price of the Class A tokens determines the fee rate.
At Level 0, when the 30-day trade volume is less than 200 BTC, the KuCoin exchange fees for the future market are 0.02% for market makers and 0.06% for takers. Users are not required to hold KCS tokens. Holding at least 1,000 KCS and exceeding a 30-day KuCoin volume of 200 BTC puts them at Level 1 with 0.015%/0.06% maker/taker fees.
At level 12, the required 30-day KuCoin trade volume is at least 160,000 BTC and users are required to hold a minimum of 150,000 KCS. The respective maker/taker fees are 0.015% and 0.03%. The KuCoin crypto price discounts with KCS do not apply to the futures market.
Other Services
The KuCoin Trading Bot is a free-to-use trading tool for the futures market. It can automatically rebalance investment portfolios, analyze real-time data, and adjust to market conditions.
Customers can use one-click purchases to buy cryptocurrencies using Visa, PayPal, SEPA, or other supported payment methods. In addition to digital assets, the KuCoin crypto exchange also supports more than 50 fiat currencies. Customers can purchase fiat without a middleman.
KuCoin Earn is a staking platform. It allows customers to stake their assets using one of the available cryptocurrencies and receive passive earnings. Additionally, users can join the referrals program.
KuCoin Wallet is a digital token storage solution. KuCoin customers can use it to store their cryptocurrencies. The KuCoin Wallet can be directly connected to Windvane, an NFT Marketplace powered by KuCoin.
Developers can access KuCoin API, which allows them to work with trading strategies based on real-world data. KuCoin Labs is an investment and research incubation program that supports early-stage blockchain projects.
About the Company
Kucoin was created in Singapore by a team of seven co-founders, with Michael Gan and Eric Don at the helm. It's currently based in Seychelles. Although the KuCoin cryptocurrency exchange officially went live in 2017, the development started in 2013, when Gan and Don started working on the code for the platform.
KuCoin was created as a more user-friendly alternative to Mt. Gox, the then-popular bitcoin trading platform that ceased operations in 2014. The platform was launched in September 2017. In November 2018, the KuCoin crypto exchange fully implemented KYC verification to comply with AML regulations.
In 2021, the user base for the KuCoin crypto exchange surpassed 10 million registered users, increasing ninefold compared to 2020. Additionally, by the end of 2021, the cumulative KuCoin volume for both spot and futures trading exceeded $1 trillion for the first time since its launch.
The KCS token has played a significant role in the performance and functionality of the platform. According to the project team, the platform's growth led to the KuCoin crypto price for the token peaking at $28.77 in 2021.
The Trading Bot feature was launched in early 2021 to facilitate easier tracking of market conditions. In December 2021, the platform also launched an upgraded version of its referral program. In May 2022, KuCoin expanded its services to include the Windvane NFT Marketplace.
According to the company's semiannual report for H1 2022, the KuCoin cryptocurrency exchange nearly reached 20 million registered users, with 9.75 new customers joining during the period, and increased its valuation to $10 billion after a series of large-scope VC investments.
The KuCoin trade volume for both spot and futures markets grew by 180% compared to H1 in 2021. Overall, it surpassed $2 trillion. The KuCoin spot market reached its record trade volume at $11 billion, whereas the futures market trading volume peaked at $23 billion.
In mid-2022, KuCoin was considered the fifth-largest centralized cryptocurrency exchange in the world based on volume. According to its demographic data, the KuCoin crypto exchange is one of the most globalized, as roughly 70% of the user base is from the EMEA and SEA regions.
KuCard is the platform's upcoming physical Visa card. It plans to initially support KCS, BTC, and USDT. According to the team, no annual KuCoin crypto fees will be applied, although there may be trading fees for crypto-fiat conversions.
Michael Gan is the CEO of KuCoin. He has been involved with the crypto scene since 2012 and is considered one of the early bitcoin investors. Prior to founding the KuCoin crypto exchange, Gan worked as a tech expert for Ant Financial, an affiliate of the Alibaba Group.
Eric Don is the former President of the KuCoin crypto exchange. Don is a system architect who directly worked on KuCoin's blockchain development. Like Gan, he's one of the early bitcoin investors, having been in the crypto scene for over a decade.
