Unlike traditional brokerage firms, cryptocurrency exchanges are not members of the Securities Investor Protection Corp. (SIPC). Therefore, unless user terms specify otherwise, investors with cryptocurrency assets commingled on a custodial cryptocurrency exchange could potentially lose their funds as unsecured creditors.
Pros Explained
- Ability to earn interest on crypto: KuCoin users can earn interest on their crypto by staking certain assets or lending them to others and charging interest. Earning rewards on your crypto can help you build a larger portfolio.
- Wide selection of cryptocurrencies: Unlike some exchanges that offer a few dozen cryptocurrencies available for trade, KuCoin offers over 700.
- Low fees: Compared with other major exchanges, KuCoin offers relatively low trading fees. Users can expect to pay between 0.005% and 0.10% per trade, and a 20% discount on trading fees is offered when using its token,KuCoin Token(KCS).
Cons Explained
- Not licensed in the U.S.: KuCoin is not licensed in the United States, so U.S.-based users should consider other exchanges.
- Poor user reviews: While negative reviews are common with crypto exchanges, KuCoin’s user reviews are especially poor. Reviewers report problems with withdrawals, customer service, and issues with market manipulation.
Introduction
KuCoin is a large cryptocurrency exchange offering the ability to buy, sell, and trade cryptocurrencies. In addition to basic trading options, the platform offers margin, futures, and peer-to-peer (P2P) trading. Users can also choose to stake or lend their crypto to earn rewards. Compared to some competitors, KuCoin offers low trading fees, making it an attractive option.
Investing in cryptocurrencies, Decentralized Finance (DeFi), and other Initial Coin Offerings (ICOs) is highly risky and speculative, and the markets can be extremely volatile. Consult with a qualified professional before making any financial decisions. This article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies nor can the accuracy or timeliness of the information be guaranteed.
Company Overview
Launched in 2017, KuCoin is a crypto exchange headquartered in Seychelles. Since its founding, it’s grown to be one of the largest global exchanges by trade volume, and it now has over 20 million users and a presence in more than 200 countries.
While U.S. users can sign up for a KuCoin account, access to features is limited because KuCoin isn’t licensed to operate in the United States. Given this, signing up for an account could present some risks. For instance, if U.S. regulators decide to crack down on KuCoin, you might not be able to withdraw your assets.The exchange has also had regulatory issues in countries like The Netherlands and Canada.
When FTX fell in November 2022, a lot of users rumored that KuCoin had significant exposure to FTX. KuCoin CEO Johnny Lyu assured users that it had no exposure and wasn't connected to FTX in any way. In light of those events, KuCoin released a Proof of Reserves like other crypto exchanges to solidify user trust.
Cryptocurrencies Available
KuCoin offers over 700 cryptocurrencies for users to buy, sell, and trade. Those looking for a wide selection of assets may appreciate what this exchange provides. Here’s a partial list of cryptocurrencies that are currently available on KuCoin:
- Bitcoin (BTC)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Polkadot (DOT)
- Shiba Inu (SHIB)
- XRP (XRP)
Trading Experience
KuCoin users can access their accounts through an online portal or mobile apps, available for Android and iOS. Both its desktop site and mobile apps offer an abundance of features and tools.
Once logged in on desktop or mobile, KuCoin users can click to view markets, buy crypto, trade, lend crypto, and more. The platform supports four order types—market, limit, stop-limit, and stop-market. Margin, futures, and P2P trading are also available, which could be a plus for certain users. Additionally, KuCoin supports staking and recently introduced a Trading Bot feature to help simplify the trading process; it essentially acts as a robo-advisor for your cryptocurrency portfolio.
While this exchange offers many options, its desktop and mobile platforms aren’t particularly user-friendly. That said, the site does offer a robust help center where users can find answers to common questions.
Beginner crypto traders will likely be overwhelmed by the many tools and features KuCoin offers. If you’re new to crypto, consider a more user-friendly exchange that’s slightly easier to navigate.
Fees
KuCoin offers a tiered maker/taker fee model, with trading fees ranging from 0.005%-0.1%, depending on your tier level. Its fees are relatively low compared to competitors, which may charge up to 0.50% per trade. Users can also get trading fee discounts based on their KuCoin Token (KCS) balance.
In addition to trading fees, KuCoin also charges withdrawal fees that vary by asset and are subject to change based on market performance. Deposits are free on this exchange, but it’s important to note that KuCoin offers limited options for fiat deposits at this time.
Security
While KuCoin offers KYC verification and industry-standard security features, this exchange was subject to a major hack in 2020. Hackers stole over $280 million worth of crypto from users’ hot wallets. Fortunately, the assets were covered by an insurance fund, but a security breach of this magnitude is still concerning.
In addition to its security features like multi-factor authentication and encryption, KuCoin offers users a separate password for trading. This password is in addition to users’ regular login information and is required to make trades or withdraw assets. It provides an added layer of protection and is an uncommon security feature among crypto exchanges.KuCoin also has a business wallet address verification system, to reduce the rate at which users fall for phishing scams.
Opening an Account
Opening an account with KuCoin is simple, and the process takes just a few minutes. To get started, visit the KuCoin homepage and click “Sign Up” in the upper right-hand corner of the page. From there, you’ll enter your phone number or email address, a verification code, and a password. Once your account is set up, you can start trading.
You can then choose to go through the KYC verification process, which will give you access to higher daily withdrawal limits and access to more features. KuCoin offers both basic and advanced KYC verification options.
To complete the basic process, simply log into your account, click on “KYC verification” under your avatar, and enter some basic personal information. If you choose to complete the advanced process, you will need to provide supplementary documents, like a selfie or a photo of your government-issued ID, in addition to your basic personal info. Completing the advanced verification gives you access to more trading benefits.
Customer Service
KuCoin offers multiple options for customer support, though similar to many competitors, you can’t contact someone directly over the phone or via email. However, users can engage in a live chat to get answers to basic questions or submit a request for assistance to get help with more complicated issues.
KuCoin also offers a support page, which could be useful if you need help navigating the site or its features and tools.
Customer Satisfaction
KuCoin receives poor marks overall from its users. Several negative reviews report problems with customer support, the withdrawal process, and making deposits. Others accuse KuCoin of market manipulation and say their assets randomly disappeared from their accounts, which is especially concerning. Despite the negative feedback, some reviewers did have positive things to say about KuCoin’s low fees and wide selection of cryptocurrencies.
Account Management
Users can access their KuCoin accounts via desktop, Android, and iOS mobile devices. Its platforms are available for free and once you’re signed up, you can log into your account to buy, sell, and trade crypto whenever you’d like. If you encounter problems or have questions about your account, you can reach out to KuCoin via live chat or submit a request for assistance.
How KuCoin Compares to Other Cryptocurrency Companies
KuCoin offers a huge selection of cryptocurrencies and relatively low fees compared to other crypto exchanges. It also supports staking and margin, futures, and P2P trading, which may appeal to more experienced users. However, there are some drawbacks to be aware of as well. KuCoin isn’t licensed in the U.S. and it was the subject of a major hack in 2020. If you’re interested in buying or trading crypto, here’s a look at how it compares to another top exchange, Coinbase.
KuCoin vs. Coinbase
Both KuCoin and Coinbase rank among the top cryptocurrency exchanges in the world by trading volume. However, there are some important differences between the two platforms:
- KuCoin is not licensed in the United States, but Coinbase is licensed in the U.S.
- KuCoin offers 700+ cryptocurrencies, while Coinbase supports just 150+.
- Coinbase has higher trading fees than KuCoin.
- Coinbase users can get phone support, while KuCoin doesn’t offer this option.
For U.S.-based users, Coinbase is likely the better option despite its higher trading fees. However, those outside of the U.S. may appreciate KuCoin’s lower fees and wider selection of crypto.
Read our full Coinbase review.
Final Verdict
KuCoin is a large global exchange that offers several features and tools that could appeal to more advanced traders. However, it receives poor marks from users and it’s not licensed to operate in the United States. If you’re based outside of the U.S. and have experience trading crypto, you may appreciate what KuCoin has to offer. However, be sure to do your due diligence before you sign up to ensure it’s the right platform for you.
Methodology
Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels.
Exchanges were reviewed on points including security, fees, number of cryptocurrencies available, and more. We also considered if the exchange is regulated by a proper agency or entirely decentralized. Our full cryptocurrency exchange methodology, including the review process and weighted data points, is available for review.
FAQs
KuCoin is a cryptocurrency exchange that operates in over 200 countries. 1 While experienced traders might appreciate some of this exchange's features, KuCoin isn't licensed in the U.S. and has received poor reviews from users. Not licensed in the U.S.
Will KuCoin report to IRS? ›
Yes. Earning cryptocurrency from mining, staking, or other related transactions is a form of income that needs to be reported on your taxes.
Is KuCoin a Chinese company? ›
China-based cryptocurrency exchange platform KuCoin hits $10B valuation.
Can I trade on KuCoin without verification? ›
The account verification process is optional, so people can trade crypto with just an email address. However, as discussed above, if you want to use its advanced features, you'll need to verify your account.
Is KuCoin safe for US citizens? ›
Yes, US citizens can access KuCoin. However, they must file their FBAR if they fall above the FBAR threshold as KuCoin is not based in the US.
Is Coinbase safer than KuCoin? ›
Winner: Coinbase
KuCoin and Coinbase are both very safe cryptocurrency exchanges insured against security breaches.
Can the IRS see my crypto wallet? ›
The IRS can track cryptocurrency transactions through several methods, including the use of subpoenas, blockchain analysis, and third-party reporting by cryptocurrency exchanges.
How does IRS know you sold crypto? ›
In addition, major exchanges issue 1099 forms to customers and to the IRS reporting on your crypto transaction activity. If you don't report transactions that have been reported to the IRS via Form 1099, you may automatically be sent a warning letter about your unpaid tax liability.
Why can't i withdraw from KuCoin? ›
If you are still unable to make a withdrawal after the resumption of the withdrawal service, ensure that the funds are in your KuCoin Main Account and you do not have any open orders in the spot, margin, futures or lending market. We hope this article has been helpful.
Is KuCoin verified in the US? ›
As mentioned, KuCoin is not licensed in the U.S. This means U.S.-based users may sign up for accounts, but they will remain “unverified,” which limits access to certain features.
KuCoin is a relatively new cryptocurrency exchange based out of Hong Kong. The exchange was established in May 2017 by an experienced team of blockchain and cryptocurrency professionals who started developing and building the exchanges architecture back in 2011.
Who is KuCoin owned by? ›
KuCoin is a subsidiary of a Seychelles-registered company called MEK Global Limited (MGL), the bank said in a statement.
Can you use KuCoin in the US without KYC? ›
Which crypto exchanges have no KYC? Exchanges like KuCoin, Changelly, and Pionex currently do not require KYC for customers. Does Coinbase require KYC? At this time, Coinbase requires KYC for all customers.
How much can you withdrawal from KuCoin? ›
KuCoin is a digital asset-only trading platform that doesn't support fiat withdrawals as of writing this guide. Users can withdraw a maximum of 1 BTC daily with an undefined or KYC1 KuCoin account, which is raised to 300 BTC with a KYC2 account.
How do I withdraw money from KuCoin to my bank account? ›
Web: Log in to your KuCoin account, then find the withdrawal page. You may type the token name in the search box, or scroll down and click on the token you want to withdraw. App: Log in to your KuCoin account, then click "Assets" - "Withdraw" to enter the withdrawal page.
Is leaving money on KuCoin safe? ›
KuCoin has taken several measures to ensure the security of its platform, including implementing two-factor authentication (2FA) for all user accounts, using cold storage to store the majority of user funds, and regularly conducting security audits.
How much can you withdraw from KuCoin in the US? ›
KuCoin has imposed 24H withdrawal limits, variable based on user levels. Customers with a level ranging between 0 and 4, have a 200 BTC 24H withdrawal limit, whereas level 12 users must abide by a 3,000 BTC 24H limit.
How do I deposit USD into KuCoin? ›
Step 1: Go to KuCoin.comand click the Asset icon at the upper right corner of the header. Step 2: Click Deposit, select the coin, then the network. Step 3: Copy your deposit address and paste it into the withdrawal platform, then deposit the coins to the relevant KuCoin account.
Which wallet is best for KuCoin? ›
The best way to keep your KuCoin coins secure
Secure multiple assets, including KuCoin using a Ledger hardware wallet. Your private keys, giving access to your assets, remain safe in a certified secure chip.
What exchange is better than KuCoin? ›
Other important factors to consider when researching alternatives to Kucoin include email and customer service. We have compiled a list of solutions that reviewers voted as the best overall alternatives and competitors to Kucoin, including Binance, Coinbase Exchange, UPHOLD, and Bittrex.
Kucoin vs Robinhood cryptocurrency exchange overall score comparison reveals that Kucoin has a higher overall score of 9.1, while Robinhood gathered an overall score of 7.8.
How do I hide crypto profits from the IRS? ›
9 Different Ways to Legally Avoid Taxes on Cryptocurrency
- How cryptocurrency taxes work. ...
- Buy crypto in an IRA. ...
- Move to Puerto Rico. ...
- Declare your crypto as income. ...
- Hold onto your crypto for the long term. ...
- Offset crypto gains with losses. ...
- Sell assets during a low-income year. ...
- Donate to charity.
The best idea is to amend your tax return from whichever year(s) you didn't include your crypto trades. You have three years from the date that you filed your return to file an amended return. Some investors fear that submitting an amended return may increase their risk of a future audit.
How do I avoid crypto taxes? ›
Invest Using an IRA
Another popular strategy for how to avoid capital gains tax on crypto is to invest using a tax-efficient product like an Individual Retirement Account (IRA). An IRA is a type of savings account designed to help individuals save for retirement.
How do I cash out crypto without paying taxes USA? ›
Take out a cryptocurrency loan
Instead of cashing out your cryptocurrency, consider taking out a cryptocurrency loan. In general, loans are considered tax-free. If you need liquidity immediately, you should consider using your cryptocurrency as collateral to take a loan through a decentralized protocol.
Can you write off crypto losses? ›
When you sell your crypto at a loss, it can be used to offset other capital gains in the current tax year, and potentially in future years, too. If your capital losses are greater than your gains, up to $3,000 of them can then be deducted from your taxable income ($1,500 if you're married, filing separately).
Does the IRS know how much I made with crypto? ›
Yes, the IRS can track cryptocurrency, including Bitcoin, Ether and a huge variety of other cryptocurrencies. The IRS does this by collecting KYC data from centralized exchanges.
Why is KuCoin not allowed in US? ›
KuCoin is perfect for getting started in the crypto scene because it's so easy to use and offers low fees with plenty of coins to purchase. However, it's restricted for US citizens due to a lack of license and KYC (Know Your Customer) process.
Can you cash out crypto on KuCoin? ›
Can You Withdraw Coins from KuCoin? You can withdraw coins from KuCoin and transfer them to a different wallet. Unfortunately, KuCoin doesn't convert your asset into fiat currency. You can only send and receive cryptocurrency assets like Bitcoin.
What happens if you don't repay KuCoin? ›
Liquidation: A forced liquidation will be triggered when the mark price of your holding assets and debt assets changes resulting in the debt ratio reaching 97%. All the assets you hold at the margin account will be sold as the debt assets to repay all the debts. 1.
KuCoin offers three levels of verification; however, the process is straightforward; It may take several business days to complete verification procedure; KuCoin will review the details and notify you by email once the process is complete.
Do you need ID for KuCoin? ›
One ID document can be used for verifying a maximum of 3 KuCoin accounts. The accepted image formats are JPG and PNG. The size of the image file should be less than 4MB. The accepted ID documents can be an ID card, driver's license, passport, etc.
What countries can use KuCoin? ›
Known as "The People's Exchange", KuCoin operates in Seychelles, providing users with multi-language and 24/7 customer service. Meanwhile, KuCoin has established local communities in South Korea, Japan, Spain, Italy, Vietnam, Turkey, Russia, India, and other regions, providing users with the most local services.
Which country uses KuCoin most? ›
Geography & Country Targeting
- United States. 25.74% 30.71%
- United Kingdom. 4.41% 6.93%
- Canada. 4.20% 3.19%
- India. 3.04% 10.14%
- Turkey. 2.95% 60.67%
Binance vs Kucoin cryptocurrency exchange overall score comparison reveals that Binance has a higher overall score of 9.8, while Kucoin gathered an overall score of 9.1. If we look at the ease of use, it's clear that in this Binance vs Kucoin comparison, Binance has better & smoother user experience than Kucoin.
What is the minimum deposit for KuCoin? ›
The deposit amount must be between $5 – $5,000 per trade. Will I be charged a transaction fee? When buying crypto with a bank card, KuCoin will deduct transaction fees from your payment.
How many people have KuCoin? ›
Founded in 2017, KuCoin has grown into one of the most popular crypto exchanges and already has over 8 million registered users across 207 countries and regions around the world.
Can I use KuCoin in New York? ›
Unfortunately, you cannot use Kucoin in New York or other US states.
Who backs KuCoin? ›
KuCoin Exchange raises a $20,000,000 series A round from IDG Capital Partners, Matrix Partners and NGC Ventures. KuCoin Exchange was founded by Kent Li.
Where is KuCoin headquarters? ›
KuCoin is headquartered in Mahé, Mahé, Seychelles, and has 1 office location.
How does the Travel Rule work? Whenever a user of one exchange sends/receives cryptocurrency, the originating exchange must share identifying information about both sender and recipient with the beneficiary exchange in an “immediate and secure” manner.
How to buy crypto without KYC in usa? ›
Our team has evaluated top exchanges for user experience, security, fees, features, and anonymity to help you find a reliable non-KYC platform:
- Gate.io - Best Overall No KYC Exchange.
- KuCoin - Best Alternative No KYC Exchange.
- Bitget - Best Exchange for Copy Trading.
- Phemex - Best Crypto Exchange for Bonuses.
KuCoin usually processes your withdrawal within 30 minutes, but delays may occur due to reasons such as network congestion. To ensure the security of your assets, withdrawals over a certain amount may be manually processed, which can take a bit longer.
How much does KuCoin charge to withdraw crypto? ›
Kucoin Deposit & Withdrawal fees
| Deposit fees | Withdrawal fees |
|---|
| Bitcoin | - | 0.0005 BTC |
| Ethereum | - | 0.005 ETH |
| Binance Coin | - | 0.01 BNB |
| Cardano | - | 1.0 ADA |
157 more rowsBinance's global trading platform, Binance.com, is by far the world's biggest cryptocurrency exchange. Last year it processed crypto trades worth about $65 billion a day, Binance said, dominating the crypto trading landscape with more than half of the market, CryptoCompare data shows.
Can I use a bank account on KuCoin? ›
Use only bank accounts under your name for receiving funds. Make sure that the name on the bank account you use for the withdrawal (transfer) is the same as the name on your KuCoin account.
Is KuCoin safe to leave money on? ›
The main gripe that we have with KuCoin is that it is not a regulated entity. While this does mean that you can trade crypto-to-crypto pairs anonymously, your funds are never 100% safe.
Is KuCoin better than Coinbase? ›
Coinbase vs Kucoin cryptocurrency exchange overall score comparison reveals that Coinbase has a higher overall score of 9.6, while Kucoin gathered an overall score of 9.1. If we look at the ease of use, it's clear that in this Coinbase vs Kucoin comparison, Coinbase has better & smoother user experience than Kucoin.
Is it safe to leave money on KuCoin? ›
Kucoin the most trusted and secure exchange, Trade simple with maximum security. Kucoin is a new trading platform that provides businesses and individual traders. KuCoin is a secure cryptocurrency exchange that makes it easier to buy, sell, and store cryptocurrencies like BTC, ETH, KCS, SHIB, DOGE, Gari etc.
Has KuCoin ever been hacked? ›
In 2020, over $150 million is estimated to have been emptied in a hack of KuCoin. KuCoin confirmed the security incident saying that it detected some large withdrawals. It found that part of Bitcoin, ERC-20 and other tokens in KuCoin's hot wallets were transferred out of the exchange.
Unfortunately,you cannot withdraw fiat directly from KuCoin. You will be able to withdraw your money,though,if you open an account on a different exchange that permits fiat withdrawals.
Can I withdraw dollars from KuCoin? ›
Web: Log in to your KuCoin account, then find the withdrawal page. You may type the token name in the search box, or scroll down and click on the token you want to withdraw. App: Log in to your KuCoin account, then click "Assets" - "Withdraw" to enter the withdrawal page.
How much does KuCoin charge to withdraw? ›
Luckily, even at the base rate, KuCoin still has one of the lowest trading fees around, at only a 0.1% fee for every transaction. There's a 24-hour withdrawal limit, with amount limits also varying depending on the level.
Why is KuCoin popular? ›
KuCoin pros and cons
KuCoin offers advanced order types, trading tools and charts, as well as features like a trading bot. Over 741 cryptocurrencies supported. KuCoin supports 741+ assets, which should give you a good range of industries and asset types to invest in without needing to hop between multiple exchanges.
How much can I withdraw from KuCoin to bank account? ›
Daily Limits for Fiat Services
| Fiat Service | Daily Limit (USD equivalent amounts used for calculations) |
|---|
| Fiat deposits | 150,000 USD |
| Fiat withdrawals | 150,000 USD |
| Buy crypto with fiat | 50,000 USD |
| Sell crypto for fiat | 50,000 USD |
1 more rowApr 19, 2023
KuCoin Exchange, also known as "The People's Exchange," is a cryptocurrency exchange headquartered in Seychelles. The cryptocurrency exchange officially launched on September 15, 2017, and was founded in 2013 by Michael Gan, Eric Don, Top Lan, Kent Li, John Lee, Jack Zhu, and Linda Lin.
Will KuCoin refund? ›
If the buyer completes the payment and cancels the order by mistake, you can consult our customer service to assist you in contacting the seller for a refund. If the seller refuses to refund, the buyer shall be mainly responsible for the loss of funds.
