KuCoin - Quick Overview

KuCoin is a well-established cryptocurrency exchange, established in 2017, with a huge user base of over 11 million people. KuCoin offers over 600+ different cryptocurrencies with a low trading fee of just 0.1%, that can be reduced easily by paying fees using KCS (KuCoin's own token). For experienced traders, there is plenty on offer, like Margin Trading, Futures Trading, free trading bots, crypto lending, and a P2P marketplace. 

The main issue with KuCoin is that there are no fiat markets, and therefore you cannot sell your crypto or withdraw fiat currency. Let's say you have some Bitcoin, and you want to sell it and withdraw AUD. There is no market for this at all, you can only trade Bitcoin for another cryptocurrency or stablecoin. If you want to cash in on your Bitcoin profits, you will need to transfer your Bitcoin to another exchange, sell it for AUD, then withdraw it from that account to your personal bank account. If you want a crypto exchange that lets you easily sell your crypto and withdraw AUD, try one from our list of the best exchanges for Australians (found here).

Read on to see if KuCoin's features and advantages make up for the lack of fiat withdrawals for your individual needs.

KuCoin Pros & Cons

Pros

  • Large crypto exchange with over 11 million users
  • Over 600+ coins available
  • Great for advanced traders, with margin trading, futures trading, crypto lending, P2P marketplace
  • Only 0.1% trading fees, which can be reduced if you pay using KCS (KuCoin's native token)
  • Free trading bots so you can automate your trades

Cons

  • No fiat markets, can only trade crypto to crypto
  • Cannot withdraw fiat currency from the account
  • Fees to purchase crypto are very high (3 - 12%)

KuCoin Features

Over 600+ Cryptocurrencies

KuCoin has a huge range of coins available for their users to enjoy. With over 600+ cryptocurrencies, you are almost certain to find the coin you want to trade. KuCoin's large customer base of over 11 million means that there is a lot of liquidity; you will be able to trade easily, without waiting ages for your order to be fulfilled.

Advanced Trading Markets

KuCoin has so many available markets, which is perfect for experienced traders. Besides the usual spot trading, you can also access margin trading, futures trading, and a P2P marketplace. It is a trader's paradise, with so many markets, different coins, and trading pairs to choose from.

Free Trading Bots

KuCoin has free trading bots included in their platform. While other platforms can sync up with external third-party bots, KuCoin makes it easier, with integrated bots. It is very easy to set up a bot, selecting the parameters you want, and then you can automate your trading so your strategies are implemented even while you sleep.

Crypto Borrowing and Lending

If you want to borrow some cryptocurrency, you can easily do so using KuCoin. Conversely, if you are planning to invest in crypto for the long term, and you want to earn interest on it while you HODL, you can lend it to others. You can lend over 70 coins, and select the interest rate you wish to earn on your crypto. The length of the loan can be either 7, 14 or 28 days.

KuCoin's Token - KCS

KuCoin has their own cryptocurrency (KCS) which can be used to pay for fees on their exchange. When you pay your fees with KCS, you receive a 20% discount. That means that instead of paying 0.1% per trade, you only pay 0.08%. 

Another benefit of holding KCS is that you can earn interest on it, if you own more than 6 KCS. Simply by holding KCS in your KuCoin account, you will receive interest, estimated at 22% annualised rate.

KuCoin Fees & Deposit Methods

With KuCoin, there is no option to deposit AUD into your account, and trade it for cryptocurrency, because there are no fiat trading markets available. Instead, you can purchase crypto instantly using Visa/Mastercard, Apple Pay or PayID. KuCoin's website does not disclose the exact fees for buying crypto, nor does it display clearly on the payment page on the exchange. According to the best Australian crypto exchange review site, the fees range from 3.1% up to 12.3%, depending on how you choose to pay. 

KuCoin's trading fees are very competitive, at just 0.1%, and paying with KuCoin's own token (KCS) means you reduce the fees by 20%. This makes the trading fee an extremely low 0.08%. For high-volume traders, the trading fees are discounted further based on the volume traded in the past 30 days.

There are no fiat withdrawals supported on KuCoin, which is the main criticism of the exchange. If you want to sell your crypto, you will need to send your coins to a different exchange that allows sale of crypto, then withdraw your AUD to your bank account. If you enjoy what KuCoin has to offer, but don't like the fact you cannot withdraw AUD, you can try using Binance Australia. Binance is the largest crypto exchange in the world, and is incredibly feature-rich. They offer more than 600+ coins, 0.1% trading fees, and have plenty of advanced markets, such as margin trading, futures, and P2P.

Kucoin Security

KuCoin is a very secure cryptocurrency exchange, utilising multilayered security, such as micro-withdrawal wallets, encryption and multi-factor authentication. KuCoin even has an internal risk control department whose job is to check daily transactions and investigate any suspicious activity. It is important to note that KuCoin was subject to a cybersecurity breach in 2020, but luckily they managed to retrieve much of the stolen cryptocurrency. The amount they could not recover was covered entirely by their insurance cover, so no users were affected by this. 

KuCoin Summary

KuCoin is a really great choice for serious crypto traders, with 600+ coins, plenty of markets, and low trading fees of 0.1%. It is not ideal for newcomers to crypto, as it can be a bit complicated to navigate for someone with no experience. Also, there is no Live Chat support to assist if you run into any issues. Also, there are two main disadvantages of KuCoin that need to be remembered. First, the fee to purchase crypto directly on KuCoin ranges from 3-12% which is extremely high. Secondly, you cannot sell your crypto for fiat currency on KuCoin, nor can you withdraw your AUD from the exchange. This is a big problem for many crypto investors, who want to realise their profits by converting it back to fiat currency.

If you are after a similar trading platform that accepts free AUD withdrawals, and has low crypto purchasing fees (just 0.1%), try out Binance Australia. If you are a crypto beginner, and you are after an easy-to-use exchange, I would suggest Swyftx or Digital Surge. Alternatively, take a look at my detailed article on the best crypto exchanges in Australia. You will surely find a suitable crypto platform for your needs on there.

Frequently Asked Questions

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About the Author Andy Carter

Andy Carter is the CEO of Freedom Dividend, where he teaches you about dividend income that can change your life for the better. As a financial expert, Andy explores securities investing (stocks & shares) with an aim to provide a steady flow of income, enough to sustain you in your life.

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