What is KuCoin?
KuCoin is a cryptocurrency exchange based in the Seychelles (previously Hong Kong). Launched in September 2017, it claims to have more than 8 million users from over 200 countries and regions. The exchange offers crypto-related services like crypto-to-crypto trading, fiat-to-crypto trading, future trading contracts and lending services. It has one of the world’s most impressive trading pair selections with more than 540 supported coins and 960+ trading pairs.
The exchange also offers a so-called KuCoin Shares (KCS), its own native token. If you hold 6 or more KCS, you can receive bonus daily. You will also receive trading discounts, and even lower withdrawal fees than normal. The exchange also states that holders of KCS can participate in various voting and listing processes.
US-investors are not prohibited from trading cryptocurrencies. However, you should still always self-analyze whether your home state imposes any obstacles for your foreign cryptocurrency trading.
KuCoin Margin Trading
In November 2019, KuCoin announced the release of Margin Trading Service. This service allows traders to use funds provided by other users on KuCoin to gain access to larger sums of capital, allowing them to leverage positions. Using "borrowed" funds can increase profit but also result in larger losses than the initial investment made. KuCoin Margin Trading now supports 75 cryptocurrencies such as BTC and ETH, and 99 trading pairs with up to 10x leverage.
KuCoin Futures Trading
In July 2019, KuCoin launched its futures trading platform. It launched a Lite version in January 2020. Futures trading is also known as contract trading, which is buying and selling standardized future contracts of commodities or financial assets. According to these future contracts, the buyer will buy into assets at a predetermined price at a specified time (named delivery date) in the future, and the seller needs to deliver it at that price at the delivery date. The KuCoin futures trading platform offers over 60+ cryptocurrencies' perpetual contracts according to information received from KuCoin; there are reportedly more than 3 million users on this platform.
KuCoin OTC Trading Desk
In July 2019, KuCoin launched an OTC Trading Desk (OTC is short for Over-The-Counter). Traders using this service can execute large trades without affecting the price of that cryptocurrency. The OTC Trading Desk supports direct purchases of USDT, BTC and other cryptocurrencies using CNY, VND, IDR and CAD. There are no trading fees and quick settlements are made through bank transfers rather than cryptocurrencies. Users only need to complete KYC verification and set up a trading password to start trading on the OTC platform.
KuCoin Lending Platform
KuCoin is a cryptocurrency exchange that allows customers to lend cryptocurrencies to other customers in exchange for interest payments. Interest rates range from 0-2%. The lender only needs to fill in the Loan Amount and the Daily Interest Rate (interest rate range is from 0 to 2.00%). Lenders can select 7 days, 14 days and 28 days as their term length.
KuCoin Staking Platform - Pool-X
The Pool-X is a staking platform that pioneered a free market for liquidity trading by solving the liquidity problem of staked crypto. Traders participate in staking and obtain both staking rewards and POL Credits (the native token of Pool-X). In the liquidity trading market, traders can trade staking assets and enjoy a higher level of liquidity.
Previously, KuCoin only accepted deposits of cryptocurrencies and did not accept any deposits of fiat currency. However, on 4 July 2019, KuCoin finally enabled deposits of fiat currency through the cooperation with Simplex. This deposit method is possible for users to purchase Bitcoin, Ethereum, Litecoin, and Ripple with Visa or MasterCard-credit cards. Wire transfers are not enabled at KuCoin at this time.