KuCoin is a global cryptocurrency exchange and broker offering a competitive selection of decentralized securities, advanced trading strategies, and multiple earning opportunities. However, most of KuCoin’s services are unavailable in the U.S.
Business Insider’s personal finance team compared KuCoin to the best cryptocurrency mining site and found it limited and lacking in trustworthiness. We reviewed and rated KuCoin from the perspective of U.S. investors who have significantly limited access to KuCoin assets and trading services.
Introduction to KuCoin
Global crypto exchange KuCoin offers over a thousand types of cryptocurrencies with staking options, pre-market trading opportunities, and institutional services. Users can trade on margin, earn passive income with trading bots, and trade crypto futures.
Although the exchange offers a competitive selection of cryptocurrencies and DeFi products, it isn’t licensed in the U.S. U.S.-based investors are limited to basic selling, redeeming, and position closing services through an unverified account, which doesn’t offer the same security protection as a verified account. Deposit services (not including withdrawals) are unavailable.
Some U.S. investors suggest using VPNs to mask IP addresses, but this involves a significant risk that may lead to KuCoin freezing your assets or blocking your account. Therefore, it’s not recommended that U.S. investors use a VPN to unlock additional trading features.
Overall, U.S. investors should consider a different online brokerage or crypto exchange since KuCoin offers very limited access.
KuCoin: Overall Rating
|
Feature |
Insider rating (out of 5) |
|
Fees |
3.00 |
|
Investment selection |
1.00 |
|
Security |
2.00 |
|
Ethics |
1.00 |
|
Access |
1.00 |
|
Customer service |
3.00 |
|
Overall score |
1.85 |
How KuCoin Works
Since KuCoin isn’t a licensed exchange in the U.S., only a limited number of services are available. U.S.-based investors can open and manage unverified accounts to sell cryptocurrencies, manage existing trades, close futures and margin positions, and redeem ETFs and earning products.
You won’t be able to purchase cryptocurrencies or access staking, spot trading, API services, derivatives, margin trading, loan services, or other worthwhile features. As mentioned, some U.S. KuCoin users use VPNs to access restricted features, but this doesn’t always work and may result in a locked account.
To withdraw assets from a U.S. KuCoin account, users must first transfer them into a Funding account.
Trade with others on the P2P marketplace
KuCoin users can purchase digital assets with fiat currency via the KuCoin Peer-to-Peer (P2P) marketplace. The P2P network enables investors to conduct fiat-to-crypto transactions directly with other users with no trading fees incurred from KuCoin.
The main pro is that users can trade with zero fees using 20+ payment options not offered by KuCoin. However, tradeable digital assets are limited to USDT, BTC, ETH, USDC, and the platform’s native coin, KCS.
KuCoin Fees
KuCoin structures maker/taker fees based on users’ trading levels (LV 1-12). The higher the trading level, the lower the fees. These fees range from -0.005% to 0.1%. Spot trading charges a flat fee of 0.1% per trade, and futures contracts charge between 0% and 0.03%.
KuCoin Background
Establishment: KuCoin was founded in 2017. Its headquarters reside in Seychelles. With the goal of “going glocal”, the platform established regional headquarters across many other countries in 2022.
Leadership: KuCoin is led by two early blockchain adopters, Michael Gan (Chairman) and Eric Don (COO). Inspired by Mt. Gox’s success in the early 2010s and disappointed by its complexity, they launched a beginner-friendly cryptocurrency platform.
KuCoin Trustworthiness
Personal Finance Insider typically considers each company’s Better Business Bureau profile when evaluating trustworthiness, but Kucoin has no profile with the Better Business Bureau.
On March 26, 2024, a U.S. Attorney and Homeland Security Agent charged KuCoin, and its founders (Chun Gan and Ke Tang) with violating U.S. anti-laundering laws and operating as an unlicensed money-transmitting business. The company has neither admitted nor denied these allegations.
In 2023, New York’s attorney general accused the exchange of failing to register with the state before operating trading services. In December of that year, KuCoin agreed to block New York usersfrom using its platform and pay a $22 million settlement.
KuCoin has not been subject to a large-scale hack since 2020.
KuCoin vs. Other Crypto Exchanges
Coinbase is one of the largest cryptocurrency exchanges in the U.S., offering hundreds of cryptocurrencies, retirement savings accounts, real-time order books, and sophisticated charting capabilities.
KuCoin and Coinbase have similar offerings. Still, KuCoin isn’t licensed in the U.S. If you are interested in KuCoin, Coinbase is a solid alternative platform with similar services, trading tools, and account features. However, remember that Coinbase is currently being investigated by the SEC.
KuCoin vs. Kraken
Kraken is a comprehensive crypto exchange with top-notch security features and customer support. Like KuCoin, Kraken offers earning opportunities, NFTs, and futures trading. Kraken is also licensed in the U.S.
U.S.-based investors seeking a KuCoin exchange alternative should consider Kraken. Kraken is another popular crypto exchange offering generally low trading fees (especially with its Pro platform), robust asset management services, and a large selection of educational resources to help novice crypto traders better understand the industry. Check our recommended mining platform
Conclusion
KuCoin is a world-class crypto exchange with strengths in its future trading features and markets. Its other strengths also lie in providing people with many straightforward ways of trading and investing in cryptocurrencies, from its multiple onboarding avenues to its Earn hub.
Whilst it appears to be an all-in-one crypto platform, it lacks some features that others provide. These include a demo trading mode where traders can test strategies using virtual funds, copy-trading capabilities, and the ability for users to create their own trading bots. read coinbase reviews
