The most important advantages
KuCoin has a lot to offer investors, including the following.
KuCoin’s trading fees are among the lowest in the market. You do not pay any monthly account fees, and withdrawal fees are in line with other exchanges. You can deposit cryptocurrency for free, but you will pay to deposit fiat (traditional) money like USD. The fees depend on how you transfer the funds and which third-party app you are using.
strong user base
KuCoin claims that 1 in 4 holders of cryptocurrency worldwide uses its service. The big advantage of such a strong client base is that it adds liquidity to the market – you are more likely to be able to make the trades you want since there are more people trading. This also means that you are likely to join an active community of traders who speak your language.
Wide range of coins
KuCoin has a wider selection of cryptocurrencies than you will get on many exchanges or brokerages. If you want to branch out into less popular currencies, KuCoin is well worth a look. It also has a Spotlight section promoting new coins so people can get in early. Just be aware that newer or lesser known coins have more risk than regular coins.
Earn interest on your cryptocurrency
KuCoin Earn pays interest on your cryptocurrency in two ways: you can get coins through Pool-X, a company backed by KuCoin, or you can lend your cryptocurrency and get interest.
Staking is a bit like earning dividends – some cryptocurrencies use pooled coins to help validate the network and keep it secure. You earn rewards if you agree to peg your coins for a set amount of time.
The interest you will earn by lending your cryptocurrency is more than what you would get with a traditional savings account, although it varies by currency and demand. KuCoin says you can earn 8% to 12% on average. This money finances margin trading in KuCoin. The company says the lenders will always be repaid in full, either from the borrower’s guarantees or from the KuCoin margin insurance fund. However, you won’t have the same protection you’d get with any regular bank, so make sure you’re comfortable with the extra risks.
KuCoin has a lot of additional features, although you will need to think carefully about whether or not you want to use them. For example, margin trading allows you to take advantage of your position, which is basically borrowing money to buy more cryptocurrencies. Experienced traders should only use leverage as it makes cryptocurrency – an already risky investment – more risky.
KuCoin also allows you to use trading bots through its mobile application. Trading bots can buy and sell your cryptocurrency automatically so you don’t have to be online all the time to follow the market. However, crypto bots have not been developed like robo-advisors. Some have technical errors, for example. In addition, it is not always clear how they invest your money, and you need to understand the cryptocurrency trading strategies they use. If you’re buying long term, the bots don’t add much to the mix.