Is Kucoin A Scam? What Is It And Why You Should Care

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Blockchain247

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I. What is Kucoin?

KuCoin exchange was launched in September 2017, though the company was originally co-founded in 2013 by Eric Don, Michael Gan, Jack Zhu, John Lee, Kent Li, Top Lan, and Linda Lin.

As an exchange platform, KuCoin allows users to conduct cryptocurrency transactions securely and efficiently. As mentioned at the very beginning of this post, the exchange currently offers more than 700 digital assets and has more than 10 million users worldwide.

KuCoin offers more than 600+ cryptocurrencies which can be traded with low fees of just 0.1%. If you pay with KCS coins, you receive a 20% discount, and high volume traders access further reduced fees.

KuCoin users will enjoy the various ways to trade, such as spot trading, margin trading, P2P, and futures trading. Crypto borrowing and lending is another feature available to users.

II. How does Kucoin work?

Kucoin is a traditional third-party cryptocurrency exchange, insofar that they stand between buyers and sellers. Unlike brokers such as Coinbase, you don’t actually purchase coins from Kucoin. Instead, you are matched with other traders, and thus, Kucoin makes their money via trading fees.

Due to the wide range of coins available at Kucoin, users can either use the platform for their crypto day trading needs, or alternatively, buy coins and withdraw them with private Bitcoin wallets as a long-term investment.

In order to get started at the platform, you will need to make a deposit. As Kucoin does not support real-world payment methods such as a debit/credit card or e-wallet, you’ll need to fund your account with a cryptocurrency.

If this won’t suffice, and you instead need to use an everyday payment method, the likes of Coinbase support both debit/credit cards and e-wallets (such as PayPal and Skrill).

III. What Makes KuCoin Unique?

The trading options has prompted many to use this exchange. It’s beginner-friendly features as well as its charges fee which is the lowest in the industry makes it one to consider.

It is however unique because of its staking opportunities. Users can make a passive income when they join the KuCoin community. Those that hodl (hold-on-for-dear-life) more than 6 KCS have the opportunity to earn a daily bonus.

IV. KuCoin Safety: Exchange Security Best Practices

The platform does utilize a range of security features in an attempt to keep your money safe, which we’ve listed below.

Items in this list apply to things you can do both off and on the exchange platform to secure your funds, and also lists some things to look for in an exchange platform before depositing your funds onto the platform.
  • Enable 2 Factor Authentication
Let’s say that a cybercriminal finds out what your username and password is for the exchange platform, enabling 2-factor authentication is your last line of defense.

2-factor authentication is a security feature that either generates a random code every few seconds for you to enter before you log in, or asks you for email approval before a successful login attempt can be made.

Even if a cybercriminal knows your username and password, it will be very difficult for them to hack your account if 2-factor authentication is enabled because they won’t know what your 2FA code is or may not necessarily have access to your email account to approve the login request. Most exchanges make it a requirement to enable 2FA before a person can start using the platform.​
  • Restrict IP Addresses For Your Account
Each computer has a unique IP address that can be used to identify it in a network. An exchange platform may also monitor IP addresses transacting on an account for any unusual activity.

The exchange will then notify the person who owns the account that there was some unusual activity and allow them to block their account. Monitoring and notifying of any suspicious activity on an exchange platform is a bit delayed because of the large number of accounts on the platform.

This makes it a not-so-effective security measure. A security measure that can help with this is if you restrict the IP addresses that can log in and transact on your account to the IP addresses of your devices. This way, devices with unrestricted IP addresses will not be able to do anything on your account.​
  • Insurance For Your Funds
If your funds are stored on an exchange, they may be eligible for insurance. Funds stored on an exchange can be insured in two ways. The first way is by an external insurance company, and the second is to have them backed by some internal policy or regulation.

A good exchange will cover their customers’ losses in the case of the platform being hacked to make the platform more attractive to new customers.


Let's take a look at KuCoin and some other security features the KuCoin platform offers its clients.​
  • Separate trading password​
  • Email confirmation on log in​
  • Internal risk control team​
  • Encrypted client data​

V. Kucoin and its benefits


KuCoin has plenty of advantages that set it apart from the other exchanges, let's look at some of the best features below:​
  • Extremely low trade fees of 0.1%, with discounts if you pay with KCS​
  • Over 600+ different cryptocurrencies available​
  • Mobile app for iOS and Android​
  • Buy crypto directly with fiat currencies​
  • Only partial KYC verification required​
  • P2P marketplace - buy & sell crypto with ZERO fees​
  • Futures and margin trading​
  • KuCoin bonus - earn KCS coins daily​
  • Crypto lending and borrowing​
  • KuCoin trading bot​
  • Bank-level asset security​

V. Is Kucoin a Scam?

Our question arises, Is KuCoin A Scam? And the answer is NO. It is completely safe and legal. The platform is authorized and licensed by both the FCA (UK) and CySEC (Cyprus).

There are a number of benefits of trading on KuCoin: it is low-cost trading on an advanced platform, trading volumes on most assets are good, and besides, there are different promotions running.

KuCoin provides one of the best trading services with advanced trading tools and customized charts that are easy to use and interpret for both advanced traders and beginners. KuCoin is one of the top exchanges in the world.

In order to be sure that Kucoin is not a scam, we hope that this article provides you with some kind of clarity about what Kucoin is. If you have any questions, ideas or problems, please leave a comment below.

Disclaimer: Always do your own research before you buy any coin or token. Only you know your financial situation, investment strategy, and tolerance for risk.​
 

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