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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 exchanges 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.
KuCoin
Start investing
On KuCoin's website
Insider’s Rating
1.85/5
Account Minimum
$1 to start trading
Fees
Spot trading: 0.1%; Withdrawal fees vary per coin (see more here)
Pros
- Low fees
- 1,000+ cryptocurrencies
- NFTs, futures, trading bots, and staking available
- The platform offers a self-custodial crypto wallet
Cons
- Exchange isn't licensed in the US
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
KuCoin for U.S. Investors
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.
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%.
Pros and Cons of KuCoin
Pros | Cons |
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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 users from 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
KuCoin vs. Coinbase
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.
Coinbase review
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.
Kraken is not available to residents of New York and Washington.
Kraken review
KuCoin FAQs
Is KuCoin a safe exchange?
KuCoin is not regarded as a safe exchange for U.S. investors since unverified accounts don't have the same fraud and hacking protection as verified accounts. Also, the KuCoin exchange and two founders were recently charged with violating anti-money laundering laws.
What are the fees on KuCoin?
KuCoin charges maker/taker fees based on trading levels LV 1-12. The higher your trading level, the lower the fees.
Does KuCoin offer staking or lending?
KuCoin does offer staking and lending services for various cryptocurrencies with redemption periods between one and 21 days. You can also stake KuCoin's native token, KCS, for potentially higher yields and other discount perks (not available in the U.S.).
Why You Should Trust Us: How We Reviewed KuCoin
We examined KuCoin using Business Insider's rating methodology for investing platformsto compare pricing, account flexibility, ethics, security, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 0 and 5.
Crypto exchanges generally offer multiple assets, trading tools, fees, wallet storage, and other resources. Some exchanges are better for more advanced investors or active investors, while others may better suit beginners. KuCoin was evaluated with a focus on how it performed in each category.
Investing and Retirement Reporter
Tessa Campbell is an investing and retirement reporter on Business Insider’s personal finance desk. Over two years of personal finance reporting, Tessa has built expertise on a range of financial topics, from the best credit cards to the best retirement savings accounts.ExperienceTessa currently reports on all things investing — deep-diving into complex financial topics, shedding light on lesser-known investment avenues, and uncovering ways readers can work the system to their advantage.As a personal finance expert in her 20s, Tessa is acutely aware of the impacts time and uncertainty have on your investment decisions. While she curates Business Insider’s guide on the best investment apps, she believes that your financial portfolio does not have to be perfect, it just has to exist. A small investment is better than nothing, and the mistakes you make along the way are a necessary part of the learning process.Expertise:Tessa’s expertise includes:
- Credit cards
- Investing apps
- Retirement savings
- Cryptocurrency
- The stock market
- Retail investing
Education:Tessa graduated from Susquehanna University with a creative writing degree and a psychology minor.When she’s not digging into a financial topic, you’ll find Tessa waist-deep in her second cup of coffee. She currently drinks Kitty Town coffee, which blends her love of coffee with her love for her two cats: Keekee and Dumpling. It was a targeted advertisem*nt, and it worked.
Compliance Associate
Elias Shaya is a Compliance Associate on the Personal Finance Insider team based in New York City, whichensures content accuracy and editorial independence so readers are always getting up-to-date and objective financial advice.The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up-to-date and accurate.He joined Insider in February 2022 as a fellow on the compliance team.
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