Cryptocurrencies

How to use KuCoin to Buy and trade Bitcoin (BTC)? – Cryptocurrencies

Learn how to use KuCoin in this guide!

Hong Kong crypto currency exchange platform, the platform KuCoin can boast of offering a very good trading rate, dividends in KuCoin Share (KCS) tokens as well as a site that is at the same time user-friendly, easy to use and regulated. There are still a number of questions that must be answered before joining this community. In this guide, find out all the information you need to know before you get started with KuCoin.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Learn About KuCoin

Before using KuCoin, you must gather as much information as possible on its operation, its available options, its functionalities, its access conditions, its transaction fees as well as all the steps to invest with confidence in Bitcoin, or the cryptocurrencies of your choice .

The history of KuCoin

Based in Hong Kong, KuCoin ranks among the most recent Chinese trading platforms. Created in 2017, this exchange is established all over Asia, notably in China, in Thailand and to Philippines. Since its launch, the popularity of KuCoin can no longer be denied, especially thanks to the features it offers, both to beginners and professional investors.

To note : KuCoin brings importance to its community and offers multiple languages ​​to choose from on its trading platform, including French.

Birth of KuCoin

KuCoin's debut has been promising

Formerly known as Kubi.com, the birth of this project dates back to 2013, when
the team behind the platform has started designing its
technical architecture.

As the regulatory standards for this activity are not yet very precise in some parts of China, the company eventually moved its activity to Hong Kong, where other exchanges have established themselves. Michael Gan, the founder of KuCoin, undertook this project with the main objective of promoting trading activities around the world.

Launch of a first offer in 2017

From its inception, the platform generated interest when it launched its very first offering ofhouse actions : the KuCoin Share (KCS). In the manner of Binance Coin (BNB), this is a currency specific to the KuCoin platform which allows, among other things, the financing of the latter, but also of actions strictly speaking since users holding KCS can get dividends in the form of daily bonuses. This type of action thus helps to encourage users to invest in the platform, so that they receive discounts on their transactions in addition to passive income.

Launch of KuCoin Shares (KCS)

KuCoin's virtual currency: The KuCoin Shares

The launch of its own KuCoin Shares (KCS) token has only increased awareness of the platform. Indeed, owning KCS shares on the exchange gives users access to numerous discount possibilities.

Before getting KCS, you need to understand
how dividends work. Dividends vary based on two
main criteria:

  • The number of tokens held by the user (6 at
    minimum);
  • The exchange’s trading volume.

The higher these criteria, the more dividends received by
the user will be important.
KuCoin has also set up a parameter to consult the
dividends and recover them in the form of KCS.

To note : 50% of the transaction fees made on KuCoin are returned daily to all KCS shareholders. Dividends are paid every day at midnight local time (UTC + 8), i.e. at 18 hours in mainland France (UTC + 2).

Warning : This half of the profits generated by KuCoin allocated to KCS holders is doomed to decrease, according to information communicated by the platform in 2018.

A perpetual evolution of KuCoin offers

Since 2017, KuCoin has continued to progress and provide its users with the necessary resources to succeed in their integration and investments while minimizing risk. The team focused on adding new features, such as a bonus and one sponsorship system, but also an incredibly wide range of cryptocurrencies. At the start of 2020, the platform already had more than 5 million users who have benefited from many changes, such as the direct purchase of cryptocurrencies or the development of a mobile application available for iOS and Android.

The advantages of KuCoin

To reach a large audience, KuCoin aims high by providing new resources and features to anticipate the needs of traders, beginners and experienced alike. To demonstrate its efficiency, relevance and dynamism in the world of trading, the exchange offers in particular:

  • A secure wallet (multilayer encryption, storage in a bank safe, etc.);
  • A directory of diversified cryptocurrencies;
  • Several types of orders (limits, holdings, etc.) in many cryptocurrencies;
  • Quick exchanges and withdrawals;
  • Transaction fees shared with users;
  • Passive income generated by KCS coins.

Tip: KuCoin regularly adds new currencies and pairs. Find them in real time on the page of CoinMarketCap (in English).

A highly dynamic exchange platform

From
other exchanges, Kucoin is distinguished in particular by:

  • An average volume equivalent to nearly 50 million
    dollars exchanged each day;
  • Access to over 200 cryptographic currencies;
  • An attractive and daily reward system
    (KCS shares);
  • Identity verification (KYC) entitling you to
    more bonuses;
  • Relatively low trading fees;
  • A reinforced security system;
  • Responsive support support.

In addition, KuCoin is now recognized in the cryptosphere for its recurring freebie offers, much like contests on social media.

The disadvantages of KuCoin

KuCoin obviously has a few weaknesses that a trader should take into account:

  • Even if it is possible, direct purchase by credit card is generally not recommended. Favor trading;
  • The platform may suffer from slowdown in the event of high traffic;
  • Don’t forget that the platform is based in Hong Kong, which meets limited regulations;
  • For this same reason, the support may take a long time to respond in French. It is therefore preferable to be fluent in English;
  • Likewise, some parts of the site are not yet available in French, hence the need for English.

KuCoin, a predominantly “crypto-to-crypto” exchange

It is important to clarify that KuCoin does not accept fiat currencies to settle cryptocurrency purchase transactions, unless you use a bank card, which would then imply high fees (via Simplex, which only accepts US dollars). Thus, users will need to have cryptocurrency from another location. When making your first deposit, all you have to do is transfer the currency from another online wallet to your KuCoin account.

To trade on KuCoin, start by importing your cryptocurrencies

To use an exchange (or “exchange”) like KuCoin, you should therefore to acquire cryptographic currencies on a purchasing platform like Coinmama or eToro.

The sponsorship program

We previously ruled that 50% of KuCoin’s revenue goes to KCS shareholders on a daily basis. It should also be noted that the platform allocates up to 40% of its profits to users who refer their friends.

Payment methods supported by KuCoin

Before choosing a platform to trade cryptographic currencies, should you check the payment methods accepted on it? On KuCoin, you can trade with a bank card (debit or credit) and via your cryptocurrency wallet (“wallet”).

Buy by credit card via Simplex or Banxa

KuCoin, in partnership with Israeli operator Simplex, also accepts deposits by credit card. You can therefore use fiat currencies, including the dollar or the euro. However, this method of payment represents a certain cost, with fixed fees “According to the current price of the cryptocurrency” of the transaction.

On KuCoin, it is possible to use your bank card to buy cryptocurrency

Banxa is also part of the fiat-to-crypto gateway solutions. Here too, the price is based on the current price of the cryptocurrency, and it takes some time for the transaction to take place.

Exchange one cryptocurrency for another

KuCoin is a ‘crypto-to-crypto’ bureau de change, which
gives you the possibility to buy any currency of exchange,
as long as it is available on the site. It is thus possible to exchange
Bitcoins for many other cryptocurrencies.

The main action on KuCoin: trading!

Reminder : It is advisable to first use a “fiat-to-crypto” platform to obtain your cryptocurrencies.

By the way, at the time of writing this tutorial, KuCoin
supports 7 currencies that you can exchange for all the others on the
site, namely:

  • Bitcoin
    (BTC);
  • Ethereum
    (ETH);
  • KuCoin
    Share (KCS);
  • Tether
    (USDT);
  • Tron
    (TRX);
  • Binance
    Coin (BNB);
  • NEO
    (NEO).

To learn more about the main cryptocurrencies, see our guide.

Fees on KuCoin

Regarding transaction fees, KuCoin offers rates
among the lowest on the market with in particular:

  • No deposit fees;
  • 0.1% transaction fee rate.

However, to avoid unpleasant surprises once on the
platform, the withdrawal fee are
also to consider since these are variable according to the cryptographic currency.
Here are those of the main cryptocurrencies. Note that over time, these
may possibly change:

Motto BTC BCH DASH ETH ETC LTC NEO XLM XRP
Withdrawal fee (%)

0.0005

0.0005

0.02

0.01

0.01

0.001

0

0.01

0.5

Minimum

0.002

0.01

0.004

0.02

0.02

0.002

1

21

25

A second advantage of owning KCS shares is an additional reduction in transaction costs. In fact, for every 1000 KCS you own, your fees decrease by 1% (the fee rate is therefore 0.099% instead of 0.100%). In this way, you can earn up to 30% reduction in trading fees.

Create and secure your KuCoin account

After this overview of KuCoin, it’s time to move on to
registration and creation of your account. Before braving the different
steps, it is necessary to know
access conditions
including deposit and choice of your account
user.

Start by going to the KuCoin presentation page

Choose the right account

KuCoin offers two customer accounts, in this case the
individual and institutional account. We must do the right thing choice according to his profile
investor
. Reserved for legal entities, the institutional account is
directed towards companies and financial organizations. The individual account
allows you to access your personal space and find all the different
options for better trading.

The platform is easy to use and features an interface
certainly similar to others, but which makes
easy and pleasant user access.
We find the different
trading tools such as trade charts, market options,
different types of trade and currencies. You can also access
easily to the KuCoin technical document that lists the currencies
cryptographic data supported by the platform. Users can
freely visit the site and become familiar with all the functions available to them
disposition.

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Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Register on KuCoin

Security requires, registration gives you access to an individual account where you can manage your trading activity, but also your investment funds and your earnings. However, you must proceed step by step.

Create an account

To open an account, go to the home page and click on “Register”. This then opens a page where you can choose to register in two different ways. Indeed, the platform offers you to create your account via your phone, or with your email address. If you have chosen the email address, you will need to enter the following information:

  • Your address
    E-mail ;
  • A
    Verification code ;
  • Your password.
Presentation of the registration page on KuCoin by email

If you have chosen the
telephone, the information requested will then be:

  • Your number
    phone ;
  • The code
    verification via SMS;
  • Your password.
Presentation of registration on KuCoin by phone

You must then accept the Terms of Use of
the platform you want to read and then click on “Subscribe”.

Login to your new account

After the registration step, you will be directly connected
to your account. However, if you have been disconnected, you will be able to
reconnect by:

  • Returning to the home page;
  • Clicking on “connect to”;
  • Fill in the requested information according to the chosen connection means (password or QR code).

Account security on KuCoin

KuCoin is one of the exchanges that puts in place the most means of protecting its account. Before starting to make your trades, you should automatically go to the “Account Security” page (by hovering your mouse over your account profile picture) to be able to make your transactions. In addition to this, we advise you, for the good of your cryptocurrencies, to think about adding as many layers of security as possible. Here are a few.

On KuCoin, effectively secure your account

The Trading Code

Before you can make any transactions, KuCoin requires you to create what is called a “Trading Code”.

To sum up, before you can perform any
transaction, you will need to prove a second time your identity at KuCoin. The platform asks you to configure
a 6-digit code that you will need to enter in each trading session
that you wish to undertake.

Double factor authentication (2FA)

Present on many other platforms, two-factor authentication improves the security of your account and allows connection using two codes. The first remains unique and is always determined when you register. The second code is temporary and depends on the type of 2FA you have chosen. This solution helps reduce the risk of hacking your account and data theft.

For a person of bad faith to gain access to your account, they will need to be able to know your credentials, plus the code generated by the 2FA system you have set up. KuCoin offers two ways to activate 2FA: the Google Authenticator app, or your smartphone.

Restricting the connection IP

When the option is enabled, if the IP address changes, it
triggers a protection mechanism that automatically disconnects the account.

KYC verification

Also very widespread, the KYC (for English “Know Your Customer”) is also a good security option, but requires some rather complex steps:

  • Click on “Real name verification”;
  • Choose an account (individual or institutional).

For an individual account, you must enter:

  • His country or region of
    residence ;
  • Last name and first name ;
  • The number of a part
    identity (you can choose between your identity card, your license
    drive or your passport).
This information allows many advantages on the platform

Note : KYC verification gives you more benefits including daily Bitcoin withdrawal and USDT trading limits.

Trading cryptocurrencies on KuCoin

Here is how to proceed to deposit cryptocurrencies on
your KuCoin account and how to acquire other currencies
cryptographic. You can issue orders to sell, buy or
exchange.

See the different trades available

Before trading you must familiarize yourself with the tools and features of KuCoin.
To place buy or sell orders, go to the ”
Market “. You will find all the available markets there, but also the
cryptocurrency that you want to sell or buy.

Note, however, that to trade on KuCoin, you have
two accounts:

  • The Main Account, which allows you to manage your funds
    (deposits and withdrawals);
  • The Trading Account, specific to manage trading
    with your crypto currencies.
There are other tabs on KuCoin, but these two accounts allow the necessary

Make a cryptocurrency deposit

KuCoin being predominantly a trading platform for
cryptocurrencies, it is not recommended to pay with fiat currencies such
than the euro or the dollar. To fund your account, you only have one
only solution: import your currencies from your wallet.

To do this, go to the “Assets” menu, then
click on “Savings account”. You will then be redirected to the page
“Main Account”. It sort of matches your
personal safe on KuCoin. This is where you can make your
cryptocurrency deposits, by clicking on “deposit” next to the
currency of your choice. Once done, you will need to transfer your
cryptocurrencies from your main account to your “Currency Account”,
by clicking on “transfer”. It is from your account of
currencies, also called “Trading Account”, that you will make your
trades.

Warning : Be careful about the format taken into account by the wallets (do not transfer BTC to an ETH wallet for example, at the risk of losing them forever).

Trade crypto currencies

KuCoin therefore allows you to trade cryptocurrencies and
make exchanges. The procedures are this time different from those
buy or sell orders. For this, you must first have made
a transfer of the amount to be traded to your trading account as well as create
a trading code. Once entered, it remains activated for 2 hours.
Go to “Exchange”,
then “Cash transaction” in order to
open a special page for trading and get an overview of
available operations.

On this page you will have information about the course and the selected pair

On the left, you can find
all available cryptocurrency pairs, you will only need to
choose the desired pair, and you can then make your exchanges. By
example, if you want to buy Ripple with your Ethers, click all
first on “ALTS”, choose the abbreviation of Ethereum (ETH), then
click on the Ripple / Ethereum (XRP / ETH) pair. You will then open the page
information about this pair, and you can then shop
by going to the table at the bottom of the page with the green box
“XRP Purchase”.

Types of orders

Like many other exchanges, KuCoin continues
to extend its services and enlarge its community by offering several types
order to buy cryptocurrencies. Among the available orders, we
finds:

  • The limit order, with which you enter
    simply the price at which you want to buy a fixed quantity;
  • The order at the market price, with which you can
    buy a quantity of order at the correct market price;
  • The stop limit order, which includes the stop price,
    trigger of a limit order, and the limit price, which designates the price
    the limited order that was triggered;
  • The stop loss order at the market, where you can
    purchase an order quantity at the current market price.

Depending on your investment strategy, you can
change the order during your trading.

Sell ​​cryptocurrency

The procedure here is similar to that of the exchange. Still taking the same cryptocurrencies as an example, this time what interests us is the table with the red box “XRP Sale”. All you need to do is enter the number of XRP you want to sell, and at the price of the ETH that interests you most.

Buy currency with a credit card on KuCoin

If you want to buy cryptocurrency with your
credit card directly on KuCoin, start by heading to the
banner “Buy Crypto”, and click on “Buy with a
Credit card “.

Make your cryptocurrency purchases directly on KuCoin

You will then be redirected to a purchase page in
which you can choose the institution you prefer between Simplex and
Banxa. In the “Amount of the Order” section, you can
select the cryptocurrency that interests you, as well as the number, and in
the currency part, you can choose the Fiat currency with which you
want to buy your cryptocurrencies. Below are the costs of
transactions.

You will then just have to confirm your purchase by
clicking on “Buy now”.

KuCoin wallet and withdrawals

Once you have made your exchanges, remember that your
cryptocurrencies are still in your Currency Account, which is
exclusively dedicated to exchanges. Before you disconnect, think first
to transfer your cryptocurrencies to your Main Account.

Also, note that there is only from your account
principal that you will be able to withdraw your cryptocurrency. By
example: you have just finished your trading session, and you have
recovered bitcoin. If you want to place your Bitcoins in a wallet external to that of the
platform, you will first need to transfer them from your
currencies to your main account, then make a withdrawal.

How to withdraw from your KuCoin account
?

To withdraw from your KuCoin wallet and transfer them to another platform or
another wallet
, you have to :

  • Go to the “Assets” tab, then click
    “Currency account”;
  • Choose the cryptocurrency you want
    withdraw, then click on “transfer”;
  • Select the amount you want
    transfer to your main account;
  • Go to the “Main Account” sub-tab
    then click on “Withdrawal” next to the cryptocurrency in
    question;
  • Enter the wallet address and
    amount. You can also add a remark during your withdrawal.
Export your cryptocurrencies to your wallet

To note : KuCoin will automatically ask you to activate an SMS or Google Verification verification, as well as the Trading Code. Without this, you will not be able to make any withdrawals.

To register on Kucoin, the first step is here.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Conclusion

Trader
on KuCoin remains advantageous since it does not require any complex procedure, in
especially for opening an account. In addition, the exchange offers fees
generally weak and gives access to a significant multitude of currencies
cryptographic. In addition, it is a platform setting up a
very thorough security system, via the various accounts (main and
trading), 2FA or the restriction of IP. However, understanding his
principle of operation will ensure the success of all operations, in
more
13 golden rules
of the investor in cryptocurrencies
. To discover before trading.

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