KuCoin is a popular cryptocurrency trading platform that has been around since 2017, and grown their customer base to 20 million users. Over 700+ different cryptocurrencies are supported on their exchange, and they are very focussed on traders, with plenty of advanced options such as Margin trading, Futures trading and a P2P marketplace. How does KuCoin compare to Australia's top crypto exchanges and is it right for you?
What is KuCoin?
KuCoin is a feature-rich cryptocurrency trading platform with low fees of 0.1% and support for over 700+ different coins. Similar to Binance Australia, KuCoin has plenty of options for serious traders, with margin trading, a P2P marketplace, futures trading, and cryptocurrency lending. Before I get into the full review, here is a summary of the top features that make KuCoin stand out.
- Popular cryptocurrency trading platform with over 20 million users
- Over 700+ cryptocurrencies supported
- Extremely low trading fees (0.1%) that can be discounted if paid using KuCoin's token (KCS)
- P2P marketplace where you can buy and sell with no fees
- Mobile app so you can trade anywhere
- Cryptocurrency lending and borrowing
- Free KuCoin trading bot to automate your trades
- Futures and margin trading supported
- Bank-level security for their assets
Australian alternatives to KuCoin
Features
Deep liquidity and range of coins
Since KuCoin has an impressive user base of 20 million, their liquidity is very deep. I have traded on KuCoin for years, and have always had orders filled very quickly. Another excellent feature of KuCoin is the massive range of 700+ cryptocurrencies available. I have discovered some extremely profitable coins by scrolling through the extensive list of assets and looking for good trading opportunities. If you spend some time on KuCoin you will definitely find a trading pair that suits you.
Advanced features
KuCoin has plenty of features that experienced traders enjoy. They offer up to 100x leverage on futures trading, which is unheard of on most other crypto trading platforms. There are two different interfaces that traders can use when trading futures. There is Futures Lite which is great for those who are after a quick trade, whereas Futures Pro incorporates the full suite of trading tools.
KuCoin has a P2P (peer-to-peer) marketplace where users can agree to buy and sell USDT, BTC, ETH, KCS or USDC from another user. You can search existing advertisements or post your own with the details of what you're after. I have used the P2P market to buy BTC and ETH, and can confirm that there are no fees incurred to trade in this manner.
KuCoin's platform includes a number of free bots to assist with your trades. Some serious traders invest hundreds or even thousands of dollars in third-party trading bots, but KuCoin provides them free of charge. I found their trading bots an excellent way to get started in the world of automated trading. It is a useful tool because it can take the emotions out of trading, and allows trades to be made at any time of day, even when you are asleep.
KuCoin also has a list of the most successful trading bots, and you can copy their parameters to create and use the exact same bot in your own account.
Crypto borrowing and lending
KuCoin offers their users an easy way to borrow cryptocurrency, with their borrowing and lending feature. You can borrow over 70 different coins, with a term of either 7, 14 or 28 days. The daily interest rate is clearly listed, and is set by the lender. You can choose one that you are comfortable with, and borrow cryptocurrency immediately.
If you have spare crypto that you want to earn interest on, then you can be a lender and earn passive income on your coins that you plan to HODL long term. You can set any interest rate that you want to receive, but if it's too high, you won't get any offers. KuCoin makes it easy to choose a reasonable interest rate, as it provides the optimal daily interest rate to advertise.
KuCoin token (KCS)
KuCoin has their own coin called KCS that you can use to reduce your trading fees, as well as earn interest. Your trading fees will be reduced by 20%, so it is only 0.08% per trade which is extremely low. To earn interest on your KCS, all you need to do is hold more than 6 KCS coins in your account. It is like receiving interest from your bank, and the bonus is given to you daily, at the rate of 22% APR.
Negatives of using KuCoin
KuCoin is an excellent trading platform, but it is not so great for those who wish to simply buy and hold crypto. This is because there is no fiat deposit option, so you cannot just deposit AUD and trade it for crypto. Instead, you can purchase crypto directly with AUD, but the third party payment processors will charge 3-5%. Additionally, when you want to sell your crypto, this is not possible as there are no fiat withdrawals on KuCoin. To withdraw money from KuCoin, you have to send your crypto to another exchange such as Swyftx, convert it to AUD, then withdraw to your bank account.
If you are looking to buy and hold crypto, then we recommend Swyftx. Swyftx is one of the top Australian crypto exchanges, with over 320 cryptocurrencies, low fees, and low spreads. To learn more, read our Swyftx review, or sign up with this link, to receive FREE $20 of Bitcoin as a welcome offer!
Fees and Payment Methods
On KuCoin, you can't deposit AUD or any fiat currency into the account. Instead, if you want to purchase cryptocurrency, you pay for it directly at the time of sale. There are several methods for Australians, including Visa/Mastercard, Apple Pay and PayID.
There are no clear indications of the fees to purchase crypto, neither on KuCoin's website, nor on the payment page. Another reviewer calculated the fees himself, and said depending on which payment method you select, the fees vary from 3% up to 5%.
Trading fees on KuCoin are very low, at only 0.1% and if you own their coin (KCS) you receive a 20% discount which brings the trading fee down to just 0.08%. If you are a high-volume trader, you can also reduce your fees based on the dollar amount you traded over the last 30 days.
Withdrawing AUD or any fiat withdrawal is NOT supported on KuCoin, which is the biggest disadvantage I see from this exchange. If you want withdraw AUD from KuCoin you have to transfer your crypto to an exchange that supports fiat withdrawals, then sell it and withdraw. An alternative to KuCoin is Binance Australia, with 600+ coins, 0.1% trading fees, plenty of features, and free fiat deposits and withdrawals.
Security
You don't need to worry about security when you use KuCoin. The platform employs multiple security measures, like micro-withdrawal wallets, encryption and multi-factor authentication. KuCoin also has an internal risk control department who specifically monitor transactions every day to ensure nothing suspicious is occurring. Although KuCoin was hacked in 2020, they were able to retrieve a lot of the stolen assets, and the remainder was covered by their insurance. KuCoin users did not lose any money as a results of the hacking.
Pros and Cons of KuCoin
Conclusion
KuCoin is a feature-packed crypto exchange for serious traders, and this is evidenced by their impressive user base of 20 million+ customers. There are plenty of features for advanced traders and crypto investors, and the low trading fees and 700+ coins make it a popular choice for many. However, if this is your first time buying cryptocurrency, I would stay away from KuCoin for the time-being. The platform is not designed for beginners; the crypto purchase fees are high, and it is not possible to withdraw AUD if you want to sell your coins and collect profit.
For newcomers to crypto, some alternative exchanges are CoinSpot and Swyftx, both top Australian crypto exchanges. CoinSpot is the most secure Australian exchange, and offers 370 coins and staking. Swyftx is also a great choice, with low fees, a unique demo mode and a wide range of 320+ coins. If you are still doing research, you can take a look at my review on the best crypto exchanges in Australia here, or have a glance at the table below for a brief comparison.
Frequently Asked Questions
Unfortunately you cannot withdraw AUD or any fiat currency from KuCoin. If you have crypto in a KuCoin account and you want to cash it out, you will need to transfer the coins to another exchange that supports fiat withdrawals, such as Swyftx. Then sell the coins on Swyftx, and withdraw AUD to your bank account.
Bybit is the best crypto exchange in Australia. It has low fees, plenty of advanced trading features, and 280+ coins.
KuCoin is a trustworthy and legitimate crypto trading platform. Remember that you cannot withdraw fiat currency from your account, so if you are planning to withdraw AUD to your bank after trading, consider Binance Australia which is similar but allows free AUD withdrawals and deposits.
No, KuCoin and Coinbase are two different crypto exchanges. KuCoin is focused towards traders, while Coinbase is targeted at beginners. However, it is important to note that it is not possible to withdraw AUD from either of these two exchanges. Check out our review on the best Australian crypto exchanges to find one suitable for you.