The History of Kucoin
Kucoin is a new exchange based in China that was launched in September 2017, the development team only being established in May the same year. The jury is still out on this exchange right now.
But so far usage of this exchange has exploded, particularly in Asia. One of the main reasons that Kucoin has been so successful in such a short space of time has been because it introduced its own coin called the KCS (Kucoin Share).
The tactic was recently employed by another new exchange known as Binance, who issued their own coin known as the BNB. These coins are both a form of speculation and they also grant users discounts on fees. A snowball effects starts, and hype gets built around these new exchanges with their new coins.
People join these exchanges with the belief that the coins will be worth more in the future. The more that join, the higher the price of the coins.
However, these coins actually have little real-world use. It is an interesting business model that works and Kucoin has seen large investor sentiment in recent months. Launched in September 2017, the KCS essentially allows users to become investors in Kucoin, which is a very intelligent business strategy.
Kucoin has a number of advantages over the vast majority of other exchanges. One of the main advantages are that fees are lower and it also has its own coin.
Transaction fees on Kucoin are the best in the world, a mere .02%. 50% of the transaction fees are reimbursed to the shareholders, providing them with passive income, though given the tiny exchange fees this is not much. Kucoin offered a referral program but has stopped this due to too many new users.
As an added bonus Kucoin has 24/7 support and fast withdrawals. Deposits are complete within two minutes and withdrawals within 10 minutes.
The growth of Kucoin has been phenomenal. The research team was established in May 2017, with a subsequent angel investment and the launch of the platform in September 2017.
It has since launched apps for IOS and Android, offers multiple trading pairs and has the added advantage of listing potential coins before its larger competitors. Kucoin is fast and innovative, in many ways the opposite of huge exchanges such as Kraken and Coinbase.
In a mere three months their userbase grew to 200,000 users. By December 2018 Kucoin aims to offer an astounding 1,000 cryptocurrencies. It currently offers over 70 cryptocurrencies and what is even better is that you get paid in these coins for holding your KCS, though the amount is tiny.
It is a great form of diversified investment, as you are paid your dividends in the form of more than 70 alternative cryptocurrencies, some of which are likely to skyrocket. If Kucoin was ever to get to the current level of its main competitor of Binance, your earnings could grow to a whopping $10 per KCS, being reinvested in a portfolio of cryptocurrencies.
Binance grew to just under 3 million users in five months. All variances aside, if KCS and Kucoin achieve anywhere near these numbers, its price will erupt.
One of the major downsides of Kucoin is that you cannot buy Bitcoin, Litecoin, Ethereum or any other coin direct from their platform. You have to purchase these coins on another site and then transfer them over to Kucoin.
And there are some questions surrounding the nature of Kucoin and the fact that is registered in Asia, which is certainly not the safest location for cryptocurrency exchanges. Kucoin counterpart Binance moved from China to Hong Kong due to the risk of having its headquarters in such a cryptocurrency hostile location, and Kucoin followed suit.
In January 2017 the Kucoin website went down for some people. While in other industries this could send off alarm bells, in the cryptocurrency world it actually happens quite often.
In terms of security, Kucoin offers 2FA like most other exchanges and its methods are quite secure. You must verify every login and every two hours of trading.
The encryption and security of the exchange is much the same as that employed by banks, and it can conduct nearly 2 million transactions per second. One commonly cited selling point of Kucoin is the graphs and user interface. Kucoin offers a large variety of trading tools and is very beginner friendly.
If you join Kucoin Chat on Telegram, your issues can get resolved quite quickly, which is a nice workaround that few people are aware of. Kucoin can also be contacted on Twitter. Kucoin offers the best cryptocurrency exchange customer service in the world right now, by a huge margin, due to the support available on Telegram.
Kucoin could be a great way to earn some extra funds from cryptocurrency trading and its price is most likely going to skyrocket as it is undervalued compared to other exchanges. But something about the exchange reeks of a Ponzi scheme.
The marketing model is setup so that investors will put money into their coin which has no value and it initially paid people to refer others. It has all the hallmarks of a pyramid scheme.
However, along with Binance, this is possibly one of the best exchanges to trade on and there has been no evidence of malpractice as of yet. It is still small and growing and you could well see a return on investment as compared to trading on other exchanges.
You will also benefit from a platform that is much faster that industry standards, not to mention cheaper and more user friendly. This is because as these exchanges get bigger they become bloated and sluggish, losing features and increasing fees for a poorer service.
If you are a want to go with an exchange that has huge growth potential and could earn you serious rewards, then Kucoin is the best available. Given its previous explosive growth it could be as big as Binance within a year.
Binance reached 5 million users in under six months, and if Kucoin follows suit, you can expect serious ROI. Binance had to shut its doors because there were too many people joining, and this could well happen with Kucoin too.
But if you are a little risk averse and want your funds secured above all else, then consider Coinbase or another exchange. There is something a little off about such explosive growth without any real product and certainly do not keep your funds on Kucoin, just use it for trading.