KuCoin’s hot wallets were compromised at the end of 2020. Insurance covered all losses. KuCoin also acted quickly and was open about what had happened.
KuCoin offers excellent user-level security. KuCoin encourages users to set up two-factor authentication as well as an additional password to trade. To help you protect yourself from phishing attacks, KuCoin allows you to set safety phrases that will be included in all KuCoin emails. AuCoin’s proactive approach is appreciated, as phishing attacks (where criminals pose to be legitimate companies to steal your information) are on the rise.
A couple of warnings: First, the insurance policy may not cover assets in case of company failure. FDIC Insurance will usually cover losses up to $250,000 if your bank goes under, told Traders Union. However, this is not true for cryptocurrency exchanges.
Unregulated exchanges pose additional risks if you are a U.S. citizen. To prevent money laundering and tax avoidance, authorities are enforcing sanctions against U.S. citizens who use unlicensed services. If you use unregulated exchanges, your account could be frozen and you won’t be able to access your crypto.
Selection of cryptocurrencies
KuCoin offers over 750 currency pairs, which are two coins that are compared against each other. It also has more than 600 currencies. This large range of cryptocurrencies includes popular coins such as Bitcoin and Ethereum, and it is why we use KuCoin. The company was founded to give people access to less-mainstream currencies. The Ethereum price prediction cryptocurrency is built on blockchain analysis and technical analysis.
Although less well-known coins can be more dangerous than the popular ones, it is still important to fully understand what you are purchasing. Consider who the management team is and what the coin’s goal is. Also, consider what coins are operating in the same space.
What could be done to improve?
- The U.S. has not granted a license for this product.
KuCoin cannot operate in the United States due to strict regulations regarding cryptocurrency exchanges. KuCoin may not be available to residents of the United States. There would be restrictions on the amount of leverage and withdrawals you can make.
There are two risks. Your assets could be frozen if the U.S. clamps down on unlicensed exchanges. KuCoin does not offer support for unverified accounts in cases of theft, hacking, fraud, or fraud. If you are a U.S. citizen, be cautious.
Many great cryptocurrency exchanges have been licensed in America. It makes sense to investigate them before you sign up for KuCoin.
- Payment methods are limited
KuCoin allows you to buy cryptocurrency using fiat money. However, you will need to use a third-party application. There are over 70 payment options available, however, it’s not always possible to deposit money via bank transfer. The fees can be very high. These fees can be avoided by depositing crypto that I have purchased using other exchanges onto KuCoin. This is completely free.
You will also need to buy a certain amount of currency immediately. You could buy 200 USDT of Tether (USDT), a stablecoin pegged to the US dollar. The Tether would then be available to purchase other currencies. It was not possible to simply deposit $200 and then wait for the right moment to invest it. Some exchanges allow you to deposit money and choose when and how you want it spent.
- For new traders, not
KuCoin’s website is difficult to navigate if you are new to cryptocurrency. The live chat did respond quickly to questions.
KuCoin offers some educational resources. However, I would like to see more information, especially considering the number of coins that you can purchase. You’ll need to research other sources for information about new coins. There are some resources available, but it is not extensive.
KuCoin is the right choice for you if:
- You are a non-American citizen and would like to purchase new or less well-known cryptocurrencies.
- If you are an experienced cryptocurrency trader and want to access advanced features,
- You want to take interest in your crypto, and you need to understand the risks.