In February, some platforms imposed restrictions for Russian users.
KuCoin crypto exchange, in April stated that it would not block clients without regulator requirements. We explain which trading tools are available to its users.
Platform tools in 2022
KuCoin is a cryptocurrency exchange offering spot, margin and P2P trading, headquartered in the Seychelles.
The platform has been operating since 2017. It currently supports more than 700 crypto assets and serves 18 million users in 200 countries and regions.
KuCoin offers users:
- investment platform KuCoin Earn;
- IGO Launchpad;
- trading with bots;
- margin trading;
- futures trading;
- crypto lending.
Below we take a closer look at each of these tools.
Investments
KuCoin Earn — a platform for earning passive income using crypto-financial products:
- deposits with fixed and floating rates, yielding up to 20% per annum;
- staking Ethereum 2.0 and other crypto assets. Yield up to 10% per year;
- parachain auctions on Polkadot;
- BurningDrop — users can receive tokens of new blockchain projects by locking a certain amount of cryptocurrency in staking.
How to invest in KuCoin Earn products:
- go to the site KuCoin, hover over the Earn menu and in the dropdown click the KuCoin Earn tab;
- choose the desired product (deposit, staking or tokenized stocks) and click the Subscribe;
- transfer assets for staking or wallet to the Transfer menu and click Confirm.
IGO Launchpad
KuCoin IGO — platform for conducting initial game token offerings (Initial Game Offering, IGO). Participants buy in-game tokens, and the project team gets funds for development.
In addition, investors can access in-game items like skins, accessories or weapons as NFTs.
KuCoin supports three IGO options:
- token sale at a fixed price;
- auction;
- in the form of mystery boxes — virtual boxes containing a random NFT.
To participate in IGO:
- go to the site KuCoin, hover over the NFT menu and in the dropdown click the Games/IGO tab;
- choose the project conducting the IGO and click the Buy button to purchase tokens.
Trading Bot
Trading Bot — buys and sells cryptocurrency according to a set algorithm. The user specifies the list of assets to trade, as well as entry and exit conditions.
KuCoin bots support the following trading strategies:
- grid trading on the spot market (Spot Grid or Infinity Grid);
- grid trading on the futures market (Futures Grid);
- dollar-cost averaging (Dollar cost averaging, DCA);
- smart rebalancing (Smart Rebalance).
More on this — in the KuCoin Trading Bots Review.
Margin Trading
Margin trading allows traders to buy and sell cryptocurrency on borrowed funds, i.e., increase the volume of trades with the same capital. For example, a trader with 100 USDT on deposit can borrow up to 900 USDT and buy Bitcoin.
Features of margin trading include exotic pairs such as LTC/ETH, as well as weekly interest payments on borrowed funds.
Benefits of margin trading on KuCoin:
- leverage up to 10x;
- support for over 160 crypto assets and 190 trading pairs;
- availability of cross and isolated margin.
In cross-margin mode (or cross margin) all funds on the user\’s margin account serve as collateral. In isolated margin mode funds are independent for each position.
The cross-margin type is preferred by advanced traders for more flexible capital usage, while isolated margin caps risk to the allocated amount, making it better suited for beginners in margin trading.
To open a margin account on KuCoin:
- go to the site KuCoin, hover over the Trading menu and in the dropdown click Margin Trading;
- choose Cross Margin or Isolated Margin, and then click Enable;
- click Transfer to add funds to the cross-margin account or the isolated-margin account.
Futures
KuCoin Futures — a platform for trading cryptocurrency futures contracts. Users open long (Long) or short (Short) positions with leverage up to 100x.
KuCoin Futures supports 100 perpetual and quarterly contracts with collateral in Tether (USDT) or Bitcoin.
To open an account on KuCoin Futures:
- go to the site KuCoin, in the Derivatives menu choose Futures Classic to access all platform tools, or the Futures Lite tab to work in a simplified interface;
- click Enable Futures Trading, read the terms of use and click I have read and agree;
- hover the wallet icon in the top-right corner of the page, then click Futures;
- click Deposit and transfer Tether or Bitcoin from your wallet to the futures account;
- if you already have funds on KuCoin, click Transfer and move Tether or Bitcoin to the KuCoin futures account.
Lending
KuCoin Lending — a P2P-lending platform where users lend funds to margin traders and earn passive income.
Lending yields on KuCoin Lending depend on market conditions and can reach up to 40% per year. When market volatility is high, users often increase their positions through margin trading, which raises demand for crypto loans and interest rates.
To lend crypto assets on KuCoin Lending:
- go to the site KuCoin, hover over the Earn menu and in the dropdown click the Crypto Lending;
- choose a cryptocurrency in the left-hand Coin menu. In the middle menu choose the amount and lending rate. On the right are all open orders on the lending market;
- choose the loan type: Normal Lend or Auto Lend.
When choosing a Normal Lend you specify the daily interest rate yourself: from 0% to 2%.
With Auto Lend the platform disburses funds automatically once the minimum rate specified by the user is reached. After repayment KuCoin issues the loan again.
Conclusions
KuCoin provides users access to more than 700 crypto assets, tools for passive income and channels for additional investing. It does not require KYC if you do not withdraw more than 1 BTC per day.
The exchange ranks in the Top-5 spot exchanges on CoinMarketCap and is suitable for both beginners and professional traders and crypto investors.
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