KuCoin Review: Pros, Cons, and More

What could be improved

Not licensed in the U.S.

A customer support representative said the exchange only provides services for countries listed on its Know Your Customer (KYC) page, which does not include the U.S. KYC involves filling out personal information and uploading your photo ID to help authorities combat money laundering.

The United States has strict regulations for cryptocurrency exchanges, and KuCoin is not licensed to operate in the states. If you live in the U.S, you may be tempted to use KuCoin without completing the KYC verification. You’d have restrictions on how much you could withdraw, and how much leverage you could access.

There are a couple of risks here. First, if the U.S. cracks down on people accessing unlicensed exchanges, your assets might get frozen. Second, KuCoin doesn’t offer the same support to unverified accounts in the case of hacking, fraud, or theft. So proceed with caution if you’re a U.S.-based user.

Since there are a number of excellent cryptocurrency exchanges that are licensed in the U.S., it makes sense to check them out before signing up with KuCoin.

Limited payment methods

KuCoin does let you buy cryptocurrency with fiat money, but you’ll need to do it through a third-party app. You can pay by credit or debit card, Apple Pay, and Google Pay, but you can’t deposit money by bank transfer. And the fees can be steep.

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Also, you’ll need to immediately buy a set amount of one currency. For example, you could buy $200 worth of Tether (USDT), a stablecoin that’s pegged to the dollar. You’d then be able to use Tether to buy other currencies. You couldn’t simply deposit that $200 and wait for the right time to invest it. Other exchanges let you deposit money and then choose how and when you want to spend it.

Not for new traders

If you’re new to cryptocurrency, KuCoin’s site is not easy to use. The Fast Buy function didn’t work at all when I tried it, and the peer-to-peer trading options were only open to people who’d completed the KYC verification process. That said, I did get quick responses from the live support chat.

KuCoin has some educational resources, but I’d like to see a lot more, especially given the number of coins you can buy. There is some information available on new coins, but not a lot, so you’ll need to do your research elsewhere.

View more information: https://www.fool.com/the-ascent/cryptocurrency/kucoin-review/

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