KuCoin Futures Review: Is It Worth It?
KuCoin Futures Review
Is KuCoin Futures safe? Is KuCoin Futures legit? Is it worth your time? In this KuCoin Futures Review, we will be looking into all of KuCoin Futures' features and why this is one of the best platforms for futures trading.
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Disclaimer: We want to emphasize that this is not financial advice. Cryptocurrencies operate in a volatile market, where values can drastically fluctuate in a blink of an eye. It is imperative to conduct thorough research and seek guidance from a qualified financial advisor before investing.
Background And History
KuCoin is a Singapore-based crypto exchange founded in 2013, today it is considered one of the best crypto exchanges in the world.
KuCoin later launched KuMEX, a futures trading platform that has since changed its name to KuCoin Futures.
User trading experience is KuCoin's highest priority, and the team has been committed to becoming an Open and Transparent financial service platform since its inception. To grow with its users and make them feel well-cared-for is KuCoin's ultimate goal.
Upholding the principle of openness and transparency, KuCoin wants to keep building a better trader relationship and constantly push the sustainable development of the digital currency trading ecosystem.
Security
The vulnerability of exchanges to cyberattacks is a disquieting reality, one that has ensnared even notable players such as Binance, Upbit, and Bithumb. The aftermath of these incidents is not confined to data breaches alone; the magnitude of pilfered funds and the ensuing repercussions resonate deeply within the cryptocurrency community.
The distinctiveness of KuCoin Futures' narrative lies in its impeccable security track record. Having operated for nearly 1,000 days without a single security incident is a testament to its unwavering commitment to fortifying its digital bastion. The trust it has engendered in both the industry and its trading participants is a badge of honor in a landscape where confidence is a fragile commodity.
The security measures embedded within KuCoin Futures are not just ornamental; they are the bedrock of its operational ethos. One instance is the smart algorithm that orchestrates index calculation. When Deribit, a prominent derivatives exchange, was forced to reimburse over 1.3 million USD due to index calculation failure, KuCoin Futures remained steadfast, exemplifying the potency of its safeguards.
The events of December 25, 2019, stand as a poignant illustration of KuCoin Futures' security prowess. While other exchanges were grappling with market crashes that prompted widespread liquidation, KuCoin Futures was the port in the storm. Its resilience prevented over 20,000 Bitcoin worth of positions from being force liquidated, as data attests to the staggering liquidation of 6.34 million lots on another platform.
KuCoin Futures' security defense system is emblematic of its comprehensive approach to safeguarding its users' assets. Erected on the pillars of organization, management, technical, and execution systems, this security depth defense system is multi-layered and holistic. The surveillance spans the host layer, application layer, and network layer, ensuring that no anomaly goes undetected. The zero-trust security mechanism, a testament to the skepticism that underpins its security ethos, neutralizes even internal vulnerabilities. Its strictures extend beyond external threats, rendering it implausible for internal employees to perpetrate unauthorized acts.
Fees
One of the prominent variables that shapes the trading fees is the fee level. This degree of classification assumes significance, as it determines the rate at which trading fees are levied. Ascending the fee level ladder is akin to an ascent toward a fiscal advantage. The higher the level attained, the lower the trading fee rate one can avail. This tiered system often extends the olive branch of trading fee rebates, underscoring the platform's commitment to rewarding loyalty and engagement.
For those initiated into the intricacies of API use, KuCoin Futures also accommodates this aspect. Those who hold VIP status on other platforms can seamlessly transfer their privileges by contacting the platform. The approach is both strategic and pragmatic, recognizing the importance of ensuring a seamless trading experience for those transitioning from other VIP setups.
Central to the fee structure is the maker-taker model, a facet that epitomizes the dualistic nature of trading activities. A taker fee is incurred when an order is executed immediately, encompassing market orders, hidden orders, and iceberg orders. In contrast, the maker fee is applicable to limit orders or those that don't experience immediate execution. This division not only shapes the economic contours of trading but also reflects the platform's nuanced approach to fostering distinct trading strategies.
KuCoin Futures isn't monolithic in its approach; it delineates its offerings through two distinct categories: USDT-Margined Contracts and COIN-Margined Contracts. The fee dynamics for these categories are meticulously engineered. For BTC Margined Perpetual Contracts, fees are settled in BTC. This settlement process occurs periodically at predetermined intervals: 04:00 UTC, 12:00 UTC, and 20:00 UTC. USDT Margined Perpetual Contracts, in contrast, transact fees in USDT, following the same periodic funding rhythm.
BTC Margined Delivery Contracts operate on a separate tangent. In this configuration, fees are paid in BTC, and a unique feature prevails: the absence of funding. Instead, a settlement fee comes into play when the contract is settled. This paradigm underscores the distinctive nature of this contract type, underlining the platform's versatility in catering to diverse trading preferences.
KuCoin Token (KCS)
With its debut in 2017, KCS was conceived as more than just a token; it was a conduit through which the exchange's growth benefits could be shared with its traders. Fueled by this ethos, KCS has evolved into a multifaceted asset, underpinned by a spectrum of use cases that encapsulate its significance.
As an ERC-20 token, KCS's journey takes root in the Ethereum network, a choice that underscores its interoperability and accessibility. Supported by a multitude of Ethereum wallets, KCS found its foothold in the realm of cryptocurrency. Yet, its story doesn't end there. With the impending launch of KuCoin's decentralized trading solution, KCS is poised to transcend its current role. It will emerge as the native asset of KuCoin's decentralized financial services, while concurrently assuming the mantle of governance token within the KuCoin community.
The parameters of KCS's supply were meticulously calibrated to reflect its long-term vision. With an initial issuance of 200 million, the trajectory of supply is plotted along a path of buyback and burn, culminating in a strategic reduction to 100 million KCS. As of now, the circulating supply hovers around 79.8 million, an emblem of controlled growth that fosters value appreciation.
KCS's functionality is a tapestry woven with utility threads. Within the KuCoin ecosystem, its role as a payment method manifests in the form of trading fee payment, affording users a 20% discount on fees. KCS further diversifies its utility by extending its reach to token sales on KuCoin Spotlight and participating in LockDrop/BurningDrop initiatives on the Pool-X platform. The token's utility transcends digital confines, intersecting with tangible experiences. SwirlPay, PlayGame, Travala, Print-ted, Pundi X, Splinterlands, Constant, and CoinPayments are a testament to the varied scenarios where KCS is embraced as a form of payment, spanning realms as diverse as decentralized payment services, gaming, travel bookings, fashion commerce, and more.
Embedded within KCS's essence is the promise of the future. As a cog in the intricate machinery of the KuCoin ecosystem, KCS's trajectory is inextricably tied to the platform's evolution. Its value capture mechanisms are poised to be further amplified by the ongoing prosperity of the ecosystem. An embodiment of utility, community, and growth, KCS is poised to ascend into the echelons of the KuCoin ecosystem, its significance reverberating as a key to unlocking value. In an industry defined by innovation, KCS exemplifies the narrative of continuity and evolution, a beacon of what the future holds within the KuCoin community.
Smart Algorithm for Index
KuCoin Futures emerges not just as a participant but as a harbinger of innovation. Its deployment of a smarter algorithm for Spot Index calculation exemplifies its commitment to functional robustness and user security. The significance of this approach reverberates profoundly in the realm of derivatives trading, as exemplified by a series of real-world instances.
Take, for instance, the turmoil that transpired on December 31, 2019. The BTC/USD market price on Coinbase took a tumultuous turn, precipitating a chain reaction that resulted in a 7% plunge in the spot index of Deribit, a prominent derivatives exchange. The reverberations of this seismic shift weren't limited to mere numbers; Deribit was compelled to reimburse losses to the tune of 1.3 million USD, a testament to the ripple effect that market fluctuations can trigger.
KuCoin Futures doesn't just integrate Coinbase into its spot index; it goes a step further. Its astute algorithm, endowed with a knack for detecting anomalies, identified the irregularity and promptly discarded the aberrant value. This judicious move ensured that the spot index and mark price maintained their equilibrium, safeguarding the sanctity of trading activities. The end result? Zero disruption to trading, a feat that speaks volumes about the platform's proactive stance in the face of market volatilities.
The narrative continues with the tumultuous events of December 25, 2019, when the BTC/USD price plummeted by over 1,000 dollars in a blink. In this maelstrom, the disparities between spot indexes and trading prices across different exchanges became palpable. While OKEx's pricing structure faced a yawning chasm between its spot index and trading price, KuCoin Futures executed a deft maneuver that minimized the variance to a mere 10 dollars. This synchronicity between mark price, spot index, and trading price attested to the sophistication of KuCoin Futures' pricing model.
The ramifications of these insights aren't confined to the realm of data; they have tangible implications for traders. The span between 7,856 and 8,114 on OKEx became the danger zone for traders, as positions within this range were vulnerable to force liquidation. However, KuCoin Futures' robust pricing model served as a bulwark against this risk, thwarting the potential liquidation of over 20,000 Bitcoin worth of positions. This data-driven intervention speaks volumes about KuCoin Futures' commitment to trader well-being in extreme market scenarios.
Community
KuCoin Futures doesn't merely facilitate trading; it orchestrates a symphony of globalized engagement. This evolution is anchored in the platform's lineage, drawing from the genes of its predecessor, KuCoin. This inheritance isn't merely symbolic; it's a strategic maneuver that informs the very design of KuCoin Futures. The team approaches product development through a lens that is acutely attuned to user preferences across the global spectrum. In embracing this cosmopolitan ethos, the platform recognizes that trading isn't a monolithic endeavor; it's a tapestry woven from diverse habits, preferences, and strategies.
This global embrace isn't a passive one; it's an active commitment to nurturing a sense of community. This dedication to fostering connections has manifested in over 40 Meetups and AMAs, each serving as a conduit for shared insights, dialogues, and understandings. These gatherings are more than just events; they're crucibles where traders from different corners of the world converge to exchange perspectives, learn from each other's experiences, and collectively contribute to the evolution of KuCoin Futures.
The significance of this community transcends geographical confines; it's a testament to the borderless nature of the digital landscape. It reinforces the idea that innovation knows no boundaries and that the fabric of trading is woven from threads of shared aspirations. The platform's commitment to designing with an eye on global user preferences resonates with its aim to create an environment where every trader finds a space to flourish.
KuCoin Futures Pros & Cons
KuCoin Futures: Pros
- Fair, efficient, and user-friendly trading products for every participant
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A programmatic trading platform with high performance for professional traders to write to in a short time
- A design for global users with a combination of traditional finance and cryptocurrency
- User approval from major areas globally
- Zero security incidents and safe operation for nearly 1,000 days
- Robustness cases when extreme market conditions occurred
- Matching engine with one million TPS
- World’s top high-performance microservice cluster architecture
- Multiple self-built security defense systems
- Risk management with big data
- Secured and prompt cryptocurrency deposits, withdrawals and transfers
- Many security features
KuCoin Futures: Cons
- Not regulated
- Bank transfers aren't accepted
- Fiat currencies are not supported
- Live chat responsiveness needs to be improved
- A bit complicated for beginners
KuCoin Futures Review: Verdict
After our KuCoin Futures review, we came to believe this is one of the very best platforms for futures trading.
KuCoin Futures is a very solid and trustworthy business, the platform is user-friendly, customer support is responsive, trading fees are very low, and some of its features are absolutely unmatched.
Unlike many of its competition, KuCoin has never faced any security issues and has proven to be a stable and competent company when faced with some challenges that others failed to beat.
With Binance Futures getting banned in more countries, KuCoin Futures has arisen as one of its strongest contenders, in recent times, more and more users have been migrating to KuCoin futures.
On the downside, KuCoin Futures is not regulated, it doesn't accept bank transfers, and fiat currencies are not supported, on the other hand, many potential users probably don't care about these issues.
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