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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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
Many exchanges’ systems have been breached with the data being compromised, including Binance, Upbit, and Bithumb. The number of funds stolen and its influence are significant.
KuCoin & KuCoin Futures have been operating for nearly 1,000 days with ZERO security incidents.
KuCoin has a good reputation in the industry and among the trading participants.
Examples of KuCoin Future's Security:
KuCoin Futures has a smart algorithm for index calculation and remained safe and sound when Deribit, one of the most popular derivatives exchanges, reimbursed over 1.3 million USD to its users because of index calculation failure.
When the market crashed on December 25, 2019, if users’ liquidation price was between 7,856 and 8,114, their position would be to force liquidated on OKEx but safe on KuCoin Futures. Calculated based on the data that 6.34 million lots were liquidated on OKEx, KuCoin Futures would prevent over 20,000 Bitcoin worth of positions from being force liquidated.
KuCoin Futures' Security Defense System:
For KuCoin Futures, the security defense builds a security depth defense system from four levels: organization system, management system, technical system, and execution system.
Technically, the host layer, application layer, and network layer are monitored for full traffic, and rules are set to intelligently detect and intercept intrusions.
Internally, the zero-trust security mechanism guarantees that no internal employee can steal any company property and perform illegal operations.
Not only are hackers unable to perform malicious operations beyond their authority, but even internal employees also cannot carry out malicious operations using a username and a password.
Fees
In KuCoin Futures trading, the following factors may influence the trading fee. Let's have a look!
1. Fee Level
Please click the Fee tab on the bottom of the official website, to view your current fee level and the corresponding trading fee rate for different fee levels.
A higher level enjoys a lower trading fee rate, and would probably enjoy trading fee rebates.
Notice: For API users who are already VIP on other platforms, please contact newapi@kucoin.plus to apply for the preferential rate of the corresponding VIP level on KuCoin.
2. Maker/Taker
KuCoin uses a taker-maker fee model to determine the different trading fees.
Taker:
When you place an order and it is executed immediately(including market order, hidden order, and iceberg order), you are considered as a Taker and will pay a taker fee.
Maker:
When you place a limit order or an order which is not immediately matched to enter a buy or sell order, you are considered as a Maker and will pay a maker fee.
3. KuCoin Futures
KuCoin Futures launches USDT-Margined Contracts and COIN-Margined Contracts.
3.1 BTC Margined Perpetual Contracts pay fees in BTC. Funding occurs every 8 hours at 04:00 UTC, 12:00 UTC, and 20:00 UTC. Traders will only pay or receive funding if they hold a position at one of these times.
3.2 USDT Margined Perpetual Contracts pay fees in USDT. Funding occurs every 8 hours at 04:00 UTC, 12:00 UTC, and 20:00 UTC. Traders will only pay or receive funding if they hold a position at one of these times.
3.3 BTC Margined Delivery Contracts pay fees in BTC. No Funding occurs. Trades only pay a Settlement Fee when the contract is settled except fees generated in opening or closing a position.
KuCoin Token (KCS)
KCS is the native token of the KuCoin exchange, it was launched back in 2017 as a utility token that allows traders to share the growth benefit of the exchange. It is currently issued as an ERC-20 token running on the Ethereum network and was supported by most Ethereum wallets. Sooner or later, as the KuCoin decentralized trading solution goes live, KCS will be the native asset of KuCoin’s decentralized financial services as well as the governance token of the KuCoin community in the future.
The total supply of KCS was set at 200 million, and there is a planned buyback and burn until just 100 million KCS remain. KCS currently has a total supply of 169,843,459 and the circulating supply is 79,843,459. The total market cap of KCS is $438,728,748, ranking it in the top 100 on CoinMarketCap.
KCS, as a utility token, has a number of use cases. In the KuCoin ecosystem, KCS can be used to pay trading fees on the KuCoin Exchange, allowing users to enjoy discounts of 20%. The use case of KCS also includes participation in token sales on KuCoin Spotlight, as well as LockDrop/BurningDrop on the Pool-X platform.
Furthermore, KCS, as a payment method, also has a lot of use cases, such as:
- SwirlPay, a decentralized payment service, supports KCS payments.
- PlayGame, a direct-to-play gaming platform, enables users to play games with KCS.
- KCS can be used to make hotel reservations on Travala, the leading blockchain travel booking platform.
- Purchase fashionable products on Print-ted with KCS.
- KCS is able to serve various offline and online payment scenarios via Pundi X.
- Use KCS to buy monster card packs on Splinterlands.
- Collateralize KCS to borrow US Dollars (USD) and Vietnamese Dong (VND) on Constant.
- CoinPayments, a borderless online payment platform, accept payments in KCS.
- BetProtocol added KCS as the main token used on their gaming applications.
As a native and utility token, KCS has lots of use cases. Driven by the prosperity and development of the KuCoin ecosystem, the value capture capabilities of KCS will be further enhanced. In the long run, KCS performs as the key to the entire KuCoin ecosystem, as well as the governance token of the KuCoin community in the future. So, the future of KCS is worth looking forward to.
Smart Algorithm for Index
KuCoin Futures uses a smarter algorithm for Spot Index calculation.
As an example, on December 31, 2019, the BTC/USD market price of Coinbase became abnormal and the spot index of Deribit, one of the most popular derivatives exchanges in the world, fell over 7% in 5 minutes, or 2,000 points. The exchange reimbursed over 1.3 million USD in losses from this issue.
KuCoin Futures uses Coinbase to be part of the spot index as well. However, its smart algorithm identified this issue and abandoned the abnormal value, ensuring that the spot index and mark price worked normally. No trading activity was influenced.
On another example, on December 25, 2019, the BTC/USD price fell over 1,000 dollars in a short period.
The spot index of OKEx reached 8,046 with a mark price of 7,856. The difference is 190 points and the lowest trading price was 7,889. A large number of liquidation events made the system unable to accept more order entries.
The spot index of BitMEX reached 8,092, with the lowest trading price of 8,012, 123 dollars higher than OKEx.
Facts behind the data: If users’ liquidation price was between 7,856 and 8,114, their position would be force liquidated on OKEx but safe on KuCoin Futures. Calculated based on the data that 6.34 million lots were liquidated on that day on OKEx, KuCoin Futures would prevent over 20,000 Bitcoin worth of positions from being force liquidated.
In extreme market conditions, the mark price and trading price on OKEx deviated a lot from the spot index, and the investors were harmed in a bad way. BitMEX and KuCoin Futures have a better pricing model and thus performed better in such events.
Community
Users of KuCoin Futures are based in 207 different countries and regions, including North America, Europe and Asia Pacific.
KuCoin Futures inherited the genes of KuCoin, to be globalized. The team designs its products based on its users’ preferences from different areas across the world to satisfy their trading habits. Over 40 Meetups and AMAs have been successfully held so far.
KuCoin Futures Pros & Cons
KuCoin Futures: Pros
- Fair, efficient, and user-friendly trading products for every participant
-
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.
If you would like to get 20% OFF trading fees on KuCoin Futures and get a $100 USD Bonus on KuCoin Futures, follow the link below! After signing up, open the app and choose to pay for fees using the KCS token in order to get the 20% discount!
