Crypto exchanges play a vital role in the crypto space. They offer users the ability to trade their cryptocurrencies. In recent years, the safety and security of these centralized exchanges have become a point of discussion. The fact that over 50 exchanges have suffered hacking incidents in the past nine years has intensified this discussion. These breaches have highlighted vulnerabilities within centralized exchanges, raising questions about their security measures.
Conducting a thorough analysis of various crypto exchanges before choosing one is crucial. In this review, we’ll offer a comprehensive comparison of Kucoin and Coinbase, examining factors like security protocols, fee structures, the range of available cryptocurrencies, and additional functionalities.
Kucoin Overview
Since its establishment in 2017, Kucoin has grown to host more than 30 million users in more than 200 countries worldwide. Kucoin supports over 700 cryptocurrencies and has facilitated a 1.2 trillion trading volume over its lifetime. Though not regulated by any regulatory body, Kucoin has proven itself over the years to be a trusted exchange.
In 2019, Kucoin introduced its blockchain called Kuchain, along with a decentralized exchange known as KuSwap. Both operate within the Cosmos network, which serves as an ecosystem supporting various blockchain applications and networks.
Kucoin Features
Kucoin has several features that make it stand out from the rest.
Copy trading
Kucoin users can participate in copy trading, which is done using automated bots, a feature that beginners will enjoy. Using this option, new traders can choose a crypto trader of their choice and mirror their trading behaviors.
Peer-to-peer trading
Kucoin facilitates peer-to-peer (P2P) trading, eliminating the need for a middleman as users transact directly with one another. Acting as a custodian, Kucoin holds the funds until the transaction between the involved parties is finalized. This approach enhances flexibility and potentially reduces intermediary fees, empowering users to engage in direct transactions within the platform.
Crypto futures
Kucoin also includes a crypto futures option under the derivatives feature. With this feature, users can bet on a crypto’s future price, approximately 245 assets. To make it easier, Kucoin also allows users to borrow money from the platform to increase their chances of making profits.
Trading Bots
Kucoin leverages crypto trading bots, which are programs that use predefined parameters to execute trades. Crypto bots analyze market data and make trading decisions without any human intervention.
Kucoin has a wide selection of trading bots designed to offer different trading strategies including futures, martingale, spot grid, dollar cost average (DCA), and smart rebalancing.
Kucoin Earn
Kucoin Earn is a feature designed to provide users with avenues to generate passive income from their crypto assets. This feature comprises a savings option where users can earn daily interest on their holdings. There’s also a staking option that allows users to participate in a mining pool and receive rewards for staking their assets. These functionalities within Kucoin Earn offer users opportunities to grow their assets and earn additional rewards beyond simple trading.
Extra rewards
Kucoin offers exclusive perks and benefits to its traders as a way to incentivize platform usage. They get rewards for trading and holding KCS, Kucoin’s native coin. They also get extra bonuses, interest-free borrowing, reduced withdrawal fees, and high lending rates.
Coinbase Overview
Coinbase has been around for some time. The US crypto trading platform was founded in 2012 as a Bitcoin-only trading platform. Over the years, it has evolved to include 246 cryptocurrencies, over 98 million users, and has a quarterly traded volume of $145 billion.
The platform operates in more than 100 countries and has one of the best security standards. Coinbase was the first exchange to receive financial regulation. In 2017, it received a BitLicense from the Department of Finacial Services in New York and now has licenses from almost every state in the country.
Coinbase also went public in 2021 and was the first crypto company to do so. It is now listed on the Nasdaq stock exchange.
Coinbase Features
Coinbase users can enjoy various features and functionalities on the platform.
Crypto Staking
Just like Kucoin, Coinbase supports the staking of 68 cryptocurrencies on the platform with an annual percentage yield of up to 10%.
Coinbase Prime
Coinbase Prime serves as a brokerage platform highly regarded among top asset managers. It offers a suite of services encompassing trading, staking, custody solutions, and superior execution across multiple platforms.
Users leverage Coinbase Prime to gain access to deep liquidity and benefit from reduced fees, catering to the needs of institutional investors and professional traders seeking comprehensive and efficient services within the cryptocurrency market.
Coinbase card
Coinbase Card is a debit card its customers can use to spend their crypto balance anywhere Visa is accepted. Coinbase automatically converts the crypto chosen for transactions into fiat currency on the card, which then can be used for any purchases. Users can get crypto rewards for every purchase made and can manage the card from the app.
Coinbase Pro
Coinbase Pro is a premium subscription service that provides enhanced trading features and tools, including advanced trading tools, analytics, and reduced fees for experienced traders.
Users on Coinbase Pro can access features like limit orders, margin trading, and a more extensive range of trading pairs. Users on Coinbase Pro typically enjoy reduced fees, making it suitable for high-volume traders looking for more sophisticated trading options and analytical tools.
Coinbase Wallet
Coinbase Wallet operates as a non-custodial wallet, allowing users to retain control of their private keys. This setup ensures enhanced security as users have direct ownership and management of their crypto assets.
Additionally, the wallet provides a consolidated platform where users can efficiently manage multiple cryptocurrencies and other wallets within a single secure space, simplifying the overall management of their digital assets. They can also interact with thousands of other tokens and dApps.
KuCoin vs Coinbase: A comparison
Licensing
Coinbase has licenses from different states in the US and as a regulated entity, Coinbase must comply with the financial regulations of its licensing states. As a result, the platform must do a thorough risk analysis for each asset before implementing safeguards to protect its users’ assets and maintain a secure trading environment.
Kucoin, on the other hand, is not regulated by any regulatory body or any agency.
Security
Both crypto exchanges are safe, employing different security measures including two-factor authentication, though Kucoin uses multifactor authentication (email binding, phone binding, and Google Authentication). Kucoin also uses a 6-digit password and IP restrictions. It also enables users to store their assets in cold storage.
Unfortunately, Kucoin was hacked in 2020 by North Korean hackers who made away with $275 million of crypto in 2020. Thankfully, Kucoin was able to refund the users who lost their money.
Coinbase goes an extra step and stores the majority of its users’ assets in safe areas around the world to prevent hackers from accessing them. The rest is covered by insurance.
Coinbase also encrypts all its sensitive data using AES-256-an impenetrable symmetric encryption algorithm that uses a 256-bit key to convert your plain text or data into a cipher.
Transaction fees
Kucoin offers fees for different transactions including deposits, withdrawals, and trading but also includes promotions for zero-free trading. Additionally, Kucoin has a tier-based taker/maker structure that determines the fees based on a user’s level and trading volume.
In other words, transactions that provide liquidity (maker orders) have a different charge from orders that take liquidity (taker orders). The base fee for this structure is 0.1% and is much lower than other exchanges. The deposit fees attract no charge while the withdrawal fees are based on the amount and the cryptocurrency.
Coinbase also uses a maker/taker structure for its transaction fees and the fees are calculated based on a user’s pricing tier when an order is placed. Takers pay between 0.05% and 0.60% while makers pay between 0.0% and 0.40%.
The trading fees depend on the user’s location, payment method, and order size. Orders below $10 garner a $0.99 flat fee and those above $200 get a variable fee of 1.49%.
Coinbase also charges up to 2% for converting one crypto to another and the withdrawal or depositing fees also depend on the user’s location and payment method.
Supported Coins
Kucoin supports over 700 crypto assets including relatively new assets and has become a popular exchange for launching IEOs. Coinbase on the other hand only has 246 coins and mainly focuses on major assets.
Conclusion
Both Kucoin and Coinbase offer an opportunity for traders to buy and sell crypto. If you are a crypto beginner, Coinbase is a safer bet, especially for users in the US. However, it has higher fees. Kucoin on the other hand favors advanced traders and has lower transaction fees. When comparing the two platforms, the most important thing is to choose an exchange that aligns with your crypto trading strategy and preferences.
Disclaimer: Investing can be quite a wild ride – especially when you don’t know the terrain! To keep things from getting too rocky, take some time beforehand to get familiar with all of the risks involved. Our site is here to up your investor game by providing all available intel about platforms and trends, but we don’t take responsibility nor can we be held accountable as advisors. That being said, it’s still important for you to make educated decisions that match what works best for YOU – just remember: no amount of savvy will guarantee success or protect against loss so invest money you can spare.
