Maybe you saw a cryptocurrency listed on KuCoin and want to be sure it’s safe to use? You don’t have to worry; KuCoin is a popular crypto exchange with a considerable daily trading volume and security.
KuCoin, also known as “People’s Exchange,” is a cryptocurrency exchange that operates in Seychelles and offers customers multilingual customer support around the clock. While it’s registered in Seychelles, KuCoin has created about 19 local communities throughout North America, Europe, South East Asia, and other countries, offering users highly customized services to their needs.
It began trading in September 2017 and places a high value on projects listed after rigorous due investigation by its research department.
Users from over 100 countries may join. Being a cryptocurrency exchange, it features a user-friendly interface and prompt customer and technical assistance, with one of the most significant trade communities in the industry, showing traits of one of the best crypto exchanges.
Up to last month, the KuCoin crypto exchange had processed 810 million transactions worth $400 billion. Its trading volume of $4.3 billion represents a 791% rise since the last quarter.
Both web interface and mobile cryptocurrency applications are available. It is possible and advisable to purchase KuCoin’s native token (KCS) to minimize costs and receive incentives.
In 2021, KuCoin continues to expand into new crypto markets and areas, with national adoption in Latin America, Africa, and Asia, with QoQ user growth of 171.93%, 130.163%, and 67.53%, respectively. In addition, the crypto exchange is gaining traction in areas with high inflation and easy access to phones.
According to recent statistics, the African cryptocurrency industry exploded in the second quarter of 2021. African users’ trading volumes rose 20 times compared to the previous quarter. Similarly, it has already developed highly specialized services for African consumers at an early stage.
The industry has noticed KuCoin’s recent growth and endeavors as a cryptocurrency exchange. Forbes Advisor named KuCoin one of the Best Crypto Exchanges of 2021 earlier this year. It currently ranks fifth on CoinMarketCap with over 400 currencies and 827 trade pairs.
It currently ranks fifth on CoinMarketCap with over 400 currencies and 827 trade pairs.
Controversies & Issues
The court froze the KuCoin exchange’s web name KuCoin.com in March 2020, preventing it from relocating. As a consequence, Kucoin.com assets, including its website, are in Seychelles. The domain, registered via GoDaddy, remained locked until the courts decided whether it was safe to unlock it. On March 30, GoDaddy said it was complying with the court order. They must wait to see what the next move is.
In the same month, Schall Law, a national shareholder rights litigation company, launched an inquiry against KuCoin and Bit-Z. This was about alleged fraudulent and misleading remarks to cryptocurrency traders.
The exchange was also one of seven in 11 additional class-action lawsuits filed in April 2020 in a New York federal court. The complaint claimed the exchange marketed unregistered securities and manipulated the market.
The KuCoin exchange disclosed a severe security incident on September 26, 2020. Private keys were exposed, affecting its Bitcoin, Ether, and ERC-20 hot wallets. A total of $281 million in user money was reportedly impacted.
1,008 BTC, 14,713 BSV, 26,733 LTC, and 9,588,383 XLM were taken approximately. There was also $153 million in ether and ERC20s stolen. Finally, 18 million XRP were also taken.
Affected user funds will be fully reimbursed by the exchange and the insurance fund, according to the KuCoin team. On October 3, KuCoin CEO Johnny Lyu tweeted that they had identified the hackers. At the time of writing, the total worth of retrieved assets was $204 million.
How Safe is KuCoin?
It’s essential to know whether or not your cryptocurrency is secure before putting it. Of course, you should only use a safe crypto exchange.
KuCoin has collaborated with Onchain Custodian to safeguard its crypto assets. That includes Lockton insurance against hacking. An incentive scheme for ethical hackers to disclose system flaws is also in place.
KuCoin claims it keeps customer assets in cold storage offline (which makes it harder to hack). But it doesn’t indicate how many are offline. To facilitate withdrawals and transactions, it is necessary to maintain some funds online in hot wallets.
Some KuCoin hot wallets were hacked late last year. However, insurance completely covered the losses. KuCoin also acted quickly and was open about what occurred.
KuCoin also offers great user security. Users are advised to set up two-factor authentication and a trading password. To protect yourself against phishing emails, you may set up safety phrases.
Third-party exchanges use a centralized server, so if it gets hacked, your coins are in danger. But this is the same with all other centralized crypto exchanges.
For example, in late 2017, it was revealed that over $15 billion worth of cryptocurrencies had been hacked. Since then, the number of hacks has risen.
So, is KuCoin secure, and how? First, the website is encrypted to safeguard private account information. Moreover, when researching this KuCoin review, I found an internal risk department that ensures user money is secure, thus living up to the Forbes award of one of the best crypto exchanges of 2021.
To further secure your account, the exchange allows you to set up Google Authenticator. You’ll need to input a code from your phone to log in and trade on the KuCoin website if you do.
I strongly urge you to activate this additional security measure. Because even if someone knew your password, they couldn’t access your account without access to your mobile device.
Finally, it is still a new crypto exchange even if it is named the best crypto exchange. Thus, there’s a risk attached to using it. No matter which exchange you choose, you should never deposit significant sums of money there. It’s always safer to withdraw coins to a personal wallet, such as a hardware wallet.