What is Kucoin Exchange and how it works?

Kucoin logo

KuCoin is a global cryptocurrency exchange that offers a variety of features and trading options along.
From its native token to the trading bot, this guide has covered it all for beginners.
KuCoin is a global cryptocurrency exchange headquartered in Seychelles.
The KuCoin exchange was launched in September 2017, though the company was originally co-founded in 2013 by Eric Don, Michael Gan, Jack Zhu, John Lee, Kent Li, Top Lan, and Linda Lin.


Exchange details

Story of Kucoin

Behind KuCoin are two tech geeks who were early blockchain adopters.
Having started coding at the age of 8 and founded his first startup at the age of 16, Michael immediately started to mine BTC when he heard about Bitcoin from his boss Eric in 2012.
But when he tried to sell some BTC on Mt. Gox, he discovered that what was the world’s largest platform at the time was difficult for beginners to use.
As the adoption of blockchain continued, Michael and Eric realized that it was reshaping the financial system into one that would not only serve the richest few,
but everyone in the world — even the less educated, unemployed, and unbanked.
By the end of 2013, they wrote the first pieces of KuCoin’s code in a cafe,
starting a People’s Exchange that would allow all to get involved with crypto.
Launched back in 2017, KuCoin is a global crypto exchange that provides several trading options to its six million users.
These include spot, margin, futures, and P2P trading, along with lending, and staking.
KuCoin claims to offer the most advanced level of security and a selection of over 750 cryptocurrencies.
Despite its variety of features, it is a beginner-friendly exchange, with a sleek and easy-to-use interface.
The exchange also charges some of the lowest fees in the crypto industry.


What Is KuCoin Token (KCS)?

The price of many popular exchange tokens is on an upward trend, including KuCoin’s native coin, KCS.
Since August 21, 2020, the token has experienced an increase of about 700% in its price, drawing the attention of crypto and blockchain investors.
With a circulating supply of 80,118,638 KCS, the exchange rewards KCS holders with bonuses daily.
The initial total supply of this token was 200 million and the implementation of the burning strategy has brought the count down to around 170 million, at the time of writing.
Understanding KuCoin Exchange and KCS Token
KuCoin tends to list small-cap cryptocurrencies that have huge growth potential.
Additionally, it offers access to a large selection of tokens,
including lesser-known coins. Moreover, it has one of the most generous profit-sharing incentives – up to 90% of trading fees are given back to KCS holders.
The total market cap of KCS is currently $1,517,479,204 and ranks 54 on CoinMarketCap, at the time of writing.
There are 145,879,861 KCS in circulation with a max supply of 170,113,638. KuCoin’s buyback and burn strategies will continue till only 100 million tokens are left.


What Makes KuCoin Unique?

Staking coins on KuCoin is a great way for users to make a passive income,
as they reap the benefits of joining the KuCoin community.
Those that Hodl more than six KCS also have the opportunity to earn a daily bonus.


What is KuCoin Earn?

KuCoin Earn is best described as a one-stop wealth management service platform that can be used by anyone to generate passive income in cryptocurrencies.
It is a dedicated platform on KuCoin that allows users to use various financial products to generate income and increase the value of their holdings.
KuCoin’s key features include:

Burning Drop
Polkadot Parachain Auctions
Ethereum 2.0 Staking

Though KuCoin Earn is easily accessed through the KuCoin,
it is a professional asset management platform with everything a serious investor will need to earn meaningful income in crypto.
It encompasses several profit-yielding products and services with various options investors will find attractive.

KuCoin Earn is unique in many ways but one of its biggest selling points is its flexibility.
Currently, it supports more than 50 digital assets besides KCS, which is the native currency of KuCoin.
Users get to invest and earn in their preferred digital asset.

As mentioned earlier, KuCoin Earn supports several products and services, including staking, savings, promotions, Polkadot, ETH 2.0, and more.
Best of all, it offers most of these products on flexible and fixed terms. Users can choose flexible terms when they want to have absolute control of when they can redeem their funds or choose fixed terms when they are comfortable with relinquishing liquidity until a specified period.
You should know that fixed-term products yield higher than flexible-term products.


Staking is the commonest way to earn passive income in cryptocurrencies. It involves locking up a digital asset for a specific period in exchange for interest.

KuCoin uses a Proof-of-Stake consensus mechanism, so staking on the platform is pretty straightforward.
Staking on KuCoin is done via KuCoin Earn (formerly Pool-X Kucoin), and staked assets are used to support validators.
KuCoin staking rewards come in the form of high annualized yields as well as POL mining income daily.
POL, by the way, is the native token of KuCoin Earn and can be exchanged for other digital assets.

It is also important to state here that users have options when it comes to staking periods.
They can choose between flexible and fixed staking periods.
Fixed staking periods are available in 21, 30, or 90-day periods. Flexible staking,
on the other hand, implies that users can redeem their staked funds anytime.



Promotions allow KuCoin users and investors to earn higher yields from crypto deposits.

It include special investment opportunities offered to a limited number of participants on a first-come-first-served basis.

Promotions on KuCoin Earn also come in fixed and flexible forms. In a fixed promotion,
token holders have to lock their tokens for a specified period to earn the determined reward.
Flexible promotion, on the other hand, allows token holders to subscribe and then redeem at any time.

KuCoin Promotions


 Burning Drop

Burning Drop is a special investment product on KuCoin Earn that lets users lock a designated amount of crypto assets and earn the associated reward at the end of the entire process.
It is a fair token distribution platform and users can find a variety of coins that supports Burning Drop on the interface.

BurningDrop is a unique process that supports the distribution of a wide range of blockchain tokens.
It has been particularly helpful for such startups as TCP, FCD, HORD, LOCG, XCAD, LNCHX, and many others. It can also be satisfactorily rewarding for participants.

KuCoin Burning Drop


Participate in Polkadot Parachain Auctions

KuCoin Earn serves as a window to participating in Polkadot parachain auctions.
The platform allows DOT holders to contribute tokens to support projects on Polkadot. When the supported projects win the auction,
the contributors get on-chain rewards. Again, the staked Polkadot is returned after the lease period.

When individuals participate in the Polkadot Parachain auction through KuCoin Earn, they also earn a share of the exclusive KuCoin reward pool.
This special product helps investors earn rewards while supporting Polkadot projects which promote interoperability.

Polkadot Parachain

Staking ETH 2.0

Ethereum is working hard to make its ecosystem more secure, scalable, and sustainable. KuCoin Earn is helping to promote this while allowing users to get rewarded by participating.
ETH 2.0 encompasses several proposed interconnected upgrades, including the bid to move Ethereum from Proof-of-Work to a Proof-of-Stake consensus mechanism.

In terms of rewards, ETH 2.0 is an interesting avenue to earn income.
KuCoin issues a token (ETH2) that corresponds to the rights to an ETH 2.0 token. In addition, participants who hold a certain amount of ETH2 on their main account/trading account will earn ETH2 staking and POL mining rewards.

Staking ETH 2.0 on KuCoin


Alternative Ways to Earn on KuCoin

Besides the primary products that yield rewards on KuCoin Earn, there are a few other ways users can make passive income from the KuCoin ecosystem.
We’ll summarize these other options as briefly as possible below:



Lending is the most popular way to earn money through the KuCoin platform.
KuCoin lending is simple and currently supports as many as 90 digital assets.
These include popular coins like ETH and SOL, stablecoins like USDT, as well as meme coins like SHIB.

KuCoin lending makes it easy for crypto enthusiasts to lend and borrow easily.
Remember, lenders always charge some interest, so you can always earn reasonable income by lending to other crypto users on KuCoin.
Lenders can also choose between manual and auto-lend. Both options are great, depending on the needs of lenders and borrowers.

Kucoin lending


KCS Bonus

KCS bonus is one of the major reasons people are choosing KuCoin ahead of other crypto exchanges.
The company rewards holders of KCS (its native token) for their loyalty and support of the exchange.
The rewards come in various ways, including discounts and bonuses.

The KCS bonus program allocates as much as 50% of daily trading profits to KCS holders. However,
only users who hold up to 6 KCS daily get this reward and rewards are fairly distributed according to sizes of holdings.
Users who pay trading fees with KCS are also entitled to a 20% discount.


Why Use Kucoin Earn?

From all we’ve discussed, there are several reasons to use KuCoin Earn.
The platform offers several perks that can help any cryptocurrency enthusiast earn money without many risks.
The products are numerous and the potentials are huge.
In terms of specific benefits, KuCoin Earn has a lot for users.
The Staking function, for instance, yields double rewards.
By staking any digital asset, users will earn staking profits as well as POL mining rewards.
KuCoin Earn also offers high flexibility on most of its products.

The number of available assets on KuCoin Earn is another big perk.
Users can choose any asset of their choice, including BTC, ETH, KCS, USDT, DOGE, and many more.


Using the KuCoin Exchange

Just like any exchange, KuCoin has been designed to allow its users to buy, sell, and safely store a variety of cryptocurrencies either using their online platform or mobile apps.
Although you can register an account using just an email address or a phone number,
if you go through the verification process,
you can enjoy access to advanced features in addition to reduced fees and opportunities to earn rewards.
As for the KCS token, there are several applications and uses.
It is used not only to pay trading fees but also to participate in events and token sales featured on KuCoin Exchange.
The token is also used as a payment method across tons of applications ranging from gaming to retail to NFTs and even travel.
SwirlPay, PlayGame, Travala, Print-ted, PundiX, and BetProtocol are just a few platforms that accept KCS as payment.


KuCoin Trading Bot

KuCoin offers the facility of a Trading Bot that makes it easier for users to trade.
After creating an account and making a deposit, users can enter specific trading parameters and let the bot take over.
Its Trading Bot uses information and analytics about the market in addition to other tools to analyze prices and forecasts.
In addition to the users’ preferences, the bot then uses this combination of information to place buy and sell orders as the price moves.
And voila! Trading Bot helps crypto traders make money while they sleep by recovering invested money as well as making pure profit.
KuCoin Trading Bot offers long-term trading strategies as well.
Instead of investing several thousand dollars into any cryptocurrency all at once, users can instruct the Trading Bot to invest small amounts at certain intervals over time.
As the CEO of KuCoin Global Johnny Lyu, makes notes, “Unlike other financial markets, crypto trading occurs on a 24/7/365 scale.
Human traders can’t keep up with the ongoing changes.
KuCoin acknowledges that its Trading Bot tool will solve the problem of needing sleep and trading based on emotions.
It is a passive approach to trading cryptocurrency and maximizing one’s potential profit.
Traders will have more time to enjoy life and do what they like, knowing that their crypto trading portfolio is working on their behalf.”



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