Kucoin.com is a crypto-currency exchange that specializes in many unique altcoins with small market capitalizations. Kucoin also offers the giants’ corners. With more than 70 coins to exchange, the platform is similar to the Binance mega exchange based in Hong Kong. However, Kucoin is much more recent, but it is making its way with unique offers.
Note that Kucoin offers little-known coins such as DragonChain and Bounty0x… which have not yet reached the main exchanges. Also, transaction costs are generally lower than on other platforms.
An important point to note: the KuCoin Shares (KCS), the currency of the exchange, offers dividends to users. Every day, Kucoin distributes 50% of the trading fees to the “KCS hodlers” – known as the KuCoin Bonus. Moreover, you do not receive it simply as KCS tokens; you receive it in the form of each coin that was exchanged that day. In other words, you will get small quantities of more than 70 parts every day, including the new parts added to the line.
KuCoin is quite intuitive if you have already used any type of cryptocurrency exchange. Just register and confirm your email address to get started.
Once you are on the exchange, you will need to configure 2 factor authentication to start trading. All you have to do is download the Google Authenticator application to your smartphone, scan the QR code on the screen and you’re done! Don’t forget to write this recovery code and store it in a safe place. Finance your account by going to “Assets”> “Deposit”, then start trading by clicking on “Markets”.
You have understood it, you will have to go to KuCoin if you want to acquire KuCoinShares!
Currently, holding 1 KCS earns you about USD 0.002 per day, or USD 0.73 per year. You can use this calculator to check the current estimates.
Certainly, it is not much seen KCS costs ~ $4.40 / piece. However, this payment is expected to increase throughout 2018 for two main reasons. As more people use KuCoin, more trading fees are collected, and therefore the size of payments will increase. Also, because your dividends are paid in the form of 70 altcoins (and more and more), you are likely to see some gain value, with some potentially skyrocketing throughout 2018.
The following are some approximate estimates adjusted for these factors. The high estimate is $30 of dividends per KCS. Let’s explain. Let’s say that KuCoin is developing wonderfully over the next year and ends with a daily volume of 5 billion dollars, which is close to the levels we are seeing on Binance today. We may estimate that your annual payment would be closer to $10 per KCS.
We could also very well get a dividend of $0 per KCS. Cryptocurrency exchanges have ceased in the past (this happened at Mt Gox in 2014, and more recently at Bitconnect). There are also concerns about the registration of KuCoin in China, a country that has been particularly concerned about the legality of trade in recent times. Binance, by comparison, has recently moved abroad. Finally, KuCoin could simply stop honoring KCS’s bonus. He doesn’t have to. However, this would be a strategic suicide.
For these reasons, you are advised not to invest a large amount in KuCoin – or any exchange for that matter – without keeping an active eye on the market and the information related to crypto currencies.