Kucoin Vs. Coinbase: Comparison of Top Cryptocurrency Exchanges

KuCoin vs Coinbase
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KuCoin provides a wide range of trading options and markets to its more than 11 million customers. In contrast, Coinbase is a US-based crypto exchange dedicated to making crypto purchasing as easy as possible for beginners. 

In this article, we will compare these two widely used exchanges so you can determine which suits your needs best.

You should consider Coinbase if you’re a crypto novice since it provides more deposit options, lower fees, and allows withdrawal in fiat currency. KuCoin stands out among advanced crypto traders due to its low trading fees of 0.1% and its access to more than 600+ markets. 

Kucoin Vs. Coinbase: Pros and Cons

Kucoin Pros 

  • Global crypto exchange with over 11 million users
  • You can save 20% if you pay with KCS instead of 0.1%.
  • Android and iOS mobile apps are available.
  • Cryptocurrencies are available in over 600 varieties.
  • Additional features such as trading bots, futures trading, and more are available.

KuCoin Cons

  • Fiat purchases of crypto have high fees (3%-12%).
  • No withdrawals of fiat currency.
  • Support is unavailable via live chat, a poor customer service feature.

Coinbase Pros

Top Recommended Platforms

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.8

4.9/5

73% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MIN. DEPOSIT

$50

EXCL. OFFER

USER RATING

9.7

4.8/5

CFDs are complex instruments and carry a high risk of losing money quickly through leverage. 78% of retail investor accounts lose money when trading CFDs from this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.3

4.5/5

CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 65.3% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

  • Your funds are safe with Coinbase since they privately insure their platform.
  • An easy-to-use interface
  • You can register and start trading within a few minutes.
  • Cryptocurrencies are available in over 160 different currencies.
  • Platform with an unsurpassed high level of security and trust.

Coinbase Cons

  • Compared to competitors, it has a complicated fee structure.
  • Support is only available via email, not live chat.
See also  Coinbase vs Binance: Which crypto exchange is right for you?

KuCoin vs Coinbase Fees

In this section, we will compare KuCoin’s fees with Coinbase’s.

Deposit Fees

The KuCoin platform does not support deposits in fiat currency. You can purchase crypto with fiat without funding your account first. It costs between 3% and 12% based on your payment method. 

Buying crypto on Coinbase requires either a credit card or a bank account with fiat currency. For US residents, here are two ways to make a deposit:

  • ACH Transfer: fee-free
  • Payment by wire transfer: $10

Trading Fees

If you pay fees with a KCS coin (Kucoin’s token), you’ll receive a 20% discount. KuCoin has extremely low trading fees, starting at just 0.1%. 

This results in a trade fee of just 0.08% per transaction.  Also, a tiered fee structure is available to large-volume traders and holders of KCS. 

When buying crypto through KuCoin with fiat currency, the fee ranges from 3% to 12%. Despite the low trading fee, you have to pay a large amount to acquire your first coins if you don’t already own cryptocurrency to trade on the market. 

The trading fee structure at Coinbase is confusing since it consists of two parts. Coinbase charges a flat fee of 0.50%, plus another ‘Coinbase fee.’

Withdrawal Fees

One major disadvantage to KuCoin is that it does not support fiat withdrawals. Withdrawals are limited to cryptocurrency, and the flat fee varies by coin.

Depending on the country and payment method, there are varying withdrawal fees through Coinbase. The following are the most popular methods of withdrawing fiat.

  • Transfers by bank account (SEPA): €0.15
  • Wire transfer to the US: $25

Due to Coinbase’s restrictions, you cannot withdraw fiat cash from Coinbase in Singapore and Australia. 

KuCoin vs. Coinbase: Deposit Methods

Several deposit methods are available at KuCoin and Coinbase: bank transfers (SEPA), PayPal, credit and debit cards, Apple Pay, and cryptocurrencies.

Coinbase doesn’t accept Skrill as a payment method, while KuCoin does.

Bank transfer (ACH), Fedwire, SWIFT, and SOFORT/iDEAL are among the payment methods available on Coinbase, but not KuCoin.

KuCoin vs Coinbase Features

With KuCoin, you can use free trading bots to maximize your profits and use their platform free of charge. Desktop users can only access the Spot Grid Bot using the desktop site. KuCoin’s mobile app is available for iOS and Android if you want to use the other bots. 

The parameters of the most successful bots can be copied so that the bot can automatically trade for you. Bots run in the cloud, so you don’t need to keep your phone or computer running for them to function.

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You can earn extra crypto when you leave your KuCoin in your KuCoin account. The first way is to own KuCoin’s token, the KCS coin. A KCS account containing at least 6 KCS earns interest daily with an estimated APR of 22%. Your crypto can also earn interest if you lend it to others. 

The loan term can be set at 7, 14, or 28 days, and over 160 coins are available. You can set your loan’s interest rate. The higher the interest rate you set, the more return you’ll get, but it also means less likelihood that someone will lend you money if the interest rate is more attractive.

Alternatively, KuCoin allows you to borrow some crypto if you need it. Select the coin, the amount, and the daily interest rate.

The Coinbase Earn feature is yet another unique way to earn crypto on the platform. When you watch short videos about cryptocurrencies, you get paid free crypto! You earn crypto after watching each of these short videos. 

Coinbase offers a mobile wallet app you can download. It offers a wide range of decentralized innovations and a safe way to store crypto. The platform allows you to participate in airdrops and ICOs, collect NFTs, browse decentralized applications (DApps), and send crypto to anyone, anywhere.

KuCoin vs Coinbase Security

Micro-withdrawal wallets, multilayer encryption, and dynamic multi-factor authentication are some security measures that KuCoin employs to secure its users’ funds. In addition, there is an internal risk control department that oversees all transactions daily.

A hack on KuCoin in 2020 resulted in $150 million being stolen. Immediately following the theft, the exchange responded comprehensively – most funds were returned quickly, and the remainder was covered by insurance. This cyberattack did not result in any losses for their users.

The security measures on Coinbase include two-factor authentication (2FA) and biometric logins (fingerprint and face ID) as well as encryption, with backups stored geographically in safes and vaults. 

Moreover, Coinbase employees are subject to criminal background checks. A crime insurance cover protects Coinbase’s digital assets from theft, as 98% of them are stored offline.

Coinbase operates in the USA, where regulations are stricter than elsewhere. With relaxed tax laws and regulations, KuCoin is strategically domiciled in Singapore. As far as compliance is concerned, Coinbase is better.

Final Thoughts

Coinbase is a top US crypto exchange, and KuCoin is among the most popular exchanges worldwide, so which is better? Choosing the right crypto exchange depends on your needs.

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With Coinbase, you can make more deposits, purchase crypto with lower fees and get a higher level of compliance. However, with KuCoin, you can trade crypto for a low 0.1% fee, take advantage of trading bots, and earn interest on your crypto.

KuCoin is an excellent option for experienced day traders, as it charges low trading fees of 0.1%. KuCoin’s crypto prices are, however, high. Using Coinbase over KuCoin is a better choice for beginners who plan to buy and HODL their crypto. You can withdraw your fiat if you sell it, and there are no buy/sell fees.

FAQ

In this comparison of Coinbase vs. Kucoin, what are the most important features?

When choosing the best crypto exchange, it is important to analyze trading fees and other paid features, level of security, supported cryptocurrency types, accepted payment methods, operating countries, and the overall reputation of the exchange. But remember that you might be less concerned with these evaluation points if you’re looking for specific features.

For beginners, which cryptocurrency exchange is best?

If you read reviews of some of the best crypto exchanges online, you will likely notice a common trait: they are very easy to use. While some exchanges are more beginner-friendly than others, neither of the top-rated ones should cause any problems. Coinbase is, however, perceived by many users as a simpler exchange.

Are KuCoin withdrawals possible to bank accounts?

The coins in KuCoin can be withdrawn and transferred from one wallet to another. 

Are there any fees associated with transfers from Coinbase to KuCoin?

The KuCoin transaction fee is as low as 0.1%, and you can receive a 20% discount by paying with KCS, while Coinbase charges a flat fee of 2.49%.

Which crypto exchange is best for me?

As a first step, you must assess your level of knowledge and your objectives in the crypto sphere. You might have different objectives if you’re a beginner than someone more advanced. Finding the best exchange might be difficult regardless of your goals, even if you know what you want. 

Is the United States home to all the best cryptocurrency exchanges?

Not at all! Although some of the best cryptocurrency exchanges are headquartered in the US (e.g., Coinbase or Kraken), other industry leaders are located worldwide. In contrast, Bittrex is based in Liechtenstein, while Binance is in Tokyo, Japan. Several factors can affect an exchange’s decision to base itself in one location over another, but many are purely business-related and have no effect on the user.

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