KuCoin presently offers four different types of futures contracts. Contracts such as delivery contracts, perpetual contracts, inverse contracts, and linear contracts are examples of these.
Traditional financial investment uses delivery contracts, which are a sort of futures contract. Delivery futures trading contracts must be resolved on a specific date, known as the delivery date, on which the buyer is required to buy and receive the asset at a predetermined price. On the other side, the seller is required to furnish and deliver the asset on the agreed-upon delivery date. These are available on KuCoin as quarterly contracts on assets like BTC and ETH.
Perpetual contracts, unlike delivery contracts, are futures contracts with an endless settlement time. This indicates that the user can keep the contract position “perpetually” for as long as they choose. On KuCoin, there are over 60 perpetual contract items to pick from.
The “Coin-M” header denotes inverse contracts, which are coin-margined contracts. The trader must have the precise cryptocurrency they want to exchange in order to execute an inverse contract. This option allows you to trade futures on BTC, ETH, DOT, and XRP.
If you want to trade an inverse contract on Bitcoin, for example, the underlying asset must also be Bitcoin. This holds true for other coin-margined contracts as well.
Linear contracts are USDT-margined contracts that may be identified using the USDT-M option on the KuCoin platform. USDT is the underlying token for trades. Because of the USDT’s stability, additional cryptocurrencies can be traded using this contract type. To participate, all you need are funds kept in USDT.
A comparison table has been supplied below to help illustrate the differences between perpetual and delivery contracts.
KuCoin Futures Lite
KuCoin Futures Lite is a stripped-down version of the Futures platform designed to make contract trading simpler and more pleasurable. It accomplishes this by deleting certain portions of the user interface, reducing the amount of work required to enter positions.
On the Lite version, users may still choose between USDT-margined or BTC-margined futures contracts, as well as access the same number of cryptocurrency pairings. The Lite screen’s layout consists solely of market data, contract data, and a trading operation interface.
KuCoin Futures Pro
KuCoin Futures Pro expands on the functionality already included in the Lite edition. For individuals who are familiar with futures contracts, the platform provides a more comprehensive bundle.
Users can pick between USDT and BTC-margined futures contracts once again. Futures Pro, on the other hand, has a detailed contracts tab, a trade operation box, more detailed market data including an order book and a section to view open positions.
KuCoin Futures Brawl
KuCoin Futures Brawl pits traders against each other in a competition to win a share of a constantly changing prize pool while trading futures contracts. The website attempts to convert futures trading into an enjoyable hobby by gamifying it.
Before any trade points are counted, a user must register to participate in a brawl event.
Leverage trading
Leveraged trading is available on all Kucoin Futures platforms. This means that a user can borrow money from the platform in order to raise the size of a trade’s position. On ordinary assets, leverage can be set between 1x and 20x. For prominent coins like BTC and ETH, it can also be boosted to 100x.
BTC, ETH, and USDT are used to calculate profits and losses. A user can close a long or short position to terminate a futures trade at any moment. Leveraging allows users to hold numerous positions on different cryptocurrencies at the same time, in addition to the benefit of greater position size.
Step 1. Register with an email address or phone number
Click the “Sign Up” button on the official KuCoin website or mobile applications. An email address will be required of you. Make sure the email address you provide is valid since a verification code will be sent to it.
Step 2. Log in to your account
You have two options for logging into your account: using your password or scanning a QR code. Once you’ve logged in, you may begin your KuCoin Futures trading adventure.
Step 1. Enable Futures trading
The first step is to open the smartphone app and navigate to the “Futures” menu. On a desktop computer, select the Kucoin Futures tab. Choose between the Lite, Pro, or Brawl versions of the Futures platform.
To access the futures platform, click “Enable Futures Trading” if you haven’t already.
Step 2. Transfer funds to your Futures account
Before you can begin, you must deposit dollars into your Futures account. Go to the Assets tab on the mobile app and select “Transfer.” Fund your Futures account with funds from your Main KuCoin account. If your Main account is depleted, you can choose to deposit funds directly into your Futures account instead.
The token requirements for USDT-margined and Coin-margined contracts differ.
Once your money have been deposited, you may begin choosing which cryptocurrency pairs to trade.
Step 3. Start trading
You can either “Buy” or “Sell” after you’ve decided on a coin pair. Purchasing a token is the same as having a long position, in which you profit when the price of the token rises. Selling, on the other hand, is taking a short position and profiting when the price of an asset falls.
As previously said, KuCoin allows you to determine the level of leverage you want. This can be anything from 1x to 20x (100x limit for BTC and other Perpetuals). Keep in mind that larger leverage entails a bigger risk of liquidation if the deal goes against you.
When you fail to hold a proportion of the value of your position, commonly known as the maintenance percentage, you will be liquidated. This is determined by your average entry price as well as your leverage.
If the designated price falls below this level, your position will be liquidated, and all monies used as margin in your futures trade will be lost.
What are the fees and how do they work?
A trade always involves two parties: the creators and the takers. Makers are individuals who have created new liquidity on the platform by placing a new order. Takers, on the other hand, accept existing orders and so drain liquidity. As a result, makers are frequently compensated with cheaper transaction fees.
The BTC withdrawal fee is 0.0005 BTC, which is almost 40% less than the industry average of 0.000812 BTC.
Liquidation risk
Cryptocurrencies are widely regarded as the world’s most volatile asset class. Even the most popular coins can swing between 20% and 100% in a single day. While leverage might possibly increase your returns for well-positioned trades, it also has the potential to deplete your account if something goes wrong. Unlike spot trading, futures trades have a liquidation threshold.
Platform risk
The systems that support the traders are prone to system outages or failure, just like any other platform. This is especially true during high-volume trading periods. It’s possible that if the platform goes down or becomes non-operational, there will be enormous losses. If something goes wrong, you won’t be able to keep track of positions or make the necessary modifications to avoid losses.
Theft
Many hackers have moved their focus to decentralized exchanges and protocols with untested smart contract vulnerabilities as a result of the emergence of DeFi. However, this does not rule out the possibility of centralised platforms, such as KuCoin, being targeted.
If KuCoin’s insurance reserves are insufficient to protect those affected, there is a risk of losing holdings if the exchange is hacked. It wouldn’t be the first time for KuCoin: in a daring hack in 2020, thieves took over $275 million from the cryptocurrency. Fortunately, all payments were refunded.
Can I trade KuCoin futures in the United States?
KuCoin’s extensive features, cheap fees, and wide choice of coins are ideal for experienced cryptocurrency traders. However, KuCoin does not have a license to operate in the United States, which lowers our ranking.
What is the fee for trading futures on KuCoin?
KuCoin has a tiered maker/taker fee structure, with costs ranging from 0.0125 percent to 0.1 percent depending on your tier level. In comparison to competitors, which may charge up to 0.50 percent every trade, its fees are relatively inexpensive. Users can also save money on trading fees by using their KuCoin Token (KCS) balance.
KuCoin charges withdrawal fees in addition to trading fees, which vary by asset and are subject to change based on market performance. Deposits are free on this exchange, although it’s worth noting that KuCoin now only accepts a restricted number of fiat deposits.
Is KuCoin subject to IRS reporting?
However, you can calculate your crypto taxes manually or with crypto tax software using your KuCoin transaction history.
Using the KuCoin tax report API, you may accomplish this in minutes. This API downloads your KuCoin transaction data and imports it into the crypto tax app of your choice. The API is read-only, so you don’t have to worry about another app getting access to your KuCoin account.
If you want, you can obtain your KuCoin transaction history files in CSV format by following the procedures above.
KuCoin or Binance: which is better?
We separated our detailed fact-based analysis results into 8 different categories to portray the statistics of the Binance vs Kucoin comparison as accurately as possible. Take a look at the general overview table below for a quick comparison of Binance and Kucoin’s primary metrics.
When comparing the overall scores of Binance and Kucoin cryptocurrency exchanges, Binance has a higher overall score of 9.8, while Kucoin has a score of 9.4. When it comes to ease of use, it’s evident that Binance has a better and smoother user experience than Kucoin in this Binance vs Kucoin comparison.
Is a VPN required for KuCoin?
While KuCoin is one of the most popular trading platforms, it is also one of the most difficult to use in the United States. However, I discovered an easy remedy that allowed me to use the platform without aggravation during my travels. This will enable you to use and trade KuCoin from anywhere in the world, including the United States.
To get over KuCoin’s severe restrictions, you’ll need a VPN. When you connect to a VPN, your IP address is changed to one from the country of your choice. You’ll fool KuCoin into thinking you’re in a different region, allowing you to use all of its services regardless of your true location.
My team and I put over 90 VPNs through their paces, and ExpressVPN came out on top. It includes lightning-fast speeds, a large server network, and advanced security features to keep your crypto transactions safe. You may try ExpressVPN without risk. You have 30 days to request a complete refund if you don’t like it.
How long does it take to get KuCoin verified?
In summary, KuCoin provides three stages of verification; yet, the process is simple; the verification method may take several business days to complete; KuCoin will review the details and contact you through email once the process is complete.
Is there a profit and loss chart for KuCoin?
In futures trading, “Take Profit & Stop Loss” is a frequent practice. To control risks and maintain profits while limiting losses, users can set the take profit or stop loss price. There are two ways to set take profit and stop loss in KuCoin Futures: 1) While placing an order, and 2) when placing orders in positions.
Most users are familiar with setting Take Profit and Stop Loss in positions, so why not do so when placing an order? We’ll explain the differences between the two sorts of settings using KuCoin Futures (web) as an example.
1. What does it mean when you “Set Take Profit and Stop Loss When Placing an Order”?
Users can choose the take profit or stop loss price while generating an order (limit or market) or a position, as the name implies. The Take Profit & Stop Loss will take effect when the order is executed (completely or partially) to control the risks.
2. What are the “Take Profit and Stop Loss” settings?
There are only two steps to this process: 1) Enable the Take Profit and Stop Loss feature, and 2) When placing an order, set Take Profit and Stop Loss.
By default, Take Profit and Stop Loss are not visible on the UI. To access this option, go to the KuCoin Futures page, click “Settings” in the upper right corner, then “Feature Preference” –> enable “Take Profit & Stop Loss.”
Is KuCoin a superior alternative to Coinbase?
We separated our extensive fact-based analysis results into 8 different categories to portray the statistics of the Coinbase vs Kucoin comparison as accurately as possible. Take a look at the general overview table below for a quick comparison of Coinbase and Kucoin’s important metrics.
When comparing the overall scores of Coinbase and Kucoin, it is clear that Coinbase has a higher overall score of 9.6, while Kucoin has a score of 9.4. When it comes to ease of use, it’s evident that Coinbase has a better and smoother user experience than Kucoin in our Coinbase vs Kucoin comparison.
To help you make a more informed selection, we compared Coinbase vs Kucoin to Binance, the best-rated crypto trading platform. Binance clearly has the greatest overall score of 9.8, indicating that it outperforms your top picks and is regarded as one of the finest cryptocurrency exchange providers overall. Browse the detailed feature analysis chart below for a more in-depth Coinbase vs Kucoin comparison.
What is the difference between margin trading and futures trading?
Margin trading, in essence, magnifies trading results so that traders can profit more from good deals. A futures contract is a contract to buy or sell an underlying asset in the future at a fixed price.