Welcome to a different version of our head-to-head alternate comparability sequence, the place we break down the highest crypto exchanges to assist our neighborhood determine which crypto alternate is true for them. No two exchanges are created equal, and every has its strengths and weaknesses. Subsequently, it’s important to search out the correct alternate that matches your wants.
On this version, now we have the earlier champion KuCoin who has held the quantity three spot as the biggest alternate for a very long time behind Binance and Coinbase, versus the brand new champion FTX who has lately dethroned KuCoin and now sits comfortably within the quantity three spot. So, does KuCoin have what it takes to reclaim the third spot, or will FTX stay forward of KuCoin as they gun for the highest spot?
This text goes to cowl a high-level comparability of the 2. I’ve used each exchanges myself through the years and can put collectively my analysis and my expertise with each. We’ve an in-depth KuCoin overview right here and a deep dive overview on FTX right here that you could be need to take a look at. For our US-based readers, you need to take a look at the FTX.US overview right here.
Abstract: FTX vs KuCoin
|12 months Established:||2019||2017|
|Product Options:||Cryptocurrency Trade, margin buying and selling, derivatives, choices, NFTs, prediction market, Earn, Leveraged tokens, Tokenized shares
|Cryptocurrency Trade, margin buying and selling, derivatives, choices, buying and selling bots, Earn, leveraged tokens, P2P|
|Crypto Property Supported:||275+||600+|
|Maker/Taker Charges:||Lowest: 0.00%/ 0.04%
Highest: 0.02%/ 0.07%
|Lowest: 0.00%/ 0.04%
Highest: 0.08%/ 0.08%
|KYC/AML Verification||Sure||No for restricted buying and selling. Customers might want to KYC for larger quantity buying and selling. Limits might be discovered right here.|
|Fiat Forex Assist||USD, EUR, GBP, AUD, HKD, SGD, TRY, ZAR, CAD, CHF, BRL||50+ Currencies supported by way of integrations and varied strategies|
|Deposit/Withdraw Strategies||ACH Financial institution Switch, Wire Switch, PayPal, Credit score/Debit Card||Sepa Financial institution Switch, Debit/Bank card, P2P, Apple Pay, Simplex, Banxa.
Withdrawing money just isn’t supported
FTX vs KuCoin
Let’s take a look at every alternate individually, however first, we’ll cowl an outline of our findings when evaluating FTX to KuCoin.
Currencies and Merchandise Provided
I must say that FTX and KuCoin are each implausible choices for any merchants who need to reap the benefits of derivatives and margin buying and selling. Each platforms provide a sophisticated buying and selling display with all of the technical evaluation and charting instruments that merchants must make well-informed buying and selling choices. For anybody trying to enhance their technical evaluation expertise and enhance their buying and selling, remember to take a look at Man’s three-part sequence on easy methods to carry out technical evaluation; the primary video within the sequence might be discovered right here.
Each exchanges provide buying and selling with as much as 100x leverage for skilled merchants, leveraged token buying and selling, and staking and incomes options corresponding to lending and borrowing. A phrase of warning for brand new merchants contemplating leverage: leverage could be a hazardous software that causes extra blown accounts than worthwhile merchants and has been the reason for a number of mass liquidation occasions within the crypto markets. You’ll want to perceive the dangers related to leveraged buying and selling earlier than leaping in.
The true distinction lies in that FTX has an NFT market, whereas KuCoin doesn’t. KuCoin has automated crypto bot buying and selling straight accessible on the platform. In distinction, FTX has a debit card for US customers and FTX pay which integrates into on-line outlets for direct funds. As well as, FTX provides prediction and volatility markets for merchants. On the identical time, KuCoin has “gamified” buying and selling by operating frequent buying and selling competitions, day by day reward giveaways for actions, provides a lottery-style part known as KuCoin Win and has Kucoin Brawl, which permits customers to wager USDT and select to go lengthy or quick on the value of Bitcoin. Merchants who’re followers of casinos and playing will benefit from the gamified buying and selling options on KuCoin.
Each platforms have an intuitive, clear, and simple to make use of cellular utility although I want the FTX look and structure; that’s simply private choice. Each exchanges have perks and advantages corresponding to diminished charges for holding the native alternate token, and each platforms have low charges, with FTX beating out KuCoin for having barely decrease charges. As for asset assist, KuCoin is the clear winner with a whopping 600+ digital belongings and supporting over 50 fiat belongings by way of varied integrations.
Each KuCoin and FTX provide buying and selling merchandise and options that aren’t beginner-friendly, nor are they designed for newcomers, corresponding to leveraged tokens/buying and selling, buying and selling derivatives, and auto buying and selling bots. KuCoin and FTX are well-suited fitted to skilled merchants. Nevertheless, each platforms work simply positive for newbie and common customers trying to make use of the fundamental spot buy crypto alternate and staking options. Customers will simply get accustomed to each platforms shortly, and anybody who can navigate a web based banking platform will have the ability to handle both one as they’re intuitive and have drop-down menus that make navigation a breeze.
Each platforms have a useful and strong self-help information article part to assist with any navigation points or questions customers could have. Nevertheless, if I needed to suggest one to a brand-new consumer who was solely planning on buying and selling crypto, I must give the sting to FTX as KuCoin could be a bit overwhelming for brand new merchants with all of the options and completely different sections of the platform.
FTX has a slight benefit over KuCoin when it comes to charges, with all-time low charges of 0.02% for the maker and 0.07% for the taker, which is the best charges merchants can pay. Nevertheless, merchants on FTX can decrease these charges an extra 60% relying on what number of FTT tokens they maintain, as proven under.
Essentially the most merchants can pay on KuCoin is 0.1% for each maker and taker, with KuCoin merchants additionally in a position to save a further 20% in the event that they pay charges in KuCoin’s native KCS token. Each platforms have a tiered pricing construction primarily based on buying and selling quantity. Curiously, the bottom charges are 0% and 0.04% on FTX for high-volume merchants, whereas KuCoin pays whales an incentive for prime quantity buying and selling. The tier buildings might be seen under.
As if the charges on these platforms aren’t low sufficient already, the Coin Bureau has even managed to candy discuss each exchanges to present our neighborhood additional reductions. Utilizing our sign-up hyperlink, customers who signal as much as FTX can take pleasure in an additional 10% low cost for all times and have their first $30 in buying and selling charges lined. Customers who join KuCoin utilizing our sign-up hyperlink can take pleasure in a reduction of as much as 60% on buying and selling charges for all times and a free buying and selling bot! We care about you guys stacking these sats, and the decrease the charges, the higher 😉
Deposit and Withdrawal Charges
Crypto withdrawal charges on KuCoin are depending on the token. A whole listing is positioned right here. The charges to buy crypto by way of debit or bank card ranges from 3.5% to five%, relying on the third-party utility. There are not any charges for SEPA financial institution deposits, and withdrawing fiat just isn’t supported on KuCoin, which is a significant downside.
FTX has no deposit charges, which the positive print states could change in some unspecified time in the future, however it’s candy free deposits for now. FTX solely expenses withdrawal charges for USD and BRL, so this is a wonderful selection for European and UK readers. However, once more, for our US viewers, I’d suggest utilizing FTX.US as customers on FTX may very well be seeing a hefty $75 payment for USD withdrawals below 10k, and customers who withdraw BRL are taking a look at a 0.3% + R$10 withdrawal payment.
FTX is immeasurably higher on this regard as they’ve a fiat off-ramp, permitting customers to withdraw money to their checking account. The truth that KuCoin has no choice to withdraw money is probably going one of many causes that they’ve fallen under each FTX and Kraken within the rankings, as most merchants desire a technique to convert crypto to money and withdraw it.
Professional Tip: You’ll want to examine along with your financial institution earlier than making crypto purchases or deposits, as they could cost extra charges. Make additional positive that you simply received’t have your card blocked in the event you use a bank card and received’t be hit with a nasty money advance payment. These are issues I’ve confronted myself as my financial institution took a hard-nosed, anti-crypto method blocking all crypto-related transactions (so naturally, I modified banks).
Each KuCoin and FTX place a robust emphasis on safety as any good alternate ought to. KuCoin states that their crypto is saved in chilly storage however don’t say what share, and so they have partnered with an organization known as Onchain Custodian to assist make sure the crypto on the alternate is safe. KuCoin can be lined by insurance coverage to reimburse prospects from hack makes an attempt which is lucky because the KuCoin alternate did expertise one of many largest alternate hacks in historical past in 2020, the place hackers made off with over $275 million value of buyer’s funds. Fortunately all the shopper funds had been reimbursed.
KuCoin provides a mixture of safety procedures and protocols on the system and operational ranges. KuCoin provides the next security measures:
- 2FA for login
- Safety questions
- Anti-phishing security phrase
- Login security phrase
- Buying and selling password
- Exercise monitoring on the system
- Telephone verification
- E mail binding and notifications for suspicious exercise
- Whitelisting IP addresses.
FTX, alternatively, is among the only a few exchanges that haven’t suffered any recognized hacks up to now, and the corporate does hold funds set to the facet to reimburse prospects within the unlikely occasion a hack does happen. As well as, FTX has the next security options:
- 2FA for login, account adjustments and withdrawals
- Minimal password complexity
- Secondary withdrawal password
- 24-hour lock options
- Whitelisting withdrawal addresses
- Whitelisting IP addresses
- Partnered with Chainanalysis to watch suspicious transaction exercise
- Guide overview course of for suspicious or massive withdrawals
- E mail notification for suspicious exercise.
The KuCoin hack apart, each platforms observe business greatest practices, and customers can really feel assured utilizing each of those platforms. Nevertheless, I must give FTX the sting right here as being one of many only a few exchanges which have by no means been hacked offers me plenty of confidence of their safety protocols, and the partnership with Chainanalysis can be a pleasant extra contact to safeguard consumer funds.
For years, poor customer support has been a typical criticism from crypto alternate customers. Many crypto exchanges are continuously below harsh criticisms from their prospects for deplorable response instances; you’d assume a multi-billion greenback incomes firm may afford to spend a bit extra on scaling assist employees. Fortunately, each KuCoin and FTX are fairly good when it comes to assist.
FTX has made it doable to contact their buyer assist workforce by way of Telegram channels and provide e-mail ticket assist. KuCoin provides on-line chat and an e-mail ticketing system as nicely. Each platforms present a self-help FAQ part which is nicely constructed out, although FTX has performed a greater job when it comes to filling out their assist articles and making them simpler to observe.
In the end, I must say that KuCoin assist is healthier for the straightforward undeniable fact that they provide dwell chat assist. Although FTX has varied Telegram channels, Telegram is a deadly place to attempt to get assist as there are scammers all over the place. I as soon as posted in a Telegram assist chat for assistance on a technical situation and immediately obtained over a dozen DMs from scammers pretending to work for the assist workforce attempting to get me to ship them private information. Keep in mind that no member of any assist workforce will ever ask you for passwords or seed restoration phrases, and anybody who asks for this info is probably attempting to achieve entry to your funds.
Professional Tip: When you’ve got questions concerning the platforms, don’t overlook that the majority crypto exchanges have very lively communities on social media websites like Reddit, Fb and Telegram. KuCoin even has a neighborhood part on its web site. Subsequently, it’s usually value posting questions in these neighborhood boards because it can lead to faster solutions.
Now, Let’s dive into every alternate individually.
I’m positive you’ve already pieced collectively that FTX is a centralized cryptocurrency alternate that options derivatives/futures, spot crypto, margin buying and selling, volatility and prediction markets with choices to make use of leverage. FTX was based in Might 2019 by Sam Bankman-Fried (presently the CEO) and Gary Wang (presently the CTO), with the headquarters positioned within the Bahamas. FTX has been increasing and rising its consumer base at a really spectacular price, being one of many fastest-growing cryptocurrency exchanges on the planet.
FTX has leapt into the quantity three spot because the third-largest alternate after an aggressive advertising and fundraising marketing campaign, which noticed the corporate purchase the naming rights for an NBA Area in Miami, signal offers with America’s Main-League Baseball, and signed the biggest naming rights deal in eSports historical past, buying the naming rights for eSports group TSM.
Together with their advertising efforts making FTX a family identify, FTX was additionally in a position to rise in recognition as they had been in a position to fill a distinct segment available in the market. FTX was one of many first exchanges to primarily deal with the by-product and prediction markets, providing buying and selling for futures, choices, and volatility markets. FTX additionally offers a spot for merchants to invest on world occasions corresponding to in 2020 when the alternate issued TRUMP-2020 Presidential 2020 futures contracts and others which allowed merchants to invest on the end result of the U.S. presidential election. In consequence, FTX has develop into the go-to alternate for a lot of skilled and newbie day merchants who depend on an environment friendly platform and excessive liquidity, in addition to a large number of buying and selling choices.
Due to the truth that the FTX platform was designed by merchants for merchants, it’s a straightforward to make use of and intuitive platform that’s a pleasure for skilled merchants and simple to choose up for brand new merchants.
FTX helps over 275 crypto belongings traded in opposition to six base currencies. The bottom currencies are BTC, USDT, BRZ, TRYB, USD and EUR. As well as, FTX additionally has nice fiat assist for fiat onboarding, together with USD, EUR, GBP, AUD, HKD, SGD, TRY, ZAR, CAD, CHF and BRL, with TRY coming quickly.
FTX alternate additionally has their alternate token, the FTX token with the ticker image FTT. The token has plenty of utility and use instances inside the FTX ecosystem, offering advantages corresponding to buying and selling payment reductions, creating leveraged tokens, and might be staked to earn passive earnings. The FTT token might be picked up on FTX, Binance, Huobi, Bitfinex, and so on.
FTX provides an awesome number of buying and selling merchandise and options, making the platform glorious for not solely day merchants however crypto holders trying to reap the benefits of many various crypto advantages. FTX offers merchants with plentiful choices, together with among the most unusual buying and selling merchandise obtainable within the Crypto markets.
Staking and Incomes
No crypto holder needs to be denied the choice to earn some candy passive earnings from staking and incomes options, and FTX has customers lined right here. FTT token holders can stake their tokens for a formidable APY and extra rewards. As well as, FTX customers may reap the benefits of lending their crypto to different customers, incomes a pleasant kickback in return. You may learn extra about how this works in our in-depth FTX overview.
Staking on FTX offers the next advantages:
- Maker and Taker payment reductions: FTT stakers take pleasure in a reduction on their buying and selling charges.
- Bonus votes: FTX usually takes polls from merchants earlier than launching a brand new monetary instrument on the location and FTT holders get extra votes.
- Elevated SRM airdrop rewards: SRM is the native token of the Serum ecosystem. FTX disperses 5% of the entire provide of SRM to FTT holders over time.
- Elevated referral rebate charges: Merchants who stake FTT obtain the next share on charges for his or her affiliate sign-ups.
FTX provides the best variety of Futures markets obtainable amongst its opponents. FTX has over 80 Cryptocurrencies within the futures part and permits for prime leverage choices of as much as 100x. There are three forms of futures contracts: maturity, perpetual and index.
One other vastly widespread function that has attracted merchants is that FTX offers merchants with an choice to achieve publicity to shares. Common shares corresponding to those seen under might be traded, although it is very important be aware that these are solely tokenized variations of the shares that observe the inventory value, not the precise shares themselves.
FTX provides leveraged token buying and selling. The leveraged tokens are ERC-20 tokens that mimic the underlying token’s motion utilizing an outlined leverage degree. For instance, if Ethereum strikes up by 1%, the ETH/USD Bull 3x Lengthy token would transfer up by 3%, but when it drops by 1%, the leveraged token will drop by 3%. Merchants can select lengthy or quick leveraged tokens by choosing those that say bull for lengthy or bear in the event that they anticipate the markets will drop. There are three forms of leveraged tokens: Bull, Bear, and Hedge.
Prediction markets are a enjoyable approach for speculators to guess on world occasions. For instance, merchants right here can guess on the outcomes of occasions corresponding to elections and political choices such because the Brexit vote.
BVOL tokens are ERC-20 tokens that observe the volatility of the Crypto markets by gaining publicity to volatility utilizing FTX MOVE contracts and BTC-PERP contracts. There are two BVOL tokens: BVOL and iBVOL. BVOL makes an attempt to trace the day by day returns of being 1x lengthy on the volatility of Bitcoin, whereas inverse BVOL (iBVOL) makes an attempt to trace the day by day returns of being 1x wanting the volatility of Bitcoin
KuCoin is among the first crypto exchanges to cater to critical merchants, providing a sophisticated buying and selling platform and futures buying and selling choices. KuCoin additionally gained mass adoption by supporting a formidable listing of altcoins. They nonetheless do each issues very nicely, with many cryptocurrency fans turning to KuCoin to choose up uncommon altcoins as they’re usually supported on KuCoin nicely earlier than many different exchanges.
KuCoin has been offering top quality and respected companies since launching in August 2017 however has a historical past relationship again to 2011, when the founding workforce members first started working within the early days of blockchain know-how. The workforce started KuCoin’s design again in 2013, however the platform wasn’t launched for years till the workforce felt it was polished sufficient and appropriate for the market and met the workforce’s expectations. Discuss perfectionism! Since 2017, the platform shortly rose in adoption and has develop into a favorite for its gamified, virtually Vegas-like buying and selling competitions, promotions, and giveaways. As soon as launched, KuCoin branded itself as “The Folks’s Trade” resulting from its heavy emphasis on consumer expertise.
KuCoin can be widespread as they’ve very low charges, a platform interface appropriate for professionals and newcomers, institutional-grade safety, and a number of other different companies that may be tough to search out elsewhere. Their peer-to-peer buying and selling service has additionally develop into widespread. Many merchants who don’t need to submit KYC identification verification select KuCoin over some other massive alternate in the event that they solely need to buy cash and don’t anticipate excessive buying and selling volumes. The boundaries for buying and selling quantities and KYC verification are as follows:
KuCoin is among the most “global-friendly” exchanges in fiat assist, boasting assist for a formidable 50 completely different fiat currencies. Customers from unique areas are prone to go for KuCoin as they know what a ache it may be to attempt to use an alternate that doesn’t assist their native forex and must alternate funds and get hit with nasty conversion charges. As talked about, KuCoin additionally helps an unimaginable listing of 600+ crypto belongings, making it a superb alternate for uncommon altcoin gem hunters. A whole listing of their supported fiat currencies is right here, and the listing of crypto belongings and Futures markets might be discovered right here.
KuCoin launched its futures platform as KuMEX in mid-2019 and later rebranded it to the extra simply recognizable KuCoin Futures. Right here customers can commerce a number of margined contracts for varied widespread crypto belongings with leverage as excessive as 100x.
Merchants can go lengthy or quick, which is nice as they will reap the benefits of bear markets. The platform is available in each a Lite model for starting futures merchants and a Professional model for these with extra expertise. The Professional Futures platform offers extra insights into the Futures markets and includes a extra highly effective buying and selling and evaluation interface.
Futures Brawl started as a promotion in August 2020, and it stays on the platform ever since resulting from its recognition. Customers turned hooked as they might win prizes corresponding to an iPhone, a full Bitcoin and money prizes. Moreover, customers can take part by betting USDT on whether or not they assume Bitcoin value will enhance or lower. Bets might be positioned as soon as per day, and there’s a Wheel of Fortune to spin day by day for an opportunity to win additional factors.
P2P Fiat Buying and selling
KuCoin customers additionally should purchase and promote main cryptos like BTC, ETH, USDT, USDC and KCS peer-to-peer straight with different members. This may be performed by way of ACH and PayPal.
Like FTX, customers on KuCoin can earn additional APY from lending out their crypto to different merchants, staking tokens or taking part in pool-X. Passive earnings is an enormous attraction for crypto holders, and KuCoin is a wonderful place to learn from each staking and the power to lend out cash for 7, 14, or 28 days. Pool-X is actually a staking pool designed to offer liquidity companies for staked tokens.
FTX and KuCoin have extra similarities than variations of their options, and the selection will come right down to consumer choice. Sadly, KuCoin missed the boat by permitting FTX and Binance to beat them to the punch in having an NFT market. NFTs have been an explosive phenomenon lately, and many individuals imagine that as NFTs develop into a mainstay within the gaming and Metaverse industries, these NFT marketplaces may develop into an integral a part of our lives as an increasing number of belongings develop into digitized.
After utilizing each exchanges for a few years now, I do should say that I want FTX because of the decrease charges and simpler to make use of and navigate platform. I hold a KuCoin account for the uncommon prevalence that I need to decide up a brilliant uncommon altcoin that I can’t discover elsewhere, and that’s about it. I do discover the KuCoin alternate to be rather less user-friendly as it’s simply too busy and filled with options that I don’t want. Nevertheless, many crypto merchants just like the playing model video games and competitions provided on KuCoin, plus using the buying and selling bots straight obtainable on the platform is a must have for a lot of merchants.
Each platforms are perfect for professional or newbie merchants and have nice passive incomes options. One other issue to think about for anybody who’s going to stake on these platforms is they need to take into consideration whether or not they would relatively maintain and stake a bunch of FTX’s FTT token or KuCoins KCS token. FTX is turning into rather more of a family identify due to their aggressive advertising marketing campaign and options that helped them rise to the third-largest alternate as KuCoin continues to lose market share, lately falling under FTX and Kraken.
For my part, the FTX token has extra capital appreciation potential and better demand because the alternate is accessible each globally and within the US, not like KuCoin, which isn’t licensed within the US. FTX additionally has considerably extra VC funding and hype behind it, which might carry a challenge a great distance. Have a look at what Elon Musk was in a position to do for Dogecoin, and that was only one individual. FTX can be turning into very shut and pleasant with the whole Solana ecosystem, additional growing demand for the FTX platform and, subsequently, growing demand for the FTT token.
Disclaimer: These are the author’s opinions and shouldn’t be thought of funding recommendation. Readers ought to do their very own analysis.