With the almost countless crypto exchanges out there and new ones going live nearly every other day, things can be pretty confusing when you have to choose one. Crypto traders also find it even more complicated when choosing between two popular exchanges like KuCoin FTX.
Both crypto exchanges are famous worldwide and offer secure platforms with a variety of products to suit all traders. That said, deciding between KuCoin and FTX should be less hectic if you know what sets them apart and what gives one an edge over the other.
This head-to-head comparison of the two top crypto exchanges starting with a short overview of each company will make it easier to decide the right one for you.
KuCoin is a Singapore-based crypto exchange that went live in 2017 and now has a presence in over 200 countries across the globe. Also, the exchange has more registered traders than a majority of top-tier crypto exchanges as there are at least 10 million KuCoin users globally.
But, even with its global presence, KuCoin does not have a license to operate in the USA, which can be a significant drawback.
The exchange has both a spot and derivatives market and offers other things like crypto lending and the KuCoin pool when it comes to the product offering.
FTX is based in the Bahamas and is a relatively new platform compared to KuCoin, as it has been live since 2019. The exchange has over a million traders on its platform and is available worldwide, including in the US, where it operates the FTX.US platform.
With a daily trading volume that averages a little under $10 billion, FTX has one of the best liquidities to allow for smooth trading.
For their product offering, the exchange supports both spot and derivatives markets and has other things like NFTs and leveraged tokens.
KuCoin vs. FTX: Supported Cryptocurrencies
Few cryptocurrency exchanges in the world can beat KuCoin regarding crypto support. They support more coins and tokens than most exchanges, and only the largest companies like Binance seem to match their crypto support.
KuCoin supports almost 600 different digital assets that allow traders to make over 1,000 trading pars giving you more trading options than most exchanges. Moreover, the company has a good blend of assets that includes traditional and new coins and tokens.
FTX supports over 120 cryptocurrencies for their global exchange and around 20 for the FTX.US platform. Although the coin offering might seem relatively small compared to KuCoin, you still get to form hundreds of trading pairs, and it should still work for a majority of traders, given the list includes all famous assets.
KuCoin vs. FTX: Trading Fees
Trading fees on KuCoin and FTX are below the industry average, and so both will be relatively cheaper exchanges for trading compared to others out there.
FTX uses the maker-taker fee model like most other exchanges for both their global and FTX. US exchanges. Also, they have a tiered fees system where trading fees will reduce when traders transact more on the platform.
Traders with the lowest trading volume on the exchange, which is $0 to $2 million for 30 days, will pay the highest fees on FTX, which is 0.020% and 0.070% in maker and taker fees, respectively. However, high-volume traders with over $25 million do not pay any maker fees.
KuCoin will also use the maker and taker system with a tiered fees schedule. Traders with under 50 BTC 30-day trading volume will pay 0.1% for both maker and taker fees. Those that trade 2,000 BTC will not pay 0.04% maker fees, and the taker fees will also be 0.07% or less.
KuCoin vs. FTX: Account Funding Methods
Some crypto exchanges can make adding funds to your wallet a big hassle by limiting you to a few complicated methods or only allowing you to send assets from another wallet. Luckily, both KuCoin and FTX provide multiple options to cater to all kinds of traders.
KuCoin allows you to fund your account using both fiat and crypto. However, you cannot add fiat to your wallet directly. The exchange requires you to use third-party apps like Apple pay and Google Pay. Also, the platform supports both credit and debit card payments to give you more account funding options.
You can send crypto to KuCoin from any wallet on the same network. However, they will not allow you to fund the account using bank transfers, which can be a little restrictive.
FTX also supports both fiat and crypto deposits. Unlike KuCoin, they support direct fiat deposits, making it a more convenient platform for account funding. Currently, the exchange supports at least 10 fiat currencies: USD, CAD, EUR, GBP, CHF, BRL, ZAR, AUD, HKD, and SGD.
The FTX supported deposit methods are wire transfers, SEPA, SEN, Signature SIGNET, PayID, and credit card, which should be more than enough options for the majority of their traders across the world.
KuCoin vs. FTX Liquidation Mechanism
The liquidation mechanism protects both traders and the exchange from massive losses when the market is not going a trader’s way, and the open position is at risk of going bankrupt. It usually kicks in when the open position reaches the maintenance margin level, but the liquidation process will differ for KuCoin and FTX.
The KuCoin liquidation mechanism is relatively straightforward as the liquidation engine takes over once the position’s margin crosses a pre-determined threshold. The threshold is the 97% liquidation line set by the exchange. When your position gets to this level, the liquidation engines take over from the secondary market mechanism to deal with the position before it goes bankrupt to pay off all debts.
FTX uses a more complex liquidation mechanism with three tiers. At the first tier, the liquidation engines will carefully close off the position using rate-limited liquidation orders that have less impact on the market and other open positions.
The second tier entails utilizing the unique backstop liquidity provider program to shield accounts in danger of going bankrupt. FTX will use insurance funds for the third tier once the position is closed open to prevent trader losses.
Opening Account & Account Limits
Crypto exchanges use account limits to regulate their platforms and as an extra security level that ensures you cannot withdraw massive amounts of assets without meeting certain conditions. Here is an overview of account limits for KuCoin and FTX and how to set up accounts on both exchanges.
FTX enforces mandatory KYC verification. Traders who do not verify their identity cannot deposit or withdraw from the platform. The most these traders can do is explore the website and feel how things work.
Traders with KYC 1 verification can withdraw up to $2,000 worth of crypto assets. Those with KYC 2 or tier 2 verification get unlimited deposits and withdrawals on the FTX platform since they have to prove their identity and address.
How to create an account
- Click “Register” on https://ftx.com/
- Add your email and create a password
- Verify your email
- Secure your account with 2FA
- Complete KYC from your profile settings
KuCoin account limits depend on your verification status. Traders with no verification can withdraw a maximum of 1 BTC every day. If you have individual KYC 1 verification, you can draw a maximum of 1 BTC but have higher P2P trading limits, such as up to $2,000 for USD and CAD.
Traders with KYC 2 verification level have a daily withdrawal limit of up to 200 BTC, and their P2P daily trading limit is $100,000. Institutional KYC verification gives you the highest limits on KuCoin as you can withdraw up to 500 BTC.
How to create an account
- Click the “Sign Up” button on https://www.kucoin.com/
- Enter your email, password, and a referral code
- Agree to terms and finish the signup
- Verify your email address and do KYC to remove limits from your account
KuCoin vs. FTX: Ease of Use & Interface
Top-tier exchanges like KuCoin and FTX try to make their platform as easy to use and user-friendly as possible. Regardless of which option you pick between these two, you can be confident of an easy time trading.
KuCoin users access the platform using the online portal and via their Android or IOS mobile devices. The exchange has an intuitive interface with well-arranged panels for easy access.
KuCoin also provides multiple order types like market, limit, and stop-limit to make it easier to trade, and they also now have a trading bit for those that want to automate their trading experience. However, the many features and tools in the KuCoin interface can overwhelm some beginners.
FTX also has both desktop and mobile apps for Android and iOS devices. Also, they offer several advanced order types like Stop-loss limit orders, Stop-loss market orders, Trailing stop, Take profit and Take profit limit orders.
Another highlight of the FTX platform is the sleek interface that allows traders to switch between different lighting modes. Also, the interface is customizable as traders can move around panels to suit their specific arrangement preferences.
KuCoin vs. FTX: Security Features
Most popular crypto exchanges have highly secure systems that guarantee traders’ safety and ensure they do not lose their crypto. Although the majority will use industry-standard security systems and protocols, a few have more advanced like FTX and KuCoin and unique security features.
KuCoin secures its platform by partnering with Onchain Custodian, a third-party company that helps secure all the assets on the platform. Also, the company makes use of other security features like 2FA, IP whitelisting, and anti-phishing safety phrases.
FTX constantly monitors the trading platform and keeps track of trader accounts to alert them of any suspicious activities. They also use IP whitelisting, encourage 2FA and have a backstop liquidity fund.
KuCoin vs. FTX: Customer Support
KuCoin offers 24/7 support across multiple channels. You can contact the support team via email, and they respond swiftly to all tickets. Additionally, the exchange has more than 20 global communities, including highly active telegram communities that can help resolve trader issues quickly.
FTX has a dedicated helps center that provides multiple avenues for crypto traders to get help, including live chat support for quick issue resolution. Additionally, traders can open an email ticket, contact them via their social media handles, and use the different material available on their help center for self-help.
- Is KuCoin a safe exchange?
KuCoin is safe enough for all traders. Besides using highly advanced security protocol, they keep most of the assets in offline cold storage, which is unreachable for hackers. Although the exchange was hacked a while back, all the assets were recovered and returned to the owners.
- Is FTX a safe exchange?
FTX has never been hacked, and it takes safety more seriously than many other exchanges and enforces mandatory KYC verification. Additionally, they operate in a strict regulatory environment in the USA, which is a good indication their platform is safe.
There is no doubt that KuCoin and FTX are two of the best crypto exchanges for global traders. They have some of the lowest trading fees and offer traders multiple products they can use to make gains on their digital assets.
However, FTX seems to have a clear edge over KuCoin as it is a more secure platform that has never been hacked, offers lower fees, and has excellent customer support that includes live chat.
- 1 KuCoin vs. FTX: Supported Cryptocurrencies
- 1.1 KuCoin vs. FTX: Trading Fees
- 1.2 KuCoin vs. FTX: Account Funding Methods
- 1.3 KuCoin vs. FTX Liquidation Mechanism
- 1.4 Opening Account & Account Limits
- 1.5 FTX
- 1.6 KuCoin
- 1.7 KuCoin vs. FTX: Ease of Use & Interface
- 1.8 KuCoin vs. FTX: Security Features
- 1.9 KuCoin vs. FTX: Customer Support