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KuCoin Vs. Binance.US: Why New Crypto Investors Should Pass On Both. Here’s What To Look For Instead

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KuCoin Vs. Binance.US: Why New Crypto Investors Should Pass On Both. Here’s What To Look For Instead

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If you’re thinking about opening an account with KuCoin or Binance.US for your crypto investments, maybe don’t. 

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While both of these exchanges offer the opportunity to buy and invest in popular cryptocurrencies, there are much better options available — and especially for beginner crypto investors. For starters, KuCoin and Binance.US aren’t as simple and user-friendly as mainstream exchanges like Coinbase, eToro, or Gemini — all of which are included in our review of the best cryptocurrency exchanges. 

As a decentralized exchange, KuCoin comes with a particularly steep learning curve. While Binance.US does offer lower fees than other mainstream exchanges, experts say the extra fees are worth the clear benefits of stronger security policies and protocols. Binance.US also has a history of regulatory issues we think investors are wise to steer clear of.

But if you’re a crypto investor who thinks KuCoin or Binance.US makes sense for your strategy, here’s what you should know about these two crypto exchanges.

Before You Start

No matter where you buy it, cryptocurrency is a highly volatile, speculative investment. Only invest in crypto what you’re prepared to lose, and make sure you have other financial priorities in place first: save money in an emergency fund, contribute to retirement savings, and pay off any high-interest debt balances.

Side-by-Side Comparison

KuCoin Binance.US

Good for 
Advanced traders who want access to altcoins not available elsewhere Active trading with low fees
Coins 600+ cryptocurrencies 80+ cryptocurrencies
Fees Tiered maker/taker model, up to 0.3% depending on coin and level. Get a 20% discount when you pay fees with KCS. Tiered maker/taker model. 0.1% spot fee. Can get a 25% discount on your fee if you hold BNB
Wallet storage Keep coins on the KuCoin exchange or transfer to your own wallet Keep coins in Binance.US account or transfer to your own wallet
Security features Various features, including restricting log-in, two-factor authentication, offers security tips Claims to keep assets in cold storage, two-factor authentication
Additional features • Staking

• Margin trading

• Trading bot

• Crypto lending
• Staking

• Tax portal
Minimum trades Based on the cryptocurrency, with 0.1 USDT the minimum for dollar-pegged assets $10

Pros and Cons: KuCoin vs. Binance.US

KuCoin Binance.US
Pros   • Access a large number of coins

• Free USDT on sign up

• Advanced trading options, including margin

• Discount for using KCS for fees
• Low fees

• Trading fee discount for using BNB

• Tax statement portal

• Identity verification process
Cons • Not licensed or regulated in the United States

• You might need to have crypto already to use KuCoin

• Difficult to navigate for beginners

• Poor reviews on TrustPilot
• Not available in Hawaii, Idaho, New York, Texas, or Vermont

• Limited customer services

• History of regulatory issues

• Security information not readily available

Wallet Offerings

Both KuCoin and Binance.US offer the option to store coins on the exchange using a hot wallet. You can also transfer your coins off the exchanges to an external wallet.KuCoin doesn’t offer information on an internal wallet, but you can connect your own crypto wallet to the exchange and use that to send and receive coins. 

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Binance.US also doesn’t provide information on an internal wallet, instead suggesting that you use Trust Wallet, which is owned by Binance. 

Security 

On its homepage, KuCoin says it has the “most sophisticated security technology and maintenance team, and is constantly upgrading our security systems to ensure the safety of user assets and accounts.” It’s difficult to find details, but the site offers insight into tools you can use to secure your account, including two-factor authentication and restricting your login IP. 

KuCoin has done well by users when the exchange was hacked. In a 2020 incident, hackers stole users’ private keys, grabbed $250 million in crypto, and tried to sell the coins on decentralized exchanges. KuCoin claims users were made whole for the theft, with a combination of law enforcement and insurance coverage. Additionally, KuCoin says it took steps to reduce the chances of a repeat. Crypto exchanges Coinbase and Crypto.com have also suffered hacks, and have likewise reimbursed users and strengthened security protocols.

Binance.US mentions a commitment to best practices for security on its homepage, without much transparency about its methods. BAM Trading Services, the U.S. partner for Binance.US, is registered with the Financial Crimes Enforcement Network (FinCEN), and Binance.US is a DBA under the BAM registration. The larger Binance covered customer losses to security incidents in the past, but there’s no guarantee this would apply to Binance.US losses. 

Binance has faced previous regulatory issues, and Binance.US is under investigation by the Securities and Exchange Commission regarding ties to the global company’s CEO and two trading firms that buy and sell on the platform. A spokesperson emailed us on behalf of Binance.US after our original 2021 review and stated that they operate separately, with Binance.US licensing trademarks, software, and wallet technology from the larger company. 

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We reached out to KuCoin and Binance.US for comment about these issues and for more information, but received no response. We’ll update this review if KuCoin or Binance.US gets back to us.

You might fare better if you look into an exchange that’s more heavily regulated in the United States and is more forthcoming with its security measures.

Cryptocurrencies Available

KuCoin offers access to more than 600 cryptocurrencies, and Binance.US offers more than 80 cryptocurrencies, which is a relatively low number compared to other exchanges too. 

KuCoin (KCS) and Binance.US (BNB) both offer native coins that can help you save on trading fees. BNB has a much higher market cap than KCS and could be a better investment on its own, plus it’s easier to secure a discount in fees with it since just holding BNB is enough. With KCS, you need to specifically use the coin to pay the fee in order to see the discount.

If you want to use U.S. fiat currency on KuCoin, you need to convert your fiat currency to Tether (USDT), a stablecoin pegged to the U.S. dollar. U.S. dollar prices on the exchange are denoted in Tether. 

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Fees

Both KuCoin and Binance.US use a tiered maker/taker model for fees. When someone places an order that isn’t fulfilled immediately, they are considered a maker as they are contributing liquidity to the exchange. When someone places an order that is matched immediately, they are considered a taker. In general, taker fees are higher than maker fees at each tier. Both KuCoin and Binance.US charge lower fees when you have a higher tier, denoted by monthly trading volume.

But while KuCoin offers competitive fees, they’re still not as low as the fees charged by Binance.US. Additionally, you’ll see a bigger fee discount of 25% as a BNB holder compared to the 20% discount offered to KuCoin traders paying with KCS.

Binance.US has a top fee of 0.10%, while fees at KuCoin range up to 0.3%, depending on the class of crypto asset and your tier.

Staking, Credit Cards, Other Options

Both KuCoin and Binance.US offer you the chance to earn money by staking when you hold assets on the exchange. 

KuCoin also offers a suite of products for growing your crypto wealth. This includes margin trading, which is when you transact on the exchange using borrowed funds, and the chance to enter a raffle and win more coins. You can also earn interest by lending your crypto to other investors on the platform. KuCoin offers a trading bot that helps you automate your trades, including investing smaller amounts on a regular basis (known as dollar-cost averaging) and automating trades in which you buy low and sell high. 

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One of the main issues with KuCoin is that it can be difficult to use U.S. fiat currency on the exchange. Plus it’s decentralized and unregulated, so it’s even riskier. You can purchase certain coins, like Tether (USDT), Bitcoin (BTC), Ethereum (ETH), and PaxGold (PAX) using Fast Buy. You’ll need to verify your identity, after which you can link your bank card. Then you can use fiat money to buy supported cryptocurrency coins so you can trade on the exchange. It’s a roundabout way to use U.S. fiat currency to participate on the KuCoin exchange, but please note that U.S. residents still cannot register to use the exchange.

Binance.US provides straightforward advanced tools for active traders, including real-time charting and an over-the-counter trading portal so you can match orders with other traders without going through an intermediary. Binance.US also offers a tax portal designed to help you better report your crypto earnings and transactions to the IRS. (You might also want to check out a crypto portfolio tracker for the same purpose.) The larger Binance offers helpful information and tools that can be used to learn more about cryptocurrencies and blockchain technology.

How to Decide Between KuCoin and Binance.US

As mentioned, we recommend you look into other exchanges such as Coinbase, Gemini or eToro. KuCoin and Binance.US are more appropriate for intermediate to advanced cryptocurrency users than beginners, and they each come with accessibility or regulation issues. 

Pro Tip

Compare fees, security, and your goals to choose a cryptocurrency exchange.

KuCoin isn’t licensed in the U.S., so if you’re looking for a modicum of U.S.-based regulation, Binance.US will be your choice. However, Binance.US isn’t currently available in Hawaii, Idaho, New York, Texas, or Vermont. If you’re more interested in using cryptocurrencies as a way to grow wealth, KuCoin offers a variety of choices for growing your crypto portfolio.

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Bybit

Canadian Regulator OSC Takes Action Against Crypto Trading Platforms Kucoin And Bybit

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Canadian Regulator OSC Takes Action Against Crypto Trading Platforms Kucoin And Bybit

The Ontario Securities Commission (OSC) has taken action against two cryptocurrency trading platforms. Kucoin is permanently banned from participating in Ontario’s capital markets. Bybit has promised to take steps to comply with regulations and register with the OSC.

OSC Sanctions 2 Crypto Trading Platforms

The Ontario Securities Commission (OSC) announced Wednesday the outcome of enforcement actions against two foreign cryptocurrency trading platforms operating in its jurisdiction.

The first is Bybit, a crypto trading platform operated by Bybit Fintech Ltd., incorporated in the British Virgin Islands. The other is Kucoin, operated by Mek Global Ltd., incorporated in the Republic of Seychelles, and Phoenixfin Pte. Ltd., incorporated in Singapore.

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“Bybit and Kucoin both operate unregistered crypto asset trading platforms and allowed Ontario investors to trade securities without a prospectus or any exemption from the prospectus requirements,” the Canadian regulator explained.

Regarding Kucoin, the announcement states:

The OSC successfully obtained orders permanently banning Kucoin from participating in Ontario’s capital markets and requiring Kucoin to pay an administrative penalty of CAD $2,000,000.

Kucoin must also pay a further CAD $96,550.35 ($74,497) towards the costs of the OSC’s investigation.

As for Bybit, the regulator settled with the exchange. The OSC explained that, unlike Kucoin, Bybit responded to its enforcement action, maintained an open dialogue, provided requested information, and committed to engaging in registration discussions.

The Canadian securities watchdog described:

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As part of a settlement agreement, Bybit has disgorged USD $2,468,910 and paid a further CAD $10,000 towards the cost of the OSC’s investigation.

“Bybit has also given an undertaking to the OSC, which holds the firm accountable for taking steps to bring its operations into compliance,” the regulator added. The exchange will also require existing Ontario retail investors to wind down their positions in certain restricted products.

In March last year, the OSC told crypto trading platforms that offer derivatives or securities trading in Ontario to start registration discussions with it by April 19, 2021, or face enforcement action. The Canadian regulator noted:

Despite this warning, Bybit and Kucoin did not contact the OSC by the deadline and continued operations in Ontario.

What do you think about the OSC taking action against Bybit and Kucoin? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Binance Suspends Direct Deposits And Withdrawals In Brazil

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Binance Suspends Direct Deposits And Withdrawals In Brazil

Binance announced this week that the direct withdrawal and deposits were suspended in Brazil. The exchange issued a statement where it announced that this was the result of a change in the payments partner in the country and that it will be taking legal steps against it. However, the partner states that Binance did not adapt to provide the new KYC information required by Brazil’s central bank.

Binance Stops Real Related Movements

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Binance stopped real-based direct deposits and withdrawals in Brazil this week as a result of a change in its secondary payments provider. The exchange announced that it was making the necessary changes to fix this problem in the future to keep offering these services to its customers in Brazil. In a blog post explaining the situation, Binance stated:

[Binance] will promote a smooth transition in the coming weeks and that it is taking all necessary steps, including legal related to Capitual, to ensure that users are not adversely affected by the change.

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Furthermore, the exchange stated that Brazil was “an extremely relevant market for the company,” and that it would continue to invest and expand services in the country.

Capitual Answers

Capitual, the bank that provides payments services for Binance and other exchanges in the country, clarified that this situation had to do with the new requirements that the Central Bank of Brazil is asking from participants of its Pix payments platform. According to statements from Capitual, the bank updated its technological platform to adapt to these changes and asked its partners to adapt their platforms to these new changes too.

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The company stated:

The partner exchanges Kucoin and Huobi have adapted their systems to the changes that have taken place on the Capitual platform and the services provided to their users in transactions with reais happen regularly,

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This means that according to them, only Binance has failed to adapt its technological platform to comply with the new requirements asked by the central bank of Brazil. The bank concluded by stating that these requirements could not be sidestepped, with these being “mandatory for its operation and that of its commercial partners.”

Binance’s new payments partner will be announced soon, and the company just referred to it as a “local payment provider with extensive experience.” In the meanwhile, Binance is directing its users to alternative withdrawal and deposit methods. The exchange recently had to pause bitcoin (BTC) withdrawals globally due to hardware wallet failures on wallet consolidation.

What do you think about the suspension of withdrawals and deposits of Binance in Brazil? Tell us in the comments section below.

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Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Crypto influencers

Study: 7.6 Million South Africans Are Crypto Investors, Social Media Main Source Of Crypto-Related Information

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Study: 7.6 Million South Africans Are Crypto Investors, Social Media Main Source Of Crypto-Related Information

About 22% of South Africa’s adult population, or 7.6 million people, are cryptocurrency investors, findings by a study done by Kucoin cryptocurrency exchange have shown. According to the study, 72% of the respondents said they get information concerning particular crypto projects via social media. Influencers and media personalities were also found to be key opinion leaders that are promoting cryptocurrencies.

Influencers and Media Personalities Found to Be Key Opinion Leaders

According to the findings of a new Kucoin study, about 22% of South Africa’s adult population aged between 18 and 60 (or about 7.6 million people) are cryptocurrency investors. The study also found that 65% of crypto investors “consider crypto to be the future of finance.” The report added that a large percentage of the users appear to prefer digital assets as their favored means of savings to earn stable returns.

Explaining how South Africans are sourcing information concerning crypto projects that they choose to invest in, the study findings reveal that nearly three-quarters (72%) of respondents are getting this information via social media. Besides social media, influencers and media personalities were found to be the main opinion leaders in the crypto promotion space.

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Commenting on South Africans’ apparent preference for social media platforms as their first-choice information source, Kucoin CEO Johnny Lyu told Bitcoin.com News:

The data revealed by Statists shows that 30 million South Africans are social network users, and this figure is projected to grow to 40 million users by 2026. The country is seeing a rapid growth of influencers, TikTok bloggers and creators for whom social media have proven to be an easy and accessible source of income. The examples of well-known bloggers of African descent such as Khaby Lame are encouraging many Africans to spend more and more time on social networks in search of work, earnings and dating.

Lyu also noted that social media has become the quickest way for users to obtain information. He said this is particularly true now when “users’ time is now fragmented, and obtaining information quickly and effectively has become a mainstream way of life.”

South Africa’s Unequal Wealth Distribution

Meanwhile, in demographic terms, the cryptocurrency exchange’s study found that South African crypto investors are predominantly “male and younger generations.” Men are estimated to account for 60% of crypto investors while some 42% of the investors are thought to be aged 18 to 30. The study meanwhile exposes South Africa’s unequal wealth distribution and how low-income earners appear to use crypto as a tool for redressing the situation.

“The unequal distribution of wealth in the country is well illustrated by the findings of the report, as 22% of crypto investors earn less than $5,000 a year, while 16% earn more than $50,000 during the same period,” the study report explained.

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While the study’s findings do suggest that interest in cryptocurrency is growing, the constant reports of South African crypto investors losing funds to scammers have nonetheless attracted the attention of regulators who have responded by either cracking down on crypto entities or warning the public against investing in cryptocurrencies.

However, despite the response from regulators, the study still found that South African crypto investors are “maintaining a positive attitude” towards cryptocurrencies as these are proving to be “capable of improving people’s standing financially.” Such adoption of cryptocurrencies is having the right impact on the local crypto market in general and this, in turn, helps to remove fraudulent individuals and players, the report said.

What are your thoughts on this study’s findings? Let us know in the comments section below.

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Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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