Is KuCoin Crypto Exchange Safe? let us find out in this article. shall we..
This guide will give you more information on the specifics of KuCoin cryptocurrency exchange platform and discuss if it is a safe exchange platform to use. We will look at the platform’s security measures put in place to hinder hackers and secure the network.
In addition to that, we will go through the firm’s core products, trustability, hack history, customer support, and Safeguard/Security Program.
History of KuCoin
The Year 2017 was the year KuCoin was originally launched as a cryptocurrency exchange company and has grown to be one of the world’s biggest digital asset companies by providing a wide variety of services relating to cryptocurrency and lots of trading pairs.
The platform was designed by Michael Gan and Eric Don who are the firm’s founders, to provide a safe and simple exchange platform for the global community as a whole to invest in and trade digital currency.
The aim of the crypto trading company is to provide customers with virtual asset transaction and exchange services by putting together premium assets from around the world in conjunction with a cutting-edge transaction platform.
KuCoin Core products
KuCoin offers several kinds of products and features, which includes a trading platform, Indexes, an app for iOS and Android, Futures, Margin Trading, Lending Program and many more.
The firm’s founders built its trading platform from scratch to help both new and experienced clients; it has a clean appearance, an easy to make use of interface, and many complicated functions and tools available, enabling clients to customize their entire KuCoin setup.
Furthermore, customers can trade on the go with the platform’s mobile trading app for iOS and Android. For example, traders can easily switch between Markets, Trading, Futures, and Assets with a single click, select an order type and pair, and effortlessly complete the transaction.
We have future trading in two different versions: 1. The light mode for beginners and 2. The pro mode for experienced users. Clients can trade with deals and margins amounting to 100X leverage, for instance, you can make a trade amounting to $10,000 with as small as $100 in your KuCoin’s account.
KuCoin guarantees you a Margin trading of up to 15 crypto-currencies, which includes BTC, KCS and ETH, which clients can leverage for any one of these trading pairs up to ten times. This service is suitable for both short and long positions. Bear in mind that traders might boost their income by borrowing money; they may also suffer a huge loss with their initial investment.
The platform provides several indexes; the company’s concept is to take a huge amount of a specific cryptocurrency across many significant exchanges. We have KuCoin indexes across: Ethereum, Litecoin, Bitcoin, and XRP.
KuCoin’s Lending Program
KuCoin’s lending arrangements is a newly added feature; it means advancing your digital money to other Kucoin users and this lets you generate interest on your investment. Using The tokens to basically fund margin accounts is the main idea behind this.
Markets are not only negatively impacted by hackers and scammers, but customer demand for the virtual currency decreases with lapses in security.
KuCoin claims to be used by ¼ of crypto traders worldwide, making it liable for potential cyber attacks. Cryptocurrency exchanges that are acknowledged in the marketplace are considered more secure; therefore it is understandable that KuCoin establishes itself as one of the most high profile, trustworthy Exchange platforms in the space.
Talking about trustability, KuCoin aims to protect client’s privacy and assets from violation; for instance, its security team has constantly upgraded relevant procedures and undertaken periodic assessments.
KuCoin uses a diverse set of security procedures and protocols. On the operational side, the exchange has lots of control departments that constantly monitor the platform’s activities to maintain its security alongside dedicated risk control departments that implement strict data usage regulations on a practical level.
With all this said, KuCoin is considered an outstanding cryptocurrency exchange that provides a complete trading platform filled with many cutting edge products and features.
KuCoin exchange was created following the financial sector standards, thereby providing bank level asset and data encryption security to offer the safest possible environment for all account holders and transactions. Such as making use of several security techniques, especially micro withdrawal wallets to protect your real time withdrawals, multi layer encryption, multi factor authentication, and a dedicated internal risk control department to safeguard your investments.
However most client funds are kept offline in cold wallets, with the remaining amounts held in hot wallets to ensure that the platform can continue to provide near instant and automatic withdrawals.
Although KuCoin has no definite national licensing authorities regulating it, the platform still has insurance coveraging its assets and the client’s assets
In the month of April, year 2020, KuCoin announced collaboration with Onchain Custodian, Singapore’s crypto-asset custody platform, as a strategy to further strengthen the platform’s security. Lockton is the largest private insurance brokerage business in the globe, Lockton will cover the custodial expense, meanwhile Onchain Custodian will provide the custody service for KuCoin cryptocurrency assets.
Because the regulatory position of digital tokens is unresolved in many countries, crypto currencies can be subjected to new restrictions placed by a government authority. For this reason, KuCoin may restrict or end some services in specific areas, depending on the changes made in the laws or regulations.
KuCoin Hack history
KuCoin fell victim to cyber attack in September in the year 2020, resulting in $285 million lost from the platform based on the market price at the time.
Private keys of a few KuCoin hot wallets that got leaked were the basic cause of that incident. KuCoin was exposed to a sophisticated APT attack that significantly disrupted its internal network, allowing the attackers to invade the platform’s security system and steal the private keys of a few hot wallets.
Although the initial estimate of the stolen amount was about $150 million, additional evidence shows that the actual amount was over $280 million. For that reason, the KuCoin hack stands as the fourth-largest to date.
Recovering the funds
After contacting the law enforcement, the company made quick progress, identifying the culprits and getting back 84% of the cash in less than two months.
A joint effort of KuCoin, its partners, and other cryptocurrency exchanges enabled the firm to recover 78% of the losse which is equal to $222 million,, while the cooperation with law enforcement allowed the company to recover an extra 6% equal to $17.45 million and finally the platform’s insurance policy then covered the remaining 16% which ia $44.55 million, according to KuCoin CEO Johnny Lyu.
For this occurrence, the platform has promised its clients that none will suffer a loss, and KuCoin has significantly improved its security measures after the attack.
Digital assets are kept in hot wallets on a platform which you have no control over; therefore, you must know the dangers linked with keeping a significant amount of your funds on any crypto exchange.
KuCoin’s response to the security incident
Following the breach, KuCoin took a straightforward and responsible approach to inform clients about the problem via YouTube live broadcasts, regarding working on the following three fronts:
1. Wallet security upgrade:
KuCoin immediately discontinued the prior hot wallet, redeployed the wallet system, and updated the risk control process for the wallet.
2. Recovering lost funds:
KuCoin exchange quickly get in touch with other exchanges, wallet partners and projects to try in retrieving the stolen funds.
3. Tracked suspects:
KuCoin joined forces with law enforcement agencies and security agencies to track the suspects.
KuCoin swiftly tackled the necessary weak points and redeployed all hot wallets following the attack.
Afterwards, the following three components of KuCoin’s new security system were redesigned:
1. Upgrade to the security system:
To safeguard the traders’ accounts and assets, a stronger risk management system has been introduced to the three access systems of WEB, APP, and API.
2. Network security architecture system upgrade:
To make use of network security measures in compliance with financial-level security standards, KuCoin contacted one of the Big Four accounting companies. The platform confirmed it would get its security standard certification.
3. Restructure of the KuCoin security team:
Creates stronger links with leading security and anti-APT agencies and restructuring of the company’s security team. Also the open and transparent KuCoin Information Security Emergency Response Center will be seen. The center will give the industry the most powerful, swift, and effective response to future security threats.
Key Security Measures
To further improve the safety and security of client’s funds on the platform, KuCoin brought in a Know Your Customer procedure in November 2018. To hinder the occurrence of money laundering, fraud and other harmful activities on KuCoin, clients are asked to provide personal information in compliance with virtual currency industry norms as indicated in the User Identity Authentication Statement.
KYC verified accounts are eligible for a higher daily withdrawal limit if users decide to complete KYC1 and KYC2 verification; users with the highest levels of verification are eligible to withdraw up to 3000 BTC a day.
The ‘unverified’ status on; In the event of an unauthorized access by anyone because of the leakeage of private data or the loss of confidential information by a client, undergoing the KYC procedure fully can help the user in regaining access and control over their account swiftly.
For this purpose, traders are advised to take active steps in safeguarding and protecting their assets from possible breaches or attacks.
2-Factor authentication (2FA)
To add an extra layer of security on your account, KuCoin Exchange recommend that you make use of 2-factor authentication. Actually, the platform uses Google Authenticator to protect your account, hinder asset theft, and guarantees an extra layer of security.
In the case of Google authenticator you are expected to enter a code generated from your mobile phone on the KuCoin website or app before you are able to log in and make a trade.
This extra security functionality ensures that even if someone gets your password, they can not access your account without having access to your mobile phone.
In fact clients can also add an additional security measures to their accounts by configuring any of the methods below:
- Security questions;
- Phrase for anti-phishing protection;
- Login security phrase;
- IP login restriction (you are advised to keep at 0.1 BTC at least);
- A password for trading;
- Phone verification;
- Email notifications.
We advise you to take the time to set up all or some of these security measures to further safeguard your account. Nonetheless, it is always smart to withdraw any unused funds from the platform and place them in your own wallet, a cold storage hardware wallet like a Ledger or Trezor device is recommended.
Additional security features
Presently KuCoin Exchange has over 8 million clients in more than 100 countries; even at that, the Exchange is still gaining the trust of many others by keeping a close watch over the trade security and putting significant resources to enforcing new safety measures.
As a way to further ensure the security of the platform, the KuCoin security team constantly watch over the activities; to see if groups follow strict security requirements in their data activities. In addition to dividing funds into several accounts for users, APIs that access your KuCoin account can only access the accounts you specify.
To further secure your account and digital assets, the platform has enforced a trading password as a new feature. Clients can create a special trade password, which they can then use to validate platform transactions, withdraw money, build APIs, and conduct other activities.
KuCoin Safeguard Program
The “Safeguard Program” where security breeds prosperity is a crypto asset and industry security alliance aims to provide complete security and support to people and institutions harmed by “security events.” This is not only limited to technical help, evidence archiving, asset confirmation, and providing preferred policy.
The ultimate aim is to use the might of the crypto community to fight cybercrime by giving security, legal, and asset recovery help.
KuCoin provides the following in exchange for the partners’ help in the security incident:
1. KuCoin will offer marketing and branding assistance as contribution to the project’s long term development;
2. KuCoin will help in the organization of events and campaigns that are suited to each project;
3. KuCoin will full take part in the ecosystem growth of each project;
4. KuCoin will strengthen mutual collaboration and integration from both sides.
Currently there are 35 projects in support of KuCoin in addition to 5 institutions.
Safeguarding its clients:
KuCoin ensures that if any user asset is harmed due to this incident, they will be fully compensated by KuCoin and its insurance fund.
KuCoin Customer support
KuCoin aims to safeguard user privacy and assets from invasion; for this purpose, its security team has generated a security notice to protect personal data and accounts, so it’s a smart move to check here first as you may get the solution to your problem.
Take Note: Although in the event that you suspect your account or registered email address is being hacked, promptly contact the online support, and KuCoin will immediately freeze your account. After your account is considered safe, you can apply to unfreeze it yourself through the login page or contact the customer support if it was manually Frozen.
In addition, there is a Help Center and a FAQ page for the online resources, and this should be your first stop to call for any inquiries regarding the exchange and how to use different kinds of features.
In the event that the different online materials cannot address your problem, there are several means to contact the support team.
KuCoin has a specially placed a customer support staff that is constantly available on the clock through the following channels:
- Mobile app support;
- Online chat;
- Ticketing system.
Also, there are also different kinds of social media channels from which to choose from. If you use any of these avenues, you may get a quicker response to your problem than from the official support staff.
In all, the firm’s customer service is responsive and will answer your questions very fast.
KuCoin is considered as one of the most trustworthy cryptocurrency exchanges on the crypto market, a global platform that complies to all the regulations from nations all over the world. Innovatively, the platform has seen considerable growth since its launch in the year 2017.
Right now, the platform considered one of the crypto space’s top players in regards to;service quality, security, dependability, features, as well as its user friendly trading interfaces on desktop and mobile, the exchange is great for both new and experienced traders looking for exposure to famous as well as not so known crypto assets and tokens.
KuCoin has succeeded in making trading fun with it’s sophisticated API, transparent, straightforward and engaging. It is a new trading platform in the industry that is rapidly expanding.
In the September 2020 security breach incident, KuCoin responded quickly before it became too complicated to resolve. KuCoin and its insurance covered the users affected by the incident. The CEO believes that the company as it is today is stronger than it has ever been, and the firm will continue to work on increasing its investment in security.
For instance, it currently serves around 8 million clients, giving more attention to its credibility and trustworthiness. It is trusted by every ¼ of cryptocurrency holders globally.
Is KuCoin Crypto Exchange Safe? My Personal opinion
KuCoin exchange, in my own view, is a secure and safe trading company; it’s one of the most flexible marketplaces with billions upon billions of dollars of trading activity happening daily, which enable crypto traders from all over planet earth to exchange crypto currency assets quickly and at a lesser rate.