Security and privacy features are paramount to any cryptocurrency exchange. Before choosing a trading platform it is crucial to ensure its security parameters are well grounded. KuCoin can be considered one of the most trustworthy third-party exchanges owing to its robust security protocols that aim to safeguard traders’ funds. It oversees daily transactions in collaboration with its internal risk-control departments. KuCoin works alongside its dedicated project partners, security institutions and law enforcement departments to ensure round-the-clock implementation of safety measures.
To say the least, KuCoin is a global cryptocurrency exchange with a presence across 207 countries. At the time of writing it recorded a 24h trading volume of $2.51
billion. It is the leading exchange for investing in small-cap altcoins with high-growth potential.
Let us now understand in detail the security measures KuCoin has implemented to safeguard its traders.
KuCoin offers trading services to its users even without a KYC verification, but with a daily withdrawal limit of 5 BTC. To benefit fully from its services and security features it is a good idea to complete KuCoin’s two-step KYC verification procedure.
Completing KYC protects user accounts from unauthorized access by third parties. In the event of a customer losing their credentials as a result of personal information being stolen, KYC can help retrieve the account.
KuCoin takes ID verification seriously, and despite allowing unverified accounts, it lays emphasis on completing KYC verification. In accomplishing that, it curates its benefits and services around users who are fully verified.
For instance, KuCoin allows traders who have completed their KYC2 verification to withdraw upto 3000 BTC per day. For those who complete KYC till the first level gets a daily withdrawal limit of only 200 BTC. KYC-verified individuals are also allowed to buy digital assets using fiat money unlike unverified accounts.
These are some of the strategies KuCoin has deviced to encourage new users to provide all their KYC details – a solution to protect the exchange against money laundering, fraud and financing of terrorism.
KuCoin’s Risk Control System
KuCoin partnered with Onchain Custodian, a Singapore-based crypto asset custody platform in April 2020 with the aim of securing the exchange’s crypto assets. That’s not all. KuCoin also partnered with US-based insurance brokerage firm Lockton, to support the said custodial funds. All these initiatives go into making the exchange a safe haven for crypto traders. Let’s now look into some other risk control systems that traders can use to safeguard their accounts and prevent asset theft.
- 2-Factor Authentication
KuCoin users can implement Google Authenticator’s 2-factor authentication to log in to the exchange. Google authentication works on a timestamp-based algorithm to identify log in events. It requires users to enter a code sent on their mobile device to log in. This protects users from potential attacks even if the password is compromised.
- Additional Security Measures
Less is more, but not when it comes to security. KuCoin makes sures users can configure their accounts based on additional security parameters. This includes:
- IP login restriction
- Email notifications for every log in event recorded
- Phone verification
- Security questions
- Security phase while logging in
- Phishing Protection Phrase
- Trading Password
KuCoin allows traders to incorporate a unique trading password into their accounts to add an extra layer of security. A Trading password comes to use each time a user needs to authenticate transactions or withdrawals or validate other activities.
KuCoin Combats Attack with a Fast Track Recovery Module
Despite all the security measures, it is not uncommon for cryptocurrency exchanges to get hacked. Even a cryptocurrency exchange like Binance, which is the largest in the world in terms of trading volume, is vulnerable to attacks. The million dollar question, therefore, is, how to choose a trading platform?
Well, your choice should depend on observing these exchange’s responses in the face of an attack. Did an exchange manage to recover the lost funds, or at least, compensated traders for their losses? These are some of the questions you should be asking before deciding on a cryptocurrency exchange. Fortunately, KuCoin has positive answers to all these questions thanks to its advanced crisis management team and external partners that work round the clock to combat an attack.
During an attack in September 2020, $285 million worth of tokens were stolen from the exchange. KuCoin not only managed to track the suspects, it also recovered 84% of the stolen funds through project partners, law enforcement and security institutions. The $45.55 million worth of traders’ assets that couldn’t be recovered were paid out in full from KuCoin’s insurance fund.
- Security System Upgrade
After the attack, KuCoin made some security system upgrade to better protect traders’ accounts, including but not limited to:
- Securing collaboration with top anti-APT agencies
- Setting up of KuCoin Information Security Emergency Response Center ● Implementing more robust security architecture to the Web, App and API and their access systems.
KuCoin Customer Support
KuCoin offers localized support to 19 communities in North America. Its multi-lingual support extends to Europe, South and South-east Asia and continues to expand as we speak. For any account-related query or complaints KuCoin executives support users 24×7 through
- Online chat
- Mobile app
- Ticketing system
You can also reach out to KuCoin’s customer care executives via its social Media channels on Facebook, Twitter and Telegram with your queries. KuCoin customer support should be immediately contacted upon observing any questionable activities related to your account.
KuCoin’s security features closely follow the standards of traditional financial institutions. Its multi-factor, multi-layered authentication and encryption set-ups and risk control systems work together to protect traders’ investments. So, as a trader, you can bank upon KuCoin to perform worry-free crypto trading.
KuCoin stores most of its traders’ funds in offline cold wallets. However, it keeps some of the funds in the exchange wallets to fulfill instant withdrawal requests. Therefore, to best protect crypto assets, it is always recommended to transfer unused funds from exchange wallets to a cold storage hardware wallet.
KuCoin recently partnered with Blockwiz, a global crypto marketing agency that provides integrated cryptocurrency marketing solutions across crypto influencers, PR, SEO, and social media; in an effort to strengthen online communities and meet their business objectives. So, are you willing to securely grow your crypto assets? Feel free to check the KuCoin exchange community on Reddit, Instagram and other social channels for more information!