KuCoin Exchange Is The Best Crypto Derivatives Exchange Of 2022: Here’s Why

KuCoin Futures is one of the top 10 global Futures trading platforms with over 3 million users. Currently it supports over 70 coins with up to 100x leverage. KuCoin Margin now serves over 2 million users supporting over 70 coins including Bitcoin, Ethereum, Litecoin and KCS with up to 10x leverage

The key benefits of trading cryptocurrency futures on KuCoin Exchange are:

  • Transparency in terms of trade volume 
  • Customer support availability to meet the demands of both beginner and pro traders 
  • Greater market depth and liquidity to ensure traders don’t suffer from drastic market fluctuations. 
  • Instant withdrawal

Crypto Spot Market vs Crypto Derivatives/Contracts 

Spot trading refers to the exchange of two cryptocurrencies on the spot. For example, a trader can trade their Bitcoin for Ethereum at a fixed price instantaneously. Cryptocurrency derivatives or contracts are not the real crypto assets. Instead they are financial agreements that two people enter to sell or buy a particular crypto asset which the contract represents at a predetermined price and a specified time in the future. 

KuCoin Futures is an advanced cryptocurrency trading platform supporting various leveraged cryptocurrency contracts including but not limited to:  

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Solana (SOL)
  • Fantom (FTM)
  • Avalanche (AVAX)
  • Ripple (XRP)
  • Polkadot (DOT)
  • Bitcoin Cash (BCH)
  • Terra (LUNA)
  • ChainLink (LINK)
  • Cardano (ADA)
  • Axie Infinity (AXS)

From Beginners to Pro, KuCoin Futures is for Every Trader 

KuCoin Exchange supports 4 types of cryptocurrency contracts – Linear contracts, Inverse contracts, Perpetual contracts and Delivery contracts. You will find three futures platforms on KuCoin –  Futures Lite, Futures Pro and Futures Brawl. 

  • KuCoin Futures Lite 

Ideal for crypto derivatives trading first-timers, the KuCoin Futures Lite layout is simple, made up of only three elements – market data, trading data and the trading interface. 

Market data displays detailed information of current market contracts. 

Contract data lets a trader check the market call and put ratio pertaining to a particular contract. In addition traders can use the calculator to find out possible earnings over a trade. More importantly, the interface displays the earning history of the top traders for others to check. 

Trading Operation displays an overview of the contracts you are trading currently and their position in the current market. 

A few factors that make KuCoin Futures Lite beginner friendly are: 

  • Market prices are represented in line charts instead of candlesticks thus making it easier for new traders to interpret market sentiments. 
  • Users simply need to enter the order in terms of the money they want to put in against each order. The consideration of the number of slots pertaining to orders are completely removed, thus making the process easier. 
  • The minimum order amount is USD 1.
  • KuCoin Futures Pro 

KuCoin Futures Pro is ideal for advanced traders with a layout composed of Futures, Trade, Market and Positions. 

Futures: This allows users to switch between various markets and futures contracts. Users can also discover the latest changes in the contracts in terms of price, trading volume, etc. 

Trade: Allows traders to long and short their positions and open and close them. 

Market: Catering towards advanced traders, KuCoin Futures Pro displays candlestick charts. The Market interface shows the market changes in full dimension. 

Position – Allows traders to check order statuses and open positions. 

KuCoin Futures also offers advanced settings including “Post Only”, “Hidden” and Time in Force policies such as GTC, IOC, etc. for orders. 

  • KuCoin Futures Brawl 

KuCoin Futures brawl offers traders (especially novice crypto derivatives traders) a chance to test their market prediction skills and win prizes for guessing right. The platform encourages more users to join the crypto derivatives trading market by gamifying the activity. 

Fees 

Image Source : Forbes Advisor 

On KuCoin Futures, the taker fees and the maker fees depend on your 30-day trading volume which is calculated in BTC. For traders with a higher trading volume and more KCS holdings, the fees are significantly reduced. Upon withdrawing BTC, KuCoin Exchange charges a 0.0005 BTC withdrawal fee, which is the industry average. 

KuCoin Futures Grid Bot 

Among the 5 types of trading bots that KuCoin Exchange has employed to automate trading, KuCoin Futures grid bot allows traders to make the most of crypto futures trading. It is simple to create and if you are decided on the status of your position (long or short), activating the trading bot can generate you bigger profits. The bot can execute between 2 and 100 orders which is more than what a human is able to do in the course of a day. 

The futures grid functions on parameters created using artificial intelligence making it ideal for novice future traders. All they need to do is enter the investment amount, select the trading pair and the trading position (long or short) and the bot will do the rest of the work. It also sets a default Stop Loss and Take Profit price using artificial intelligence. 

The trading bot is fully customizable, and using customize option you can accomplish the following: 

  • Indicate the lowest price and the highest price toward which the contract will move depending on which the bot will either buy or sell. 
  • Set a leverage 
  • Set the number of orders you want the bot to execute 
  • Customize the Stop Loss and the Take Profit price. 

Final Comments 

Cryptocurrency derivatives or crypto contracts have grown exponentially in demand as they work as a risk management strategy and can be used to hedge against  a crypto asset’s sudden fall in value. On the other hand, derivatives provide the opportunity for traders to bet on the upside price move of an asset and earn for predicting correctly. KuCoin Exchange is one of the top 10 global Futures trading platforms with over 3 million users. To get latest updates on all new feature implementation, upgrades and announcements around crypto futures, follow KuCoin Exchange on Twitter, Telegram and Instagram.

Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.