Launched in September 2017, KuCoin has grown into one of the most popular crypto exchanges. Other risks Of all the interest earned on KuCoin, 10% will go to an insurance fund and 5% is taken as a trading fee. Lending fees: 15% (which is okay because it includes insurance) Getting money out fees: These are unknown to me. In that case it is unavoidable that you would probably lose your money. Previously, they claimed on their website that for every one USDT they had one dollar to back it. He borrows your USDT to buy BTC, and when the price goes up he sells BTC for USDT and pays back the borrowed USDT with interest. Earn interest on your digital assets by lending them out for the funding of margin accounts. You can purchase multiple digital assets such as BTC, USDT, ETH, and PAX safely and efficiently with low fee rate. KuCoin Shares: The KCS feature enables crypto lending, staking, and soft staking, allowing you to earn interest on your cryptocurrencies. USDC coin is the stable coin advertised by Coinbase. The options are seven, 14 or 28 days. In the recent bull run, many investors amplify their profits by borrowing assets to trade with leverages. We all know that all investment comes with risks, but relatively KuCoin Crypto Lending is a low risk product. Thus, when it reaches 97%, her position will be liquidated, and the remaining assets will be used to pay the principal and the interest to the lender. The demand for USDC on KuCoin is lower than USDT, which results in the interest rates being lower. KuCoin also offers its users an ability to employ their digital assets in a variety of staking and lending programs. Crypto lending could be risky for several reasons. KuCoin officially launched last August 2017 – but even years before that, the KuCoin team had been researching, building, and plainly just developing ideas on creating a good and solid architecture that will allow safe cryptocurrency trades. As long as the debt ratio is moderate, the risk of liquidation is very low. Settled in XBT, quoted in USD. 200 XBT. Is it legit? The first thing that really stood out to me is the high interest rates on USDT. I am quite impressed with the returns that it gives, but also aware that with centralized services like this there is always a security risk that we have to take into consideration. Non-Custodial Trading: If you’re concerned about the safety of the crypto in your account, you can enable non-custodial trading on your KuCoin wallet to protect your funds. We are going to look at the different risks that come with lending stable coins so that you can make a relatively safe decision. Through a risk management system, KuCoin can allocate different levels of risk for different tokens. Check out KuCoin’s crypto lending, staking, soft staking, and KuCoin Shares (KCS) bonus on how you can put your cryptocurrencies at work to generate yield. KuCoin Margin Trade supports customers to lend limited cryptocurrency to other customers for Funding markets and to charge interest.. 1. 500,000 USDT. At the same time, KuCoin margin allows users to borrow other digital assets by holding one digital asset (only digital assets supported by margin trading, this is the special product of KuCoin margin). Let's take a closer look at KuCoin lending and assess the risks. Gox. In this bullish season in crypto, many people are making life changing profits. For example, let's say a margin trader predicts the BTC price will go up. The KuCoin Margin insurance fund will be there to ensure that the lender can still get all the expected principal and interest. Part of their money was put into other investments and loans and they had to change the website to state "100% backed by our reserves". What are the risks? Explore, If you have a story to tell, knowledge to share, or a perspective to offer — welcome home. The maximum leverage or initial margin requirements can be adjusted according to the token’s associated risk. But as I always say, without risk, no reward. The main risks involved in Crypto lending. Despite not entering the market with much fanfare, KuCoin did do one thing righ The demand for USDT in KuCoin is consistently the highest, resulting in interest rates of up to 60% a year. Due diligence with KuCoin crypto borrowing With margin trading, due diligence is very important. In some cases, I set the term to 28 days but the money was already payed back in an hour. However, the platform has since formed a partnership with Simplex – a European payment provider that bridges the gap between cryptocurrencies and everyday money.. Compared with other features like Margin trading and Futures trading, KuCoin Lending is more suitable for users who prefer low-risk investment and pursue stable returns. So, let's get started: KuCoin is a trading exchange based in Singapore. Maybe Margin trading is not your thing due to its high risk, the KuCoin Crypto Lending then can be a good fit for you as it’s a nice way to earn passive income. USDT, also know as Tether, is the most popular stable coin but also had some controversies. Generally it seems that the true innovation occurring in financial service is happening in DeFi. For this reason, many investors, myself included, started to search for alternative solutions. KuCoin is a global cryptocurrency exchange for numerous digital assets and cryptocurrencies. Moving your money back to fiat currencies can be a really disappointing option because current interest rates are so low. You have two models to choose, Lend or Auto-Lend. But it looks like 25$ to withdraw. KuCoin also provide Excellent Support, Maker & Taker Transaction Fees, Open API KuCoin Lend has a few competitive advantages. Many stories in the past remind us we can't be naive about these centralized exchanges. 1,000,000 USDT. To guarantee the loan, the trader needs to maintain a certain amount of assets as collateral so that he can pay back the USDT if his prediction is wrong and BTC goes down. Since USDT is one of the most popular assets on KuCoin Lending, we will use it as an example to walk you through the process: Step 3: Click Transfer to make sure you have enough available USDT in your Main Account, Step 4: Set up a lending order. It seem like there is a lot more demand for USDT lending and that's the reason the interest rates are so high. Overall, KuCoin is an established cryptocurrency exchange that offers multiple cryptocurrencies for online trading via the KuCoin trading platform. The average interest rate on the day of writing this article is around 25% per year, compared to 50% annual interest on USDT. Return may vary depending on the market conditions while it’s still a good choice to make use of your idle digital assets. Risk Step. Settled in USDT, quoted in USDT. This led to a general feeling of lost confidence and doubt around Tether due to the lack of openness and the failure to provide regular audits of the reserves backing USDT. Crypto lending is not something you should go into blindly. At that time, the KuCoin Lending Market will stop supporting BCHABC lending and borrowing. We could say then that potential risk in holding USDT is that it could turn out that USDT does not really have the backing and people lose trust in the USDT coin. If you would like to receive updates, please make an account on whitepaper.io and subscribe to our newsletter where I will keep giving honest reviews on services like KuCoin. So based on the logic, you can also expect that when the market is relatively stable, the APR on KuCoin Lending may gradually drop to a lower level. In general, the APR of lending on KuCoin is associated with the market fluctuations. In a crash like that is possible that the borrowers' collateral would suddenly lose worth and the loss would be too great for their insurance fund to cover. The funding rate on KuCoin Futures is calculated based on the depth-weighted Lending Rate and the Premium Index..XBTINT - Bitcoin Lending Rate.XBTINT8H - 8-Hour Bitcoin Lending Rate ... Risk Limit. Their website states "Each USDC is backed by one US dollar, which is held in a bank account.". KuCoin offers an intuitive and easy-to-use mobile app for customers to trade anywhere and at anytime. Driven by the higher demand, the lending rate is also on the rise. Learn more, Follow the writers, publications, and topics that matter to you, and you’ll see them on your homepage and in your inbox. Here’s the thing, borrowing on the platform requires a collateral, which ensures that the lenders can get the principal and the interest in full. The available assets in the main account could be lent to borrowers.. Excellent design and the robust trading platform make trading easy and enjoyable for everyone. I’m looking for a conservative investment (Stable coin / tether ect) to lend and make between 5-25% annualized. This can be a bit annoying because ideally you want your money to be lent out for the full loan period so you don't need to track it all the time. The KuCoin exchange used its KuCoin shares tokens during the ICO, and it was able to raise a significant amount, close to $20,000,000 in BTC. They publish a PDF with the full audit on their website every month. Did Tether Just Create a $2.27 Billion Monero Like Dark Pool using Liquid? The KuCoin story is a curious one. And how to lend assets to earn passive income? KuCoin Lending Platform In this Lending platform, KuCoin supports customers to lend cryptocurrencies to other customers to charge interest, such as USDT, BTC, ETH, etc. Intuitive and beginner-friendly platform. Moreover, as the demand for crypto borrowing increases, the lending rate on KuCoin Lending surges accordingly. Today we will be covering what KuCoin and KuCoin lending are, how much we’re earning, what the risks are, and what we think of KuCoin lending overall. Type. Why Can the APR Reach 40%+ on KuCoin Crypto Lending? When there is a big pump or dump, an increasing number of users will be willing to amplify their profits by Margin trading, which may boost the demand for crypto borrowing. Their assets are managed by the well-known accounting and consultancy firm Grant Thornton LLP. The goal is to at least keep making some interest on our dollar holdings. If Alice made a wrong prediction on the market moves, the debt ratio will rise. Compared with other features like Margin trading and Futures trading, KuCoin Lending is more suitable for users who prefer low-risk investment and pursue stable returns. 0 0. Kucoin Homepage. Ask around and you’ll find that for many, KuCoin just suddenly appeared. KuCoin has not come out untouched from these hacking attempts. When the debt ratio in the margin account reaches 97%, forced liquidation is triggered. The app is supported on Android and iOS devices and allows access to the full spectrum of trading products and features. It’s easy and free to post your thinking on any topic. “By selling the lending crypto, users can short their positions to get profit. KuCoin offers an opportunity to lend your unused assets to other users who are seeking loans for margin trading. If you would like to get started and open an account on KuCoin CLICK HERE. While this minimizes risk in normal circumstances, we can't predict what would happened in a crash like in 2017 where a lot of Altcoins lost 70% off their value within a couple of days. Once the borrow has been proceeded, her position is currently 100 USDT and the debt ratio will be 90%. Furthermore, it is… KuCoin aims at providing users digital asset transaction and exchange services which are even more safe and convenient, integrating premium assets worldwide, and constructing state of the art transaction platform. Conversely, you can also borrow assets on the platform to amplify investment returns by Margin trading. It means that Lending is a perfect match for holders who can keep coins and earn extra profit. KuCoin Crypto Lending is a peer-to-peer lending platform where users can lend their idle crypto assets to obtain stable income. The Four Major Things Missing in The Blockchain Industry. This article will review KuCoin, a secure and easy-to-use crypto exchange for buying and selling bitcoin and other cryptocurrencies. Maybe Margin trading is not your thing due to its high risk, the KuCoin Crypto Lending then can be a good fit for you as it’s a nice way to earn passive income. As per the team, the system will repay the liabilities automatically if the borrower is facing liquidation or negative balance, and the extra loss will be covered by the insurance fund if the specific coin can cover the loss. This one specifically caught my attention because of the high interest rate they offer. One thing that I soon noticed is that regardless of the loan length you specify, a borrower can repay the loan at any moment. It means that Lending is a perfect match for … If the collateral of the borrower loses its value, the loss will be cover by the insurance fund. If you want to lend out all, just fill in 0. Fill in the amount, select the terms (7 Days, 14 Days or 28 Days) and fill in the day rate (interest rate range 0–0.2%), then click Enable Lend; Fill in the Reserved Amount, which refers to the amount that the user is not willing to lend. KuCoin Lending Still, the risk of hacking cannot be overlooked - a big enough hack can bring an exchange down entirely. Latest data shows that the APR of USDT lending is as high as 40%. I will continue to research and review other services to earn interest, including options that are completely decentralized. Contract Size. Medium is an open platform where 170 million readers come to find insightful and dynamic thinking. I’ve seen a few videos were people have lent their crypto currencies to other crypto traders in return for interest (like a margin loan). This is a venture that requires users conscious of the market trends and when to stop losses. Select the Lend Terms (7 Days, 14 Days or 28 Days), and then fill in the lowest daily interest rate you can accept. Lending crypto on Kucoin...also staking in general Posted by AndyJ on 2/11/21 at 9:12 pm. Earn cryptocurrency. We hope this article gave you a better insight into the potential risks and rewards of using a platform like KuCoin. The KuCoin Exchange platform has its headquarters in Singapore. Risk Step. Users can open positions, monitor trades and view wallet balances. You may worry, what if the guy who borrows my crypto refuses to pay it back? If the current market optimal day rate is lower than the lowest daily interest rate you can accept, the system will place an order to lend at the lowest acceptable day rate. So in most cases, you can still get your principal and interests back, even when the borrower is unable to pay due to significant market fluctuations. In this crypto lending vs staking comparison, we also need to see the risks of crypto lending. Lending Is A Perfect Match For Holders & New Investors. 100 XBT. There are multiple stable coins and each has a different organization behind it. Also, you can lend your spare assets to others and earn some interests. These include: KuCoin Lend. Step 6: After the order is taken, it enters the Unsettled page and becomes a loan. It is important to note that the market interest rates can fluctuate greatly during the day. KuCoin was initially a cryptocurrency-only platform, meaning that you could not deposit funds with fiat currency. It started operating in September 2017, after running a successful Initial Coin Offering that lasted for almost a month. KuCoin Crypto Lending currently supports more than 50 tokens, including top coins such as USDT, BTC, ETH and popular NFT tokens like ENJ and MANA. The cryptocurrency exchange officially launched on September 15, 2017 after its initial founding in 2013 by Michael Gan, Eric Don, Top Lan, Kent Li, John Lee, Jack Zhu, and Linda Lin. But Kucoin does not allow you to deposit to a bank so you have to send to another exchange like coin base. One of the examples is the Japanese exchange Mt. I found the platform easy to use and you can choose how long you want to lend your assets. NOTE: The assets in other accounts cannot be directly lent. No splashy market entrance, no glitzy press campaign — it simply opened its doors to traders, and that was that. 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