Why I won't be buying KuCoin Shares
I recently came upon KuCoin, the fairly new exchange that sets itself apart through a combination of unique small-cap coin trading pairs, and its own native currency, KuCoin Shares.
I will not be sharing any referral links or anything of that nature, and just want to simply give you all an honest opinion of the site for my first post here on steemit.
What is KuCoin Shares(KCS)? KCS is an ERC20 token created by KuCoin, which incentivizes uses to be on the website. By holding KCS in your wallet on the KuCoin exchange, you receive a daily dividend based on how much you are holding. The really neat thing about this, is that KuCoin has a ton of coins that are not offered elsewhere, including a few of the new NEO ICOs like DeepBrainChain. The dividend that KCS pays out is not paid in KCS, but in small portions of all of the coins being traded on the exchange. Each day, by holding KuCoin Shares, you will receive little bits of each crypto, based on the volume that was traded on the previous day. This is a truly ingenious way to get people to the website, and to hold KCS. While the little bits of crypto you receive is not much at all, the huge potential lies in the fact that there are so many new coins being added all of the time, and as these coins hit new exchanges, they could potentially turn into a gold mine over time.
Why I am no longer going to be investing in KuCoin Shares:
This dividend to use their slick-looking exchange that is full of new coins is bringing a ton of traffic. Right now, they cannot handle it. After sending a large amount of ETH over to buy KCS, I spent hours trying to log into the website. Their subreddit was full of other users complaining of login issues, and they have yet to be corrected.
COSS is a new exchange that is doing the same type of thing as KuCoin, which makes me wonder if they will really be able to capture enough market share to make the KCS pay off, rather than holding onto some other crypto.
The first rule of cryptocurrency(unwritten) is that you keep your currency in a secure wallet, and not on an exchange. While you could put this token into MyEtherWallet or something similar, the dividend is only paid out while it sits on the exchange. In my mind, this makes the exchange a much larger target for hackers, as they know that many of the users are leaving their funds there.
After selling my KuCoin Shares due to the site stability and the reasons mentioned above, they have gone up in value by more than double, but I am not too upset, as the whole situation made me a little bit uneasy and felt overly risky.
I hope a lot of you make money if you plan to use this service. If you have any questions about anything I forgot to mention, please let me know.
All good reasons but...I find all the exchanges lack and have issues...granted this one has a ways to go...but so did Binance and look at it today...although once again...it has issues as well...and like you said...it keeps going up in price...hard to walk away from that...
Very true. I think I just find myself a little bit on the conservative side with my money, and leaving it on the exchange makes me paranoid. I still love this idea of dividends(one of the reasons I love NEO), and I hope others profit greatly from it. If KuCoin gets their servers in order, I will definitely continue using it for the purpose of buying new coins.
Thanks for the warming!
Holding coins on the exchange wallet makes you vulnerable. But doesn't 2fa help you project your coins from hackers??
Informative post, much appreciated and upvoted. I still like KuCoin, though they have a long road to go :)
I think you might change your mind when you see the news! Kucoin has upgraded their platform. It is called Kucoin2.0, it has a lot of upgrade and features that very convenient for every traders!
Well for me I'm still sticking to KuCoin, unlike any other exchanges like binance. Kucoin has a lot to offer like now, they already updated their platform to 2.0. Very user friend and offers features that will benefits to any traders.