Is Kucoin a safe exchange?10 min read

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Kucoin is a famous name in the crypto world, it has established itself as a prominent exchange in this industry as a platform for all types of crypto operations. This exchange was established in 2017 and was developed to become one of the largest exchanges in the world, KuCoin has over 200 cryptocurrencies. It offers high-level bank security, beginner-friendly UX, and a wide range of crypto services. Here we talk about the Kucoin security features.

This guide will help you to create a concept of the KuCoin cryptocurrency exchange and discuss whether it is a safe platform to use or not.

We will dive into the security features of Kucoin to see what are the kucoin strategy to protect the platform from the risk of hackers.

Kucoin security features

Has KuCoin ever been hacked?

KuCoin was the victim of a hackers’ attack in SEP 2020 that ended in $285 million stolen from the exchange based on the market price at that time.

The side effect of this hacking process was that a few private keys of KuCoin hot wallets were leaked out.

Kucoin has various security features

Bank-level security is one of them that includes: micro-withdrawal wallets, industry-level multilayer encryption, dynamic multifactor authentication, dedicated internal risk control departments that control and define the data operations based on the strict security standards.

KuCoin customer support

The firm made quick progress and recovered 84% of the cash in less than two months. Around the corners of these incidents, the exchange assured that no user will suffer from any loss, and KuCoin significantly improved its security mechanism and strategy in order to prevent this kind of hacking process.

In Kucoin digital assets are held in hot wallets on the platform that you don’t have control over it. You should keep in mind that keeping a huge amount of assets in the exchange is not safe.

Kucoin has a dedicated customer support staff that is available 24/7 through the following channels

  • Online chat
  • Ticketing system
  • Mobile app support

What security system did KuCoin design to protect safety?

  1. Upgrade the security system

In order to protect the safety of the traders’ accounts and assets, a robust system has been introduced to the three access systems of WEB, APP, and API.

  1. Upgrade the security architecture system

To implement a network security system compatible with the financial level security standards, KuCoin contacted one of the big Four accounting firms. The exchange confirmed that it will get its security standard certification.

  1. Change the structure of the kucoin security Kucoin

KuCoin restructured its security team and made strong links with leading security and anti-APT agencies. At the same time, the Kucoin information security emergency response center will be shown. This center must provide the most powerful and effective response to future security risks.

Key security features of KuCoin you can maximize the account security by setting up the following factors:

  • Two-factor authentication

To protect and secure your account better, KuCoin recommends using the 2fa (2-factor authentication). By using Google authentication it will add another layer of security to prevent theft and safeguard your account.

With the 2fa this extra layer of security assure that even if someone understands our password they can’t log in to your account. Unless they have access to your phone or email.

There are some other features to add in order to increase the security like;

  • Phrase for anti-phishing
  • Phrase for secure login
  • Trading password
  • Phone verification
  • Security questions
  • Unique password
  • Phone verification
  • Email security notification
  • ID. verification

To enhance the safety and security of customer funds on the exchange, KuCoin introduced a KYC process in November 2018. To prevent the occurrence of fraud, money, laundering, and other harmful actions on KuCoin, Users are asked to enter some personal information incompatible with the virtual currency industry norms as indicated in the user identity authentication statement.

Is Kucoin safe?

KuCoin has worked with a famous company named on-chain custodian to secure the crypto assets stored on its exchange. That includes insurance against crimes such as hacking or theft. The bug bounty program also encourages potential hackers to report any weakness they find in the platform to the Kucoin team and earn bounces.

Kucoin has mentioned that for higher security levels the Digital assets are kept in cold storage that it makes harder to be hacked. But it is not mentioned the exact percentage of the assets that are held offline, because it needs to keep some part of the assets in the hot storage for the users for withdrawals or trading.

As we mentioned previously,  Kucoin has been hacked but it recovered all the digital assets. Kucoin has great user-level protection.

if you are a trader who wants to invest in crypto and you have chosen KuCoin you better check the tips below not only in KuCoin but also in any crypto exchanges that you choose.

How to stay safe in Kucoin exchange?

We regard KUcOIN as a safe exchange, but in this industry, you better check all the safety codes because hackers are waiting for a way to break in through these exchanges. So although you have to choose the safest crypto exchanges you personally should go through some steps to make sure you are safe and at least you have tried to ensure your security and not open a way for hackers to break in.

In the following there are some points for staying safe in Kucoin exchange:

  1. Using cold wallet storage
  2. Two-factor authentication
  3. Notification messages when funds are withdrawn
  4. Withdrawals block after changing account data
  5. Customer insurance funds
  6. Crypto exchange security audits
  7. The account is linked to a specific IP address.

And if you are an entrepreneur who wants to develop an exchange like KuCoin, KuCoin clone script can be a good choice for you to develop an exchange with core features of the original KuCoin security features. If you choose the clone script to develop an exchange you can request the cryptocurrency exchange software development company to implement the features you want in your exchange if possible.

Send Your Request

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