KuCoin is a global cryptocurrency exchange based in Seychelles that offers over 600 digital assets to its 10 million customers in 207 countries and territories worldwide. It provides spot trading, margin trading, P2P fiat trade, futures trading, staking, and lending.
Should I Start My Own Cryptocurrency Exchange?
Starting a crypto exchange now, with worldwide interest in digital currencies spiking and investors coming to exchanges to obtain Bitcoin could be the ideal time to cash in on a fast-paced multi-billion dollar sector. According to a recent article on the world’s wealthiest billionaires, there are now 12 billionaires working directly in the Bitcoin industry, up 200 percent over the previous year.
What Are The Different Exchange Types?
Platforms are divided into three categories. These are classified as centralized exchanges (CEX), decentralized exchanges (DEX), and peer-to-peer exchanges, each with advantages and disadvantages.
The most common sort of cryptocurrency exchange is a centralized exchange. These platforms act as a custodian for customers’ digital assets, and they use their infrastructure to act as a middleman between buyers and sellers (similar to a traditional bank). The exchange will impose a trading fee ranging from 0.1 percent to 3.99 percent to pay the costs of maintaining a secure and safe environment.
Exchanges that are not centralized
Decentralized exchanges, often called DEXs, are non-custodial compared to centralized exchanges. As a result, the exchange does not keep track of its customers’ digital assets. The exchange’s technology promises to make it easier for buyers and sellers to complete transactions by sending funds directly from each wallet to the blockchain. These exchanges provide the highest level of security, but they are limited in functionality to maximize income and have low trading volumes and liquidity.
Peer-to-Peer Exchanges (P2P) is a type of peer-to-peer communication.
A peer-to-peer (P2P) exchange is similar to a decentralized bitcoin exchange in that the platform offers the architecture and hardware to allow direct transactions between two people without needing an intermediary. A P2P discussion connects buyers and sellers using an escrow service to ensure a successful transaction is completed at an agreed cryptocurrency price and payment method.
The primary technique of generating revenue is to charge a percentage of each successful transaction, which can be as high as 1%. However, crypto-friendly countries like the United States, Canada, Australia, and the United Kingdom do not have significant volumes. P2P exchanges have become increasingly popular in Africa and other places where Bitcoin exchanges are prohibited.
KuCoin has announced a partnership with Capital to provide PIX&TED payment services for BRL deposits and withdrawals in Brazil, as well as the integration of Advcash to offer a new means for depositing and withdrawing assets into user wallets. Users in Eastern Europe and Latin America will benefit from the addition.
KuCoin has partnered with the Advcash service and Capital, a channel provider, to let its customers purchase digital assets in their native currencies. In the future, the Advcash service will appeal to the rising Eastern European customer base and Asia Minor markets. The Capital channel company will target customers in the Brazilian market, which has seen a significant increase in adoption rates in recent years.