Kucoin vs Coinbase: What Works Better For Canadians in 2024

Security Compliance

Kucoin provides world-class security meaning your coins are in relatively safe hands. It has two-factor authentication, so you can prevent unauthorized access to your account.

Keep in mind, $275 million worth of crypto was stolen from Kucoin by North Korean hackers in 2020. Later, $200 million of the stolen funds was recovered. Still, it doesn’t bode well for Kucoin. If you have funds on the exchange, it’s best to move them to a private crypto wallet. 

Coinbase uses its own digital wallet for storing your cryptocurrency.

Coinbase keeps 98% of its cryptocurrency in cold storage. This makes it hard for thieves to steal crypto assets if the exchange is hacked. Cold storage is the most secure way to store cryptocurrency, so the fact that Coinbase does this is a huge plus.

While both exchanges employ security measures to protect user assets, there are some differences. In 2020, KuCoin suffered a significant security breach with $275 million worth of crypto stolen, though $200 million was recovered.

On the other hand, Coinbase has a solid track record with no major security breaches as of 2021. It holds 98% of customer assets in cold storage and is fully regulated in the U.S., offering additional layers of security.

Regulatory Compliance

In June, 2021, the Ontario Securities Commission stated that Kucoin was illegally offering its residents securities and derivatives trading, but Kucoin did not respond to this. As a result, Kucoin is still available in Ontario as well as the rest of Canada. You can use Kucoin at full capacity whether it’s a simple buy order at market price or a more advanced order type. Bear in mind, Kucoin does not allow Interac e-Transfer to deposit Canadian dollars to your account. Instead, you will have to use a debit or credit card or a SWIFT transfer with USD.

Coinbase is a US-based cryptocurrency exchange, however, no restrictions for Canadians. Canadian residents can use Coinbase to their full capacity.

KuCoin faced regulatory issues in Ontario, leading to a ban and a $2 million fine from the Ontario Securities Commission (OSC) for non-compliance. Despite this, many Canadians continue to use KuCoin.

Conversely, Coinbase operates legally in Canada and is considered compliant with regulations, making it a safer choice from a legal standpoint.

Customer support

Kucoin offers helpful FAQs and online ticketing service for their customers as well as 24/7 support and a live chat option.

Coinbase customer support is very slow. It took them 4 days to address our request to a real person. Even though they offer 24/7 support and a live chat option, the quality of the support is bad due to a very high volume.

KuCoin offers 24/7 customer support via email and website ticketing service. However, reviews suggest that responses can be slow or unhelpful. Coinbase also provides live chat, email, and 24/7 phone support. However, despite these avenues, numerous complaints about poor customer service have been lodged against Coinbase.

Conclusion

Both KuCoin and Coinbase have their strengths and drawbacks. While Coinbase offers a more beginner-friendly interface and has had a better security track record, KuCoin stands out with its vast selection of altcoins and extremely low trading fees. Given these factors, KuCoin may be the better choice for more advanced traders who prioritize access to a wide range of altcoins and lower fees over simplicity and beginner-friendliness.

We recommend choosing Kucoin over Coinbase for your cryptocurrency trading needs. By opting for Kucoin through our referral link, you support us in conducting comprehensive independent analyses of crypto trading options for Canadians.

If you find that neither Kucoin nor Coinbase meets your requirements, we encourage you to explore our monthly-updated list of the best exchanges for Canadians to trade crypto. This list provides a range of alternative options that may better suit your specific needs and preferences.