Safe Futures Exchange? This You NEED To Know!

 

There are little question various crypto futures exchanges in the marketplace. One of many newest is KuMEX.

KuMEX is the futures trade that’s owned and operated by the KuCoin cryptocurrency exchange. It provides leveraged buying and selling of Bitcoin futures of as much as 100x. This is among the many services supplied by KuMEX.

However with so many choices, is it actually value your whereas?

On this KuMEX overview I’ll try and reply that. I provides you with what it’s essential to find out about their platform in addition to some high buying and selling ideas.

KuMEX Overview

“KuMEX” is brief for the Kucoin Mercentile exchange and it was launched in the midst of 2019. It’s a Bitcoin futures trade that provides commonplace and perpetual futures devices.

Because of this merchants can take leveraged positions on the value of Bitcoin of as much as 100x their preliminary place. It’s trying to disrupt the present panorama with the likes of ByBit, BitMEX et al.

For people who have no idea, KuCoin is a big cryptocurrency trade that’s based mostly in Singapore. Nevertheless, since that point they’ve expanded vastly into plenty of totally different areas and product traces.

KuMEX has been rising their buying and selling quantity since inception and have additionally simply launched a extra simplified buying and selling platform referred to as their KuMEX “lite” (coated beneath).

KuMEX is open to an entire host of merchants around the globe and the platform / web site has been translated into over 13 totally different languages. Having mentioned that, there are some nations which are restricted so you might be inspired to learn the restricted entry record.

Is KuMEX Secure?

That is maybe one of the vital necessary questions you could ask when deciding on whether or not to make use of a brand new trade. These dangers should not simply from the surface but in addition from leveraged buying and selling.

Fortunately, on condition that KuMEX is operated by KuCoin, it employs most of the similar safety protocols on each the trade and the person aspect.

Let’s check out a few of these.

Coin Storage

KuMEX makes use of the identical scorching & chilly coin storage process that’s getting used at KuCoin. Primarily, they hold over 95% of their cash in a cold storage setting that’s disconnected from the web.

Because of this there isn’t any means that any hackers can get entry to the personal keys storing the majority of the trade property. This could forestall any scenario of insolvency due to a breach.

KuMEX Cold Storage
The KuMEX Coin Storage Protocol

For these cash which are stored “scorching” on their servers, they’ve a multisignature key signing process. Because of this multiple particular person at KuMEX must authorise the withdrawals.

Buying and selling Engine

One thing that’s distinctive to KuMEX and never essentially to KuCoin is their buying and selling engine. Extremely efficient buying and selling engines are important for an trade that has to course of 1000’s of transactions per second.

The KuMEX engine is ready to course of as much as 1 million transactions each minute and is ready to match orders with lower than 1 millisecond delay. There may be additionally a multileveled catastrophe tolerant infrastructure.

What does this imply?

Effectively, downtime is proscribed to zero. That is important for a excessive leverage trade that operates in a market open 24/7/365. Furthermore, for these merchants who use BitMEX you’ll little question pay attention to their common “overcharge” the place they go down for upkeep.

Insurance coverage Fund

For many who have used different futures exchanges, you’ll be conscious of the notion of an insurance coverage fund. That is principally a reserve fund that KuMEX runs which can cowl any losses and stop “socialised losses”.

Balance at KuMEX Insurance Fund
Present Steadiness on the Insurance coverage Fund

This insurance coverage fund is replenished throughout dealer liquidations. Primarily, if the liquidation worth of a commerce is above the chapter worth, the distinction between the 2 can be despatched to the insurance coverage fund.

If ever there’s a scenario through which liquidation doesn’t happen above the chapter worth then these losses are coated by the insurance coverage fund and don’t have to be shared among the many different merchants.

Person Safety

Typically safety additionally begins with the person. It is because we are sometimes the weakest hyperlink with regards to phishing scams and different private hacks.

Fortunately KuMEX employs the identical anti-phishing procedures as are used on the principle Kucoin trade. Maybe your greatest wager with the intention to safe your account is thru the usage of two issue authentication along with your cellphone.

There are two methods through which to arrange 2FA at KuMEX. You may both use SMS verification or by way of the Google Authenticator. We might counsel the latter because it prevents the danger of sim swap attacks.

Google Authenticator KuMEX
Organising Google Authenticator

After you have arrange your Google Authenticator app and linked it as much as your account then it is going to generate a safe pin each time that you simply wish to log in. The good thing about that is even when a hacker has your password they’ll’t log into your account.

KuMEX Leverage

If you end up buying and selling at KuMEX you might be trading with margin. Because of this you might be solely placing down a small quantity of capital to cowl the place.

The good thing about that is you could leverage your place. Within the case of KuMEX this leverage can go all the best way as much as 100x. Because of this for a $1 transfer within the worth of Bitcoin, your place will transfer by $100.

Warning ⚠️: Though KuMEX enables you to commerce as much as 100x leverage, there isn’t any motive to make use of such a excessive quantity. That is very true for individuals who are simply beginning out.

At KuMEX that is achieved by way of the usage of Futures devices. These are principally by-product devices which are an settlement to purchase or promote Bitcoin at a while sooner or later.

KuMEX has two kinds of futures devices. They’ve the normal kind that has a hard and fast expiry after which they’ve the perpetual futures which have a rolling expiry time. These are the identical devices obtainable at most different futures exchanges.

One thing else that we discovered fairly fascinating in regards to the futures devices at KuMEX is that the contracts are “mini” contracts. Because of this the underlying for the contract is just not 1 Bitcoin however 1 USD.

KuMEX Perpetual Future
KuMEX Perpetual Future Overview

In relation to their common futures devices, these are quarterly expiries. On the time of this overview, there have been two contracts. One which expired on the finish of the primary quarter and the opposite that was the top of the second quarter.

One other actually necessary factor to notice is the spot worth that these futures devices are referencing. That is the Bitcoin spot index and it’s a volume-weighted common US greenback worth of Bitcoin on 6 exchanges together with Coinbase Pro, Bitstamp, Kraken, Gemini, Liquid and Bittrex

Sadly, KuMEX presently solely has the choice to commerce Bitcoin futures. One would hope that as they start to increase out their service there can be extra alternative for added property.

KuMEX Charges

Charges are one other actually necessary side for the dealer. The charges that they’re charged will straight impression on the profitability over the long run.

Therefore, we determined to dive into the charges on the KuMEX trade. A few of these are charges which are charged on the trade whereas others are systematic.

Buying and selling Charges

In relation to buying and selling charges at KuMEX, they function a normal maker-taker price mannequin. With this mannequin, you’ve two totally different price charges relying on whether or not you make liquidity or taking it off the books.

At KuMEX, in the event you present liquidity to the books then you’re a maker and you’re going to get a rebate in your commerce. That is set zero.025%. Nevertheless, in the event you take liquidity then you’re a taker and can be charged zero.060%.

KuMEX Trading Fees
Buying and selling Payment Construction

If we had been to check this to different buying and selling platforms, the maker rebate is similar as ByBit and BitMEX however you’ve a decrease taker price. This due to this fact implies that all else equal your buying and selling charges are lowered at KuMEX.

Maker / Taker ❓: Typically, once you place a restrict order away from the market fee then you’re a market maker. In case you place a market order you’re a taker.

Funding Charges

These should not charges that you’ll have to pay to KuMEX however are charges that regulate for the relative funding charges. They mirror the rate of interest differential between the Bitcoin funding fee and the USD funding fee.

This might both be constructive or unfavorable relying on whether or not you might be lengthy or brief and the relative charges of funding on the time. These charges are paid to the market with the intention to hold your place open.

At KuMEX, funding happens each eight hours at 04:00 UTC, 12:00 UTC and 20:00 UTC. You’ll solely must pay funding or obtain funding in the event you maintain an open place on the time of the funding.

Deposits / Withdrawals

Fortunately, there are not any charges which are charged for funds into KuMEX in crypto. If you’ll be with fiat on KuCoin then you will have some inward charges to contemplate. You may see extra of that here.

In relation to withdrawals in cryptocurrency from KuMEX, you received’t be charged any charges on the trade aspect. Howewver, you’ll be charged a nominal miner or community price that may cowl the fee.

KuMEX Registration

If you need to offer KuMEX a strive then you’ll have to create an account at KuCoin first. That is normally a extremely easy course of and may be achieved with both an e-mail or a cellphone.

Signing Up KuMEX
Signing up at an Account at KuMEX

Earlier than you’ll be able to full the registration you’ll have to get despatched a verification code to the e-mail / cellphone that you’ve used. In case you have agreed their T&C’s your account is created.

Now there’s one necessary factor to notice about KuMEX & KuCoin is that they require some type of KYC with the intention to raise all buying and selling limits.

So, if privateness is one in all your predominant considerations then you might wish to contemplate one other trade that doesn’t have these necessities.

KYC Course of

Now though they do require KYC at KuCoin, it’s actually fairly an easy course of. This may be achieved as both a person or as a enterprise entity.

Step one would require you to offer info corresponding to your nation, full title and date of delivery in addition to the kind of identification that you simply wish to use. It will probably both be a passport, ID card or a driver’s licence.

Info Required KYC
Data Required For KYC

As soon as that is achieved you’ll have to add a duplicate of this doc to KuCoin. You don’t have to fret about any breaches of privateness as all communications with KuMEX are achieved by way of an encrypted SSL connection.

After you have uploaded the paperwork it’s despatched to the KYC workforce at KuCoin. How lengthy it takes depends upon how clear your paperwork are and the way busy the trade is. Typically it may be automated and others it could must be despatched for guide overview. In both case the max time required must be not more than 2-Three days.

Deposit / Withdrawal

After you have acquired your account up then you’ll wish to fund it with cryptocurrency. This may both be achieved straight by way of producing a Bitcoin handle or by transferring your cryptocurrency in from KuCoin.

This can be a distinct benefit over different leveraged buying and selling exchanges because it means that you’ve the choice to not directly fund your account with fiat. Utilizing one of many deposit strategies supplied at KuCoin (wire, card and so on.) you should purchase Bitcoin with USD and different currencies.

After you have purchased your Bitcoin, you’ll need to authorise a switch out of your KuCoin account to your KuMEX account. To do that you’ll head over to your “Property” tab which provides you with an entire breakdown of all of your funds / PnL on the platform.

Funding KuMEX Account
Funding Your KuMEX Account

Right here you’ll be able to both choose “deposit” which can generate a bitcoin handle for you or you’ll be able to elect to “switch”. The latter will let you switch in from KuCoin. All you must do is to pick out the quantity that you simply wish to switch and it’s achieved immediately.

Notice 📝: It’s also possible to make the switch if you end up logged into KuCoin. There may be an choice to “switch to KuMEX” out of your predominant account.

In relation to withdrawals, that is additionally fairly simple. You may both ship the funds again to KuCoin with the identical switch functionality or you would withdraw to an exterior handle.

If you’ll be withdrawing to an exterior handle then you’ll have to first whitelabel mentioned handle. This retains issues protected because it implies that funds can solely be despatched to a sure handle.

Buying and selling Platform

It’s time to dive into the stomach of the beast. When buying and selling with leveraged futures contracts, the effectivity of the platform is of paramount significance to us.

KuMEX really has two several types of platform on provide. They’ve a “Lite” model in addition to a extra superior model. Because of this they’re able to present a buying and selling interface commensurate along with your degree of experience.

“Lite” Platform

That is maybe the perfect platform for individuals who are simply beginning out. We now have additionally not seen related provides at different leveraged Bitcoin exchanges. The UI is simplified, clear and intuitive.

On the high you’ve your easy chart interface which merely provides you the historic worth of Bitcoin. To the precise of that you’ve your easy order kind. Right here, not like with the superior platform, yoc to both go lengthy (Name) or Brief (Put).

Lite Platform KuMEX
Person Interface of the “Lite” Platform

You even have simplified choices with regards to the leverage you take on in addition to the dimensions of the order. Lastly, to the left of the order kind you’ve a helpful rating chart. This reveals you the way you might be doing in comparison with another merchants on the platform.

Cool Characteristic 😎: You will get an concept of the market sentiment based mostly on the longs / shorts. That is simply market sentiment so deal with it with a pinch of salt.

You might also wish to word that on the Lite platform you’ll be able to solely commerce the perpetual futures contract. So if you want to commerce the quarterly then you’ll have to use the superior platform.

Lastly, for these of you preferring the sunshine UI, you’ll be able to change to the white theme within the high proper. This could possibly be helpful to these merchants preferring to observe the markets through the day.

Superior Platform

The superior buying and selling platform is just like many of the others that you’ve in the marketplace. There are a selection of instruments and options which you need to use to assist refine your buying and selling.

The primary and most necessary factor to notice about this platform is you could customise the structure. The panels may be indifferent and moved round with the intention to go well with your personal particular person buying and selling model.

KuMEX Advacned Platform
Superior Platform at KuMEX

In relation to the charts at your disposal, the superior platform makes use of Tradingview software program. For these merchants within the know, this is among the greatest charting packages and gives an intensive suite of technical trading indicators and research.

You even have a helpful market depth chart. With this you’ll be able to see the purchase / promote partitions on the trade and the way the remainder of the market is positioned. This might assist increase your technical evaluation in the principle charts.

On the bottem of the chart you’ve your order historical past. This reveals not solely your most up-to-date orders but in addition all of the previous ones. It additionally provides you a breakdown of your working PnL and margin necessities.

Order Varieties

Maybe among the finest options of the superior platform is broad order performance that you’ve. That is maybe one of the simplest ways for a dealer to handle their threat and take revenue.

There are three predominant order sorts on the KuMEX platform:

  • Market Order: These are orders which are positioned on the market fee and can be executed on the “bid” if it’s a promote and the “ask” if it’s a purchase.
  • Restrict Order: That is an order that’s positioned at a selected worth and won’t be executed till the market had been to hit this worth. The order can be open for a sure time referred to as the “time in power”. We cowl this beneath.
  • Cease: That is an order that may place an order as soon as the value reaches a sure restrict. You’ll set a set off worth which can make the order dwell. You may then additionally select whether or not you wish to make the order that’s positioned a market order or a restrict order. If you’re pondering of inserting a cease loss then a market order on a cease is your greatest wager. Cease orders can be used to take a revenue as soon as a sure degree is reached.

Professional Tip 💯: You must all the time select sure take revenue / cease loss ranges which are commensurate along with your technical ranges. Buying and selling with excessive leverage and no stops is just not suggested in any respect!

As talked about, once you place a restrict order you can too choose the time in power. That is the size of time that you desire to the order to stay dwell. There are two sorts at KuMEX:

  • Good Until Cancel: This order will stay dwell till you both elect to cancel it or it’s lastly executed
  • Fast or Cancel: That is the order that you’ll place if you need it to be crammed instantly and at the perfect worth. If there are parts which are left unfilled, they are going to be cancelled. Primarily, this order permits for partial order execution

The ultimate order parameter that you’ve at your disposal is whether or not you wish to make it a hidden order, a submit solely or a cut back solely. Mainly, the submit solely will just remember to get the maker fee, the hidden is stored off the order books and the cut back solely received’t add to your place (solely cut back it).

Sandbox

One thing else that you could be wish to make use of earlier than you create a dwell account is the sandbox. That is just like the testnet’s and demo accounts that you’ve at different exchanges and brokers.

That is primarily a check setting that absolutely replicates the buying and selling situations on the dwell trade. The good thing about that is you could check out your buying and selling methods with out risking preliminary capital.

The sandbox can be supreme for these merchants who wish to check out the KuMEX API (coated beneath). If you wish to check out the sandbox then you’ll have to head on over to sandbox.kumex.com and you’ll register an account there. Sadly, you’ll be able to’t port over a dwell account.

KuMEX Buyer Assist

One other actually necessary consideration for any dealer as of late is buyer assist. This may be particularly irritating when an trade is lax and takes days to answer tickets.

Therefore, we determined to check out the KuMEX / KuCoin buyer assist perform. Fortunately, as a result of KuMEX is operated by KuCoin, there’s already a fairly large assist part that merchants can make the most of.

Maybe the simplest option to increase a problem with the trade is thru their ticket assist system. This makes positive that your ticket is routed to the proper division and may be addressed most appropriately.

KuMEX Ticket Support
Ticket Assist System

After we examined with a question about funding our account, we had been helped in underneath four hours. This can be a fairly efficient turnaround in comparison with a number of the different exchanges like Coinbase which have 1 day turnarounds.

Professional Tip 💯: If the trade is taking a little bit of time to get again to your ticket then you’ll be able to all the time hit them up on their social media. You may strive their Twitter, Telegram or Reddit. Remember to quote your ticket quantity!

In case you have a question that’s extra common in nature then you’ll be able to all the time simply try their FAQ part. That is fairly complete and can embrace many of the questions that different merchants have raised.

KuMEX API

For these merchants that prefer to develop their very own algorithms and bots, you’ll be comfortable to know the KuCoin has prolonged their API performance to incorporate the KuMEX trade.

This can be a fairly sturdy API with plenty of endpoints in addition to SDKs in PHP and Java. You may both construct a buying and selling bot to run within the dwell account or you’ll be able to develop one for testing functions within the sandbox.

KuMEX API Keys
Producing API Keys at KuMEX

In an effort to use the API you’ll first have to generate API keys. There are three kinds of Keys on the trade. You might have learn, write and withdraw. Learn means that you can observe the market, write means that you can execute trades and withdraw means you’ll be able to ship funds out.

Warning ⚠️: Don’t give your API keys to anybody. There are providers on-line that provide buying and selling bots. These must be seen with suspicion as they can be utilized in a malicious method

After you have your API key generated, it would be best to familiarize your self with the API endpoints and performance. You may learn extra about this within the API docs. You might also wish to be aware of the speed limits to be sure that your bot is working inside it.

Referral Bonus

In case you have used the KuMEX trade and have been pleasantly shocked along with your expertise then you’ll be able to earn some bonuses by referring your pals and so on.

KuCoin has a particular referral bonus that they’ve arrange particularly for the KuMEX trade. If somebody indicators up at KuCoin along with your referral hyperlink then you’re going to get zero.005% of the whole transaction quantity of the dealer.

This can be a totally different referral construction from exchanges corresponding to BitMEX et al that provide you with a share of the fee. If we had been to calculate the fee that you’d earn on one in all these exchanges then the KuMEX referral price is about according to it.

Notice 📝: This isn’t a lifetime referral bonus. It’s only legitimate for one yr. After that interval you not earn the commissions.

If that is one thing that you simply wish to do then you’ll need to generate a referral hyperlink. This may be achieved in your KuCoin dashboard by clicking on “referral” in your account profile.

KuMEX Referral
Find out how to Refer Individuals to KuMEX

You will need to word that this referral bonus is paid in KuCoin’s Shares (KCS). That is the proprietary trade token on the trade which is analogous to Binance’s BNB. KuMEX will calculate this referral bonus and publish the bonus quantity every day.

Areas for Enchancment

There’s a lot that we actually like in regards to the new KuMEX trade. Nevertheless, we might be remiss if we didn’t check out a number of the issues that we expect warrant enchancment.

Firstly and maybe most significantly, they solely provide Bitcoin futures. For these merchants that wish to commerce different property with leverage, you might wish to contemplate one other leveraged buying and selling platform.

The trade might additionally do with some extra instructional guides and sources. Futures buying and selling is under no circumstances a straightforward process and lots of merchants are nonetheless new to the world. These guides might assist clean these merchants over.

Lastly, KuMEX continues to be a brand new futures trade which implies that it doesn’t have the observe document of some extra established gamers. Sure, it is a little bit of a rooster and egg state of affairs as new exchanges have to start out out someplace.

Nevertheless, if they’re able to hold the identical degree of professionalism because the KuCoin trade makes use of then the popularity will observe go well with.

Conclusion

In abstract then, we actually do just like the KuMEX trade. It seems to be comparatively protected. Not solely does it have the backing of the KuCoin predominant trade nevertheless it seems to have some fairly efficient threat administration options like an insurance coverage fund and so on.

You even have that vastly simplified “lite” platform that’s nicely suited to these new to leveraged futures buying and selling. In fact, they’ve the superior buying and selling platform that has simply the identical quantity of performance you’ll be able to anticipate on any competing trade.

We additionally like the truth that their taker charges are lower than the competitors. Furthermore, you’ve a sturdy API with a substantial amount of performance and buying and selling parameters. Lastly, the client assist was above par and needs to be counseled.

In fact, there have been some issues that warranted enchancment however that is nonetheless a brand new trade. Hopefully as they develop over time they may introduce new property and buying and selling expertise.

So, do you have to use KuMEX?

Effectively, if you’re searching for a practical and safe leverage buying and selling platform backed by a well-known trade then it’s undoubtedly value contemplating.

KuMEX Scores


eight.four

KuMEX Ratings


Professionals

  • Charges
  • Lite Platform
  • KuCoin Operated
  • Buyer Assist


Cons

  • Restricted Asset Protection
  • Full KYC
  • Nonetheless New

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