Evan SelemaniWe're going to talk about the platform Kucoin today because it is a platform that has managed to stay in the race, despite ever-increasing competition.
We all have our trading platforms that we use the most. We have our preferences. However, the ideal is not to have just one platform but a minimum of two. This can be important not to have all your funds in the same exchange.
To make money, most crypto investors either simply speculate to ride market volatility either ofinvest in promising long-term projects. However, it is also possible to use your cryptos to generate passive income.
KuCoin makes this approach possible on its platform.
Do you own cryptocurrencies on the Kucoin exchange platform? If so, in this article you will learn the different methods to make them work and earn interest while you sleep.
What are the ways to earn passive income on KuCoin?
KuCoin is one of the most popular cryptocurrency exchange platforms. Created in September 2017, KuCoin has established its reputation in just a few years. The platform now has more than 10 million users worldwide and offers investment in more than 600 cryptocurrencies including bitcoin, ethereum and KCS, its native token.
Beyond trading, KuCoin offers other services allowing you to generate passive income on the crypto assets held on its platform, the most popular of which are:
Lending on Kucoin : Earn interest between 5 and 8% depending on the crypto
Le lending crypto (or loan in French) consists of generating profits by lending your cryptocurrencies to an exchange platform. Then, the platform uses them in different investment protocols in order to generate interest, part of which is returned to the lender.
Loaned assets are often used in Decentralized Finance or to lend in turn to other users in exchange for collateral. So, in a few words, lending on KuCoin allows users of the platform to lend or borrow cryptocurrencies.
???? Please note: : The site offers yields displayed per day. Indeed, the maximum period being 28 days, you can know straight away how much you can earn per day.
The lender can set a rate of return or API (Annual Percentage Yield). All open loan orders will be displayed on the market. However, borrowers can review the different orders and borrow from those that meet their requirements.
Borrowers must also provide collateral to benefit from crypto credit. Loan periods vary between 7, 14 and 28 days. If the value of the collateral reaches the liquidation threshold, it is automatically sold to repay the debt. The KuCoin platform ensures that all debts are repaid in full.
Lending on Kucoin supports almost 90 tokens. However, the USDT stablecoins is more used by traders. The annual return depends on market developments as well as the borrower's solvency. It is generally between 5% and 8%.
Staking on KuCoin : 3 to 20% depending on the cryptos
Than investing in sophisticated hardware and consuming a sometimes significant amount of energy to secure the blockchain by mining by proof of work (generally used for bitcoin), several other cryptocurrencies offer a very different and less demanding validation model. in energy. The latter is better known under the name of Staking ou proof of stake in French.
In this model, the user locks tokens in a wallet to participate in transaction validation. In exchange, he receives a reward in new, freshly created tokens.
Staking on KuCoin is done via KuCoin Earn. Participants earn rewards over a duration that depends on each project. KuCoin also allows its users to stake held tokens without having to lock them. This mechanism is called Soft Staking. This model allows investors to receive rewards on a daily basis. Therefore, there is no need to block your pieces for long periods of time.
Kucoin gives the possibility to choose flexible staking periods. The staking period is between 21, 30, or 90 days, for a yield ranging from 3 to 20% or even more.
The KCS Bonuses » : Earn KCS every day
Another way to generate passive income on KuCoin is to hold its native token, KCS. Its holders are largely rewarded for their support of the exchange platform. There is a lot of interest in holding KCS, the main ones of which are:
- Using KCS to pay trading fees qualifies for a 20% discount
- KuCoin shares 50% of trading fees with holders of its native token in the form of dividends. You must have at least 6 KCS to be eligible for this bonus program
- The KCS will be essential on the blockchain developed by Kucoin. Using the example of BNB Binance, the price of KCS could be positively affected if Kucoin's in-house blockchain captures significant market share.
Generate Passive Income with KuCoin Trading Bot
Trading is one of the popular and sometimes profitable activities in the crypto sector. However, this is an activity that requires much more attention and technical understanding of the market. Managing emotions is one of the assets needed to make a living trading.
Since decision-making is mainly based on sometimes emotional signals, the use of a trading robot (Trading Bot) makes sense. The latter eliminates all emotion in a trader's position taking. This is also why many people prefer automated trading.
KuCoin Trading bot is a tool that was created to help automate trading for users. Regardless of the market situation, robot trading can generate income.
Furthermore, the robot offered by Kucoin works based on predefined personalized parameters. It can therefore be used by trading novices as well as seasoned traders who wish to trade without taking into account the emotional side.
KuCoin Pool Mining
Another option to generate income is to join the KuCoin Pool. In recent years, the difficulty of mining has continued to increase. It has become difficult for an individual miner to compete with large mining farms that are often run by corporations.
As a result, individual miners come together as a team to pool their computing power in order to increase the chance of winning the race. Hence the emergence of Mining Pools.
Since August 2021, KuCoin has developed its own Pool which supports the mining of Bitcoin, Ethereum and Bitcoin Cash. KuCoin Pool only charges 2% of mining fees. This significantly reduces miners' costs and allows them to generate more profits.
The affiliate program on the KuCoin platform
We will end with how to earn on Kucoin which requires you to have an audience on social media. For example, you can have a blog or be active on networks.
KuCoin offers commissions on transaction fees as part of an affiliate program. (😏 You can read our article on crypto affiliate programs). Each user who invites people to register on the platform benefits from a portion of the trading fees paid by new registrants. To take full advantage of it, you must have a network of affiliates who are regularly active on the platform.
Practically, to start building your network, you just have to share your affiliate link with acquaintances or on social media. This allows you to earn up to 40% commissions on affiliate trading fees.
Our Kucoin link for example offers you 10% reduction on all your fees on Kucoin.
Our opinion on Kucoin
As we have just described in this article, the Kucoin platform offers many tools for generating passive income. However, the team continues to work on other changes that will help investors have even more choices to achieve a steady stream of earnings.
We can't say it enough, before investing to earn passive income on Kucoin, it's important to do your own research. As for us, our tests on the Kucoin platform were successful. At Zonebitcoin, we will maintain monitoring to inform you of changes or new tokens.
Likewise, this article is a general article, we will see in detail for the methods in detail in the coming weeks.
—> Read our kucoin reviews
Note: No financial advice is given in this or any other article on this blog. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
