How to operate Kucoin contract trading? How can novices quickly get started?

Kucoin's contract trading lets you speculate on crypto prices without owning assets; start small, use demo accounts, and manage risks to trade effectively.

May 19, 2025 at 05:49 am

Kucoin is a popular cryptocurrency exchange that offers various trading options, including contract trading. Contract trading on Kucoin allows users to speculate on the future price movements of cryptocurrencies without owning the underlying assets. This guide will walk you through the process of operating Kucoin contract trading and provide tips for novices to quickly get started.

Understanding Kucoin Contract Trading

Kucoin contract trading refers to the trading of futures and perpetual contracts. Futures contracts are agreements to buy or sell an asset at a future date for a predetermined price, while perpetual contracts do not have an expiration date and can be held indefinitely. Both types of contracts allow traders to leverage their positions, meaning they can control a large position with a relatively small amount of capital.

Getting Started with Kucoin Contract Trading

To begin trading contracts on Kucoin, you need to follow these steps:

• Create a Kucoin Account: If you don't have a Kucoin account, visit their website and sign up. You'll need to provide an email address and create a strong password.
• Complete KYC Verification: Kucoin requires users to complete a Know Your Customer (KYC) verification process to ensure compliance with regulatory standards. Follow the prompts on the platform to upload the necessary documents.
• Deposit Funds: After your account is verified, deposit funds into your Kucoin account. You can deposit cryptocurrencies like Bitcoin or Ethereum, or use fiat currencies if available in your region.
• Navigate to the Contract Trading Section: Once your account is funded, go to the Kucoin website or app and navigate to the Contract Trading section. You can find this under the "Trade" menu.

Placing a Contract Trade on Kucoin

Now that you're set up, here's how to place a contract trade:

• Select a Contract: Choose the cryptocurrency contract you want to trade. Kucoin offers a variety of contracts, including Bitcoin, Ethereum, and other popular cryptocurrencies.
• Choose the Contract Type: Decide whether you want to trade a futures contract or a perpetual contract. Each has its own characteristics and risk levels.
• Set Your Position: Determine whether you want to take a long position (betting that the price will rise) or a short position (betting that the price will fall).
• Enter the Trade Details: Specify the amount you want to trade and the leverage you want to use. Higher leverage increases potential profits but also increases risk.
• Place the Order: Once you've entered all the details, click on the "Buy/Long" or "Sell/Short" button to place your order. You can choose between market orders, which execute immediately at the current market price, or limit orders, which execute at a specified price.

Managing Your Contract Trades

After placing a trade, it's important to manage your positions effectively:

• Monitor Your Positions: Keep an eye on your open positions and the market conditions. Use the Kucoin platform's tools to track price movements and other relevant data.
• Set Stop-Loss and Take-Profit Orders: To manage risk, consider setting stop-loss orders to automatically close your position if the price moves against you, and take-profit orders to lock in profits when the price reaches a favorable level.
• Adjust Leverage: If market conditions change, you may want to adjust the leverage on your positions. Be cautious, as higher leverage increases both potential gains and losses.

Tips for Novices to Quickly Get Started

For those new to contract trading, here are some tips to help you get started quickly and safely:

• Start Small: Begin with small trades to get a feel for how contract trading works. As you gain experience, you can gradually increase your position sizes.
• Educate Yourself: Take advantage of the educational resources available on the Kucoin platform and other reputable sources. Understanding the basics of futures and perpetual contracts will help you make informed trading decisions.
• Use Demo Accounts: If available, practice trading with a demo account before risking real money. This allows you to test strategies and familiarize yourself with the platform without financial risk.
• Stay Informed: Keep up with market news and trends. Cryptocurrency markets can be volatile, and staying informed can help you anticipate price movements.

Common Mistakes to Avoid

Novices often make common mistakes when starting with contract trading. Here are some to watch out for:

• Overleveraging: Using too much leverage can lead to significant losses. Always use leverage cautiously and understand the risks involved.
• Ignoring Risk Management: Failing to set stop-loss orders or manage your risk can result in substantial losses. Always have a risk management strategy in place.
• Chasing Losses: Trying to recover losses by making larger trades can lead to a downward spiral. Stick to your trading plan and avoid emotional decisions.

Frequently Asked Questions

Q: Can I trade contracts on Kucoin using a mobile app?

A: Yes, Kucoin offers a mobile app that allows you to trade contracts on the go. The app provides the same functionality as the web platform, including the ability to place and manage trades.

Q: What are the fees associated with contract trading on Kucoin?

A: Kucoin charges different fees for contract trading, including trading fees and funding fees for perpetual contracts. The exact fees depend on your trading volume and the type of contract you're trading. You can find detailed fee information on the Kucoin website.

Q: Is it possible to trade contracts on Kucoin without completing KYC verification?

A: No, Kucoin requires users to complete KYC verification before they can trade contracts. This is to comply with regulatory requirements and ensure the security of the platform.

Q: How can I withdraw my profits from contract trading on Kucoin?

A: To withdraw your profits, navigate to the "Assets" section of the Kucoin platform, select the cryptocurrency you want to withdraw, and follow the prompts to enter your wallet address and complete the withdrawal process. Be aware of any withdrawal fees and minimum withdrawal amounts.