Huobi, Okex, Hotbit, Bibox and other Chinese exchanges have similar S.O.P and I agree its a waste of time. I don't know if they are required by regulations to do this or their own decision because of hacking attempts.

On OKX which I use often, you can check (mark) either funding or trading account or both for withdrawal. If your fund is in trading account, you do not have to necessarily move it back to funding account before you will be able to withdraw, just check your trading account and you will be able to withdraw it. Some exchanges are using this now, even Binance is now using such feature too, but spot and funding account on Binance is different if compared to other exchanges and it is the most perfect for me, on Binance, you can trade directly with your funds which is the spot account.

@The Pharmacist
If Binance can do that, I expect other exchanges should be able to do that, I mean if you paste the address of the network you want to use to withdraw on Binance.com (I do not know of Binance.US), the network would automatically be selected. You can also check either funding account or spot account during withdrawal. But if you transfer money into your Binance account, it would automatically be in spot wallet, funding wallet is for P2P, Binance Pay, Gift card and Pool. It would be good if other exchanges like Kucoin can also be like that.

About email, sms and 2fa verification when you want to withdraw, it is for the security of your account, in a way hackers will not be able to attack you personally. It is annoying, but I like it because of its security, especially the 2FA verification during withdrawal.

There's absolutely no need to have two types of accounts if you're trading crypto.  

It's simple: deposit crypto, it's in your exchange account and when you go to the marketplace section, the exchange knows damn well how much crypto you have, so....why have a trading and main account-type system?  Every time you have to withdraw funds from Kucoin, you're going through numerous, unnecessary steps that have no reason to exist, not even for security.  Again, I mentioned that you have to click a pop-up two times just to confirm that you want to withdraw a coin.

I never said anything critical about any of those things.  I merely included the SMS part in the list of all the hoops you need to jump through.

Thank you for mentioning that; I didn't even think about  it, but I'm also wondering how responsive they are to stuff like this through their bitcointalk account.  

And I'm not totally slamming them, either.  It's just that every time I use their exchange, I feel like it was about 5x harder than the typical ones I use (which aren't numerous, but they have simple mechanics).  Anyone use TradeOgre?  That is probably the most stripped-down, minimalistic exchange I've ever seen.

That's ridiculous, as it assumes people are retards and also makes everything I've described here harder than it has to be--and that isn't going to help any newcomers.  I mean really, why not have customers have to click a pop-up confirmation 4, 5, 6 times?

"Are you sure you want to withdraw?"
Click-->yes

"Are you absolutely sure you want to take the crypto off our exchange?"
Click-->yes

"Just checking: these coins are going from our exchange to your wallet, right?"
Click-->yes

"OK, last time.  You want to withdraw your coins?"
Click-->yes

See if you've got arthritic fingers on your mouse hand in about 30 years and get back to me.  Well, I'll be dead then but follow up in this thread anyway, eh?

Let me use OKX for example, it can differ on Kucoin, but you can know, if truly it differs. Also I will use Binance.com (not Binance.us) as an example.

On Binance
If anyone send you money, it goes straight to your spot account, you can be able to trade with it (spot trading like using bitcoin to buy USDT and vice versa).

But on you Binance account, you can be able to transfer coins from spot account to margin, future, funding account and vice versa. That is how it works on Binance, but which it is your preference.

Binance later, which was last year or so, make spot account for trading and withdrawal which is what you want, while its funding account are for what I have mentioned above like p2p trading.


On OKX
Probably how Kucoin might be too, but I do not know.
On your OKX account. If you received coins on your OKX account, it would be on funding account. If you move it to your trading account, it would be available for spot, margin and future trading. Very different from how Binance exchange is.

Assuming you have $1000 in your funding account, you transfer $100 to your trading account, only the $100 would be available for trading. Assuming you opened 3x cross margined leverage perpetual long position for BTC at $20000, the liquidation price would be at around $13333. If bitcoin reach $14000, you can be able to transfer more coins from funding account. Like if you transfer $100 in addition to make it become $200, the liquidation price would be around $6667, which was around $13666 before the collateral transfer.

Money in the trading account are only affected during trading, your funding account money is intact and unaltered. It makes trading more flexible towards trader's preference, unlike only going for isolated margin or future trading if a safe account (funding account) is not available.

I believe you are a spot trade, like selling bitcoin for a stable coin after massive bull market, and buying bitcoin back after massive bear market. It is just a guess. But if so, that is why you think trading account is not necessary. But exchange like Binance, make it the way you want as it advance it, I am not sure if Binance.us is like that.

I can sense your frustration about this process, it could be annoying truly.

It got me angry at times as well, especially when trying to beat time for the withdrawal. But I'm afraid, it's the standard practice by the major exchanges I have used. It could even get worse with Binance where in addition to what you wrote, they might add email verification, or even tell you to take a quiz before performing the withdrawal. What a heck!

The processes might seem too much, but a good level of accountability (wallet to trading account) and security (verifications) if I must say.

I have the same steps on Binance except moving from trading to a spot account. Recently, a new info popup, where they protect themselves from possible mistakes during the withdraw process. quite tiring.
Probably maybe it's better safe than later sorry.

In a perfect world, yes, they would have less steps.  However, if they are still no KYC, then I would consider this a minor inconvenience that's well worth the ever so minor hassle.

Kucoin withdrawal process is not the weirdest one I saw. I have experienced trading bounty tokens on small Asian exchanges that often lag or simply load slowly and there withdrawal process is really a pain. First you need to save the address you want to withdraw your funds in address book, give this address a name, and when withdrawing, select the address you want to withdraw by name from address book.

1. Go to withdrawal address book.
2. Click create new
3. Fill name, fill address, click save
4. Go to withdrawal, click select, select a name
5. Fill amount, click withdraw.
6. Enter 2FA, enter trade password (dont know why they call it trade), or get a code via sms (which you could receive during 1 minute or during 10 minutes...)

I dont understand why making withdrawal process so complicated...

Despite everything you wrote in that post, there's no way in hell you could convince me that Kucoin's system isn't unnecessarily complicated.  Example: I can deposit coins into my trading account but can't withdraw them from it.  I have to manually transfer the coins to my main account and then go through all of those maddening steps I mentioned.  No need for any of that bullshit.

Look at SouthXchange or TradeOgre or even CoinEx.  There's none of that, so obviously exchanges can offer a whole bunch of services and function just fine without having that dual account nonsense.  I'm beginning to think Kucoin is going full retard.

Well how many fucking times do they want you to click on a popup to confirm that you really, really, really(!!!) want to make a withdrawal?  And I'm not sure I'm buying your argument that exchanges don't want you to withdraw coins, because some of them (and Kucoin in particular) make hefty profits via withdrawal fees that are way above network fees.  They're not afraid you're not going to come back and trade again, believe me.

If the security measures were activated in the account login process , All the additional protective measures imposed on withdrawals become meaningless. It is only possible to use confirmation messages using the phone and email, as happens with the Binance platform. But to say that these measures help beginners verify every step they take is certainly not accurate.
The KuCoin platform is still very popular and I don't think anyone has complained about the complexity of the withdrawal process from it. It would be a good idea to publish this topic on their official channel or call the representative of the platform to see and give his opinion .