Welcome to this guide, where we will look at the main difference between the main account and the trading account.
On some platforms like KuCoin it is separated with accounts to have more control, and if you have not used similar platforms, it can be confusing at first.
The main account is the account where you hold your funds and where your deposits will arrive. From this account you can also withdraw your funds.
The trading account, as its name suggests, is used to buy and sell cryptocurrencies. So you must have funds here to be able to buy and sell in KuCoin.
To transfer from one account to another is very simple. Click on transfer, indicate the cryptocurrency, the amount and click on transfer. Just like that, you will instantly have your cryptocurrencies from one account to another.
Why are they separated into accounts
The separation of accounts is something very common in most platforms, and it is to organise your funds in a more logical and intuitive way. In addition to separating the funds you want to use for trading, those you want to keep on your balance sheet without buying and selling, and those you want to use in other financial products such as futures.
In the case of futures, the separation makes the most sense. Because if you have a futures trade and it falls in value, the only thing you can lose is what you have in the futures account. If it were all together, it would be more complicated and confusing to separate what you want to use in futures from what you simply want to keep on your balance sheet.
The same thing happens in the trading account, where if you want to have open trades to be executed at a certain price, it could get confusing if it was all together with the whole balance of the account. And therefore, it is much simpler and more intuitive to know which part you have to trade and execute orders, which parts you want to use in assets such as futures, and the part you only want to keep on your balance sheet, in the main account.
What is important to note is that to withdraw any cryptocurrency whenever you want, you must first transfer it to the main account in case it is in the trading or futures accounts, as we have seen above. And when you deposit funds, they will always go to the main account, and from there you can move it to the account you want to use.
I hope this has helped you to solve your doubts about the different accounts that KuCoin has. Remember that if you don’t have an account with binance, you can create one just below.