Navigating the volatile tides of the crypto market can often feel like steering a ship through a storm. For beginners, the volatility of the digital asset marketplace might seem daunting. On the other hand, even the most seasoned traders might occasionally find their performance falling short of their expectations.
This dynamic, fast-paced crypto market calls for a secure, strategic, and smart management solution. Enter the Managed Sub-Account, a tool designed to help you enhance your success in the crypto market.
This article introduces KuCoin Managed Sub-Accounts and how to leverage the power of seasoned traders to level up your crypto game. Let’s get into it!
What Is a Managed Sub-Account?
Managed Sub-Accounts, launched by KuCoin Exchange, are advanced cryptocurrency management tools that work as a custodial sub-account system. Investors can utilize Managed Sub-Accounts to safely and conveniently entrust fund managers to handle their assets.
Crypto novices can now use Managed Sub-Accounts to put their idle assets to work while sitting back and earning income from the crypto volatility.
In this ecosystem, fund managers have the capability to manage multiple investors' funds on a unified platform. This is performed while maintaining the integrity and privacy of their unique trading strategies. On the other hand, users can dedicate a certain amount of funds to a Sub-Account, and entrust it to a fund manager.
A distinguishing feature of this tool is its ability to aggregate liquidity. As a result, both investors and fund managers can enjoy better rates and privileges when trading.
Why Should You Try the Managed Sub-Accounts?
The Managed Sub-Account tool can provide multiple benefits to its users. Here are the top ones you don’t want to miss as crypto investors or active traders:
For Crypto Investors
Unified management of funds: Use Sub-Accounts to manage all your crypto assets conveniently under one umbrella.
Secure distribution of funds: Allocate your funds securely to different custodial Sub-Accounts, set permissions, and delegate different fund managers.
Account top-up and withdrawals: Enjoy the flexibility to top up or withdraw from your Managed Sub-Account at your convenience.
Account balance and profit/loss visibility: View your account balance and profit or loss for each of your Sub-Accounts.
Autonomy to trade: If need be, you can log into your sub-account to perform trades to time the market.
Authority to deauthorize: You hold the power to deauthorize the fund manager from managing your Sub-Account at any time.
Relatively stable passive income: Benefiting from the trading strategies of your fund manager, you can earn passive income by putting your crypto assets to work. As fund managers are more seasoned traders who are good at fundamental and technical analysis than average investors.
Learn more ways on How to Earn Passive Income on KuCoin.
For Crypto Fund Managers
More trading opportunities: Increase your portfolio size by managing more Sub-Account funds and API-based trading.
Aggregated liquidity: Enjoy better rates and benefits by aggregating the trading volume of all your Managed Sub-Accounts.
Approving and unbinding functionality: Exercise control over binding and unbinding Managed Sub-Accounts as you see fit.
Who Can Use a Managed Sub-Account?
Managed Sub-Accounts are designed to be versatile, and are available to all KuCoin users. Whether you are a beginner looking to gain confidence in crypto trading, or an experienced trader looking to improve your gains or save time, Sub-Accounts are here for you. They bring convenience, flexibility, and increased control to investors and fund managers alike.
Creating a Managed Sub-Account As a Crypto Investor
Step 1: Navigate to the Sub-Account Page
Navigating to the Sub-Account Page is extremely easy. Click on your avatar in the upper-right corner of the screen once logged in, and click on Sub-Account in the dropdown menu.
Navigating to the Sub-Account Page
Step 2: Start the Sub-Account Creation Process
Once on the page, click Create Sub-Account to start the process.
Starting the Sub-Account Creation Process
Step 3: Choose a Managed Sub-Account
The next step is to change the Account Type from General Sub-Account to Managed Sub-Account. Additionally, set up your Sub-Account name, and select the markets you want to cover (Spot, Margin, Futures).
Creating a Managed Sub-Account
Finally, enter your account password and add remarks to the fund manager (if you have any).
Step 4: Perform the Security Verification
Once you have finished setting up your Sub-Account, enter your transaction password, email verification code, and two-factor authentication code to complete the process.
Security Verification During Sub-Account Creation
Pro tip: Investors can choose whether to require the fund managers to disclose historical crypto transaction records (some fund managers will reject disclosing transaction records, so investors should communicate with the transaction team you will appoint in advance).
If the "Disclose Transaction History" is turned on, all transaction records of the fund manager will be available; If the “Disclose Transaction History” is turned off, it is not possible to obtain and export the transaction records of the fund managers.
Step 5: Link the Fund Managers to Your Sub-Account
Once you have passed the security verification, you will be required to link with your fund manager by entering their KuCoin account UID.
Linking Your Sub-Account With Your Fund Manager
Step 6: Final Confirmation
Check and confirm the Binding Trading Team Account Entrustment Agreement, pass through another security verification, and activate trade permissions.
Finalizing the Sub-Account Creation Process
Step 7: Wait for Fund Manager's Approval
You have now created an Asset Management Sub-Account! Your account will remain pending until the fund manager approves the Sub-Account. After that, your Sub-Account will officially start working.
Finalized Sub-Account Waiting for Fund Manager Approval
View Sub-Account Status and Set Permissions as an Investor
Click on Settings located on the right side of your Asset Management Sub-Account to open up a menu and set transaction permissions, freeze accounts, reset sub-account passwords, and other operations.
Changing Sub-Account Settings
Additionally, you can view the funds managed by the specific fund manager through the Sub-Account by clicking on Asset Details.
Checking Assets Managed by the Sub-Account Fund Manager
Note: Choose your fund managers wisely, as you may experience financial losses if fund managers make losing trades.
Withdraw Funds and Unbind the Asset Management Sub-Account
Withdrawing funds from the Asset Management Sub-Account is as easy as clicking on the Transfer button on the right side of the account.
Withdrawing Funds from the Sub-Account
Using an Asset Management Sub-Account As a Fund Manager
An important thing to note is that anyone can become a Sub-Account fund manager simply by giving away their KuCoin UID.
The fund management process starts when you receive a binding application from the investor in your Sub-Account interface.
Fund Manager Sub-Account Pending Approval
Clicking on the Pending Approval button will open up all the pending approval requests, which you can accept or reject individually or altogether.
Approving the Sub-Account Approval Request
Pro tip: The asset manager can check whether investors require them to disclose transaction records on the application page. If the fund managers approve the request, the investor can log in to the managed sub-account to query all historical transaction records.
If the fund managers approve the binding application that does approve the disclosure of transaction records, the investor cannot query the historical transaction records of the sub-account. However, this does not restrict the asset managers from using the API keys to query historical transactions.
You can then view the current status of the managed sub-account by clicking on the Client Accounts tab.
Checking the Status of the Client Sub-Account
From there, you can change the Sub-Account settings or unbind the Managed Sub-Account if needed.
Frequently Asked Questions (FAQs)
1. What Is the Maximum Number of Managed Sub-Accounts?
You can currently create 10 Asset Management Sub-Accounts as an investor. The same number of accounts can also be bound by fund managers.
2. Can Fund Managers Withdraw Money From the Sub-Account?
Fund managers do not have permission to withdraw from the escrow Sub-Account — they only have the right to trade on your behalf. Fund managers can transfer the funds in the account for trading through the API keys.
If you need to withdraw your invested funds, you must communicate this with the fund managers so that you don’t affect their trading strategy. You can proceed with your fund withdrawal after communicating and confirming with your fund manager.
3. Can Investors Place TradesFfrom the Asset Management Sub-Account?
As an investor, you have the option to take over the Asset Management Sub-Account and trade alongside fund managers. However, in order to avoid trading strategy conflicts, this operation is not recommended. If any transaction conflict occurs during this time, the consequences will be accredited to you.
4. Can Investors View the Transactions and Orders of the Asset Management Sub-Account?
If you have required the fund management team to disclose the transaction records during the process of creating an Asset Management Sub-Account, you can view the order status of your trades.
You cannot view the Sub-Account transaction/order history and trading strategy without selecting it. The fund managers can query the transaction history of the account through the API key.
5. What Will Happen to the Change in Authority After Unbinding?
After the Sub-Account has been unbound, all API keys of the Asset Management Sub-Account will become invalid. The Sub-Account can be reused and bound again, but only to the same fund managers.