Huobi Global Review: Users have the ability to buy, sell, stake, and borrow a broad variety of cryptocurrencies on the Huobi Global platform, which provides an all-encompassing ecosystem for seasoned crypto traders and investors. However, the exchange has not been very successful in achieving regulatory compliance in large areas, and novice users may have difficulty navigating the numerous tools and services offered by the platform.
What is Huobi?
Huobi is one of the top cryptocurrency exchanges in terms of trade volume. It was established by Leon Li and has its headquarters in Seychelles. Now available in over 130 countries, the company’s primary focus was primarily on the Chinese market.
Huobi is another one of the oldest exchanges; it first opened its doors in 2013, making it quite a veteran in the world of cryptocurrency. The holding company that it operates under is called Huobi Global, and it has teams located in Japan, South Korea, the United Kingdom, Australia, Canada, and Brazil in addition to Hong Kong.
The cryptocurrency exchange operated by the corporation enjoys a solid presence and a positive reputation across the board, most notably in the Asian markets. Huobi is available in primarily two different flavors: Huobi OTC and Huobi Pro.
A trade can be made using one of 25 fiat currencies (such as the Euro) in exchange for one of six cryptocurrencies using Huobi OTC, which is a more straightforward and lightweight alternative. For the vast majority of trades involving Bitcoin, Ethereum, or Tether, no transaction fee is levied.
Huobi Pro, on the other hand, is intended for more experienced traders; it is powered by the Ethereum blockchain, has a selection of more than one hundred cryptocurrencies, and brands itself as a “digital asset exchange” rather than a standard cryptocurrency trading platform. In contrast to Huobi OTC, the majority of transactions conducted on Huobi Pro are subject to a fee of 0.2 percent.
How Does Huobi Global Work
When you trade on the Huobi global platform, you can cut your transaction costs by using the Huobi Token, which serves as the fuel for the Huobi Pro system. For instance, users are subject to a fee of 0.2 percent if they trade different currencies other than the Huobi Token, but they are subject to a fee that is significantly smaller whenever the exchange is conducted using the Huobi Token. An incentive that is very much appreciated, in particular by high-volume traders.
The token was not initially distributed through an initial coin offering (ICO), but as a reward, Huobi gives its loyal Huobi Token users free tokens and offers them with a guide on mining as a perk for holding the token.
Holders of the Huobi Token can have voting rights, for example in picking the next token that should be added to the exchange or the alternative HADAX platform, as part of an effort to foster a feeling of community and inclusiveness in the cryptocurrency industry. Within the following two weeks after its first release, a staggering total of $300 million worth of HT was sold.
It is possible to think of HADAX as the London Stock Exchange’s AIM exchange for cryptocurrencies. The London Stock Exchange’s AIM exchange is designed for smaller companies that do not satisfy the requirements for listing on the primary stock exchange. HADAX can be thought of as the cryptocurrency equivalent of the London Stock Exchange’s AIM exchange. Users can vote with their HT tokens for new altcoins and tokens to be added to it, and it supports smaller cryptocurrencies and tokens issued by initial coin offerings (ICOs). As stated by Leo Li, who is also the founder and CEO of Houbi Global:
“We can’t evaluate every new cryptocurrency because there are simply too many of them. HADAX gives investors the choice to vote for tokens they believe are worth trading.”
The exchange boasts of its own Blockchain incubator ‘Huobi Labs’ which invests in Pre-ICO Blockchain start-ups.
How to use Huobi
People are able to purchase and sell cryptocurrencies on the site, which generates revenue in the same way as other cryptocurrency exchanges by charging a charge for each transaction.
The focus of the exchange is on stablecoins, which are coins whose value is pegged to that of the US Dollar. Because of this, the coins are less sensitive to the gyrations of the market. The stablecoins are backed by the US Dollar.
When someone makes a deposit using any of the four stablecoins (Huobi’s HUSD, Paxos Standard, True USD, US Dollar Coin, and Gemini dollars), the funds are automatically converted into Huobi’s HUSD. At the time of withdrawal, the user can choose to get any one of the four stablecoins in a ratio of 1:1. For instance, if you deposit one Gemini dollar, which is then immediately converted to one USD, you will be able to withdraw one USD coin when you make a withdrawal.
According to Huobi, the HUSD helps remove the necessity of selecting a stablecoin and, more crucially, reduces the fees associated with currency conversion.
The trading platform that is utilized by the Huobi exchange is a remarkable piece of technology that is in a position to compete effectively with the best trading platforms that are utilized by traditional financial exchanges. The charting, price feeds, market depth statistics, and profiles identifying the various cryptocurrencies are all organized in a way that is straightforward and easy to comprehend within the trading interface. The user interface and functionality provided by the platform are also beneficial to the alternative HADAX market. This market provides users with access to a greater choice of lesser-known alternative currencies and tokens.
The platform finds a healthy mix, enabling users with varying degrees of expertise as well as those who are just getting started to take advantage of all of its features and access. Access to the platform that supports the exchange is available in the forms of Windows, Mac, iOS, and Android, in that order.
Huobi global offers a web-based platform and a mobile app available for on-the-go crypto trading.
Huobi Global’s staking feature is another option to benefit from the platform. A common method of staking is to place part of your tokens in a savings account and earn interest on them. Staking is necessary because it offers market liquidity for the tokens, which is why stakers make money.
When you engage in spot trading, you buy or sell a crypto asset at its current market price in the hopes of profiting from the transaction. If you’re a newbie to cryptocurrency trading, you’ll likely encounter spot trading, which is the most common kind of trading.
In a normal spot transaction, market orders are used to assist you to determine which coins are selling at what price in the marketplace so you can decide which one to trade. There are six order types on Huobi Global. Depending on the order type, you may trade in various ways.
You may choose to run a limit order, a market order, or a stop-limit order, where you specify a limit price and the system automatically puts your order and executes the order at a value above your limit price if the coin’s market price falls below your limit price. If you choose, you may also select the more complicated sequence of advance limits, trailing stop, or trigger orders.
There is also the possibility of margin trading with Huobi Global. Margin Trading allows consumers to borrow money in order to enhance the number of their transactions. When you use margin trading, you might take a position that costs more than you have in your pocket. Big returns come with high dangers since you’ll have to pay interest rates on the loan you’ll take out to invest.
Margin trading should be avoided by novice crypto traders until they have a better understanding of the crypto world and crypto trading. Because the cryptocurrency market is so unpredictable, you don’t want to risk your money on something that you don’t understand.
Contract-based trading is what derivative trading is. Traders guess what the future price of an asset will be and bid on it, hoping that their guess will be right and they will make money from it. The difference between derivative trading and spot trading is that in derivative trading, the traders don’t own the asset they traded on. Instead, they make or lose money based on the terms of the contract they set.
This kind of trading is also called “futures trading,” and Huobi Global gives you three ways to do it. Coin-M Futures is the first of these. This derivative trade involves contracts that have an end date. After the contract’s end date, an algorithm figures out the price of the coin and pays out the agreed-upon amount. There are also Coin-M Swaps, which are contracts with no end date. With it, the price of an asset is worked out every eight hours. Lastly, USD-M Contracts work the same way as Coin-M Swaps, but the price of the asset is tied to the price of the USDT stablecoin.
How to open a Huobi Global Account
- To sign up for an account Go to the Huobi Website, you’ll need to enter an email address on Huobi and a password.
- This is followed by a confirmation email and account verification.
- After your account verification, you can now access the platform and explore its products and features.
- However, you’ll be subject to low trading and withdrawal limits with the basic registration.
- To increase your limit, you’ll need to complete your ID verification by sharing a government-issued document of identification.
Trading and Withdrawal limits
In addition to its fees, Huobi also has daily trading and withdrawal limits for users. These limits increase as users complete different levels of verification.
What Are the Withdrawal Limits on Huobi Global
Withdrawal costs on Huobi are always changing. When you go into your account each day, you will see the maximum and the lowest amount you may withdraw. As long as you don’t exceed Huobi’s withdrawal restrictions, you may make as many withdrawals as you like in a 24-hour period.
The cyber security measures that have been put into place to secure the exchange and its traders are of the utmost importance. The exchange itself is built on an advanced distributed system architecture, and 98 percent of assets are held in multi-signature cold wallets; this indicates that they are not accessible online. Additionally, the exchange has a Security Reserve Fund with 20,000 BTC in it, which was established to deal with extreme security breaches for its users.
- Deep liquidity
- Very large number of cryptocurrencies
- Has yield-generating opportunities
- Wash trading accusation
- Largely unregulated
- Not beginner-friendly
- Buyback: Huobi buys back 20 percent of its own currency, the Huobi Token, which is then placed into a unique user protection fund that can be redistributed to holders in the event of a hack.
- Buyback: Huobi buys back 20 percent of its own currency, the Huobi Token.-People who make purchases using Huobi Tokens are eligible for a fee reduction when making those purchases through Huobi.
- Because it supports a huge number of cryptocurrencies, has deep liquidity, and offers a wide variety of options to earn yield, Huobi Global is a popular and attractive location for experienced crypto traders.
- Huobi Global is unable to expand its customer base across the globe because it is unable to satisfy the regulatory restrictions that are imposed by a number of different jurisdictions.
- Huobi’s extensive selection of products and services may make it difficult for novice users to get a handle on the platform’s features.