Cryptocurrency has been on the lips of half of the world population since the inception of bitcoin in 2007, but having a safe and free-to-use international exchange has been a major concern in the cryptocurrency world. Huobi exchange is the perfect choice when looking for a platform to trade your cryptocurrency. The question now is, what is Huobi exchange and what makes it a reliable platform to trade your cryptocurrency?
Huobi exchange is one of the world’s oldest and leading exchanges. It has wide support for various and a couple of stable coins. It offers its users various benefits, including safety, ease of use, and, most importantly, a reliable platform to trade your cryptocurrency.
Huobi coin, a Seychelles-based exchange, was founded in 2013 by Leon Li, an alumnus of Tsinghua University in China. The first aim of creating the exchange was to serve the Chinese population, but it has spread its activities across 130 countries.
It has a token issued in 2018, and it’s popularly regarded as a Huobi token (HT). It is ranked amongst the top 100 tokens with the highest market cap by coin market cap. Since Huobi wants to be more active in Europe they provide you with the possibility to open a free account now and earn up to $ 170,- trading credit for free. Do you still hesitate? Please enjoy our full introduction and read along.
Table of Contents
Pros and Cons
There are pros are cons to using Huobi, and we are going through each one and giving reasons why they are;
- 24/7 customer service support chat: Huobi customer service support chat is up 24/7, and it gives you the ease of using Huobi exchange.
- Wide range of cryptocurrencies: Huobi exchange offers its users the ease to trade and hold cryptocurrencies ranging from Bitcoin, Ethereum to your favorite meme coins and lots more.
- Minimum deposit of $100: A $100 is required for Huobi, and an international wire transfer fee of 1% of your total deposit is applied. The exchange sets a 0.06 BTC withdrawal restriction for individuals who have not completed the ID verification process.
- Different versions: Huobi OTC and Huobi Pro are the two most common editions. OTC is a lighter, simpler variant of the exchange. A fiat currency (such as the Euro) is exchanged for one of six different cryptocurrencies. Most trades in bitcoin, Ethereum, and Tether are free of transaction fees. More than 100 cryptocurrencies are available on Huobi Pro for advanced traders. For most transactions, a 0.2 percent fee is charged.
- Trading on this exchange can be said as non-friendly for beginners, and it requires experience to understand the features.
Trading Options for Beginners and experts
Trading has become an order of the day in the crypto-dom. On the Huobi platform, you will never run out of trading options. It offers Spot trading, Derivatives, and finance options. Based on the level of expertise and the risk level, this exchange seems to have it all.
For spot trading, traders can choose from exchange trading, margin trading, trading bot, brokerage (OTC). Exchange trading involves lesser risk to your capital, and you have access to buy various crypto listed on the exchange. There are also various call options: buy/sell limit, stop-limit, trigger order, and others.
Margin trading allows you to make more profits than trading the same currency in spot trading will give. However, higher profits in trading come with greater risks to your capital. To limit the risk to your capital, Huobi exchange provides call options to trigger action even when you are not active. For Huobi margin trading, traders have three modes; automatic loan, automatic repayment, and the normal mode.
The bot-trading and brokerage trading options are still in the beta testing stage, and these are some of the trading features you can anticipate. By the way, it’s not obligated to use the Huobi trading bot. You can also connect your Huobi account to Cryptohopper. Here is the explanation how to do that.
One of the options in trading is the possibility to use P2P transactions. In this video Huobi explains how to do that.
Another attractive part for investors is the option to trade in various derivatives.
Huobi derivatives trading option is what most crypto traders know today as future trading. Future trading allows traders to buy more spots in a trade while using their capital as leverage. The exchange offers three types of crypto future trading you can explore; Coin-M futures, Coin-M Swaps, and USDT-M Swaps.
All futures contracts with a coin margin have an expiry date. All open positions will be closed using the arithmetic average of their last hour index prices on the expiration date. Huobi Futures offers weekly, biweekly, quarterly, and biannual futures contracts. It has a US dollar value. It employs the currency of the underlying asset as margin and for calculating PnL. Trading BTC/USD coin-margined futures, for example, needs a BTC deposit. The associated PnL and transaction fees are valued in BTC.
Swaps with coin margins have no expiry date. Users may retain them for as long as they choose, but profits and losses are resolved every eight hours. Coin-margined swaps are valued in USD and utilize the underlying asset currency for margin and PnL computation. For instance, if you trade BTC/USD swaps, you must first deposit BTC, and then your profit and loss and transaction costs are calculated in BTC.
Swaps denominated in USDT do not have an expiry date. Users may retain them for as long as they choose, but profits and losses are resolved every eight hours. USDT-margined swaps are denominated in USDT and use the stable coin (USDT) as margin. Users holding USDT may trade all swaps with a USDT margin. Additionally, the PnL and transaction fees are charged in USDT.
Please be aware that, when participating in derivative trading, your portfolio functions as a collateral for the positions you taken. Once the value of the collateral is insufficient to cover the amount of your position your exchange will execute your potfolio immediately. This is called the ‘crypto snowball’.
The finance option offers staking pools, prime pools, Auctions, and Huobi crypto loans. The finance service offers different ways to make your crypto assets work for you while you hodl. In the process, you earn more of the same token or other tokens from new projects. You can also loan your crypto assets out for interest.
Staking is the newest addition to DeFi; it allows users to hold for a long time since they are not only holding but also earning at the same time. The Huobi staking pool offers users a way to earn interest on their tokens. All you have to do is stake your token in a pool, and you will receive the Estimated APY on your stakings.
Primepool is similar to a staking pool with the exception that you can’t withdraw your staked assets for a locked period. After the locked period, you can withdraw your assets and earnings. Huobi auctions, on the other hand, allow the community to participate in auction of the project through voting. All assets are locked for a period following the voting.
The latest finance feature on the Huobi exchange is the loan option. You can get loans from other crypto holders using your crypto asset as leverage. You can be on either side of the coin, as the lender or the borrower.
How has the Huobi exchange performed so far?
Huobi currently ranks as one of the top 20 exchanges you can use in the crypto-dom currently. A major factor to consider in the growth of the platform is how it has picked itself up following the 2017 crypto trading ban in China. Following the china crypto trade ban in 2017, the exchange had to halt all its activities in China, which happened to be one of its main markets at the time.
For a hurdle that has sent many exchanges and trading services out of the tight crypto competition, Huobi exchange has fared better than most would have imagined. Although the exchange might not be where it was before or where it wants to be, it certainly has been able to expand its network following the ban.
Another commendable service the exchange offers is its flexible trading options available to traders. For beginners, the platform offers spot trading, which includes margin trading, bot trading, and OTC service. Also, for the average crypto investor, there are staking pools, primepool, Huobi Earn, and Crypto loans to get them started. For expert traders, the newly added derivatives option provides just the seamless fit to flex your trading skills. You can select from the three derivatives option available; Coin-margined futures, Coin-margined swaps, and USDT- margined Swaps.
Talk about saving the best for the last, Huobi exchange provides a VIP package that can only be purchased with its native Huobi token (HT). Another benefit of the Huobi VIP account varies based on the VIP tier, and the benefits can vary from lesser transaction fees, earning the native token, fast deposit/withdrawals, increased loan limits, and advanced blockchain training courses.
Still not sure whether to sign up today? Take a look at some of the benefits why you should register.
Why register with Huobi exchange?
According to a report, Huobi global is ranked the 2nd highest crypto exchange based on trading volume. It’s one of the best exchanges that accept various cryptocurrencies with great advantages.
If you are new to cryptocurrency and need where to start, the exchange is a good place. It will help you trade your cryptocurrency with various currency pairs and, just as we discussed above, offers a wide range of cryptocurrencies.
Lastly, Huobi has top-notch customer service, which takes the pain of their customers as theirs.
How You Can Get Started with Using Huobi Exchange
The first step in using this exchange is by registering an account with them, after which you can follow these few steps to have access to the full functionality of the exchange.
- Complete your KYC, i.e., Know your customer
- Buy crypto on Huobi; you can do this by using your credit/debit master visa or master card or from a vendor on the p2p marketplace.
- Deposit asset in your Huobi account
- Trade crypto
- Managing your digital assets through Huobi earn.
Huobi exchange will ease your pain while trading crypto; you have to get on and see the numerous features this attractive exchange offers. Besides that you can profit from an introductory offer of $ 170,- in trading costs for free. So don’t hesitate and open a free Huobi-account now.