What is the best way to grow the blockchain niche? A lot of experts, cryptocurrency enthusiasts, and traders have tried to look for answers with little success. Despite the large numbers of cryptocurrencies in the market today, the uptake is still wanting.
A closer look at the blockchain industry reveals that some of the top challenges include high transaction costs and complicated trading platforms in the exchanges. Cobinhood has come at the right time to close this gap and ensure that everybody can join.
Cobinhood promises a 0% transaction fee. But many people have been wondering how a cryptocurrency exchange can manage to support the system without charging fees.
Every person who comes across Cobinhood is left with more questions than answers. This Cobinhood review takes a closer look at the exchange to answer the hard questions, such as “Is Cobinhood Legit?”
What is Cobinhood?
On their website, Cobinhood refers to itself as the first completely free cryptocurrency exchange. The platform was created and registered in the Cayman Islands by Popo Chen, a 22-year-old Electrical Engineer who wanted to pioneer the next generation trading platform where every person can trade without worrying about transaction fees.
Popo’s co-founder, Wei-Ning Huang, brought in a lot of experience to the development team by having previously worked at major companies such as Google and on blockchain projects.
Even as credibility issues reel with the vision of offering a free trading platform, the entry of Tony Scott, a former US Federation Information Officer, makes people give the platform the benefit of doubt.
The other person who has helped to craft the guiding principles behind Cobinhood is the former EasyCard chairman, I-Cheng Liu.
Cobinhood is a 3.9 Exchange
Cobinhood trading platform is seen by many people as a too-good-to-be-true system. Even as more users come out to join, a big proportion is only testing whether everything works out or not.
The trading platform and key features demonstrate a carefully designed model that could easily grow to become the next big thing in the blockchain industry. As a young platform, its rating can only grow when all or most of the features have been tested.
How does Cobinhood work?
a. Cobinhood Trading Account Levels
Cobinhood operates as a centralized trading platform but plans to shift to completely decentralized operations in the coming years. This implies that the operation mechanics revolve around centralized user accounts.
Like other cryptocurrency trading platforms, Cobinhood provides several layers of verification accounts based on the amount that a trader targets to withdraw.
- Verification level 1 account: This is the basic trading level that requires the user to provide a name, country, proof of location, and an email address. At this level, the daily withdrawal limit is 3 BTC.
- Verification level 2 account: This intermediate verification level requires the user to provide all the details of a level one account, plus a phone number and a photo holding their national ID/ passport. The daily withdrawal limit for this level is 100 BTC.
- Verification level 3 account/ VIP level: This level allows users to make more than 100 BTC every day. However, Cobinhood requires people to make direct applications before getting access granted.
b. Trading at Cobinhood Exchange
To trade at Cobinhood, the first step is depositing funds into trading accounts. Simply hit the icon “Funds” on the top right-hand corner of the Cobinhood screen to get a drop-down menu. Then, hit “deposits”, select the source such as cryptocurrency wallet, credit card, or wire transfer.
Some of the supported cryptocurrencies at the platform include ETH, LTC, XMR, COB, NEO, REP, USDT, and REP to mention but a few. The platform also supports fiat currencies such as USD, JPY, EUR, AUD, CAD, HKD, and NTD.
By supporting fiat currencies, Cobinhood has managed to steal the show right from other top exchanges that have closed the doors to credit cards and wire transfers. For example, Binance, Bittrex, and KuCoin do not support fiat currencies.
The user interface at Cobinhood exchange makes trading easy and direct. You only need to select the right trading pair and hit sell/buy depending on the movement of the selected cryptocurrencies. Check this video for a demonstration of how to set up and get started on Cobinhood.
Fees at Cobinhood Exchange
As mentioned before, Cobinhood does not charge users a transaction fee. However, this only means that trading is free but other fees are still applicable.
Cobinhood’s main charge is the withdrawal fee that goes into motivating the miners who confirm transactions. The withdrawal fee is set based on the coin being moved and the volume:
- 20 USD for withdrawing USDT
- 0.001 BTC for withdrawing BTC
- 0.007 ETH for withdrawing ETH
- 3 USD for withdrawing most QRC-20 tokens
- 8.4 USD for withdrawing ER20 tokens
Cobinhood indicates that it does not need cash from transactions or even withdrawals. This leads to the main question: “How does Cobinhood make money to support the platform?”
The Cobinhood team indicates that most of its revenue and profit comes from underwriting services for ICOS. These are services that include listing new ICOs on the Cobinhood platform.
The Cobinhood exchange team also makes more from reviewing smart contracts technology, giving business advice on decentralized networks, and blockchain consultancy. Its team of experts helps with crafting white papers, addressing regulatory risks, and identifying investors.
The Cobinhood Token
Cobinhood has a native token referred as COB. The token allows users to have special privileges on the Cobinhood platform such as airdrops and reduced fees.
The token was released in the Cobinhood ICO that was held between 13th September and 23rd October 2017. The Cobinhood ICO review found that the initial sale raised about 13 million US dollars.
The Cobinhood platform presents a new operational model that caught most people off guard. However, the platform appears ready to surprise many by progressively improving services.
- The exchange does not charge transaction fees.
- Cobinhood has very easy to use platform.
- It supports many cryptocurrencies.
- The platform is among the first to list ICOs in the market.
- They have a unique referral program that provides daily tickets and the chance of getting promoted to the next account level.
- The exchange provides margin trading.
- The exchange is very new and, therefore, its structures and operations cannot be immediately stamped stable.
- Most users are still skeptical about the operational model with most of them calling it scam.
From this Cobinhood review, it is clear that a new model of cryptocurrency trading is knocking. However, it is too early to tell whether the platform will stand the test of time.
If you are planning to join the platform, the best thing is to start gradually to keep your risk low. You should also consider spreading the risk through other exchanges such as Binance and CEX.io.