Huobi Exchange Review – Scam or Legit?

/Huobi Exchange Review – Scam or Legit?

Huobi offers a range of features but there are factors you should consider before using it.

Huobi Exchange Review – Scam or Legit? 2018-05-03T16:53:41+00:00
Huobi Exchange Review – Scam or Legit?

Huobi Exchange Review

Quick inner navigation:

  1. What is Huobi?
  2. Houbi Fees
  3. Is Huobi safe?
  4. How to use Huobi?
  5. Customer support
  6. Verification
  7. Currencies accepted by Huobi
  8. Huobi Special features

Digital currencies have infiltrated the financial systems of various countries throughout the world and continue to exhibit an upward trend: this despite fierce opposition from some of the bureaucratic establishments of the respective countries. Bitcoin, Ethereum, Litecoin and other coins that fall under the category of digital currencies have the significant features that make them advantageous to use compared to the fiat currencies such as; offering a decentralized system, elimination of middlemen, lowering costs and other benefits, hence their increasing popularity.

The cryptocurrencies are offering the finance sector a chance for a revolution and the inevitable technology has clearly been a surprising development considering the curious on look it receives from people. Huobi, as will be discussed in this article is one of the digital currency exchange platforms used to transact in digital currencies and conversion of digital currency to fiat and vice versa. The digital exchange platforms play an integral role and are a major technological component of cryptocurrency that a potential user needs to understand before joining their use.

It is commonplace that as a potential user, you familiarize yourself with the whys and why not of a particular trading platform. Therefore, before you choose Huobi as your digital trading platform there are several aspects that you should concern yourself with. For instance, is Huobi a scam? Is Huobi safe? The good news is, you are going to get all that information here so keep reading to find out more about Huobi.

What is Huobi?

Huobi is an exchange platform that targets mostly the Chinese market and has its headquarters in Beijing, China. The trading platform was founded in September 2013 by one Leon Li. It has been limited to the Chinese market ever since the time it was founded but is developing plans to venture into global markets very soon. Since its founding, it has grown to become one of the big trio digital exchanges in the world. Huobi brags of an extensive digital currency trading portfolio that has grown to become one of China’s largest exchange platforms. Due to recent developments and a slightly hostile environment for the digital currencies and exchange platforms, it is unveiling plans to gear into new markets outside China. Unlike the other cryptocurrency exchange platforms, Huobi is yet to introduce fiat currencies to the trading platform.

  • The trading pairs involve conversion from bitcoin to the other cryptocurrency coins and vice versa.
  • The crypto exchange platform has launched the peer-to-peer trading platform, Huobi.Pro for global crypto-exchanges.
  • The platform has an entire blockchain set to cover mining and software that is related to cryptocurrency.
  • The website provided by Leon Li, the platform’s founder, is the perfect choice especially for a new client due to the proximal advantage of recurrent usage, high barrier to entry and close links to money.
  • By focusing their operations towards a global outlook through the creation of peer-to-peer trading platforms, the company will still be able to service the investors in China while avoiding the imposed strict regulations.
  • According to the Huobi Company, over half of the trading volume involves crypto-to-crypto (C2C) transactions.
  • Therefore, this platform avails a diversified access to digital currency and arbitrage.

Huobi Limitations

  • According to the terms of use of Huobi.Pro there are no applicable limits to the 24-hour operation of the system.
  • The Chinese-based platform has most aspects on its website in Chinese but users outside China can be able to register and trade.

Verification

  • The platform has a verification process that is more demanding than average platforms.
  • After registration as a user and submission of all the required information, the email of the user is verified. After which the user’s real name is also verified.
  • It is significant for a perfect match between the username and the name of the bank account the user wants to link his Huobi account to, more especially to foreigners. It is a requirement for transfers to be completed between the two accounts.
  • After verification of the name, there is verification of nationality. You select a country of residence from the drop-down menu provided. Foreigners automatically select a passport. Chinese residents can either provide; a passport, Chinese identification card, social insurance number, military officer certificate or a mainland driving license.
  • A selfie with the government document is taken and a picture depicting three deposit transactions is also taken.
  • Mobile verification is the last process for verification.

Currencies accepted by Huobi

  • The platform accepts two fiat currencies; the US dollar (USD) and Chinese Yuan (CNY).
  • They also accept two cryptocurrencies; Litecoin (LTC) and Bitcoin (BTC)
  • For exchange, Huobi offers more than 100 altcoins trading pairs.

Houbi Fees Schedule

The platform has the following fee schedule;

For trading in the US dollar;

  • The marker charge is 0.1% of the traded amount. The taker fee is calculated in 30-day periods as shown below;
  • 50 BTC and less- 0.2%
  • Over 50 BTC – 0.18%
  • Over 200 BTC- 0.16%
  • Over 600 BTC- 0.14%
  • Over 1500 BTC – 0.12%
  • Over 5000 BTC – 0.10%
  • Over 10000 BTC – 0.08%

Trading transactions in the Chinese yuan are charged a fixed fee if 0.2%

  • Deposits made in the Chinese yuan are free.

Deposits in the US dollar are charged as follows;

  • One percent of the amount is charged on international wire transfers with a minimum withdrawal fee of 33 dollars
  • For OKPAY- 0.5% of the amount

Withdrawals in the Chinese Yuan are fixed depending on the levels. The levels are reached through the gathering of specific points gained through trading.

  • VIP0 0 points – 0.50%
  • VIP 1 10000 points – 0.45%
  • VIP 2 100000 points- 0.40%
  • VIP 3 300000 points-0.38%
  • VIP 4 500000 points-0.35%
  • VIP 5 1000000 points-0.30%
  • VIP 6 paid service -0.30%

Withdrawal of the digital currencies is charged 0.001 LTC and 0.0001 BTC.

Huobi Special features

  • Fewer costs incurred when trading the digital assets
  • It gives you an opportunity to capitalize and trade in virtual assets
  • Provides a platform for superior arbitrage which reduces the cost of funding, increases the efficiency of fund usage and shortens the time of transactions.

Is Huobi safe?

Community trust

Most potential users are usually concerned about the security of the exchange platform. The platform has taken time to invest in security and has been approved by numerous third-party. The least rating the Huobi exchange platform has received from third-parties is a 2.8-star rating; this is slightly above average. Other third-party communities have as well given it a 4-star rating which shouldn’t be such a surprise. Behind the mixed review of the platform is a hacking which once took place but fortunately enough, no funds were reported missing. However, some users are dissatisfied with how the platform is handling business. Some reports indicate that Huobi deducted money from user’s accounts to cover their employee’s errors. Other users have criticized the platform for breaking Chinese laws.

Security

The platform offers two-factor authentication, SMS and email notifications and PGP encryption for the mail. Over 98% of the assets of their users are stored in a cold storage wallet with a multi-signature. Huobi’s wallets are monitored 24 hours a day, seven days a week by the staff who are then able to immediately respond to a breach. There have been hacking cases in the past but no funds were accessed.

Customer support

Staff is available 24/7 to serve customers, therefore, requests are received and promptly acted upon. They are overly satisfied with how Huobi is handling their affairs. The typical response time offered by Huobi is approximately between 2 and 3 hours.

Handling speeds

The platform is enhancing the user’s trading speed through means such as eliminating unnecessary querying of data such as the amount of

How to use Huobi?

The user interface looks simple and easy to use. The website is mostly in Chinese but some of it is translated in part to English.

  1. To use Huobi, you have to first sign up with the platform. You can sign up either via email or phone after which you will be required to set up a 2-factor authentication for your account.
  2. After signing up, you will be required to verify your ID so as to begin transacting on the platform.
  3. To exchange a given pair of cryptocurrencies on Huobi, you will have to click ‘exchange’ and choose your pair. For example, BTC/ETH pair. After clicking on the pair, you will be directed to the exchange page of your chosen pair.
  4. You will then choose your limit/market order. A limit order is an order indicating a specified price that you would want to buy or sell a given cryptocurrency. A market order, on the other hand, is an order in which buying or selling is immediately executed at the current market prices.
  5. Before you begin trading/ exchanging given pairs of cryptocurrencies, you will have to deposit coins into the Huobi exchange platform.
  6. The deposit is made by clicking on ‘balances’ and choosing the currency you want to deposit. Taking Bitcoin as an example, once you click on deposit, you will be able to check your Bitcoin withdrawal address where you will send the Bitcoins.
  7. You will have to always send the same type of coins to a particular address, in our instance, Bitcoins, taking it as our example. Depositing different coins in the address means losing them permanently.
  8. After depositing your coins in the given address (which doesn’t change unless otherwise notified), the deposit will have to be confirmed by all nodes which can take between 10-60 minutes depending on the type of coin you are depositing.

Huobi over the counter (OTC)

  • Huobi Pro has recently launched an over the counter (OTC) platform.
  • At the website, users from various countries are able to exchange their local fiat currency to digital currencies such as bitcoin.
  • The site makes it possible for a user to post an advertisement where they state the rate of exchange and methods of payment for buying or selling cryptocurrencies. Another user will reply to the posted advertisement and agree to physically meet the person to exchange the cryptocurrencies with cash or can choose to trade via online banking, WeChat or Alipay.
  • The digital currencies are available in the online wallet present on the web to facilitate direct payment of purchases of digital coins.
  • The Huobi pro website enables you as a user to communicate directly with the other party of the transaction. This makes the process very lean and quick due to the elimination of corporate head.
  • The huobi.pro platform supports all payment methods supported by the user’s trading community.
  • Every transaction is provided transaction service or escrow, by the Huobi website for ensuring the protection of the buyers of cryptocurrencies.

Huobi Review summary

This Chinese digital exchange platform is, for sure, a great crypto-exchange platform that all users should consider especially those geographically located in Asia. It is, without doubt, a platform with an incredible set of features and tools that a user especially Asian traders cannot overlook. The main disadvantage is its limit to traders outside China and much content on their website being in Chinese. With the move to introduce decentralized platforms to other areas of the globe, it is soon going to be possible to access Huobi services from anywhere in the world.

Pros

  • There are no fees for the Chinese traders.
  • Has a 24/7 mobile supported interface.
  • Extremely high liquidity.

Cons

  • Most information is provided in Chinese with little of it being in English.
  • There is the possibility of the ability to fake trading volumes.

Thanks for reading this Huobi review. Check out our website for more guides, reviews, and articles about everything crypto.

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