A Beginner’s Guide To Trading Cryptocurrency On Cobinhood
Even though the cryptocurrency market is revolutionary, there’s always some room for change, and with innovation, there’s so much to look forward to. This is exactly what Cobinhood is offering. Cobinhood is an exchange like no other. It’s a free market exchange where users are not charged anything for trading. This is the ultimate Robinhood as far as financial markets are concerned.
Zero-fee trading is, of course, not something new to the financial market. We already have Robinhood in the market, an exchange where traditional financial trading instruments can be exchanged without paying a fee. This is the same model that Cobinhood is based on. However, unlike Robinhood that’s limited to traders within the US, Cobinhood targets a wider audience, the global market.
In the final quarter of 2017, Cobinhood launched the COB, their crypto coin through an ICO. Currently, they only offer exchanges from one crypto to another. However, there are plans in the future to introduce exchange between crypto and fiat currencies. There’s a lot riding on this, and in light of government regulations, if it comes to pass, it might be quite a revolutionary innovation.
With more than 13,000 new accounts created on the first day of operation and many others joining soon after, Cobinhood has been a hit so far, and the team hopes to build on this as they delve into the future.
How Does It Work?
The Cobinhood coin COB is an Ethereum standard coin, ERC20. Once you buy these coins, you can either store them on the Cobinhood exchange or in an Ethereum wallet.
- The following are some reasons why you should consider owning Cobinhood tokens:
- Payments made in COB attract a 50% fee waiver
- You get 50% off your trading loan interest
- Tokens are affordable for COB holders if Cobinhood underwrites them
- Withdrawal fee tokens are frequently burned
- You can use COB tokens to participate in trading contests
- You can use the tokens when receiving airdrops
Why trade on the Cobinhood exchange?
The following are some reasons why:
- All their crypto assets are insured
- They use multi-signature wallets and hardware security modules for offline transactions
- Online transactions use two-factor authentication and email confirmations
- Transparency for offline and online wallets
- Incredible order matching engine
- Decentralized exchange
- 24/7 customer service
- Zero trading fee
- A unique variety of trading pairs, including ETH, BTC, and COB
Comparing Cobinhood with Other Exchange Tokens
The benefits of using the COB are almost similar to the other tokens used in common exchanges, such as the Kucoin Shares’ KCS and Binance’ BNB. The concept behind this is to generate demand for the COB tokens in the long run over the rest of the other crypto by offering attractive benefits.
This is a strategy that has been used effectively in the past by Binance, with incessant demand for their tokens. Cobinhood is riding on the same concept, and so far, the demand for the COB has been commendable.
Account Signup and Verification
Account creation is simple and straightforward.
Simply follow the steps below:
Go to the homepage and click on Create Account
Fill all the details in the form provided
Read the terms and conditions and click ‘agree.’
Bypass the verification process
Click on Sign Up
You will receive an email notification from Cobinhood. Click on Activate Account.
You should get a notification email confirming your account. With that, you are ready to go. Next, you need to verify the account.
First, go to Accounts and Limits. You can see the different requirements for Level 1 and Level 2 verification, and the daily limits. For crypto deposits, Cobinhood has no limits. You can, however, only withdraw up to 3 BTC for Level 1, and 100 BTC for Level 2.
Verification for Level 1 withdrawal is automatic. You only need your email and password. On the other hand, for Level 2 verification, you must provide your credentials like your passport number, citizenship, current residency, identification, and you have to upload a selfie with your FATCA, ID and phone number.
The withdrawal limits on Cobinhood are set in place to protect your funds. You may want to remember this, especially when you have plans to invest a huge amount in Cobinhood. To upgrade the limits, you have to provide additional verification in line with the anti-money laundering (AML) and know your customer (KYC) practices that have been introduced in the industry at the moment.
User Interface and Experience
The trading interface on Cobinhood is intuitive and slick, and you have all the tools needed to trade in crypto. You also have a charting package complete with an order form, order book, trade history and coin balance.
There are several cryptocurrencies already being traded on this exchange, including the major ones and some new small tokens, which you can trade against the likes of Ethereum, Bitcoin, and COB.
Cryptocurrency global phenomenon and on this note, the Cobinhood platform supports multiple languages, including Portuguese, Dutch, Korean, Italian, French, Spanish, German, English, Turkish, Russian, Vietnamese, Simplified and Traditional Chinese.
You can trade on Cobinhood through the web interface or through your mobile phone since it supports both iOS and Android platforms. To make trading easier for everyone, there’s documentation available in a variety of topics that can be of help in case you need clarification on any issue. Cobinhood has a 24/7 support team ready to assist should you have any concerns. The support team will respond to your concerns in less than 24 hours.
Cobinhood was established in 2017 by Popo Chen and Wei-Ning Huang. The company is headquartered in Taipei, Taiwan. The primary advisor of the Cobinhood project is Tony Scott, a former US Federal Chief Information Officer.
The vision for Cobinhood is to become a zero-fee exchange where traders can realize maximum profits in the margin and spot trading markets.
Popo Chen, Founder
Chen is a serial entrepreneur. He holds a degree in Electrical Engineering and has co-founded a live streaming service targeting the Asian market, 17 Live Streaming. This service is similar to Periscope and has more than 5 million active users per day.
Wei-Ning Huang, Co-Founder
Huang has been an active participant in open-source technology for years and has backed several open-source projects. He was a software engineer for Google between 2014 and 2017, specializing in large-scale high throughput web applications. His 5-year experience in blockchain technology has been useful in supporting Cobinhood.
Tony Scott, Advisor
Between 2015 and 2017 Tony was working as a Federal Chief Information Officer for the US Government, during which he oversaw several blockchain projects, and made sure the government cybersecurity was impeccable. He’s also the man behind Tony Scott Group which provides advisory and consultancy services to the private and public sector.
Coin Supply and Fund Allocation
The Cobinhood whitepaper was recently pulled from the website. The whitepaper gives a description of the project and the economics behind it. However, representatives from Cobinhood have revealed in recent media posts that they are preparing an updated version of the whitepaper, after which it will be made available to the public once again.
During the ICO, investors poured in funds in excess of $13 million. The participants were offered 50% of the tokens, the Cobinhood team had 40% of the tokens, while the other 10% was offered to a private placement.
The funds that have been raised by Cobinhood were distributed as follows:
40% – Product Development
20% – Operation
20% – Marketing
10% – Auditing & Security Compliance
10% – Legal Affairs
According to credible reports, 1 billion COBs are currently listed in the CoinMarketCap. By the time of this publication, 36% of the COBs were in circulation.
The Cobinhood exchange was launched by the development team in December 2018, and for the first time, users were able to trade online. COB was launched trading at $0.33 and went as high as $1.50.
By the time of this publication, COB was trading at $0.033. There are several factors that are affecting the Cobinhood market at the moment. One of the challenges is that COB has not been well-established against the Asian competition. However, when a crypto bull run happens, it’s expected that a lot of traders might run to Cobinhood, attracted by the zero fee rates.
Where to Buy Cobinhood Coins?
The Cobinhood coins are traded on the official Cobinhood exchange. However, you can also find the coins available at alternative exchanges such as Mercatox and EtherDelta, but you will realize that the trade volume in these exchanges is very low. A lot of users barely ever consider trading on EtherDelta because it’s often seen as a complicated exchange. In case you are a new trader, the best option you have is the official Cobinhood exchange.
Where Can You Store Them?
Cobinhood is an ERC20 token. Since it’s built around the Ethereum blockchain, you are guaranteed a lot of support for this token. There are different options available in terms of storage. For more information, you can read the Ethereum storage guide. Some of the best options include Trezor and Ledger Nano S if you’re looking for hardware storage or Jaxx and Exodus in case you are looking for software wallets.
If you are the kind of trader who enjoys convenience, you can simply have the coins on the exchange to save on transfer fees, and you can create an external wallet. The good thing about external hardware wallets is that they offer security in the unlikely event that Cobinhood runs into custody challenges. Depending on how often you trade in crypto, you can choose between convenience and security.
In May 2018, the Cobinhood team announced that they were launching a decentralized trading platform, DEXON. Venture capital firm IDG Capital announced plans to invest in the DEXON launch, affecting the original timeline that had been proposed by Cobinhood at the launch of their ICO.
In light of these changes, there have been questions about the relationship between DEXON and COB, to which the team responded as follows:
Cobinhood shall be the exclusive ICO partner for DEXON. As a result, Cobinhood will offer ICO underwriting services, trading, and advisory services to DEXON.
Traders who hold COB stand to enjoy the following benefits upon the launch of DEXON:
Cheaper access to the ICO when DEXON launches
Will receive DEXON coins when they are available through airdrop. More details on how this will be done will be available close to the official launch
By the time of this publishing, the Cobinhood decentralized exchange was still under development. The team is yet to provide information about the completion date and when Cobinhood will be integrated into DEXON.
It’s also worth noting that from the moment DEXON goes live, there’s a very small chance that COB will be supported as an ERC20 token. It might, however, be validated on the DEXON blockchain.
At the moment, there’s a lot of competition driven by innovation and the need to meet cryptocurrency demand. As a result, a lot of people are trying to get a seat at the table in this market. Binance CEO reported profits more than $200 million during the 2nd quarter of 2018 alone. Considering that Binance started its operation in 2017, this is some serious amount.
This also explains why a lot of people are currently interested in the crypto industry. There’s a lot of room for new exchanges, especially as the crypto demand keeps growing. Cobinhood is simply offering services by creating a niche market and providing zero-fee services as an incentive. Traders love zero-fees. However, is this incentive good enough to keep them on the exchange for a long time, especially in light of the competition in the industry?
For an exchange to be good enough and sustainably so, it must be built around some factors. What Cobinhood strives to do is make up for the zero fees by getting a wide customer base and charging premium fees for things like ICO listings and advanced trading services. Whether this is sustainable and profitable, we will see shortly.