- No deposit and trading fees are charged by Cobinhood
- Modern trading platform with useful charting and analytical tools
- Adequate security of platform, website and cryptocurrencies is ensured
- No phone support, office address or evidence of regulation
- Users complain of high withdrawal fees
Cobinhood is a cryptocurrency trading exchange that prides itself as the first zero-fees cryptocurrency exchange in the world. It began operations in 2017 and provides 100% reserve. Cobinhood has opted to disclose all online and offline wallet address for public audit, in a bid to improve its online reputation in an unregulated crypto market. Cobinhood has an Initial Coin Offering (ICO) underwriting service. This allows tokens to be traded on their platform immediately after an ICO. The website is available in 11 languages including English, Spanish, French, Italian, Dutch, Portuguese, Russian, Turkish, Vietnamese and Chinese. The company is based in Taiwan and the United States, and is headed by Popo Chen as CEO. Indeed, the company was founded by Popo Chen and Wel-Ning Huang. Tony Scott serves as company advisor. Let us take a detailed look into their operation so that we can ascertain a bit more about this company and the principle behind its zero-fees policy.
Cobinhood does not provide a personalized wallet to store each coin. An address is provided when a user needs to make a deposit. Although the company has stated that fiat currencies will be accepted as deposits, that feature is not yet available. So, deposits still require cryptos procured externally, before being deposited into the address provided by Cobinhood. The trading platform provided by Cobinhood is modern, fast and full of features that aid traders at all levels. The platform has an exchange tab that has all the necessary info needed. It features a graph showing the prices of the cryptocurrency pairs. Other features are: the trade history, order book, trade form, etc. There are four order types: market orders, limit orders, stop order and stop-limit orders. You can also view the trade history. A live price chart, several indicators, depth chart and other useful tools are incorporated in the trading platform. The execution time is very fast. This trading platform is available on android and iPhone which is downloadable from the respective stores.
Cobinhood is basically a cryptocurrency exchange. Before trading can commence, a cryptocurrency deposit will have to be made. Such cryptos must be sourced elsewhere. Then, the trading is done by exchanging a token for another using the pairings of the two tokens involved. About 100 cryptocurrency pairs are available for trading. Margin trading is available up to a maximum of 1:10. Cobinhood has its own cryptocurrency known with the symbol COB.
Fees and Commissions
Cobinhood keeps priding itself as the “zero fees exchange”. So, no deposit fees and trading fees are charged to clients. However, they explain that there must be a withdrawal fee because the money goes to the different miners who maintain the networks of these currencies. They insist that they make no money from the withdrawals.
One can’t help wondering how they make money to keep the firm running. But, their explanation is that their profit comes from underwriting services for ICO projects.
Security and fairness
Cobinhood asserts that the cryptocurrency assets deposited with them are secured. They achieve that by ensuring a number of security measures. They state that “the assets are stored offline in a multisig vault, which requires 5 out of 8 geo-distributed hardware security modules to open”. They also assert that the cryptocurrency assets stored in their online wallets are backed by insurance. These steps are necessary because hackers often target cryptocurrency exchanges and often steal assets worth millions of dollars. Cobinhood also performs email confirmation, KYC verification and “Two Factor Authentication” (2FA). KYC is done by uploading a valid identity card, driving license or an international passport. 2FA sends a code to the phone of the user anytime login or other sensitive action is initiated. The code expires after 30 seconds. The website and trading platform is secured with the modern security softwares to make sure that the data transmitted over the internet is encrypted.
Cobinhood is designed to be fair to clients in a number of ways: by eliminating deposit and trading fees, providing a top notch trading platform and ensuring adequate security of user assets.
There is an online form for website visitors or anybody that desires more information. The response will come through email. The website has a comprehensive “Frequently Asked Questions” (FAQs) section. The FAQ is grouped according to topics. There are tutorials on how to perform important actions like registration, authentication, deposits, etc. An email address is provided for email support. A Cobinhood community in form of a forum is available. There are many questions and answers provided by the support team as well as other experienced users. Social media support is equally available through Facebook, Twitter, Telegram, Reddit, Google+, LinkedIn and Medium.
Cobinhood is a new cryptocurrency exchange firm that has a bright future. The founders are young entrepreneurs with a vision to revolutionize the cryptocurrency world. They provide a state-of-the-art trading platform that has a large number of currency pairs. They also have their own COB tokens. They provide standard security procedures and store the cryptocurrencies offline to avoid any mistakes. They charge no trading fees and no deposit fees.
However, they are not regulated and phone support is also not available. Many users complain that their customer support is very slow. This may be due to the large number of users that turned to them within a few months of operation. Overall, Cobinhood seems like a good broker that is worth giving a trial.
These are some common questions that customers asked about Cobinhood.
Is Cobinhood regulated?
No, they are a new cryptocurrency exchange firm and not regulated as a broker.
Is Cobinhood a scam?
No, there are no reports or evidence that shows that they are scammers, despite not being regulated.
Where is Cobinhood based?
It is believed that they are based in Taiwan and the United States. This is because the founders and key officers are from these countries. However, there is no public information as to the locations of their offices.