What is Huobi Exchange? A detailed review and guide on how to use the Huobi exchange.

What is Huobi Exchange? It is a cryptocurrency exchange platform that ranks among the top crypto exchanges in the world. Let’s take a deeper dive into the concept of Huobi Global, what country Huobi is from, how to register and complete KYC on Huobi, whether it takes a long time or not, and whether Huobi is a scam or trustworthy. Finally, we will compare Huobi and Binance. All of these questions will be answered in today’s article. Let’s get started!

1. WHAT IS HUOBI EXCHANGE?

Huobi Global, or Huobi Exchange, is a cryptocurrency exchange headquartered in Seychelles. As of now, Huobi is one of the top 10 largest exchanges in the world, offering more than 400 types of cryptocurrencies for trading, including major digital currencies like BTC, ETH, and more.

The mission set at its inception was to create breakthroughs in blockchain technology, integrating blockchain technology into other industries. Over time, the goal has expanded to include public chains, digital asset trading, mining groups, and research into other potential digital assets through investments in blockchain industry companies and projects.

The operating mechanism of Huobi Global is similar to other cryptocurrency exchanges. Investors and traders can use Huobi to trade cryptocurrencies, use Huobi features to earn money, etc.

1.1. History of Huobi Global’s Establishment

Huobi was founded in September 2013 by Leon Li. Initially, the target market was China, but Huobi Global later expanded to over 130 territories and countries. The exchange is one of the oldest cryptocurrency exchanges, especially in Asia.

At the end of 2017, after China issued policies banning cryptocurrency exchanges, Huobi moved its headquarters to Singapore. This led many people to misunderstand that Huobi was banning China, but this was not the case. By early 2018, Huobi officially launched the Huobi Token (HT), and just three months later, the exchange’s trading volume hit 1 trillion USD. In September 2018, Huobi Global acquired the Bittrade exchange, and by the end of the year, it launched its derivatives market. Huobi Global continues to be one of the largest cryptocurrency exchanges in terms of market capitalization.

1.2. What is Huobi Token (HT)?

As mentioned earlier, in January 2018, Huobi Global officially launched the Huobi Token (HT), with a total supply of 500 million HT. Of this amount, 300 million tokens were allocated to users who purchased the Huobi Point Card in Huobi Pro. The remaining 200 million HT tokens were split into two categories: 100 million tokens for user rewards and 100 million tokens for promotional activities.

The issuance of the HT token by Huobi Global served as a recovery strategy after the cryptocurrency trading bans imposed by China, which led to the suspension of many exchanges like Huobi. Traders can use HT tokens to reduce trading costs on the Huobi platform. When trading pairs that include HT tokens, the transaction fees are lower. This serves as an attractive policy for traders with large trading volumes on a daily basis. Users holding HT tokens also enjoy exclusive benefits within the Huobi Global ecosystem, such as priority access to Huobi Primelist events (holding at least 300 HT tokens), and the ability to vote on which tokens will be listed on the platform.

1.3. Huobi Transaction Fees

The transaction fees on Huobi are one of the key factors that traders consider. The fees are calculated differently for takers and makers. Takers are market participants who place limit or stop orders, which are then included in the order book:

• Opening a Position: 0.02% for makers and 0.05% for takers.
• Closing a Position: 0.02% for makers and 0.05% for takers.

Withdrawal fees vary depending on the cryptocurrency being withdrawn. For example, the withdrawal fee for BTC can be up to 0.0001 BTC. Huobi’s transaction and withdrawal fees are considered to be lower than the average fees within the cryptocurrency industry and compared to other crypto exchanges.

2. HOW TO USE HUOBI EXCHANGE

Using Huobi is relatively simple, as the platform supports multiple languages, including Vietnamese. If you’re not proficient in English, you can change the language to make the process more comfortable.

2.1. How to Register an Account and Complete KYC on Huobi

First, visit the Huobi homepage here. Click on the “Sign Up” button located at the top right corner of the screen. You will also find a globe icon next to it, where you can change the language setting on Huobi.

To register for a Huobi account, you can use either your phone number or email address. After creating a password and entering your email or phone number, click “Sign Up” to complete the registration. Please note that the password must be at least 8 characters long and cannot consist of only numbers.

Next, check your email or phone for the verification code, enter it, and complete the registration process.

After successfully registering and entering the verification code, your account will automatically be credited with 20 points in the Huobi Point Card. These points can be used to reduce transaction fees when trading on Huobi.

To increase the limits for using other services and features on Huobi, you will need to provide certain information for account verification. This process is called the Huobi KYC verification. To start, go to your account -> Identification:

Continue by clicking on “Verify” -> Choose the type of personal document that you can upload to complete the KYC process on Huobi.

Once you upload the photo, the system will verify it, and if successful, you will need to scan your face to complete the process. The KYC process on Huobi may take anywhere from a few minutes to up to 24 hours.

2.2. How to Deposit and Withdraw on Huobi

Even if your KYC process on Huobi hasn’t been completed, you can still deposit and withdraw tokens, but there will be limits. The limits for each verification step differ. Please refer to the table below for more details:

You can deposit funds through a credit card or via P2P trading on Huobi. On the homepage, go to the “Buy Crypto” section -> Choose “Quick Buy/Sell (Huobi OTC)” or “P2P Market.”

Enter the amount in VND or USDT you wish to trade -> Click “Buy USDT.” The process for withdrawing funds from Huobi is similar. Note, this method is for depositing and withdrawing funds in VND to buy/sell tokens on the platform. To transfer coins from one exchange to another, such as transferring coins from Huobi to Binance or vice versa, go to the “Balance” section, which is your Huobi wallet -> Select “Exchange Account.”

When you are in the Huobi wallet interface, if you want to transfer cryptocurrency in or out, scroll down to the “Cryptocurrency” section.

– If you want to transfer within the Huobi wallet, select “Transfer.”

– If you want to transfer tokens to wallets on other exchanges, for example, transferring coins from Huobi to Binance, select “Withdraw” -> Enter the Binance wallet address in the “Address” field.

– Conversely, if you want to receive tokens by transferring coins from Binance to Huobi, click “Deposit” -> Copy the address or send the QR code to the sender for them to send the coins to you.

When transferring coins from one exchange to another, the transfer fee is usually around 1 USDT. The process of transferring from one Huobi wallet to another Huobi wallet is similar.

2.3. Guide to P2P Trading on Huobi

Since not everyone has a credit card, the most popular method for deposits and withdrawals on Huobi is through P2P trading on the Huobi Market. You can go to the “Buy Crypto” section as mentioned earlier, but instead of selecting Huobi OTC, switch to the “P2P Market” tab.

Huobi P2P also provides a tutorial video on how to trade P2P on Huobi. You can click on “Learn How to Trade on P2P” for guidance.

First, select the token you want to purchase. Typically, you would choose USDT as most transactions on Huobi use USDT as an intermediary exchange. Look through the list of sellers and choose one that fits your criteria. Each seller will have different minimum purchase/sale limits and exchange rates.

Enter the amount you want to buy, then click “Confirm.” Obtain the bank account details provided by the seller, transfer the money, and once completed, take a screenshot of the transfer and send it to the seller. Finally, click the “Confirm” button to verify the payment has been made.

After the seller confirms the token transfer, you will receive a notification via email, or you can check your Huobi Fiat Wallet. If you see the token in your wallet, click “Complete Order.”

Note: Do not click “Complete Order” until you have received the token. Do not engage in transactions with sellers outside of the Huobi platform. If you don’t receive the token within the specified time, contact the seller through the chat function or reach out to Huobi’s support team.

2.4. How to Trade Margin on Huobi

Margin trading on Huobi, or on any cryptocurrency exchange, is highly appealing to traders looking to maximize their potential returns by borrowing funds to trade larger positions than their account balance allows.

On the homepage, click on “Spot Trading” -> “Margin.” If it’s your first time trading with Margin on Huobi, the platform will display a risk warning. Leverage tools carry significant risks, which could cause you to lose your entire account balance in a very short time. This risk is even greater in the highly volatile cryptocurrency market, as has been frequently warned about in Forex’s Forex articles.

The first step is to select the cryptocurrency you want to trade from the left-hand panel. In the middle, you’ll see the chart, and on the right side, there’s the order book and the list of executed market orders. Margin trading allows you to borrow funds to trade with a larger position than your current Huobi wallet balance.

You will see two types of margin trading on Huobi: Cross and Isolated. The main difference between these two types is that Cross Margin uses the entire balance of your Huobi wallet to open positions, while Isolated Margin only uses a fixed amount of collateral. Therefore, new traders are often advised to use Isolated Margin on Huobi, while Cross Margin is typically used by institutions or experienced traders to reduce the risk of position liquidation.

To execute a margin trade on Huobi, you need to transfer tokens from your trading wallet to your Margin Account, as previously explained in the section on how to deposit and withdraw on Huobi, or simply click on “Transfer” to make the transfer.

To borrow tokens on Huobi, go to the “Loan” section. Afterward, you can repay the loan in the “Repay” section. To borrow tokens on the platform, you need to have a certain amount of collateral, and the interest rate will depend on the borrowing period.

2.5. What is Huobi Prime List? How to Participate in Huobi Primelist?

The Prime List is an IEO program on the Huobi exchange. Many people also wonder what Huobi Prime is and whether it’s the same as Primelist. Huobi Prime or Prime Pool is an event similar to the former Primelist, but Huobi Primelist is considered an improvement over Huobi Prime. This distinction was mentioned in our previous article “What is IEO?” on TradaFX. If you’re not familiar with this concept, you can read our previous post for more details.

Huobi Primelist always attracts many investors from around the world to participate. Investors who meet the requirements will be placed in a waiting queue, and if lucky, they will be able to buy tokens equivalent to 50 USDT that were previously locked. In addition, if 300 HT is maintained in the Huobi wallet during the specified period, they will be placed in a priority waiting queue and allocated tokens depending on the number of tokens allowed, which may be less than 50 USDT.

3. EVALUATING HUOBI GLOBAL EXCHANGE

With the cryptocurrency exchanges researched, users will generally have concerns about whether Huobi is a scam or if it is a reliable exchange. Let’s explore in the Huobi review below.

3.1. Is Huobi a reliable exchange?

First, traders can protect their accounts by enabling two-factor authentication through Google Authentication or receiving a code via phone. Google Authenticator is more commonly used.

You can go to the App Store or Google Play to download the Google Authenticator app. Additionally, many people want to use Huobi on their phones and ask what the Huobi app is. You can search for “Huobi” on both the App Store or Google Play and download the Huobi app for free.

Returning to the topic of security, for an exchange like Huobi Pro, it is built on an advanced distributed system architecture, with 98% of customer assets stored in multi-signature cold wallets. To date, there have been no recorded instances of security breaches. Huobi is considered to meet the highest standards of cryptocurrency exchanges and financial market trading platforms.

3.2. Comparing Huobi and Binance

Naturally, it is common for users to compare Huobi and Binance. In terms of market capitalization, Binance is still the largest cryptocurrency exchange by market cap and leads the top exchanges by 24-hour trading volume.

When it comes to the number of cryptocurrencies supported, Binance has a higher number of cryptocurrencies available for trading compared to Huobi Global.

However, one advantage that Huobi is rated higher for when comparing Huobi and Binance is that Huobi Global does not have a minimum transaction value limit, whereas Binance has a minimum transaction value of $10. Additionally, Huobi also supports automatic trading, a feature that Binance does not yet offer.

4. CONCLUSION

From the information provided in this article about what Huobi is, you should now have a better understanding of this cryptocurrency exchange, how to register on Huobi, how to use Huobi, what Huobi Coin is, and other features of Huobi OTC.

And no matter which exchange you choose after reading the comparison between Huobi and Binance, you must remember that the cryptocurrency market is much more volatile compared to other financial markets, so the risks you take are also higher. Therefore, it is essential to manage risks appropriately.