There is a bucketful of exchanges promising its users a plethora of features and advantages. One of the largest and most effective amongst them is Huobi.
Huobi Exchange: An Overview
With the rapid advancements in Cryptocurrency trading platforms, finding one with the requisite capabilities is always a challenging task. But, Huobi, the digital asset exchange, has become the most significant Bitcoin and Ethereum trading platform. It offers extensive portfolio options and functions and has earned massive respect for its extraordinary services.
Types of Order and Markets
There are many types of orders on the Huobi spot trading market. Each of them has different functionality. Let us look at them:
- Limit Order: It allows the user to place an order at a specific or better price. They are not instant orders as the exchange places them in an order book, and once the decided price has been reached, the order gets triggered. As a result, the trader becomes the market maker and does not have to pay any fees.
- Market Order: This allows the user to buy or sell an asset at the best available current price. The trade generally gets completed close to the initial price, and it is almost instantaneous. In the case of smaller tokens, there is a price difference based on the lack of liquidity. The trader, in this case, becomes the market taker and has to pay fees for the said trade. Market orders are instant trades and do not make it to the order books.
- Stop Limit Order: This order has a stop price and a limit price. The stop price triggers the limit price. Hence, when the price reaches the specific stop price, the exchange places the limit order instantly in the order book on Huobi. The Stop-limit order combines the stop-loss order and the limit order, thereby giving traders a comfortable position to gauge their profit or loss levels and decide on their trading strategy.
- Trigger Order: This is a preset order that assists traders automate the token entries and exits. In this type, the trader’s order price gets automatically placed once the price reaches the trigger price.
- Post-Only Order: This order is for placing only maker orders. They are not immediately executable, and they never take liquidity from the market.
- FoK Order: This requires the fulfilling of orders entirely; otherwise, the entire order will be canceled.
The following are trading markets that Huobi offers:
- Spot Exchange: This is the market where the trader can trade assets with others in real-time. Transactions are settled immediately and hence the name “Spot Exchange.”
- Margin Exchange: In margin trading, traders can use their capital as collateral to borrow funds to open a position. At Huobi, the leverage for a particular mode is fixed. Choose a mode and place an order. Huobi will provide the required funds to open a position.
- Futures Market: This is a kind of digital currency derivatives. Traders will profit from the rise and fall of digital currencies by either going long or selling short based on how they perceive the market is going to act. Personal judgment is paramount here.
- Options: Huobi Options is a European Option. That would mean it can be exercised only at a specified time on the expiration date. When the Options expire, the arithmetic average of the index prices aggregating in the last hour will be used as the delivery price.
- USDT-Swaps: This is also a kind of digital asset derivative. It is similar to a margin spot market. The price is denominated in USDT and is close to the index price of the underlying asset.
Is Verification Required – Verification Levels & Fees
There is a verification process, which individuals will be able to buy or sell crypto using fiat currencies such as USD, EUR, and KRW. This process includes completing the KYC stage. The verification process takes approximately a few minutes and is completed once a government-backed ID document is uploaded and photographs scanned. However, if there is heavy traffic, the verification, manually done by the Huobi team, may take up to 7 business days. Those who wish to transfer 10000 EUR per month and almost 100000 EUR per year would require a level 2 verification.
Huobi Security Features
Huobi follows a strict protocol whilst separating the user’s digital assets in cold and hot wallets.
- Asset Storage: As per its website, 98% of the cryptocurrencies are stored in offline multi-signature cold wallets. The exchange has also implemented a Huobi Security Reserve with a total amount of 20000 BTC to offset any loss arising out of illegal hacking. This is kept in different wallets to prevent unwanted entry.
- Enhancement of Security: Through features such as two-factor authentication, SMS and email notifications, and PGP encryption, users can enhance their account security.
- Security Reserve Mechanism: For any asset loss that is not caused by users, Huobi.Pro will prioritizes compensating the users with money from The Safety Provisions.
Huobi Pros and Cons
Following are the pros and cons of the Huobi cryptocurrency exchange –
- Sophisticated yet user-friendly interface
- High level of security
- Leveraged and Margin trading
- Low Transaction fee
- Deposit and withdrawal of fiats not supported
- Lengthy account registration
- Low withdrawal limits
- Margin has low leverage
This Seychelles-based Cryptocurrency Exchange has been in business since 2013 and has an impressive track record. As a pioneer in the cryptocurrency community since 2013, Huobi has garnered a large following of users owing to its 24/7 customer support, user-friendly interface, and opportunity to earn crypto interest on a wide variety of products. Huobi is also pertinent about the safety and security of the platform. Coupled with beginner-friendly interfaces and a mobile app that is a delight to operate, Huobi is indeed a credible Crypto exchange to do business with.