What is Huobi Token? Everything to Know About Huobi Exchange
The Huobi token is the native token of the Huobi exchange that is used to trade different assets within the exchange. It also provides several other benefits like trading fees and margin discounts and access to different global events.
Huobi Global burns a certain amount of Huobi tokens every quarter after purchasing them from the open market. Thus, they maintain a balance between the supply and demand of Huobi tokens. Huobi Token was officially launched in 2018 and it ranks among the top 100 cryptocurrencies in terms of market cap.
What is Huobi?
Huobi is one of the largest cryptocurrencies in terms of trading volume. The exchange was initially designed for the Chinese market but was later expanded globally. However, the exchange isn’t available in a few countries including Japan and the United States.
It has more than 400 cryptocurrencies listed on its network and offers more than 900 trading pairs. Huobi is one of the oldest cryptocurrency exchanges as it was launched in 2013.
Thus, it has a great reputation in the crypto community. Huobi Global’s headquarters were located in China since 2013 but the company moved to Singapore in 2017 after China’s crackdown on crypto exchanges.
Huobi Global’s teams are currently working in different countries including the United Kingdom, Brazil, Canada, South Korea, Australia, and Hong Kong.
Huobi Exchange doesn’t only offer trading tools but also enables users to store cryptocurrencies and earn through different resources. The best part is that the users can directly purchase cryptocurrencies on this exchange with 57+ fiat currencies.
Huobi Brief History
Huobi was launched by Leon Li, a former computer engineer at Oracle, in September 2013. Li also had plenty of experience in the traditional fintech industry. As it’s mentioned above, Huobi’s Headquarters were moved from China to Singapore due to the Chinese government’s ban on cryptocurrency exchanges.
Huobi token was launched in January 2018 and the company hit an overall trading volume of $1 trillion in April 2018. Huobi Global purchased Bittrade, a Japanese crypto exchange, in September 2018 to expand its services to the Japanese market.
What Makes Huobi Unique?
Huobi offers a number of unique features that aren’t available on most crypto exchanges.
Competitive Trading Fees
Huobi charges around 0.2% of the total trading volume for buy and sell orders. Other popular exchanges like Gemini and Coinbase charge 0.25% and 0.5% respectively. Huobi even provides discounts to the users who pay fees in the Huobi tokens.
Huobi Global buys back 20% of the Huobi token from the open market. Some of these tokens are burnt to maintain a balance between supply and demand while the rest are stored in a user protection fund so that the company may distribute them among its token holders in case of a hack.
The traders can use two different versions of Huobi exchange depending on their trading experience. Huobi OTC is mainly designed for beginner traders and has only six cryptocurrencies listed that can be traded for 25 fiat currencies. The traders can even get a discount on trading fees if they trade in BTC, ETH, and USDT.
The experienced traders can choose Huobi Pro which offers 400+ cryptocurrencies with a range of advanced trading tools. This version has a trading fee of 0.2% for most transactions.
Huobi users can earn interest on their crypto assets by locking them in the Huobi Earn. The users can either choose to earn interest on a daily basis or they can lock their crypto tokens for a period of 30/60/90 days. The users can retrieve their tokens before the completion of the agreed period. But they won’t get the interest if they unlocked the coins before time.
How Does Huobi Works?
Huobi works like any other crypto exchange where users can buy and sell cryptocurrencies. Spot trading is the most common feature of the exchange where users can place buy limit, sell limit, OCO, market, and other types of orders. The users can also access the future trading tab to open short positions.
They can also use the leverage of up to 125x in futures and margin trading. Huobi has introduced its own stablecoin known as HUSD. So, whenever someone transfers one of the four stablecoins (US Dollar Coin, True USD, Gemini Dollars, and Paxos Standard), the amount is automatically converted into HUSD.
And when the users want to withdraw their amount, they can simply convert HUSD into any of the four stablecoins with a 1:1 ratio. It helps with saving the conversion Cost.
Is Huobi Safe?
Huobi offers a number of security features to protect the investors’ funds. The exchange has also stored a significant amount of BTC that can be used to compensate the clients who lost their funds due to a security breach. Huobi also protects its network from DDoS attacks.
Two-factor Authentication (2FA) – Users can connect their account to Google Authenticator to avoid security threats.
Cold Storage – Unlike most crypto exchanges, Huobi keeps the crypto assets of its users in offline cold storage wallets. It means the hackers need to cross multiple layers to get there. Still, they won’t be able to steal the funds because offline wallets need multiple signatures.
Account Freeze – The users immediately receive an email if their account is opened on a new device. They can use the account freeze option to protect their account from fraudulent activities.
Bitcoin Reserve – Huobi has 20,000 BTC tokens in its reserve that will be used to compensate the users in case of a security breach.
Huobi is one of the largest cryptocurrency exchanges operating globally. Huobi offers a number of trading features with very low trading fees. The users can get a discount on trading by paying for Huobi tokens. Huobi has a strong security system that protects the funds of investors in different conditions.
Feel free to contact us if you need more information about the Huobi exchange.