Cobinhood Crypto Exchange Review
Cryptocurrencies have grown significantly in popularity, aided by the success of Bitcoin. Bitcoin is the most well-known cryptocurrency and has seen massive gains in recent years. In 2011, one Bitcoin was worth $.30. Seven years later, one Bitcoin is worth over $7,990.00.
The explosion of the value of Bitcoin has not only increased awareness of cryptocurrency but made the cryptocurrency a valuable investment. Bitcoin’s success led to the creation of other cryptocurrencies, and individuals began viewing the coins as a tradable asset.
In 2017, Popo Chen, a prestigious entrepreneur who built several successful start-ups, launched Cobinhood after completing several rounds of funding. Cobinhood offers the world’s first free trading platform specifically for cryptocurrencies. It is free to create an account, and users are not charged any trading fees.
Additionally, Cobinhood securely stores user’s investments and cryptocurrency in an offline vault and backs the deposits in online wallets with insurance.
What Is Cryptocurrency?
Cryptocurrency is a digital form of currency that is unregulated. It operates outside of traditional central banks. The currency is created through blockchain technology and is created through “mining.” A blockchain allows coins to self-regulate and ensure one coin is never double-spent.
Mining entails solving a puzzle, and in bitcoin’s case, it essentially means guessing a randomized number or combination of numbers. Whoever solves the problem first earns one coin and generates one new coin. Equations get progressively more difficult to solve. This process prevents too many coins from entering the marketplace at one time, preventing inflation.
How to Open a Cobinhood Account
You can either set up an account online on Cobinhood’s website or sign up through their app (which is available for Apple and Android products). It is free to sign up and register, and there is no minimum deposit. They also offer a referral program, and if someone opens an account using your referral link, you can get up to 10 candy machine tickets, which are entered in a contest to win one bitcoin.
What Does Cobinhood Do?
The platform allows you to trade cryptocurrencies without transaction fees. You are not charged to open an account, deposit funds, or make trades. They also offer Initial Cryptocurrency Offerings (ICOs), which is when a new coin first launches (similar to IPOs on the stock exchange).
How to Trade on Cobinhood
When you log in to your account, the “Exchange Tab” shows detailed graphs of the current values of coins and provides all the information you need to decide what to trade. It will show the current price and the fluctuations in prices.
The “Trade” tab allows you to buy and sell coins and permits you to limit or stop a trade. If you click “Market,” you can choose to “Buy” or “Sell.” Simply chose “Select Product” when you are to pick the pair you want to trade.
Market vs. Limit
The Market option is best for quick trades, and you purchase the coin at the current market price. They are instantaneously executed and are final. Alternatively, the Limit function lets you input the minimum and maximum price you will pay for a coin and the order size. Cobinhood will display the total cost, and you can then buy or sell the order. Not all orders will be filled immediately, and the price can change as the market price fluctuates. You can also favorite trading pairs clicking the star next to them and can always view your favorites list by clicking “Select Product” from the drop-down menu.
The only fees charged by Cobinhood are for withdrawals, which vary depending on the coin traded. Cobinhood also receives 5% of all profits from ICOs.
If you are looking to invest in cryptocurrency, Cobinhood offers an excellent platform at extremely minimal costs. They also ensure users who store their coins in virtual wallets. They provide resources to research individual coins and already have over 5 million users. For novices and experts alike, Cobinhood provides the quickest, cheapest, and easiest way to invest in digital currency.