What is Huobi and how does its crypto exchange work?
Huobi was founded in China and is based in Seychelles. In terms of trading volume, Huobi has become one of the largest cryptocurrency exchanges. Originally marketed to Chinese investors, the company has grown to over 130 countries.
Founded in 2013, Huobi is also one of the oldest names in crypto and has built teams in Hong Kong, Japan, South Korea, UK, Australia, Canada and Brazil.
Huobi also has its own token, the Huobi Token (HT), which was issued in early 2018 and ranks well among the top 100 cryptocurrencies in the world in terms of market capitalization.
Analysis of Huobi as a company
Founded by former Oracle computer engineer Leon Li, Huobi expanded its presence in Beijing as a cryptocurrency trading platform in China and overseas, quickly becoming one of the top three domestic exchanges by giving bitcoin traders relatively easy access to liquidity.
However, following a tightening of Chinese regulation on the cryptocurrency landscape, Huobi was forced to set up a base in Seychelles in 2017, with a new headquarters in Singapore to keep its focus on Asian markets.
In the years that followed, Huobi has managed to grow into one of the most liquid cryptocurrency exchanges in the world and grow its active users far beyond China.
However, Huobi’s road to fame hasn’t been entirely free of controversy. In 2019, Bitwise Asset Management accused the platform of wash trading to artificially inflate its reported trading volume statistics. Although the accusation was denied, Huobi announced that it was taking new measures to halt wash trading within the platform, causing trading volume to drop.
Regulatory headwinds forced Huobi Global’s US arm, HBUS, to close in late 2019 and added Singapore to its restricted jurisdictions in 2021. Additionally, China’s fight over cryptocurrency regulation also impacted Huobi heavily, and the company announced that it had to close the accounts of its Chinese customers in 2021.
In October 2022, Huobi was bought by About Capital, which has helped the company continue its operations as a leading crypto asset ecosystem. At the heart of Huobi’s operations is its proprietary blockchain, referred to as the Huobi Eco Chain, and a clientele of tens of millions of customers in over 100 countries worldwide.
What makes Huobi so popular?
One of the best advantages of Huobi’s platform is the customized user experience that is split between Huobi OTC and Huobi Pro.
To accommodate customers of all skill levels, Huobi OTC offers a simplified experience that allows users to trade any of 25 fiat currencies against any of six listed cryptocurrencies. Additionally, there are no transaction fees when trading BTC, ETH, and USDT.
On the other hand, Huobi Pro offers trading pairs for 100+ cryptocurrencies and has a more detailed display for users to familiarize themselves with. Trades also come with a 0.2% transaction fee in most cases.
Huobi’s bespoke user experience is not dissimilar to Binance’s, and the platform’s interface also closely resembles Binance’s, with simple drop-down menus offering a range of more complicated options for traders.
What is Huobi token?
However, the real benefit of Huobi comes in the form of its native cryptocurrency, Huobi Token (HT). The use of the token can bring many benefits to investors using Huobi’s platform, and purchases made through HT can bring users significant savings in discounted transaction fees.
Additionally, Huobi will buy back 20% of its token, which will then be placed in a user protection fund that can be redistributed to holders as insurance against potential hacks.
Huobi’s token forms an important part of the Huobi Eco Chain, which hosts DeFi apps that have the ability to adopt decentralized lending and borrowing capabilities, giving users more financial options.
The coin’s favorable position within the cryptocurrency ecosystem has resulted in HT being known for performing relatively well during bull runs. For example, in the 2021 crypto rally, HT climbed from a year-opening of around $5 to a brief high of $39.66.
Although the market has since retreated, bringing the value of Huobi Token back down to earth, the asset’s market cap of over $800 million illustrates the token’s strength.
How does Huobi work?
Huobi works similarly to many of the world’s top cryptocurrency exchanges. Users are free to buy, sell, and transfer crypto while the platform earns a small portion of their transaction and trading fees.
The platform’s cryptocurrency buying process is highly transparent, and the site indicates when third-party market makers can facilitate transactions from fiat into a specific coin.
Additionally, Huobi also supports P2P trading within its platform, which means users can draw on a sizable pool of users to buy and sell their chosen cryptocurrency at transparent prices. For added security, users can see feedback ratings and the number of trades each individual has made.
More recently, Huobi developed and implemented a special stablecoin, HUSD, that was backed by the value of the US dollar. However, the asset was delisted from the stock exchange in 2022. It is currently unclear if there are any plans to reintroduce a stablecoin attached to the platform.
Deposit and withdraw crypto on Huobi
Impressively, Huobi offers over 90 deposit and withdrawal methods, including bank transfers and credit card payments. The platform’s quick buy feature allows users faster access to their assets.
Currently, deposits and withdrawals on Huobi are possible via the following methods:
- Faster payments
- International SWIFT transfer
- USD balance
- US ABA broadcast
When it comes to managing fees, the minimum deposit for Huobi is $100, and users can expect a 1% fee if that deposit is made via international wire transfer.
Once you’ve added your KYC credentials, you can withdraw up to 200 BTC plus withdrawal fees, currently at 1% for international transfers. For cryptocurrency withdrawals, this figure is 0.0001 BTC and 0.001 LTC respectively.
Build on experience
Huobi’s decades of cryptocurrency experience has been evident in the development of its platform. Although regulatory pressures have posed significant challenges to the platform in recent years, Huobi has adapted and grown.
For investors looking for a change from Binance, Huobi’s framework clearly shares a similar user experience and scope that will interest users of all experience levels.
Backed by its own blockchain and impressive native currency, we can be confident that Huobi’s past will continue to shape a secure and innovative future in the industry.