In a world where dependable cryptocurrency exchange options are few and far between, Cobinhood has emerged as one of the more interesting choices. Established in 2017, it is intended to be a zero fee platform that allows folks to acquire and sell a variety of cryptos, with Bitcoin being the dominant source of activity.
Cobinhood offers a simple account registration system on its website, there are also apps for both Android and Apple iOS devices.
Simply follow the on-screen instructions on the site or the app, and you'll quickly have your account registered. Following account activation and verification, you'll be ready to fund your account and get to work buying cryptocurrency.
There is a menu icon in the upper right-hand portion of the interface that will then display a "Deposit" option. As is the case with many exchanges that permit trading in deposits are typically done using Bitcoin and amounts are denominated in both BTC and USD. You can then make your deposit by using the Bitcoin deposit address or scanning a QR code.
Always be aware that attempting to send non-Bitcoin cryptocurrencies to BTC addresses runs the risk that you'll lose your funds entirely.
With your account properly funded, you're ready to buy, with Cobinhood price denoted by the symbol COB. You can click on the menu again and find an item that says "Exchange." This will then bring you to a screen where you should click "Select Product." On this screen, you'll see a massive list of available cryptocurrencies. For the sake of this article, we assume you'll scroll down and click on COB.
At this point, everything works like any traditional trading platform. If you want to just acquire COB at the prevailing market prices, simply select a "Market" order, enter your desired amount and click the "BUY" button. That's it! You've now officially bought into the market for COB.
What differentiates Cobinhood from other platforms such as Binance and Coinbase is that there are no fees on any trades. You may, however, get dinged for fees when withdrawing or making deposits, but there are the ones cooked into the cryptocurrency system. No portion of those fees goes to Cobinhood as an operation.
If you think about the business models of other platforms, there's a percentage of each transaction that ends up in the hands of the exchange.
Every time you purchase 50 coin of some type on Coinbase, for example, you only really end up with 48.75 because of how the fee comes out. On this exchange, you get the full 50.
As an added benefit, it also permits leveraged trading. If you'd like to trade on margin at 10x, you're welcome to do that.
Cobinhood has plans to eventually enter into traditional currency trading markets, but for now, the exchange is dedicated solely to crypto. At present, trading is not permitted for folks in Japan or the U.S. state of New York.
Among the main advantages of Cobinhood is that all trading on the platform is flat. That means that pricing is completely WYSWYG, so there's never any need to engage in mental gymnastics in order to calculate exactly how much you'll be working with.
Transaction fees are only passed on Cobinhood when a trader moves cryptocurrency into or out of an account. For trading itself, you can simply expect zero-fee options all around. By handling fees in this manner, the company ensures that miners will process transactions as fast as possible, and there are options for traders to pay more to get some cryptos transferred more quickly.
A fee is assessed during the withdrawal process to pay for the mining operations that keep the exchange running. Cobinhood states that it handles these fees in a not-for-profit manner.
You can expect withdrawals to cost 0.001 BTC or 25 COB. There are a variety of other cryptos that you can withdraw to, but they're too numerous to list here. Withdrawals to U.S. dollars are handled at 2%.
If you elect to make a deposit in the form of U.S. dollars, there will be a 2% fee assessed.
For crypto deposits, you'll only pay the standard transaction for whichever currency you're using.
The beauty of platform is that there are no fees on trades. The Cobinhood ICO price for those founding currencies is 5%.
As always with cryptos, be aware that you need to have a properly configured wallet. Be sure to have backups of all the addresses you intended to use.
If you plan to stay and play for a while, Cobinhood offers a great way to avoid taking a haircut on each trade. ICOs are regularly underwritten by the system, and the plans to move into traditional currencies make it a highly appealing platform.
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