A crypto exchange guide must provide reviews of all of the exchanges out there, so that you can find the right one for you. This review of Hotbit consists of four parts: general info, fees, deposit methods and security.
Hotbit is an exchange launched in January 2018 that offers trading in many very unusual cryptos.
Its domicile country is unclear. This is not a red flag per se, but we recommend all visitors to be careful and form their own opinion on whether Hotbit is a legitimate exchange our not. No information on the company owning and operating the exchange is presented at the exchange’s website either.
Hotbit proudly announce on their website that they have partnerships with The Blockchainer, MyToken and Wandarin. However, we have not found any information detailing what these partnerships are made up of. Accordingly, the statements regarding partnerships have not been possible to verify.
As far as we can tell, US-investors can trade here. Any US-investors interested in trading here should in any event form their own opinion on any issues arising from their citizenship or residency.
The exchange promotes four things in particular as reasons to choose Hotbit as your trading platform. First off, it has multi-currency support, meaning that you can trade a lot of different cryptocurrencies here. It is easy to verify this statement and declare that it is true. Hotbit does indeed provide support for a large number of cryptocurrencies. Second, Hotbit has high liquidity (see more on this under Liquidity below). Third, the platform provides 24 hour customer service 7 days a week. Naturally, this is very important to its user base. Fourth and finally, the platform promotes that it is “secure and steady”. All of the promoted advantages are things that we deem very important and we applaud Hotbit for having them all.
According to information from Coinmarketcap, Hotbit had the 47th highest 24 hour trading volume at the date of first writing this review (29 September 2018). The 24 hour trading volume at this date was approx. USD 21 million. On the date of last updating this review (26 November 2019), the trading volume had absolutely sky-rocketed compared to September 2018. Hotbit had a 24 hour trading volume of USD 1.0 billion, making it the exchange with the 13th highest trading volume in the entire world. This increase is very impressive.
The exchange has also announced that they will “soon” (statement made on 14 May 2019) launch its function Option Trading. We’re assuming that this will correspond to the leveraged trading functionality that many other trading platforms have, but we will follow up and update here as soon as it has been made public. There will also be a Mock Option Trading-function where you can practice option trading for free but without the risk of losing any actual assets.
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen cryptocurrency and order history. They normally also have buy and sell-boxes. Before you choose an exchange, try to have a look at the trading view so that you can ascertain that it feels right to you. The below is a picture of the trading view at Hotbit:
Hotbit Trading fees
This coin exchange doesn’t charge different fees between takers and makers. Their fee model is instead a “flat fee model”. Hotbit’s flat fees are 0.10%, which is below the global industry average (arguably around 0.25%). As we have not been able to determine Hotbit’s domicile country, we cannot compare their fees against any domestic counterparts either.
To our understanding, if you hold the platform’s native token, Hotbit Token (HTB), and pay trading fees with that, the trading fees are even lower than 0.10%. They will then only be 0.05%. This is a very low trading fee.
Hotbit Withdrawal fees
When withdrawing Bitcoin, Hotbit charges a withdrawal fee amounting to 0.001 BTC. This is in line with industry average, albeit slightly on the high end.
At this exchange, you can not deposit fiat currency. This means that new crypto investors (i.e., those without any previous crypto holdings) can’t trade here. In order to purchase your first cryptos, you need a so called entry-level exchange, which is an exchange accepting deposits of fiat currency. Find one by using our Exchange Finder!
Hotbit’s security score is F, when performing the test at Observatory by Mozilla (https://observatory.mozilla.org/). This is below industry average.
Liquidity is something very important for all exchanges, crypto exchanges but also regular ones. The above exchange does indeed have great liquidity. However, the following crypto exchanges are also often among the crypto exchanges with the absolutely best liquidity in the world: