Cobinhood: 3 Solutions to the Problems plaguing Centralized Cryptocurrency Exchanges.

pangoli (69)in #cobinhood • 6 years ago (edited)

Cobinhood is a cryptocurrency services platform that provides high-frequency crypto-assets trading and ICO underwriting. Cobinhood will be featuring a zero-commission trading experience for every user!

As the blockchain technology and cryptocurrency become even more appreciated and utilized in the coming years, there will be a mainstream migration of users from the normal centralized service providers to blockchain-based services and this is because better products and services will be built on them. The blockchain allows for tokenization, smart contracts to uphold integrity in systems, speed, scalability, and better data management, etc. All of which will result in the developments of more efficient products and services.

Blockchains thrive on the market valuation of crypto-assets and their use-cases, and cryptocurrency exchanges are the foundation of the cryptocurrency market. Just like how the stock market works, venture capitalists, investors, price speculators, and large institutions will need to trade and move small and large volumes of funds from time to time. These, and many more, would require better exchange platforms than the ones we have presently.

There are inherent problems with existing cryptocurrency exchanges that makes it a bit difficult for traders to carry out transactions and payments on these platforms. With all of their regulations, exclusiveness, and regional limitations, it also makes it harder for non indigenous blockchain adopters to resume cryprotrading as well.

In this article, I shall be discussing some of these problems and how Cobinhood solves them.

1. Exorbitant Trading Fees.

Centralized exchanges are notorious for high commission and withdrawal fees. According to an article on finder.com, exchanges such as Coinjar, Huobi, and Kraken, etc usually charge as high as 0.2% to 0.4% on every trade made on their platform.

More interestingly, exchanges such as Coinmama charge an outrageous 5.90% to allow users buy and sell cryptocurrency directly with their credit cards! It's a rip-off as the value of these charges seem to increase as the market experiences an uptrend!

Even though some of these exchanges claim to charge lower fees, they don't do that until the volume is in enormous quantities, much like how people save money when they buy wholesale products. Hence, traders with small sized portfolios spend more money than is necessary.

Cobinhood solves the problems of exorbitant fees by collecting a small percentage of the total fundings raised by their ICO partners. It uses this money to settle the need for commissions on their platform and this invariably allows every Margin or Spot-trader the freedom to trade a wide range of cryptocurrency pairs without any fees! this helps preserve the profits made by the traders. Cobinhood is the world's first centralized cryptocurrency exchange to do that.

2. Asset Security issues.

Centralized cryptocurrency exchanges are often targets of DDOS attacks by malicious actors and this has raised trust concerns between exchanges and traders. Oftentimes, the success of these attacks will result in the loss of traders funds. A classic example of this is the MT. Gox hack which resulted in the loss of about 740.000 (approximately 6% of the total supply of Bitcoin) back in June 2011, and then again in February 2014! A lot of well-meaning early adopters lost their fortune in both scenarios!

Cobinhood realizes the risks involved with depositing funds in an exchange. As such, they have taken a decentralized approach to that. By implementing (Hardware Security Modules (HSM) on Multisig wallets to store 98% of the traders' funds offline, funds are safe and secure, and cannot be moved without the consent of at least 5 of the 8 HSM administrators around the globe! This completely follows a decentralized model even in a centralized organization and leaves no margin for a single malicious party.

3. Language Barriers.

Most cryptocurrency exchanges have very little support for traders outside the English community. With little or no language translation in place, traders who are not English speakers from diverse parts of the world cannot own accounts on these exchanges because they are not able to interpret the terms and conditions statements as well as the general instructions.

This also has a massive effect on the volume of trade and liquidity on these exchanges.

Cobinhood currently supports over 10 international languages (including Japanese, Vietnamese and Russian) making it the most internationally acceptable cryptocurrency exchange on the globe yet. According to the whitepaper, more languages packs and features will be added in the coming months.

Cobinhood goes to Jakarta!

The Cobinhood team will be attending and giving a keynote address at the forthcoming Southeast Asia Blockchain Summit 2018 to be hosted in Jakarta. The event will be held on the 3rd and 4th of November next month. Conventional and VIP tickets are available for sale on the Southeast Asia Blockchain summit website.

For further information, please refer to the official video and the links below:

^{The Cobinhood Story}