For years, Hotbit was a leading global cryptocurrency exchange as a centralized exchange. In May 2023, it ceased operations and permitted the users to withdraw their assets until June 30, 2023. Earlier correspondence from the exchange with users had already laid out the closure. In this article, we will explain everything you need to know about Hotbit, their history, features, pros and cons, fees and how it came to closure. Read on to find out why Hotbit decided to close its CEX operations.
What is Hotbit Crypto Exchange?
Hotbit started in January 2018, and is registered in Hong Kong and Estonia. The company is based in Shanghai and Taipei and is made up of its main team members from China, the USA and Taiwan. Individuals and companies such as F2pool, Spark Pool, Mytoken, Slow Mist, HashQuark are among the well known partners.
In April 2019, Hotbit started to promote daily interest products without any token lock or freeze. And now the platform has already distributed to over 190,000 users more than 180,000 USDT in daily interest.
However, little information is known about Hotbit’s founders and core team, except that they claim to have strong experience in crypto and business.
Past users experienced withdrawal issues, but the platform announced in November 2022 that the problems were resolved and transactions were working as normal again. There have been no reported hacks or security breaches as of January 2023.
Pros and Cons of Hotbit Crypto Exchange
Pros
- This exchange has the ability to trade many cryptocurrencies, tokens, as well as 8 fiat currencies.
- The platform is easy to trade and very convenient, it can be on the web of the PC and mobile app.
- Fellow Arrows, the platform provides you with five investment options out of which there are hundreds of programs with a wide range of assets and different profit potential.
- Fees are lower than the trading market, and withdrawal fees are the same.
- User data and assets are protected via strong security measures with a Bug Bounty program.
- You can take advantage of welcome bonuses and go into contests.
Cons
- No referral program is provided yet.
- The brokers do not offer demo accounts, but only FAQs work as basic training.
- There is no call center for the exchange.
Key Features of Hotbit Crypto Exchange
The key features of Hotbit Crypto Exchange are given below:
- The service supported six available languages: English, Russian, Turkish, Thai, Korean and Chinese.
- Prior to closing, it contained more than 1,000 trading pairs and listed over 700 cryptocurrencies.
- Users could register without KYC.
- For trading, the mobile app functioned as Android and iOS.
- EToro made it possible to trade with crypto in an ETF.
- It offered a wide variety of crypto pairs to be traded by users.
- Moreover, the platform also had strong security and low trading fees.
Hotbit Commissions and Fees
For all trading activities, Hotbit charges fixed commissions and fees. The best thing is that the maker fee is 0.05% while the taker fee is 0.2%. In certain instances, both the Maker and Taker fee can increase to 0.3% or 0.5%. Refer to the part about various fee standards of Hotbit platform for more details.
The Hotbit platform does not charge any fee for depositing any cryptocurrency or fiat currency. There is a fee of BTC 0.001 or equivalent withdrawal currency on withdrawing funds. All minimum withdrawal limits remain with each asset independently and are not related to your withdrawal method. To be more specific, the minimum withdrawal for Bitcoin is BTC 0.002.
Investment Options
Hotbit offers five investment solutions.
Lending:
Through the partners of the exchange, you can lend the money to the projects. A minimum deposit is required, and the term of the deposit is set. You can not change or withdraw it before the term expires. Once you’ve completed the program, you receive the deposit and the interest. Usually, you can get 12% for 30 days and 30-40% for 180 days.
De-Fi Coin Deposits:
By investing cryptocurrency, you contribute to making the coin, and then, you get paid in form of interest. It works the same as lending but provides far higher returns, up to 100% or more. While the risk is higher in this payment method because a third party controls the deposits while the platform does not fully cover your investment amount.
POS (Proof-of-Stake):
It is staking assets in the Proof-of-Stake blockchain networks. You specify the asset, make a deposit and start earning interest. You’ll most likely be able to alter or void your deposit when the interest rate changes. The average return is 3-10%.
Quantitative Plans:
You provide cryptocurrency for blockchain project development. These plans offer different terms and payment options across various assets. You can check full details for each program. Terms usually range from 7 to 30 days, with returns of up to 10%.
Incentive Plans:
You provide cryptocurrency in a way that’s similar to Quantitative Plans. There are over 100 programs, each with their own length of terms and returns. Similar to Quantitative Plans, you can review the program overview.
Other Services by Hotbit Crypto Exchange
Besides trading, Hotbit provides investment fostering services. Income can be earned through flexible staking and DeFi farming options. There are many crypto assets such as USDT, BTC, ETH, SHIB, FIL, and more that you can stake.
To keep users involved and provide them opportunities to accumulate more Hotbit also holds events and airdrops. These are aimed at certain assets. Trade an asset you choose during the event, qualify on the leaderboard, and win a prize.
For airdrops, users pledge a certain amount to a project. They receive rewards in the same asset after the event. Some of these events are helping to promote new assets and support projects with donations.
Here, the referral program allows users to invite friends on Hotbit and earn up to 60% commission on fees friends pay. Commission rates depend on the types of trades. ETF trades pay up to 60% commission and spot trades go up to 40%. Your rebate ratio is set only higher based on the amount of HTB you hold.
Why Hotbit Decided to Shut Down
On May 22, 2023, 5 years after it started, Hotbit stopped operations at its CEX. Here are the three main reasons they explained:
- Declining Conditions: An investigation stopped operations in August 2022. Hotbit’s cash flow was affected due to users’ withdrawal of funds following the collapse of FTX.
- Crypto Industry Changes: Growing regulations and the push towards decentralization brought too much trouble for Hotbit to be able to keep going.
- High Risks: Losses were financial due to cyber-attacks, scams and risky projects. It became too difficult to operate with such factors.
Conclusion
Hotbit has a stable and functional trading terminal in two versions, adapted to spot and ETF trading. There is a selection of risk options, dozens of cryptocurrencies and 8 fiat currencies at your disposal. The leverage is not available, and trading fees are low and fixed. The platform is known for its robust security with no record of any break ins or failures, although it has a lot of negative client reviews. According to these reviews and trading options, we advise caution before trading with Hotbit.
Also read: Top 10 Most Trustworthy Crypto Exchanges (Forbes List)
