Huobi Guide & Exchange Review: How to Trade Options, Futures, and Perpetual Swaps
Founded all the way back in 2013, Huobi Group is one of the leading blockchain companies in the industry.
It’s safe to say that the company has come a long way since then and it’s currently offering a variety of services for its wide user base. Employing people globally, Huobi offers a myriad of crypto-related services, including digital asset trading, wallet, mining pool, incubation, research, proprietary investment, and so forth.
Cryptocurrency trading has surged in interest throughout the past few years and exchanges such as Huobi have worked hard to expand their offerings. Derivatives products, apart from traditional spot trading, have exploded in interest, and Huobi is doing its best to accommodate.
Among its popular trading products are the futures, perpetual swaps, and options platforms. In this guide, we will take a closer look at how these tools operate and provide a step-by-step explanation of how to use them.
- How to Register on Huobi
- How to Deposit and Withdraw
- How to Trade Bitcoin Options
- How to Trade Bitcoin Futures on Huobi
- How to Trade Bitcoin Perpetual Swaps
- Customer Support
- Security: Is it Safe to Trade on Huobi Futures?
- Trading Fees
- Simplified trading interface with a variety of features, veteran exchange
- One stop shop for trading futures, options, and perpetual swaps
- An abundance of trading pairs to choose from
- Limited assets for perpetual swap trading
- Verification is mandatory for Huobi Futures
Before anything else, however, you’d first have to register for an account. The process is fairly simple. There’s no mandatory Know-Your-Customer (KYC) procedure for spot trading, but if you want to start using the derivatives platforms, the ID verification is obligatory.
This is how the registration screen looks like:
All that is needed here is an email address that has to be verified through a verification code later on.
Once you have your account opened, it’s highly recommended to take a few additional security steps. First, it’s important to enable the Two-Factor Authentication (2FA), using the Google Authenticator app.
In addition, Huobi has taken a few extra steps that protect your account in the event of it being hacked such as email verification codes, phone verification codes, a designated fund password to ensure fiat asset security, and so forth.
If you want to trade on the derivatives platform, you’d have to go through an additional ID verification step which requires you to input your names, a government-issued passport, driving license or ID number, and upload a picture of it.
We’ve completed all the steps and, in our experience, the process was seamless and the KYC took no more than a few minutes to be completed and approved by Huobi’s team.
Now that you have your account set up, it’s time to load it with some funds. Depositing is fairly straightforward and users can choose between a myriad of cryptocurrencies, including Bitcoin, ETH, USDT, and many others.
From the top navigation bar, you need to hover over “Balances” and choose the account you wish to fund. Regardless of where you deposit initially, you can easily transfer the funds between the accounts – it’s instant.
After you select the cryptocurrency you want to deposit, all you need to do is click on the “deposit” button, which will pull up this screen. In this case, we’ve deposited the stablecoin USDT.
In any case, regardless of the cryptocurrency you deposit, make sure to correctly select the transaction network (when applicable) – in our case, we used USDT on Ethereum’s ERC-20 standard.
From here, you can make quick, zero-fees transfers between the different internal accounts and fund your derivatives one. All you need to do is open the account, select the currency that you want to transfer, specify the amount, and confirm the operation:
Once this is done, you are ready to begin using the offered derivatives products. Let’s have a look at all of them.
Options contracts are one of the most popular derivatives, used constantly in traditional finance. Lately, there’s a huge demand for cryptocurrency options as well. However, keep in mind, derivatives and options are not recommended for beginners as they carry more risk.
Huobi Futures has a dedicated options platform where currently users can trade both Bitcoin and Ethereum options. In this guide, we will focus on Bitcoin.
By definition, an options contract represents an agreement between two parties to facilitate a transaction on the underlying asset (in this case – Bitcoin/USDT index), at a preset price (known as the Strike Price), prior to the expiration date.
Purchasing a CALL option means that the buyer has the right to buy BTC corresponding to the contract face value at the strike price. On the other hand, a PUT option means that the buyer has the right to sell BTC under the same conditions.
In the top left corner is where you select the type of Bitcoin options contract you want to trade with. For this example, we’ve used the Weekly BTC contract with a strike price of $8,500 and expiry on September 18th, and a leverage level of 5x.
Below is the board where you can monitor the prices for the different contracts based on their strike price factor.
As can be seen in this example, our contract costs around $2,400 to buy (bid). Huobi uses a system where traders can open positions based on contracts, where one BTC options contract equals 0.001 BTC or about $10 at current rates, as of writing this guide.
The par-value for a contract of ETH option equals 0.01 ETH, or about $3 at current rates. Unlike other margin exchanges, users can join options trading on Huobi with fairly low entry barriers.
Now, let’s see how to open a CALL position, as we assume the price of Bitcoin will close above the strike price of $8,500 on September 18th.
From the order menu, we’ve selected a price that we want to buy the contract at – it’s $2414 and the number of Contracts that we want to purchase, in this case, it’s the maximum amount of 25 contracts, which is about $250.
As soon as we hit the Buy Call button, our Limit order will be placed and when the Mark price of the contract reaches it, the order will be executed and we will have 25 Contracts ($10 each) giving us the right to buy Bitcoin at $8,500 (strike price) when the contract expires on September 18th.
If the price of Bitcoin is above $8,500, we will realize a profit, if it’s below that, we will lose the options premium.
If you want to close the position, you can specify the price at which you want to close and the overall amount of your position that you want to close.
Now, in this example, we’ve only shown how to buy a CALL option for Bitcoin, but users can also buy PUT options and they can sell contracts as well. For detailed information on how to do those operations, you can check the official guide.
Moving on, Bitcoin futures are also available on Huobi. Here, users can buy these contracts and speculate on whether or not the price of Bitcoin will be above or below the current price on a pre-set date.
From the left pane, users can choose from a verity of the over 60 cryptocurrencies and the available futures contracts. For Bitcoin, Huobi offers weekly, bi-weekly, quarterly, and bi-quarterly contracts, and supports leverage up to 125x.
Basically, if you believe that the price of Bitcoin will be higher than the current price at the expiration date of a given contract, you should open a long (buy) position. If you think it’s going to be lower, you should open a short (sell) position.
Perpetual swaps are probably the most popular cryptocurrency derivative instrument. They are like traditional futures with the exception that they don’t have an expiry date. In other words, traders can open and close them whenever they want to.
It’s worth noting that Huobi even offers USDT/USD perpetual swaps with leverage of 1X -1000X, becoming the industry pioneer in USDT derivatives.
Besides, for the non-stablecoins, traders can use perpetual swaps with extremely high leverage of up to 125X for BTC swaps and 75X for other swaps. In other words, you can open a position worth 125 times the amount you have in your account.
Huobi Futures offers different leverages such as 1x, 3x,5x,20x, 125x, and even 1000x. Users can choose freely according to their needs.
While this brings opportunities for big profits, please be aware that it’s also extremely risky as the slightest movement in the opposite direction of your position can liquidate your position, causing you to lose your capital. Using high leverage is definitely not recommended for inexperienced traders.
Huobi’s overall customer support is very satisfying. From our test experience, the team is very responsive and easy to communicate with.
Elsewhere, the KYC verification process is particularly quick. After we submitted the documents needed for the identity verification, the team took no more than a few minutes to have them checked and approved the account for trading.
Huobi is one of the largest cryptocurrency exchanges in the world. It’s an established company with thousands of employees. While it’s never recommended to keep a large amount of crypto in an exchange, Huobi is regarded as being very safe to use.
The team has also added a myriad of additional security features that users can opt in to further protect their accounts. Of course, you should also beware of scam artists and phishing attacks.
When it comes to the trading fees, Huobi has various fees on its platforms, so let’s have a look at a detailed breakdown for individual traders:
- Futures Trading Fees
- Huobi Perpetual Swaps Trading Fees
- Huobi Options Trading Fees
It’s also worth mentioning that Huobi Futures also provides VIP Sharing Program and Market Maker Program to lower big user’s switching costs to Huobi. For example, Huobi options maker fee rebate is as high as 0.003 USDT per contract.
In general, Huobi is one of the most reputable exchanges out there and they live up to the statements. The customer support is quick and easy to communicate with, the exchange offers a range of different tools to accommodate the needs of various traders.
Their Bitcoin Options trading platform is convenient, rather intuitive, and easy to work with. There’s a range of different contracts with various leverage options and expiration dates.
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$150 Million Stolen From Singaporean Crypto-Exchange KuCoin
Singapore-based cryptocurrency exchange KuCoin over the weekend announced that hackers managed to steal large amounts of cryptocurrencies from multiple hot wallets.
KuCoin is among the top five busiest trading exchanges out there, having a daily trading volume average of around $100 million, based on data from CoinGecko.
On Saturday, the exchange announced that it identified a number of large withdrawals in Bitcoin, ERC-20 and other tokens from its hot wallets, and that it launched an investigation into the matter, while suspending the deposit and withdrawal service.
“[P]art of Bitcoin, ERC-20 and other tokens in KuCoin’s hot wallets were transferred out of the exchange, which contained few parts of our total assets holdings. The assets in our cold wallets are safe and unharmed, and hot wallets have been re-deployed,” the company announced.
In an update on Sunday, the exchange announced that it located some of the wallets to which funds were transferred and that it was working with partners to block them.
“We are locating the reason for the incident, and will keep you updated once it is confirmed. Please rest assured that if any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund,” the exchange said.
Large amounts of the stolen crypto-coins and tokens were frozen and wallets blacklisted, but more than $150 million-worth of Ethereum-based tokens were also transferred out of the KuCoin Ethereum wallets.
In a live stream on Saturday, KuCoin CEO Johnny Lyu revealed that the attackers gained access to private keys for the cryptocurrency exchange’s hot wallets.
After discovering the incident, the company immediately transferred the remaining funds to new wallets and abandoned the compromised ones.
Related: Hackers Steal $5.4 Million From Crypto Exchange Eterbase
Related: Spooks Called in as Cyberattacks Again Halt NZ Stock Exchange
Related: Cyberattack Forces Currency Exchange Giant Travelex Offline
Ionut Arghire is an international correspondent for SecurityWeek.
Previous Columns by Ionut Arghire:
Author: by rootdaemon September 28, 2020
Hackers Steal $150 Million from Asian Cryptocurrency Exchange – Managed Technology Services
KuCoin, a Singapore-based cryptocurrency exchange, has disclosed a security incident that resulted in the unauthorized transfer of roughly $150 million in digital assets.
In a notice published last week, KuCoin notified clients that it detected suspiciously large withdrawals starting September 26.
In response to the Incident, KuCoin Global CEO Johnny Lyu hosted a livestream and announced that part of the Bitcoin, ERC-20, and other tokens in KuCoin’s hot wallets were transferred out of the exchange, which contained few parts of the total assets holdings.
“The assets in the cold wallets are safe and unharmed, and the hot wallets have been re-deployed,” the CEO said.
The losses, however, are by no means trivial. According to an updated announcement, the attackers left with around $150 million in various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Stellar Lumens, Tron, and Tether. The firm has frozen the compromised hot wallets and has deployed new ones. KuCoin is also working with other exchanges to prevent the attackers from withdrawing the stolen funds.
Lyu tells customers to rest assured that if any user fund is affected by this incident, it will be entirely covered by KuCoin’s insurance fund.
“To ensure the security of users’ assets, we will conduct a thorough security review. The deposit and withdrawal service will be suspended during the period. We will restore the service gradually after ensuring a safe state. We will keep you updated,” the company said.
KuCoin has published a list of suspicious wallet addresses, urging clients to add them to their blocklist. The company is still trying to identify the vulnerabilities exploited by the attackers. Lyu also said his company would “definitely” upgrade its wallet risk management system.
Two weeks ago, cryptocurrency exchange Etherbase lost $5.4 million to hackers overnight. Eterbase managed to track the criminals’ wallets to several rival crypto exchanges, including Binance, Huobi, and HitBTC. Like KuCoin, the firm assured customers it had the funds needed to cover the losses.
Cryptocurrency exchange – Wikipedia
- Rash, Wayne (7 March 2018). “Crypto-Currency Exchanges, Coin Offerings Facing Likely SEC Regulation”. eWeek. Retrieved 9 March 2018.
Cryptocurrency Portfolio Manager From CryptoView | One Interface, All Major Exchanges
CryptoView Portfolio Manager has opened the door for new possibilities with cryptocurrency trading, thanks to its unique, multi-functioning platform. Traders can now trade cryptocurrency on all major exchanges, simultaneously
SOFIA, Bulgaria, Sept. 28, 2020 /PRNewswire/ — As the world of cryptocurrencies evolves at a rapid pace, so does the sector of cryptocurrency portfolio management services. The need for secure and easy-to-use cryptocurrency trading tools gave birth to CryptoView – a cryptocurrency portfolio manager and tracker, designed to be an all-in-one solution for managing multiple exchange accounts and wallets.
CryptoView enables users to quickly jump from the hassle of switching between several portfolios, exchanges or wallets to the reliability of using a single interface to track all balances, and simultaneously manage trades on multiple exchanges.
Apart from being an advanced crypto portfolio tracker, CryptoView can also act as a fully-functional trading platform, as the portfolio management software is connected to the world’s leading exchanges like Binance, Bitfinex, Bitmex, Bitstamp, Bittrex, Cexio, Coinbase, CoinbasePro, CoinEx, HitBtc, Huobi, Kraken, KuCoin, OKEx, and Poloniex.
One of the core strengths of CryptoView is the fully-customizable user interface, which allows users to reorder almost every aspect of their workspace. The team behind CryptoView has developed one of the most advanced multi-charting interfaces, capable of displaying up to 9 charts per monitor, on up to 5 monitors. There are more than 25 grid configurations and 5 screen presets.
Those who use multi-monitor setups can use the “screens” option to save a preset configuration for each monitor with a specific grid layout and trading pairs. Each preset can be loaded on a specific monitor with just one click, without having to set your workspace every time.
CryptoView has integrated TradingView™ charts which offer 85+ trading tools and over 75 drawing tools for both novice and advanced traders.
Portfolio Balance Manager
The crypto portfolio manager gives users a detailed breakdown of asset balances aggregated from all connected exchanges, wallets, and even cold storage. The balance table also gives additional information about current rates, price changes, and trends for each cryptocurrency. Cold storage entries are inserted manually by creating an entry of the balance in each cold wallet.
Performance Analytics & Multi-Trading
Another great tool is the CryptoView portfolio histogram which shows portfolio statistics. Each day CryptoView takes a snapshot of all portfolio holdings and plots them into a detailed histogram. There are also asset/portfolio distribution pie charts. Those who prefer to work with raw data can export to both XML and CSV file formats.
The all-in-one multi-exchange trading platform gives users the ability to place orders such as ‘limit, ‘”market”, ‘stop-limit’ and ‘stop-market’ simultaneously on each connected exchange. In addition, each trading pair has a trading history, orderbook, market depth and last trades panels.
Among the various crypto trading tools integrated in the platform, there is a built-in multi-source crypto news aggregator (20+ top news sources), events calendar feed from CoinMarketCal, direct data feed from CoinMarketCap and other tools such as SMS price alerts and automatic email balance reports.
Easy Signup and Subscription
Sign-up takes no longer than a couple of minutes and users are given a 30-day free fully-functional trial. Subscription plans range from $29 to $21/month depending on the subscription package.
The all-in-one cryptocurrency portfolio manager is also well suited for fund managers who can take advantage of the ‘multi-portfolio’ and ‘portfolio sharing’ functions.
Each account can create and manage up to 5 separate crypto portfolios and connect different exchanges or wallets to each one. This allows users to either split their portfolio into separate smaller portfolios or manage separate portfolios for clients or friends.
Users are also able to share the balance table and performance histogram for each portfolio with a “view only” link. This allows clients or partners to monitor the performance of a shared portfolio without being able to directly interact and use the account.
Security at CryptoView is taken seriously, as the platform runs on a cloud-based architecture with encrypted connections, strong API key encryption, DoS protection, 2FA (Two Factor Authentication) as well as all industry general safety standards. To protect users from illicit activities, withdrawal or any fund transfers are limited only to the exchange’s interface.
Affiliate and Referral programs
Apart from trading and portfolio management, CryptoView also offers an affiliate program, from which you can earn $20 in Bitcoin for every paid subscriber that comes through your affiliate link. There is also a referral program which gives 2 free months for every new referred customer who purchased a subscription after the free trial period.
CryptoView, One Interface, No Limitations
CryptoView is perfectly suited for both novice and advanced traders, providing a strong list of the best cryptocurrency trading tools required to efficiently manage a crypto portfolio. CryptoView takes advantage of the booming local IT sector, which produces some of the best developers and designers in Europe.
For more information about CryptoView, please visit – https://www.cryptoview.com
Join the affiliate program and start earning today – https://www.cryptoview.com/affiliate
Follow CryptoView on Twitter – https://twitter.com/CryptoViewCom
Find CryptoView on Facebook – https://www.facebook.com/CryptoViewCom
Media Contact Details
Contact name: CryptoView Marketing Team
Email: [email protected]
CryptoView is the source of this content. This Press Release is for informational purposes only. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Cryptocurrencies and tokens are extremely volatile. There is no guarantee of a stable value, or of any value at all.
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