Hodl Hodl: MultiSig Cryptocurrency Coin Trading Exchange?
Hodl Hodl is a decentralized P2P cryptocurrency exchange that requires no KYC/AML verification. Find out how it works today in our review.
What is Hodl Hodl?
Hodl Hodl, found online at HodlHodl.com, is a peer-to-peer cryptocurrency exchange that allows users to trade directly with one another. Hodl Hodl, like all decentralized exchanges, doesn’t hold onto users’ funds. Instead, it locks funds into a multi-sig escrow account. This minimizes the possibility of crypto theft and reduces trading times.
Because Hodl Hodl does not hold any money (it does not hold cryptocurrencies or fiat currencies), it is not subject to complex compliance procedures. That means traders can occur directly between users’ wallets with no need to verify identity (or provide any information) to the exchange. That means no KYC/AML verification is required, and you can complete trades anonymously.
The only real restriction behind Hodl Hodl is that it isn’t available to US citizens. Otherwise, crypto traders worldwide can use the platform to trade cryptocurrencies and fiat currencies with no KYC/AML compliance required.
Hodl Hodl was launched in early February as a beta platform. The full version is scheduled to launch in July 2018.
How Does Hodl Hodl Work?
Hodl Hodl will be in beta until July 2018. Until the full version is launched, users will be able to trade cryptocurrencies on the platform with no fees.
After the platform is released, users will pay a fee of 0.5% to 0.6% – which is relatively high compared to most other cryptocurrency exchanges. That fee will go into effect from July 2018 onward.
Hodl Hodl insists the 0.6% fee is appropriate because it’s “a suitable compromise for waiving AML/KYC requirements” and preserving the anonymity of its users.
Hodl Hodl plans to implement the Lightning Network in the future.
In any case, all trades on the Hodl Hodl exchange occur directly between buyers and sellers. Hodl Hodl doesn’t hold your funds, but it does provide a multi-sig escrow account for the two parties. This officially makes Hodl Hodl a decentralized exchange because you’re not required to provide information or funds to the platform.
Hodl Hodl Features
Hodl Hodl emphasizes all of the following features on its decentralized exchange:
Security: Hodl Hodl provides security through multi-sig (P2SH) contracts, where users control the keys to funds held in escrow.
Cheap: Hodl Hodl will charge maximum fees of 0.6% per trade. The platform will offer free trades until July 2018, which is when the beta is scheduled to end.
No Verification Required: Hodl Hodl users can complete trades with no KYC or AML verification required.
SegWit Support: Hodl Hodl will support native Bech32 SegWit addresses as well as P2SH-P2WSH SegWit multi-sig escrow addressees.
Multiple Currencies: Right now, Hodl Hodl supports BTC and LTC, but more currencies are expected to be added in the future.
Testnet: Hodl Hodl has a testnet where you can learn how to trade on the platform without risking real money.
News System: Hodl Hodl provides the latest cryptocurrency news and market analysis, including a filter system that allows users to filter the news most important to them.
Review and Rating System: Hodl Hodl has a review and rating system for users.
Hodl Hodl Fees
Hodl Hodl will have maximum fees of 0.6%. However, some users will pay lower fees. Here’s how the fee structure breaks down:
New Users: Newly registered users will pay fees of 0.6%.
Referred Users: Users that signed up to Hodl Hodl through a referral link will pay a fee of 0.55%.
Verified Users: Users who have passed verification tests will pay fees of 0.5%, with no trading restrictions after completing verification.
Ultimately, fees of 0.5% to 0.6% are relatively high compared to other cryptocurrency exchanges (0.3% is about average). However, most other exchanges require identity verification. Some users will be willing to pay a slightly higher transaction fee in exchange for anonymity.
Hodl Hodl Conclusion
Hodl Hodl is a new cryptocurrency exchange launched in early February 2018. The decentralized exchange provides an escrow service between the two users, holding funds in a multi-sig wallet. However, the exchange does not actually hold funds of any users.
Another important feature of Hodl Hodl is that users are not required to complete KYC/AML verification. Users can complete trades anonymously without needing to reveal their identity.
The only real restriction with Hodl Hodl is that American users are not allowed to trade on the platform. And, the exchange will charge fees as high as 0.6% after it exits its beta in July 2018. Until then, however, trades on the platform are free (0% fees).
To learn more about the crypto community’s new decentralized exchange, visit HodlHodl.com today.