Huobi’s ‘Global Ecological Token’ is an Ethereum-based token that can be used within the Huobi Group’s ecosystem, but does it represent a good investment? We explore the Huobi Global Exchange’s token below.
Compare where to buy Huobi Token, and open an account
Read on to find out about Huobi Token and how it works or jump ahead to our step-by-step buyers guide if you’re ready to buy Huobi Token.
What is Huobi Token?
If you’re at all familiar with the crypto landscape, there’s a good chance you’re already aware of the Huobi Global Exchange. Long-established as one of the leading players in the crypto trading space, Huobi’s standing in the crypto community puts its native token in a strong position.
Needless to say, the Huobi Token (HT) is closely linked to the Huobi exchange and, beyond that, the wider Huobi ecosystem. Using the eponymous token on the Huobi exchange grants a number of benefits. For one thing, Huobi Tokens entitle holders to discounted trading fees on the exchange.
How does Huobi Token work?
Launched in 2018, the Huobi Token is essentially an exchange token for use on the Huobi network, much like the Binance Coin. Use of the token is incentivised – it grants holders VIP access, discounts, liquidity buybacks and voting rights.
Since early 2018, when the token was launched , Huobi has purchased and burned tokens on a quarterly basis in an effort to stabilise the currency and curb inflation.
How to buy Huobi Token online – step-by-step guide
Step 1. Get a suitable wallet
Before you go and Buy Huobi Token, we recommend storing your HT coins on a wallet to ensure they’re safe. Because it’s an Ether-based ERC-20 token, you’ll find plenty of HT compatible wallets to choose from. Here are a couple of our favourites:
- Ledger Nano X: One of the safest options for storing your HT tokens is the Nano X hardware wallet from Ledger. It’s not the cheapest wallet out there, but if you’re serious about security, it’s one of the best.
- Coinomi Wallet: If you want an HT compatible wallet that will work on your phone, look no further than the Coinomi Wallet. This multi-coin wallet supports iOS, Andriod phones and there’s also a Mac/Windows/Linux desktop client.
Step 2. Find a Huobi Token exchange
Unsurprisingly, the best place to buy Huobi Tokens is the Huobi Global Exchange. In fact, most other major exchanges don’t offer it. Huobi Global Exchange allows you to trade the token against Bitcoin (BTC), Ether (ETH) and Tether (USDT), so you’ll need to acquire one of these currencies first.
Step 3. Withdraw your Huobi Tokens
It’s a good idea to withdraw your HT funds from the exchange as soon as you buy Huobi Token – it’s much safer to keep cryptocurrencies in a digital wallet than on an exchange.
How to trade Huobi Token – step-by-step guide
If you’re only interested in trading rather than buying Huobi Token, you don’t really need to set up a wallet – you’ll simply be predicting whether the price of HT will go up or down.
Step 1. Find a broker
At the time of writing, opportunities to trade Huobi Token were few and far between, but this may change so it’s worth taking a look at the top trading brokers. We tend to go for more established brokers such as Plus500 or eToro as they’ve been around for a while and are relatively easy to get to grips with.
Step 2. Deposit money
Once you’ve chosen a broker, you’ll need to put some cash down as a deposit. The process is fairly straightforward and minimum deposit requirements are usually pretty low, so you can start with a relatively small bankroll.
Step 3. Decide how you’d like to trade
There are two main ways to trade cryptocurrencies: spread betting or CFDs (contracts for difference). While there are some differences, both methods require you to take a position on whether you think the price of your chosen cryptocurrency will rise or fall over a set period of time. If you’re just starting out, it might be worth doing some research on spreads and CFDs before you jump in.
Step 4. Start trading
Once you’ve put down a deposit, you’ll no doubt be raring to go, but we recommend you set up a demo account with your broker before you start trading for real. It’s easy to win and lose money very quickly when trading, so it makes sense to get a feel for the platform you’ve chosen as well as the ebb and flow of the cryptocurrency market.
In essence, all you need to do is take a position on whether the price of your cryptocurrency will increase or decrease. If you think it will increase take a long position (buy) and if you think it will decrease, take a short position (sell).
You may opt to take advantage of leveraged betting, which is a feature of most trading platforms. Leverage enables you to put down a fraction of your trade’s total value as a type of deposit called a ‘margin’. However, this is a high-risk strategy, so it’s probably not for beginners. Experienced traders understand this and use stop loss orders to mitigate risk.
- Plenty of holder benefits on the Huobi network
- Liquidity buyback should help to maintain HT’s value
- HT’s potential is very much tied to the ongoing success of the Huobi exchange
- As an exchange token, HT risks being reclassified as a security