Cobinhood Crypto Exchange Review: Zero Fees, Big Risks in 2025

Want to trade crypto without paying trading fees? Cobinhood promises exactly that - and for some traders, it’s been a game changer. But here’s the catch: saving on fees doesn’t mean you’re getting a safe, reliable, or even fully functional exchange. If you’re considering Cobinhood in 2025, you need to know what’s real and what’s risky.

What Is Cobinhood?

Cobinhood launched in 2017 with a bold claim: the world’s first zero-fee cryptocurrency exchange. Founded by Popo Chen and Wei-Ning Huang - a former Google engineer - it targeted traders tired of paying 0.1% to 0.26% per trade on platforms like Binance and Kraken. The idea was simple: remove trading fees, attract volume, and make money another way. That way turned out to be its own token, COB.

Unlike most exchanges, Cobinhood doesn’t require identity verification to start trading. You can sign up with just an email and password. That’s Level 1 KYC. You can deposit and withdraw crypto, but you can’t deposit USD or use margin trading. To unlock those features, you need Level 2 verification - which means submitting ID documents. Even then, you’re not under strict regulatory oversight. Cobinhood operates under Cayman Islands jurisdiction, which means minimal government oversight.

Zero Fees - But What’s the Catch?

The biggest draw of Cobinhood is simple: no maker or taker fees. Ever. That’s rare. Most exchanges charge between 0.1% and 0.6% per trade. On a $10,000 monthly trading volume, that adds up to $100-$600 in fees. On Cobinhood? $0.

That’s a real win for small to medium traders who make frequent, low-value trades. One Reddit user reported saving $87 in fees over a single month trading small positions. For someone trading $500-$2,000 per week, that’s hundreds saved a year.

But here’s what they don’t tell you: zero fees doesn’t mean zero costs. Withdrawals cost 0.001 BTC - about $60 as of late 2024. That’s standard. But if you’re new to crypto and don’t own any coins yet, you’re stuck. You can’t deposit fiat. You can’t buy Bitcoin with a credit card. You have to buy crypto on another exchange - say, Coinbase or Kraken - then send it to Cobinhood. That’s two transactions, two sets of fees, and two waiting periods. For beginners, that’s a major roadblock.

Trading Features and Limits

Cobinhood supports over 50 cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and its native COB token. That’s far fewer than Binance’s 350+ or Coinbase’s 200+. If you want to trade niche altcoins, you’ll likely need another exchange.

The platform offers a clean, intuitive web interface and mobile apps for iOS and Android. The apps are rated 3.8/5 on the App Store, with users praising the layout but complaining about occasional login issues. The desktop platform is smooth, with charting tools and order types that suit both new and experienced traders.

Margin trading is available - but only up to 5x leverage. That’s low compared to Binance’s 125x. And you need Level 2 verification to access it. You also can’t use advanced order types like stop-limit or trailing stops on most pairs.

Daily withdrawal limits are 3 BTC for unverified users. Verified users can withdraw more, but there’s no public breakdown. That’s restrictive compared to Kraken or Binance, where limits go up to 100 BTC or more for verified accounts.

The COB Token: Loyalty Program or Ghost Asset?

Cobinhood’s entire business model hinges on its native token, COB. Total supply: 1 billion. Circulating supply: just over 410 million as of October 2024. Price? Around $0.00028. That’s less than a tenth of a cent. And the 24-hour trading volume? $0.

You read that right. $0 volume. That means no one’s buying or selling it. It’s not liquid. It’s not tradable in any real sense.

The platform claims COB unlocks “COB points” when you stake 1,000+ tokens. Those points can be redeemed for trading fee rebates - but since trading fees are already $0, what’s the point? It’s a loyalty program with no reward.

Worse, COB has no real utility. No governance rights. No staking rewards. No ecosystem. No partnerships. Just a token with no market. Experts at CoinCentral and BitTrust have called this a red flag: if the exchange can’t make money from trading fees, and its token has no value, how does it pay its bills?

Security - Or Lack Thereof

Cobinhood uses two-factor authentication (2FA) via Google Authenticator or SMS. It also sends email alerts when someone logs in from a new device. That’s basic, but adequate.

But here’s the problem: the exchange has no history of major hacks - but it has a history of trust issues. In May 2019, its sister company, CoinMarket, went bankrupt. CoinMarket was supposed to be the data arm of Cobinhood, but the collapse raised questions about financial management across the entire operation. To this day, users question whether Cobinhood is truly solvent.

Trustpilot ratings are abysmal: 2.1/5 based on just 9 reviews. Only 11% gave it 5 stars. Most complaints? Slow customer support. One user said it took 3 business days to process a BTC withdrawal - while competitors do it in hours. Others reported issues with the “Candy Machine” feature - a promotional tool that supposedly gives away free tokens. Users say the rules are unclear and payouts are inconsistent.

Support is limited. Live chat is only available 9 AM-6 PM UTC. Email responses take 48 hours on average. There’s no phone support. No Reddit community. No active Discord. Just a Telegram group with 4,300 members - most of whom are asking for help.

Who Is Cobinhood For?

Cobinhood isn’t for everyone. It’s not for beginners who don’t own crypto yet. It’s not for people who want to buy Bitcoin with a credit card. It’s not for traders who need 100+ altcoins or high leverage. It’s not for those who value regulatory compliance or institutional-grade security.

It’s for one type of trader: someone who already owns crypto, trades frequently in small amounts, and wants to avoid trading fees at all costs. If you’re trading $5,000-$15,000 a month across 10-20 different coins, and you’re okay with slow withdrawals and zero customer support, then Cobinhood might save you money.

But even then, you’re taking a risk. The exchange has no clear revenue model. Its token is worthless. Its user base is shrinking - it ranks #127 globally by volume, with just 0.08% market share. Meanwhile, giants like Binance and Kraken are rolling out zero-fee tiers for high-volume traders. Cobinhood’s edge is disappearing.

What’s Next for Cobinhood?

Cobinhood claims it’s working on COB 3.0, institutional custody solutions, and a decentralized exchange integration by late 2025. But these are promises. No timelines have been met. No updates have been transparent. The roadmap looks like a wishlist, not a plan.

The biggest threat? Competition. Binance now offers 0% fees for users who pay with BNB. Kraken has fee discounts for high-volume traders. Coinbase lowered fees for its Pro users. Cobinhood’s zero-fee model is no longer unique - and without a strong brand, strong security, or strong support, it’s hard to see how it survives.

Final Verdict: Worth It?

Cobinhood isn’t a scam. It’s still operating. It hasn’t frozen withdrawals. It hasn’t disappeared. But it’s a relic of an earlier crypto era - one where “zero fees” was a revolutionary idea, and trust wasn’t a priority.

If you’re a cost-sensitive trader with existing crypto, and you’re okay with trading on a platform that feels like a startup that never grew up, then give it a small test balance. Don’t put your life savings in.

For everyone else - stick with exchanges that have real regulation, real support, real liquidity, and real track records. The fee savings aren’t worth the risk.