Move to Hodl Hodl: What is Hodl Hodl
This article is from the series “Move to Hodl Hodl” which explains:
- What Hodl Hodl is
- Quickly what’s behind the company
- How it works
To learn more about this series of articles and the idea behind it, read our introductory blog post.
Let’s get everything in order.
What is Hodl Hodl
Hodl Hodl is a global P2P Bitcoin only exchange, that allows users to trade directly with each other and it doesn’t hold user’s funds — locking it in multisig escrow instead, which is partially explained below.
Because Hodl Hodl does not hold any money, it is not subject to complex compliance procedures. This allows trades to happen without having to submit your identity to the exchange, and you can buy and sell Bitcoin in any country, using any payment system, for any currency.
Our main features are:
- Global: Hodl Hodl is available in every country in the world, besides the US;
- Anonymous: we don’t require you to pass verification, and you can freely trade without it;
- Secure: we don’t hold your funds, not fiat, not bitcoins, and even if the site is hacked or closed, your funds remain safe;
- Cheap: standard exchange fee is 0.6% from the trade amount, which is divided equally between buyer and seller (thus, 0.3% per user).
Also, key differences between us and other P2P exchanges:
- Lightning support: you can trade both on-chain and on the Lightning Network;
- TESTNET: we have a clone of our exchange on Bitcoin’s TESTNET network, where you can learn how to trade;
- SegWit: We provide support for native Bech32 Segwit addresses.
About the company
In this section, we would like to remove any doubts about the company’s reputation or reliability, and give you a brief introduction through short facts.
- Hodl Hodl was launched in February 2018 by two co-founders:
- CEO has 10+ years experience in the financial sector;
- CTO has 10+ years experience in software development.
2. In November 2018, Hodl Hodl closed a funding round, with well known investors in the crypto community.
3. Hodl Hodl has been recognized by the biggest media outlets in the world, such as Forbes, Yahoo Finance, Coindesk, CNN and others;
4. The company organizes one of the biggest Bitcoin conferences in the world “Baltic Honeybadger” (already its 3rd annual conference in 2019).
How exchange works
One of our key features is that we don’t store your funds, and this may be misleading and raise questions such as “How does the exchange work?”
We would like to give you a brief explanation (with a more detailed explanation of the technical features in future blog posts) of the trading workflow at Hodl Hodl.
- Creating offers
Everything starts with creating an offer, which requires NOTHING from you, besides an account at Hodl Hodl.
Many our customers are accustomed to the fact that they are required to make a deposit, or have passed verification, to create an offer — bin that, Hodl Hodl allows everyone to freely create offers without that.
If you are selling, you will be only be required to send bitcoins in the escrow after the contract has been created. If you are buying — you will be required to pay for the bitcoins, but only after the seller has deposited the bitcoins in the escrow first.
The contract workflow slightly differs from the workflow at other P2P exchanges, but not much — you still trade in a peer-to-peer manner, meaning that you trade directly with other people, and we only provide you a technical solution for this & the marketplace where you can find a counterparty.
The main difference is that we don’t have any wallets, and you don’t need to send bitcoins to us prior to creating offers and contracts.
Contracts step by step:
- Contract is created, Hodl Hodl generates the unique multisig escrow address for it;
- Seller deposits Bitcoin in the escrow directly from his wallet;
- Buyer pays the seller according to the agreed upon payment method;
- Seller releases Bitcoin from the multisig escrow directly to the buyers wallet.
When the trade is complete, we deduct 0.6% from the amount deposited that buyer receives through our services, which is divided equally between the buyer and seller (thus, everyone pays 0.3%).
That’s all for the trading process: no KYC/AML, no funds stored, no deposits prior to the contract or anything else.
In the next post we dig deeper into the comparison of Hodl Hodl with other P2P exchanges!
- Hodl Hodl exchange: hodlhodl.com
- TESTNET Hodl Hodl exchange: hhtestnet.com
- Predictions by Hodl Hodl: predictions.hodlhodl.com
- TESTNET Predictions by Hodl Hodl: predictions.hhtestnet.com
- E-mail: email@example.com
- Blog: medium.com/@hodlhodl
- Twitter: twitter.com/hodlhodl
- Telegram: t.me/HodlHodl
- Reddit: reddit.com/r/hodlhodl
- Slack: goo.gl/zaMnCn
- Facebook: facebook.com/hodlexchange
- Youtube: youtube.com/channel/UCgujEoZqX_FfDTLb3Uuhsdg