July 22, 2024

Go to Hodl Hodl: What is a Hodl Hodl?

Hodl Hodl continues a series of educational posts dedicated to traders who trade on other P2Pvenues but are familiar or not very familiar with Hodl Hodl (hodlhodl.com).What is Hodl Hodl

Hodl Hodl is a global P2P Bitcoin exchange that allows users to trade directly with each other and does not store user funds, blocking them in multisig escrow, which is explained below.

Since Hodl Hodl does not store funds, the exchange does notsubject to any control and regulation procedures. This allows transactions to take place without verification, you can also sell and buy bitcoins in any country, for any currency, using any payment method.

Our main functions:

  • Globally:trade in any country in the world, except for the US;
  • Anonymously:We do not ask for any documents, so you can safely trade without going through verification.
  • Safely:We do not store your funds, neither fiat nor cryptocurrency, so even in the event of a hack or closure of the site, your funds are safe;
  • Cheaply:standard exchange commission 0.6% of the transaction amount, which is divided equally between the buyer and seller (0.3% per transaction).

Also our advantages in relation to other P2P exchanges:

  • Lightning Support:you can trade in two exchange modes: on-chain and on the Lightning Network;
  • TESTNET:we have an exchange clone on the Bitcoin testnet where you can learn how to trade;
  • SegWit:We support native Bech32 Segwit addresses.

About company

In this section, we would like to dispel all doubts about the reputation and reliability of the company, as well as introduce you to the company with the help of short facts.

  1. In February 2018, the Hodl Hodl exchange was launched by two founders:
  • Maxim (CEO), 10+ years of experience in the financial sector;
  • Roman (CTO), 10+ years of experience in computer development.
  1. In November 2018, Hodl Hodl closed the round of financing, with the help of well-known investors in the crypto community, WhalePanda, Ambroid, Marsmensch and others;
  2. Hodl Hodl Exchange was mentioned by the largest media publishers worldwide, such as Forbes, Yahoo Finance, Coindesk, CNN and others;
  3. The company organizes one of the largest Bitcoin conferences in the world, “Baltic Honeybadger” (in 2019 for the third time on an annual basis).

How the exchange works

One of our main advantages is thatwe do not store your funds, which can be misleading and raise the question “How does the exchange work?”

We would like to briefly explain the process of trading on Hodl Hodl (with a more detailed explanation of the technical functionality in further blog posts).

  1. An offer is being created

It all starts with creating an offer; for this you are not requiredNOTHINGexcept an account on Hodl Hodl.

Many of our clients are accustomed to the fact that they need to send a deposit or pass verification in order to create an offer, forget about it, Hodl Hodl allows everyone to freely create offers without it.

If you are selling, all that is required of you issend bitcoins to escrow after the contract has been created. If you buy, you are only required to pay for the bitcoins, but only after the seller has locked the funds in escrow.

  1. Contract

The process is slightly different from other P2P exchanges, butnot much, you are still trading on a P2P basis, which means that you trade directly with a counterparty, and we provide a technical solution for this and a platform where you can find a counterparty.

The main difference is that we do not have any wallets and you do not need to send your funds to us before creating an offer and a contract.

The contract process step by step:

  1. A contract is created, Hodl Hodl generates a unique multisig escrow address;
  2. The seller sends Bitcoin to escrow directly from his wallet;
  3. The buyer sends the payment to the seller according to a pre-agreed payment method;
  4. The seller withdraws bitcoins from escrow directly to the buyer's wallet.

When the transaction is completed, we deduct 0.6% from the amount that the seller sent to the escrow, the commission is equally divided between the buyer and the seller, therefore, everyone pays 0.3%.

Here's the whole bidding process:no KYC / AML, no deposit of funds, no advance deposit or anything else.

BitNovosti.com publishes this press release “as is” and the information provided cannot be regarded as investment advice from the editorial board. The reader conducts an independent analysis and makes a decision at his own risk.